[Federal Register Volume 77, Number 124 (Wednesday, June 27, 2012)]
[Rules and Regulations]
[Pages 38211-38215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-15744]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 369
[Docket No. FMCSA-2012-0020]
RIN-2126-AB48
Rescission of Quarterly Financial Reporting Requirements
AGENCY: Federal Motor Carrier Safety Administration, DOT.
ACTION: Direct final rule.
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SUMMARY: By direct final rule, the Federal Motor Carrier Safety
Administration (FMCSA) eliminates the quarterly financial reporting
requirements for certain for-hire motor carriers of property (Form QFR)
and for-hire motor carriers of passengers (Form MP-1). This paperwork
burden can be removed without an adverse impact on safety or the
Agency's ability to maintain effective commercial regulations over the
for-hire trucking and passenger-carrying industries.
DATES: This rule is effective August 27, 2012, unless an adverse
comment, or notice of intent to submit an adverse comment, is either
submitted to our online docket via http://www.regulations.gov on or
before July 27, 2012 or reaches the Docket Management Facility by that
date. If an adverse comment, or notice of intent to submit an adverse
comment, is received by July 27, 2012, we will withdraw this direct
final rule and publish a timely notice of withdrawal in the Federal
Register.
ADDRESSES: You may submit comments identified by docket number FMCSA-
2012-0020 using any one of the following methods:
(1) Federal eRulemaking Portal: http://www.regulations.gov.
(2) Fax: 202-493-2251.
(3) Mail: Docket Management Facility (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
(4) Hand delivery: Same as mail address above, between 9 a.m. and 5
p.m. e.t., Monday through Friday, except Federal holidays. The
telephone number is 202-366-9329.
To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Comments'' portion of the
SUPPLEMENTARY INFORMATION section below for instructions on submitting
comments.
FOR FURTHER INFORMATION CONTACT: If you have questions on this rule,
email or call Ms. Vivian Oliver, Office of Research and Information
Technology, Federal Motor Carrier Safety Administration, 1200 New
Jersey Ave. SE., Washington, DC 20590; Telephone 202-366-2974; email
[email protected].
SUPPLEMENTARY INFORMATION:
I. Public Participation and Comments
If you would like to participate in this rulemaking, you may submit
comments and related materials. All comments received will be posted,
without change, to http://www.regulations.gov and will include any
personal information you have provided.
A. Submitting Comments
If you submit a comment, please include the docket number for this
rulemaking (FMCSA-2012-0020), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
online, or by fax, mail or hand delivery, but please use only one of
these means. We recommend that you include your name and a mailing
address, an email address, or a phone number in the body of your
document so that we can contact you if we have questions regarding your
submission. As a reminder, FMCSA will only consider adverse comments as
defined in 49 CFR 389.39(b) and explained below.
To submit your comment online, go to http://www.regulations.gov,
click on the ``submit a comment'' box, which will then become
highlighted in blue. In the ``Document Type'' drop down menu select
``Rule'' and insert ``FMCSA-2012-0020'' in the ``Keyword'' box. Click
``Search,'' then click on the balloon shape in the ``Actions'' column.
If you submit your comments by mail or hand delivery, submit them in an
unbound format, no larger than 8\1/2\ by 11 inches, suitable for
copying and electronic filing. If you submit them by mail and would
like to know that they reached the facility, please enclose a stamped,
self-addressed postcard or envelope.
B. Viewing Comments and Documents
To view comments, go to http://www.regulations.gov, click on the
``read comments'' box, which will then become highlighted in blue. In
the ``Keyword'' box insert ``FMCSA-2012-0020'' and click ``Search.''
Click the ``Open Docket Folder'' in the ``Actions'' column. If you do
not have access to the Internet, you may also view the docket online by
visiting the Docket Management Facility in Room W12-140 on the ground
floor of the Department of Transportation West Building, 1200 New
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m.
e.t., Monday through Friday, except Federal holidays.
C. Privacy Act
Anyone can search the electronic form of comments received into any
of our dockets by the name of the individual submitting the comment (or
signing the comment, if submitted on
[[Page 38212]]
behalf of an association, business, labor union, etc.). You may review
a Privacy Act notice regarding our public dockets in the January 17,
2008 issue of the Federal Register (73 FR 3316).
II. Regulatory Information
FMCSA publishes this direct final rule under 49 CFR 389.11 and
389.39, because the Agency has determined that the rule makes non-
controversial, minor amendments to 49 CFR part 369 that will reduce
reporting requirements for certain for-hire motor carriers. FMCSA does
not expect any adverse comments. If no adverse comments or notices of
intent to submit an adverse comment are received by July 27, 2012, this
rule will become effective as stated in the DATES section. In that
case, approximately 30 days before the effective date, we will publish
a document in the Federal Register stating that no adverse comments
were received and confirming that this rule will become effective as
scheduled. However, if we receive any adverse comments or notices of
intent to submit an adverse comment, we will publish a document in the
Federal Register announcing the withdrawal of all or part of this
direct final rule. If we decide to proceed with a rulemaking following
receipt of any adverse comments, we will publish a separate notice of
proposed rulemaking (NPRM) and provide a new opportunity for comment.
A comment is considered ``adverse'' if the comment explains why
this rule or a part of this rule would be inappropriate, including a
challenge to its underlying premise or approach, or would be
ineffective or unacceptable without a change.
III. Background
Annual Financial Reporting Requirements
Section 14123 of title 49, United States Code, requires the filing
of annual financial reports by certain for-hire motor carriers of
property and household goods (Form M).
The annual reporting program was implemented on Dec. 24, 1938 (3 FR
3158) (the first annual report for 1938 was due by Mar. 31, 1939) and
subsequently was transferred from the Interstate Commerce Commission
(ICC) to the U.S. Department of Transportation's (DOT) Bureau of
Transportation Statistics (BTS) on January 1, 1996. The Secretary of
DOT delegated to BTS the responsibility for the program on December 17,
1996 (61 FR 68162-02). Responsibility for collection of Form M (for-
hire property carriers, including household goods carriers) and Form
MP-1 (for-hire passenger carriers), including quarterly reporting
requirements for such forms (Form QFR), was transferred from the BTS to
the FMCSA on August 17, 2004 (69 FR 51009), and the regulations were
redesignated as 49 CFR part 369 on August 10, 2006 (71 FR 45740). FMCSA
has continued to collect carriers' annual reports and to furnish copies
of the reports requested under the Freedom of Information Act.
Quarterly Financial Reporting
Subsection 14123(a)(2) of title 49, United States Code, allows the
Agency to require quarterly financial reports from for-hire property
and passenger carriers, but it does not mandate that the Agency require
these reports to be submitted. These requirements are included in 49
CFR Part 369 and apply to Class I (average annual gross transportation
operating revenues of $10 million or more) and Class II (average annual
gross transportation operating revenues of $3 million dollars or more,
but less than $10 million) for-hire motor carriers of property. The
requirements also apply to Class I (average annual gross transportation
operating revenues of $5 million or more) for-hire motor carriers of
passengers.
E.O. 13563 Improving Regulation and Regulatory Review
On January 18, 2011, the President issued Executive Order 13563,
``Improving Regulation and Regulatory Review'' (76 FR 3821, January 21,
2011), which required agencies, among other things, to prepare plans
for reviewing existing rules. On February 16, 2011, DOT published a
notice requesting comments on its regulatory review plan (76 FR 8940).
A public meeting on this issue was held on March 14, 2011. DOT placed
all of the comments it received in docket DOT-OST-2011-0025, along with
a transcript of the March 14 meeting. DOT received 102 comments, many
offering multiple suggestions. One person argued that the financial
reporting requirements transferred from the ICC to FMCSA provide no
discernible benefits to the government or industry.
FMCSA rescinds the quarterly financial reporting requirements for
certain for-hire motor carriers of property (Form QFR) and for-hire
motor carriers of passengers (Form MP-1). This burden can be removed
without an adverse impact on safety or the Agency[acute]s ability to
maintain effective commercial regulations over the for-hire trucking
and passenger-carrying industries. FMCSA does not currently use the
quarterly reports because the reports cover a small subset of the motor
carriers of property and motor carriers of passengers that are subject
to the Agency's safety oversight and the financial reporting data is
not necessary to monitor carriers' safety performance. The information
collected does not currently support any Agency regulatory function,
nor does it have practical utility for the Agency or for those carriers
who must comply with the reporting requirement.
This direct final rulemaking is non-controversial because it
``Make[s] minor changes to rules regarding statistics and reporting
requirements, such as a change in reporting period (for example, from
quarterly to annually) or eliminat[es] a type of data collection no
longer necessary'' 49 CFR 389.39(a)(5). Elimination of the outdated and
unnecessary quarterly reporting requirement falls squarely within the
intended purpose of a direct final rule. FMCSA, therefore, finds there
is good cause to dispense with the normal notice and comment procedures
since reducing the reporting requirement is not likely to be
controversial. Consequently, receipt of public comments prior to
finalizing this action is unnecessary. 49 CFR 389.11.
IV. Discussion of the Rule
For the reasons discussed in the Background section, above, FMCSA
amends 49 CFR part 369 by eliminating the quarterly reporting
requirement under 49 CFR 369.1 and 369.4. In addition, FMCSA makes
other conforming technical amendments to 49 CFR 369.8, 369.9, and
369.11.
In the course of redesignating 49 CFR part 1420 as 49 CFR part 369
in 2006 (August 10, 2006, 71 FR 45740), the authority citation for part
369 was inadvertently corrupted by adding references to (1) 5 U.S.C.
553 and 559 of the Administrative Procedure Act relating to rulemaking
and administrative law judges, and (2) 16 U.S.C. 1456, a provision of
the Coastal Zone Management Act (CZMA) of 1972. These statutes provide
no authority for part 369 and the references have therefore been
removed.
V. Regulatory Analyses
When developing this direct final rule, FMCSA considered numerous
statutes and executive orders related to rulemaking. The Agency's
analyses are summarized below.
A. Regulatory Planning and Review
Under Executive Order (E.O.) 12866 (58 FR 51735, October 4, 1993)
as supplemented by E.O. 13563 (76 FR
[[Page 38213]]
3821, January 18, 2011), FMCSA must determine whether a regulatory
action is ``significant'' and, therefore, subject to Office of
Management and Budget (OMB) review and the requirements of the E.O. The
Order defines ``significant regulatory action'' as one that is likely
to result in a rule that may:
(1) Have an annual effect on the economy of $100 million or more or
adversely affect in a material way the economy, a sector of the
economy, productivity, competition, jobs, the environment, public
health or safety, or State, local, or tribal governments or
communities.
(2) Create a serious inconsistency or otherwise interfere with an
action taken or planned by another agency.
(3) Materially alter the budgetary impact of entitlements, grants,
user fees, or loan programs or the rights and obligations of recipients
thereof.
(4) Raise novel legal or policy issues arising out of legal
mandates, the President's priorities, or the principles set forth in
the E.O.
This rule is not a significant regulatory action under section 3(f)
of Executive Order 12866, Regulatory Planning and Review, and does not
require an assessment of potential costs and benefits under section
6(a)(3) of that Order. The Office of Management and Budget (OMB) has
not reviewed it under that Order. This rule will not have a significant
economic impact. In fact, elimination of the reporting requirement
will, if anything, have a beneficial economic impact on industry.
B. Small Entities
Under the Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121,
Title II, 110 Stat. 857), FMCSA is not required to prepare a final
regulatory flexibility analysis under 5 U.S.C. 604(a) for this final
rule because the agency has not issued an NPRM prior to this action.
C. Paperwork Reduction Act
This rule eliminates two quarterly reporting requirements that are
currently reported to OMB under the Paperwork Reduction Act (PRA) of
1995 (44 U.S.C. 3501-3520). Form QFR Quarterly for property carriers,
authorized by OMB under information collection 2126-0033, is two pages
long and takes approximately 27 minutes for each of the approximately
111 carriers to complete. This report is filed 4 times per year, so the
total burden hour impact per filer per year is 4 x 27/60 = 1.8 hours.
Multiplying this figure by the 111 carriers that file quarterly reports
yields a total burden estimate of 200 hours.
FMCSA assumes that completion and submission of Form QFR is
performed by an accountant designated by the business entity. The
median salary of an accountant in the truck transportation industry is
$25.90 per hour (BLS, May 2010).\1\ Two adjustments are made to this
hourly compensation estimate. First, employee benefits are estimated at
50.0 percent of the employee wage.\2\ Second, employee wage and
benefits are increased by 27 percent to include relevant firm
overhead.\3\ Applying the estimated 50.0 percent factor for employee
benefits and 27 percent for overhead results in $49.34 in hourly
compensation for the accountant ($25.90 x (1 + 0.50) x (1 + 0.27) =
$49.34). The total annual salary cost burden associated with the
filings is $9,868 ($49.34 x 200 hours = $9,868.00).
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\1\ Bureau of Labor Statistics, ``Occupational Employment
Survey''. May 2010. http://www.bls.gov/oes/current/naics3_484000.htm (accessed December 15, 2011). North American Industry
Classification System (NAICS) 484000, Truck Transportation, Standard
Occupational Classification (SOC) 13-2011, Accountants and Auditors.
\2\ FMCSA estimates this 50% employee benefit rate by using the
private industry average wage ($16.03 per hour) and benefit
information ($8.01 per hour) for production, transportation, and
moving material workers. Benefits thus amount to 50.0 percent of
wages (0.500 = $8.01/$16.03). From ``Employer Costs for Employee
Compensation--September 2010''. Accessed on 23-August-2011 at http://www.bls.gov/news.release/pdf/ecec.pdf.
\3\ Berwick, Farooq. ``Truck Costing Model for Transportation
Managers''. Upper Great Plains Transportation Institute, North
Dakota State University (2003) accessed on 23-August-2011 at http://ntl.bts.gov/lib/24000/24200/24223/24223.pdf.
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The Class I passenger carrier financial quarterly survey (MP-1
Quarterly), which is two pages long and takes about 18 minutes to
complete for the estimated 2 participating carriers is authorized by
OMB under information collection 2126-0031. Since this report is also
filed 4 times per year, the total burden hours associated with the
requirement are 4 x 18/60 x 2 = 2.4 hours.
FMCSA believes the completion and submission of Form MP-1 is
typically performed by a business and financial operations expert
designated by the business entity because of the level of detail in the
financial reports. The median salary of a business and financial
operations expert in the interurban and rural bus transportation
industry is $26.41 per hour (BLS, May 2010).\4\ Two adjustments are
made to this hourly estimate. First, employee benefits are estimated at
50.0 percent of the employee wage.\5\ Second, employee wage and
benefits are increased by 27 percent to include relevant firm
overhead.\6\ Applying the estimated 50.0 percent factor for employee
benefits and 27 percent for overhead results in $50.31 in hourly
compensation for the business and financial operations expert ($26.41 x
(1 + 0.50) x (1 + 0.27) = $50.31). The total annual salary cost burden
associated with the filings is $121 ($50.31 x 2.4 hours = $120.74,
rounded to the nearest dollar).
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\4\ Bureau of Labor Statistics, ``Occupational Employment
Survey''. May 2010. http://www.bls.gov/oes/current/naics4_485200.htm (accessed December 15, 2011). North American Industry
Classification System (NAICS) 485200, Interurban and Rural Bus
Transportation, Standard Occupational Classification (SOC) 13-2000,
Business and Financial Operations Occupations.
\5\ FMCSA estimates this 50% employee benefit rate by using the
private industry average wage ($16.03 per hour) and benefit
information ($8.01 per hour) for production, transportation, and
moving material workers. Benefits thus amount to 50.0 percent of
wages (0.500 = $8.01/$16.03). From ``Employer Costs for Employee
Compensation--September 2010''. Accessed on 23-August-2011 at http://www.bls.gov/news.release/pdf/ecec.pdf.
\6\ Berwick, Farooq. ``Truck Costing Model for Transportation
Managers''. Upper Great Plains Transportation Institute, North
Dakota State University (2003) accessed on 23-August-2011 at http://ntl.bts.gov/lib/24000/24200/24223/24223.pdf.
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Collectively, eliminating these reporting requirements reduces the
burden to industry by 202.4 hours and $9,989.
The PRA requires that each agency ``shall certify * * * that each
collection of information * * * is necessary for the proper performance
of the functions of the agency, including that the information has
practical utility.'' 44 U.S.C. 3506(c)(3)(A); 5 CFR 1320.5(d)(1)(iii).
FMCSA can no longer certify that the quarterly requirements are
``necessary for the proper performance of the functions of the
agency.'' Therefore, FMCSA is discontinuing the quarterly reporting
requirements.
D. Federalism
A rule has federalism implications under Executive Order 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on the States. FMCSA has analyzed this rule
under that Order and have determined that it does not have federalism
implications.
E. Unfunded Mandates Reform Act
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a
[[Page 38214]]
State, local, or tribal government, in the aggregate, or by the private
sector of $143.1 million (which is the value of $100,000,000 in 2010
after adjusting for inflation) or more in any 1 year. This rule would
not result in such an expenditure.
F. Taking of Private Property
This rule will not effect a taking of private property or otherwise
have taking implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.
G. Civil Justice Reform
This rule meets applicable standards in sections 3(a) and 3(b)(2)
of Executive Order 12988, Civil Justice Reform, to minimize litigation,
eliminate ambiguity, and reduce burden.
H. Protection of Children
FMCSA has analyzed this rule under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not economically significant and does not create an
environmental risk to health or risk to safety that may
disproportionately affect children.
I. Energy Effects
FMCSA has analyzed this rule under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. The Agency has determined that it is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' under Executive Order 12866 and will
not have a significant adverse effect on the supply, distribution, or
use of energy. The Administrator of the Office of Information and
Regulatory Affairs has not designated it as a significant energy
action. Therefore, it does not require a Statement of Energy Effects
under Executive Order 13211.
J. Environment
The Agency analyzed this direct final rule for the purpose of the
National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et
seq.) and determined under our environmental procedures Order 5610.1,
published March 1, 2004 (69 FR 9680), that this action is categorically
excluded under two categorical exclusions (CEs) in the Order from
further environmental documentation. These are found in Appendix 2,
paragraph 4, which covers data and information gathering, and Appendix
2, paragraph 6(y)(2) concerning reports provided by motor carriers.
This direct final rulemaking makes minor changes to rules regarding ``a
change in reporting period (for example, from quarterly to annually) or
eliminating a type of data collection no longer necessary,'' as
authorized by 49 CFR 389.39(a)(5). The action involves no extraordinary
circumstances that would have any effect on the quality of the
environment. Thus, the action does not require an environmental
assessment or an environmental impact statement.
FMCSA also analyzed this rule under the Clean Air Act, as amended
(CAA), section 176(c), (42 U.S.C. 7401 et seq.) and implementing
regulations promulgated by the Environmental Protection Agency.
Approval of this action is exempt from the CAA's general conformity
requirement since it does not result in any potential increase in
emissions that are above the general conformity rule's de minimis
emission threshold levels (40 CFR 93.153(c)(2)). This action merely
eliminates a reporting requirement.
The Categorical Exclusion Determination is available for inspection
or copying in the regulations.gov Web site listed under ADDRESSES.
List of Subjects in 49 CFR Part 369
Motor carriers, Reporting and recordkeeping requirements.
In consideration of the foregoing, FMCSA amends 49 CFR part 369 in
title 49, Code of Federal Regulations, chapter III, subchapter B, as
follows:
PART 369--[AMENDED]
0
1. The authority citation for part 369 is revised to read as follows.
Authority: 49 U.S.C. 14123; 49 CFR 1.73.
0
2. Amend Sec. 369.1, by removing paragraph (b) and redesignating
paragraph (c) as paragraph (b) and revising it to read as follows.
Sec. 369.1 Annual reports of motor carriers of property, motor
carriers of household goods, and dual property carriers.
* * * * *
(b) Where to file report. Carriers must file the annual reports
with the Federal Motor Carrier Safety Administration at the address in
Sec. 369.6. You can obtain blank copies of the report forms from the
Federal Motor Carrier Safety Administration Web site http://www.fmcsa.dot.gov/forms/reporting/mcs_info.htm#fos.
0
3. Revise Sec. 369.4 to read as follows.
Sec. 369.4 Annual reports of Class I carriers of passengers.
(a) All Class I motor carriers of passengers shall complete and
file Motor Carrier Annual Report Form MP-1 for Motor Carriers of
Passengers (Form MP-1).
(b) Accounting period. (1) Motor Carrier Annual Report Form MP-1
shall be used to file annual selected motor carrier data.
(2) The annual accounting period shall be based either:
(i) On the 31st day of December in each year, or
(ii) An accounting year of thirteen 4-week periods ending at the
close of the last 7 days of each calendar year.
(3) A carrier electing to adopt an accounting year of thirteen 4-
week periods shall file with the FMCSA a statement showing the day on
which its accounting year will close. A subsequent change in the
accounting period may not be made except by authority of the FMCSA.
(c) The annual report shall be filed on or before March 31 of the
year following the year to which it relates. The annual report shall be
filed in duplicate with the Federal Motor Carrier Safety Administration
at the address in Sec. 369.6. Copies of Form MP-1 may be obtained from
the FMCSA.
0
4. Amend Sec. 369.8 by revising paragraph (d) and removing the table
following it, to read as follows.
Sec. 369.8 Requests for exemptions from filing.
* * * * *
(d) When requests are due. The timing of a request for an exemption
from filing is the same as the timing for a request for an exemption
from public release contained in Sec. 369.9(d). For Annual Form M,
both the report and the request are due by March 31.
* * * * *
0
5. Amend Sec. 369.9 by removing paragraph (d)(4) and revising
paragraph (e)(4) and removing the table following it, to read as
follows.
Sec. 369.9 Requests for exemptions from public release.
* * * * *
(e) * * *
(4) FMCSA will grant or deny each request no later than 90 days
after the request's due date as defined in paragraph (d) of this
section. The decision by FMCSA shall be administratively final. For
Annual Form M, both the report and the request are due by March 31, and
the decision is due by June 30.
* * * * *
Sec. 369.11 [Removed]
0
6. Remove Sec. 369.11.
[[Page 38215]]
Issued on: June 22, 2012.
Anne S. Ferro,
Administrator.
[FR Doc. 2012-15744 Filed 6-26-12; 8:45 am]
BILLING CODE 4910-EX-P