[Federal Register Volume 78, Number 164 (Friday, August 23, 2013)]
[Rules and Regulations]
[Pages 52607-52655]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20446]



[[Page 52607]]

Vol. 78

Friday,

No. 164

August 23, 2013

Part II





Department of Transportation





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Federal Motor Carrier Safety Administration





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49 CFR Parts 360, 365, 366, et al.





Unified Registration System; Final Rule

Federal Register / Vol. 78, No. 164 / Friday, August 23, 2013 / Rules 
and Regulations

[[Page 52608]]


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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 360, 365, 366, 368, 385, 387, 390 and 392

[Docket No. FMCSA-1997-2349]
RIN 2126-AA22


Unified Registration System

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule.

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SUMMARY: The FMCSA amends its regulations to require interstate motor 
carriers, freight forwarders, brokers, intermodal equipment providers 
(IEPs), hazardous materials safety permit (HMSP) applicants, and cargo 
tank facilities under FMCSA jurisdiction to submit required 
registration and biennial update information to the Agency via a new 
electronic on-line Unified Registration System (URS). FMCSA establishes 
fees for the registration system, discloses the cumulative information 
to be collected in the URS, and provides a centralized cross-reference 
to existing safety and commercial regulations necessary for compliance 
with the registration requirements. The final rule implements statutory 
provisions in the ICC Termination Act of 1995 (ICCTA) and the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users, 2005 (SAFETEA-LU). The URS will streamline the registration 
process and serve as a clearinghouse and depository of information on, 
and identification of, motor carriers, brokers, freight forwarders, 
IEPs, HMSP applicants, and cargo tank facilities required to register 
with FMCSA.

DATES: Effective Dates: The final rule is effective October 23, 2015, 
except for Sec.  390.19 (amendatory instruction number 55) and Sec.  
392.9b (amendatory instruction 61), which are effective November 1, 
2013, and except for Sec.  366.2 (amendatory instruction 19), which is 
effective April 25, 2016.
    Compliance Dates: The compliance date for this final rule is 
October 23, 2015, except that the compliance date for Sec. Sec.  390.19 
and 392.9b is November 1, 2013, and the compliance date for Sec.  366.2 
is April 25, 2016.
    Petitions for reconsideration must be received by September 23, 
2013.

ADDRESSES: Petitions for reconsideration must be submitted to: 
Administrator, Federal Motor Carrier Safety Administration, 1200 New 
Jersey Avenue SE., Washington, DC 20590-0001.
    All background documents, comments, and materials related to this 
rule may be viewed in docket number FMCSA-1997-2349 using either of the 
following methods:
     Federal eRulemaking Portal: http://www.regulations.gov.
     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.

FOR FURTHER INFORMATION CONTACT: Mr. Wesley Ray, IT Specialist, IT 
Development Division, (202) 366-3876, or by email at 
[email protected]. Business hours are from 8:00 a.m. to 4:30 p.m. ET, 
Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION:

Preamble Table of Contents

I. Public Participation
    A. Viewing Comments and Documents
    B. Privacy Act
II. Acronyms and Abbreviations
III. Executive Summary
    A. Purpose of the URS
    B. Summary of Major Provisions
    1. Entities Included in the URS
    2. The Application Process
    3. Updating URS Information
    4. Identification Solely by USDOT Number
    5. User Fees
    6. Evidence of Financial Responsibility
    7. Process Agent Designations
    8. Transfers of Operating Authority
    9. Impacts on State Registration Systems
    10. Compliance Dates
    C. Benefits and Costs
IV. Background
    A. Legal Authority
    B. Regulatory History
V. Discussion of Comments
    A. Summary of Comments
    B. Overly Complex Application Form
    C. Insufficient Technical Information
    D. Applicability
    1. Cargo Tank Program
    2. Certain Intrastate HM Carriers
    3. Hazardous Materials Safety Permit Applicants
    4. Mexico-Domiciled Carriers
    5. Non-Motor Carrier Leasing Companies
    6. School Bus Operations
    E. Mandatory Electronic Filing
    F. Biennial Update
    G. Administrative Filings
    1. Timeframe for Filing Changes to Name, Address
    2. Financial Responsibility for Certain FTA Grantees
    3. Financial Responsibility for Private HM Carriers
    4. Blanket Agents
    H. Potential URS Impacts on Existing Systems and Programs
    1. Impacts on PRISM Program
    2. Impacts on UCR Agreement
    I. Transfers of Operating Authority and Concerns about 
Reincarnated Carriers
    J. Reinstatement of Operating Authority
    K. Unauthorized Re-Brokering of Freight
    L. Americans with Disabilities Act Compliance
    M. Other Suggested Revisions to MCSA-1 Form and Instructions
VI. Section-by-Section Analysis
    A. Part 360, Fees for Motor Carrier Registration and Insurance
    B. Part 365, Rules Governing Applications for Operating 
Authority
    C. Part 366, Designation of Process Agent
    D. Part 368, Application for a Certificate of Registration to 
Operate in Municipalities in the United States on the United States-
Mexico International Border or within the Commercial Zones of Such 
Municipalities
    E. Part 385, Safety Fitness Procedures
    F. Part 387, Minimum Levels of Financial Responsibility for 
Motor Carriers
    G. Part 390, Federal Motor Carrier Safety Regulations, General
    H. Part 392, Driving of Commercial Motor Vehicles
VII. Regulatory Evaluation of the URS Final Rule: Summary of 
Calculation of Benefits and Costs
VIII. Rulemaking Analyses and Notices
    A. Executive Order 12866 and Executive Order 13563
    B. Regulatory Flexibility Act
    C. Unfunded Mandates Reform Act of 1995
    D. National Environmental Policy Act
    E. Paperwork Reduction Act
    F. Executive Order 12630 (Taking of Private Property)
    G. Executive Order 12988 (Civil Justice Reform)
    H. Executive Order 13045 (Protection of Children)
    I. Executive Order 13132 (Federalism)
    J. Executive Order 12372 (Intergovernmental Review)
    K. Executive Order 13211 (Energy Supply, Distribution, or Use)
    L. Privacy Impact Analysis

I. Public Participation

A. Viewing Comments and Documents

    To view comments, as well as documents identified in this preamble 
as available in the docket, go to http://www.regulations.gov and click 
on the ``Read Comments'' box in the upper right hand side of the 
screen. Then, in the ``Keyword'' box, insert ``FMCSA-1997-2349'' and 
click ``Search.'' Next, click ``Open Docket Folder'' in the ``Actions'' 
column. Finally, in the ``Title'' column, click on the document you 
would like to review. If you do not have access to the Internet, you 
may view the docket online by visiting the Docket Management Facility 
in Room W12-140 on the ground floor of the DOT West Building, 1200 New 
Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 p.m., ET, 
Monday through Friday, except Federal holidays.

[[Page 52609]]

B. Privacy Act

    All comments received are posted without change to http://www.regulations.gov. Anyone is able to search the electronic form for 
all comments received into any of our dockets by the name of the 
individual submitting the comment (or signing the comment, if submitted 
on behalf of an association, business, labor union, or other 
organization). You may review DOT's complete Privacy Act Statement in 
the Federal Register published on January 17, 2008 (73 FR 3316), or you 
may visit http://edocket.access.gpo.gov/2008/pdf/E8-785.pdf.

II. Acronyms and Abbreviations

ADA Americans with Disabilities Act
ANPRM Advance Notice of Proposed Rulemaking
APA Administrative Procedure Act
ATA American Trucking Associations
BASIC Behavioral Analysis Safety Improvement Category
BI&PD Bodily Injury and Property Damage
CDL Commercial Driver's License
CFR Code of Federal Regulations
CMV Commercial Motor Vehicle
CR Compliance Review
CSA Compliance Safety Accountability
CVIEW Commercial Vehicle Information Exchange Window
DBA Doing Business As
DOJ U.S. Department of Justice
eFOTM Electronic Field Operations Training Manual
EPT Example Private Trucking
FF Freight Forwarder
FMCSA Federal Motor Carrier Safety Administration
FMCSRs Federal Motor Carrier Safety Regulations
FR Federal Register
FTA Federal Transit Administration
GVWR Gross Vehicle Weight Rating
HHG Household Goods
HM Hazardous Materials
HMSP Hazardous Materials Safety Permit
ICC Interstate Commerce Commission
ICCTA ICC Termination Act of 1995
IEP Intermodal Equipment Provider
IRP International Registration Plan
IT Information Technology
LLP Limited Liability Partnership
MAP-21 Moving Ahead for Progress in the 21st Century Act
MC Motor Carrier
MCMIS Motor Carrier Management Information System
MCSA-1 Application for USDOT Registration/Operating Authority
MoDOT Missouri Department of Transportation
NADA-ATDD National Automobile Dealers Association--American Truck 
Dealers Division
NAFTA North American Free Trade Agreement
NIST National Institute of Standards and Technology
NPRM Notice of Proposed Rulemaking
NPTC National Private Truck Council
NSTA National School Transportation Association
NTSB National Transportation Safety Board
NTTC National Tank Truck Carriers
OOIDA Owner-Operator Independent Drivers Association
OTRB Act Over-the-Road Bus Transportation Accessibility Act of 2007
PHMSA Pipeline and Hazardous Materials Safety Administration
PU Power Unit
PRISM Performance and Registration Information Systems Management
SAFETEA-LU Safe, Accountable, Flexible, and Efficient Transportation 
Equity Act: A Legacy for Users
SBA Small Business Administration
SNPRM Supplemental Notice of Proposed Rulemaking
SSRS Single State Registration System
TIA Transportation Intermediaries Association
UCR Unified Carrier Registration
URS Unified Registration System
U.S.C. United States Code
USDOT U.S. Department of Transportation
VMT Vehicle Miles Traveled

III. Executive Summary

A. Purpose of the URS

    This final rule establishes the Unified Registration System (URS) 
required by the ICC Termination Act of 1995 \1\ (ICCTA) and the Safe, 
Accountable, Flexible, and Efficient Transportation Equity Act: A 
Legacy for Users (SAFETEA-LU).\2\ In the ICCTA, Congress enacted 49 
U.S.C. 13908, which directed the Secretary of Transportation 
(Secretary) to issue regulations to replace certain existing 
registration and information systems with a single, online, Federal 
system.\3\ SAFETEA-LU modified the requirements for a unified 
registration system contained in the ICCTA. The details of these 
requirements are discussed in section IV.A below (Legal Authority).
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    \1\ Public Law 104-88, 109 Stat. 803 (Dec. 29, 1995).
    \2\ Public Law 109-59, 119 Stat. 1144 (Aug. 10, 2005).
    \3\ The Secretary of Transportation has delegated to the 
Administrator of the FMCSA this authority to carry out functions 
relating to registration requirements. See 49 CFR 1.87(a)(5).
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    The implementation of the URS final rule will consolidate the 
following registration and information systems: (1) The U.S. Department 
of Transportation (USDOT) identification number system; (2) the 49 
U.S.C. chapter 139 commercial registration system; (3) the 49 U.S.C. 
13906 financial responsibility information system; and (4) the service 
of process agent designation system (49 U.S.C. 503 and 13304).
    The URS will improve the registration process for motor carriers, 
property brokers, freight forwarders, IEPs, HMSP applicants and cargo 
tank facilities required to register with FMCSA, and streamline the 
existing Federal registration processes to ensure the Agency can more 
efficiently track these entities. The URS also will increase public 
accessibility to data about interstate motor carriers, property 
brokers, freight forwarders, IEPs, HMSP applicants, and cargo tank 
facilities.
    The Moving Ahead for Progress in the 21st Century Act (MAP-21) was 
enacted on July 6, 2012.\4\ This legislation includes several 
provisions that are relevant to the implementation of the URS. However, 
many of these statutory provisions will require notice-and-comment 
rulemakings because they are not self-executing and provide discretion 
in establishing the details for the implementing regulations. Rather 
than delay issuance of this final rule, and to ensure an appropriate 
opportunity for public participation in the regulatory changes 
necessitated by MAP-21, the Agency will initiate a separate rulemaking 
proceeding(s) to address the necessary regulatory changes. The Agency 
notes that in some instances, these changes to the planned 
implementation of the URS program will not require rulemaking but may 
be addressed during the implementation phase of the URS. The enactment 
of MAP-21 also necessitates minor changes in the MCSA-1 Form and 
Instructions presented in the supplemental notice of proposed 
rulemaking (SNPRM). These changes do not require notice-and-comment 
rulemaking,\5\ and FMCSA incorporates some of those changes in today's 
final rule.
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    \4\ Public Law 112-141, 126 Stat. 405 (July 6, 2012).
    \5\ Under section 553(b)(3)(B) of the Administrative Procedure 
Act [5 U.S.C. 553(b)(3)(B)] (APA), notice and comment rulemaking is 
not required when the Agency for good cause finds that notice and 
public procedure are impracticable, unnecessary, or contrary to the 
public interest. The changes made in response to MAP-21 were limited 
to modifying the MCSA-1 Form and Instructions to incorporate new 
statutory language regarding affiliations with other regulated 
entities. The SNPRM had proposed different, but similar language; 
thus the modification was clearly within the scope of the issues 
that were subject to notice and comment in the SNPRM. For this 
reason, the agency believes that, consistent with the APA, providing 
further opportunity for further public comment on these limited 
changes is unnecessary.
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B. Summary of Major Provisions

1. Entities Included in the URS
    The URS final rule applies to every entity under FMCSA's commercial 
and/or safety jurisdiction, except for Mexico-domiciled motor carriers 
seeking authority to operate beyond the border commercial zones 
(Mexico-domiciled

[[Page 52610]]

long-haul carriers). SAFETEA-LU amended 49 U.S.C. 13908(b) to require 
the URS to ``serve as a clearinghouse and depository of information on, 
and identification of, all foreign and domestic motor carriers, motor 
private carriers, brokers, freight forwarders, and others required to 
register with [DOT].'' FMCSA is excluding Mexico-domiciled long-haul 
carriers at this time because the U.S.-Mexico border is not open to 
such carriers, other than the participants in the current cross-border 
long-haul trucking pilot program.\6\ Table 1 describes in detail the 
different type of entities that must register under the URS established 
in today's final rule.
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    \6\ See Pilot Program on the North American Free Trade Agreement 
(NAFTA) Long-Haul Trucking Provisions, 76 FR 40420 (July 8, 2011); 
see also http://www.fmcsa.dot.gov/intl-programs/trucking/trucking-program.aspx (last accessed July 31, 2012).

  Table 1--Entities Required To Register Under the Unified Registration
                                 System
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                 Entity                            Description
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1. For hire (exempt and non-exempt) or
 private motor carrier:
    a. For-hire motor carrier..........  A person engaged in the
                                          transportation of goods or
                                          passengers for compensation.
        i. Exempt......................  A person engaged in
                                          transportation exempt from
                                          commercial regulation under 49
                                          U.S.C. chapter 135. Exempt
                                          motor carriers that operate
                                          commercial motor vehicles as
                                          defined in 49 U.S.C. 31101 are
                                          subject to the safety
                                          regulations set forth in 49
                                          CFR chapter III.
        ii. Non-exempt.................  A person engaged in
                                          transportation subject to
                                          commercial regulation under 49
                                          U.S.C. chapter 139, regardless
                                          of whether such transportation
                                          is subject to the safety
                                          regulations.
    b. Private motor carrier...........  A person who provides
                                          transportation of property or
                                          passengers, by commercial
                                          motor vehicle, and is not a
                                          for-hire motor carrier.
2. Broker..............................  A person who, for compensation,
                                          arranges, or offers to
                                          arrange, the transportation of
                                          property in interstate
                                          commerce by a non-exempt for-
                                          hire motor carrier.
3. Freight forwarder...................  A person holding itself out to
                                          the general public (other than
                                          as an express, pipeline, rail,
                                          sleeping car, motor, or water
                                          carrier) to provide
                                          transportation of property for
                                          compensation in interstate
                                          commerce, and in the ordinary
                                          course of its business: (1)
                                          Performs or provides for
                                          assembling or consolidating of
                                          break-bulk, and distributing
                                          of shipments; (2) assumes
                                          responsibility for
                                          transportation from place of
                                          receipt to destination; and
                                          (3) uses for any part of the
                                          transportation a for-hire
                                          motor carrier subject to FMCSA
                                          commercial jurisdiction.
4. Intermodal equipment provider.......  A person who interchanges
                                          intermodal equipment with a
                                          motor carrier pursuant to a
                                          written interchange agreement
                                          or has a contractual
                                          responsibility for the
                                          maintenance of the intermodal
                                          equipment.
5. Hazardous Materials Safety Permit     A motor carrier that is
 applicant.                               approved to transport in
                                          interstate or intrastate
                                          commerce any of the hazardous
                                          materials, in the quantity
                                          indicated for each, listed
                                          under 49 CFR 385.403.
6. Cargo tank facility.................  A cargo tank and cargo tank
                                          motor vehicle manufacturer,
                                          assembler, repairer,
                                          inspector, tester, or design-
                                          certifying engineer that is
                                          subject to registration
                                          requirements under 49 CFR
                                          107.502 and 49 U.S.C. 5108.
------------------------------------------------------------------------

2. The Application Process
    The entities covered by the URS will be required to register with 
FMCSA and update registration information provided on the new Form 
MCSA-1 periodically as required. Entities that already have a USDOT 
Number do not need to file the Form MCSA-1 until they need to update 
registration information. FMCSA is requiring that regulated entities 
fill out and update their registration information electronically using 
a web-based, online version of Form MCSA-1. The Agency believes 
mandatory electronic filing will result in substantial cost savings to 
both applicants and FMCSA. The Agency is developing the online Form 
MCSA-1 application process to guide the applicant to only the MCSA-1 
information pertinent to its operations, and to skip any irrelevant 
sections. The application process will mimic the interactive, interview 
format of popular tax preparation software, rather than a static 
fillable format. Applicants will only be asked questions applicable to 
their specific operations.
    Under the URS application process, a new applicant will be issued 
an inactive USDOT Number. The inactive USDOT Number will be activated 
by the Agency only after the Agency has determined that the applicant 
is willing and able to comply with applicable regulatory requirements 
and the applicant has satisfied applicable administrative filing 
requirements, such as evidence of financial responsibility, if 
applicable, and a process agent designation (49 CFR 390.201(c)(2)).\7\ 
If a carrier also is seeking operating authority registration (non-
exempt for-hire carriers only), the USDOT Number will remain inactive 
until all protests filed under 49 CFR part 365 have been resolved and 
the applicant has satisfied all applicable administrative filing 
requirements. An applicant with an inactive USDOT Number is prohibited 
from operating in interstate commerce by 49 CFR 392.9b.
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    \7\ The term ``evidence of financial responsibility'' refers to 
the forms filed with FMCSA by insurance companies, surety companies, 
or financial institutions, in accordance with 49 CFR part 387. FMCSA 
considers the filing of such forms to be evidence that motor 
carriers and freight forwarders have the necessary insurance 
coverage, and brokers have the necessary surety bonds or trust fund 
agreements, in the minimum amounts prescribed by law. Unlike 
insurance policies, which may cover numerous claims cumulatively 
exceeding the dollar limits of the policy, broker bonds or trust 
fund agreements may be depleted if the cumulative amounts of claims 
filed against the broker for non-performance of its legal 
obligations exceed the maximum amount of the bond or trust fund 
agreement. In accordance with sec. 32918(a) of MAP-21, the Agency 
will immediately suspend the registration of a broker or freight 
forwarder with a depleted or partially depleted bond.
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3. Updating URS Information
    This final rule requires all regulated entities to update 
registration information every 24 months. When there are changes to an 
entity's legal name, form of business, or address, registration 
information must be updated sooner. An entity also may update its 
record with FMCSA at any time within this 24-month period to

[[Page 52611]]

provide changes to other information. However, such changes will not 
relieve an entity of complying with the biennial update requirement. 
Beginning on November 1, 2013 (the compliance date of the revised 
biennial update provision), the Agency will issue a warning letter 30 
days in advance of a biennial update deadline to notify the entity that 
its USDOT Number will be deactivated if it fails to comply with the 
biennial update requirement.
    This final rule also requires all entities to notify FMCSA of any 
changes to legal name, form of business, or address within 30 days of 
the precipitating change (new 49 CFR 390.201(d)(4)). This requirement 
will ensure the continuing relevance and viability of the USDOT Number 
as a unique identifier and repository for safety data associated with a 
particular entity. In particular, this requirement will allow FMCSA to 
monitor in a timely manner informational changes affecting all entities 
holding USDOT Numbers.
4. Identification Solely by USDOT Number
    FMCSA will use the USDOT Number as its sole unique identifier for 
motor carriers, brokers, and freight forwarders subject to its 
regulations. The old registration systems administered by FMCSA used 
four identification numbers: The USDOT Number, which most motor 
carriers subject to FMCSA jurisdiction are required to obtain; the 
Motor Carrier (MC) Number, which was assigned to non-exempt for-hire 
motor carriers and brokers; the FF Number, which is assigned to freight 
forwarders; \8\ and the MX Number, which is assigned to Mexico-
domiciled carriers operating within the U.S.-Mexico international 
border commercial zones.\9\ The URS will discontinue issuance of MC, 
MX, and FF Numbers to those entities who register with FMCSA. However, 
today's rule will not require motor carriers to remove the obsolete 
numbers from their vehicles, and those numbers may be used for other 
purposes such as advertising or marketing. But the Agency encourages 
carriers to omit these obsolete numbers from new or repainted vehicles.
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    \8\ See 49 U.S.C. 13903.
    \9\ See 49 U.S.C. 13902(c).
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5. User Fees
    FMCSA is revising user fees for URS registration, insurance 
filings, and other services as detailed in Table 2 below. The Agency 
will charge a $300 registration fee for all entities filing new 
registration applications. Currently, only non-exempt for-hire motor 
carriers, property brokers, and freight forwarders must pay a one-time 
registration fee to FMCSA of $300. SAFETEA-LU provided that the fee for 
new applicants must as nearly as possible cover the costs of processing 
the registration, but shall not exceed $300. The recently enacted MAP-
21, however, removed this $300 cap on the initial registration fee. 
FMCSA determined that the amount needed to cover the costs associated 
with processing the registration filings based on projections of annual 
new applicants and Agency processing costs substantially exceeded what 
could be collected through charging $300 per applicant. Consequently, 
the October 26, 2011 URS supplemental notice of proposed rulemaking 
\10\ (SNPRM) proposed to charge the statutory maximum established by 
SAFETEA-LU for this final rule.
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    \10\ Supplemental Notice of Proposed Rulemaking, Unified 
Registration System, 76 FR 66506 (Oct. 26, 2011).
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    Although MAP-21 eliminated the $300 limit, the final rule retains 
the $300 fee proposed in the SNPRM because the Agency has not developed 
preliminary estimates on appropriate fees to cover the full costs of 
operating its URS program, or issued for public comment a proposal 
concerning such fees. The Agency has opted to initiate, at a later 
date, a separate rulemaking proceeding to solicit public comment on 
this issue, rather than delay issuance of this final rule.
    FMCSA is reducing the fee currently charged for reinstating 
operating authority registration after such authority has been revoked 
from $80 to $10. The Agency is eliminating the existing $10 process 
agent designation filing fee in keeping with provisions in SAFETEA-
LU.\11\ The current $10 fee for filings related to financial 
responsibility remains unchanged. The fees charged under URS will 
enable the Agency to recoup the costs associated with processing 
registration applications and administrative filings to the extent 
permitted by law. FMCSA retains the existing fees for self-insurance 
pending resolution of changes in these fees in a separate rulemaking.
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    \11\ SAFETEA-LU, Sec.  4304, codified at 49 U.S.C. 13908(d)(2).
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    The Agency codifies its existing practice of waiving filing fees 
for Federal Transit Administration (FTA) grantees. FMCSA also exempts 
any agency of the Federal government or a State or local government 
from paying filing fees or user fees to access or retrieve URS data for 
its own use. Generally, the Agency will charge for clerical, 
administrative, and information technology (IT) services involved in 
locating, copying, and certifying records. However, FMCSA will exempt 
any registered entity from paying fees to access or retrieve its own 
data. Additional fees are explained in the table below:

       Table 2--URS User Fees as Established Under 49 CFR 360.3(f)
------------------------------------------------------------------------
      Type of Proceeding                                       Fee
------------------------------------------------------------------------
Part I: Registration
    (1).......................  An application for      $300.
                                 USDOT registration
                                 pursuant to 49 CFR
                                 part 390, subpart C.
    (2).......................  An application for      $100.
                                 motor carrier
                                 temporary authority
                                 to provide emergency
                                 relief in response to
                                 a national emergency
                                 or natural disaster
                                 following an
                                 emergency declaration
                                 under Sec.   390.23
                                 of this subchapter.
    (3).......................  Biennial update of      $0.
                                 registration.
    (4).......................  Request for change of   $0.
                                 name, address, or
                                 form of business.
    (5).......................  Request for             $0.
                                 cancellation of
                                 registration.
    (6).......................  Request for             $10.
                                 registration
                                 reinstatement.
    (7).......................  Designation of process  $0.
                                 agent.
    (8).......................  Notification of         $0.
                                 transfer of operating
                                 authority.
Part II: Insurance

[[Page 52612]]

 
    (9).......................  A service fee for       $10 per accepted
                                 insurer, surety, or     certificate,
                                 self-insurer accepted   surety bond or
                                 certificate of          other
                                 insurance, surety       instrument
                                 bond, and other         submitted in
                                 instrument submitted    lieu of a
                                 in lieu of a broker     broker surety
                                 surety bond.            bond.
    (10)......................  (i) An application for  $4,200.
                                 original
                                 qualification as self-
                                 insurer for bodily
                                 injury and property
                                 damage insurance
                                 (BI&PD).
                                (ii) An application     $420.
                                 for original
                                 qualification as self-
                                 insurer for cargo
                                 insurance.
------------------------------------------------------------------------

6. Evidence of Financial Responsibility
    This final rule requires all for-hire motor carriers and private 
motor carriers that transport hazardous materials (HM) in interstate 
commerce, as well as property brokers and freight forwarders, to 
electronically file evidence of financial responsibility to receive 
USDOT registration. Existing regulations require only non-exempt for-
hire motor carriers, property brokers, and household goods freight 
forwarders performing transfer, collection, and delivery services, to 
file evidence of financial responsibility with the Agency, and they 
allow hard copy submissions. SAFETEA-LU section 4303(b) amended 49 
U.S.C. 13906 to require ``all persons, other than a motor private 
carrier, registered with the Secretary to provide transportation or 
service as a motor carrier'' to file evidence of financial 
responsibility with the Agency. Section 13906 also requires all 
property brokers and all freight forwarders performing transfer, 
collection, and delivery services to file evidence of financial 
responsibility with the Agency. FMCSA interprets these statutory 
requirements to mandate financial responsibility filings by all for-
hire motor carriers, freight forwarders, and property brokers.
    The Agency also requires certain private motor carriers 
transporting HM in interstate commerce to file evidence of financial 
responsibility with the Agency. These carriers are already required by 
statute and regulations to obtain and maintain Bodily Injury and 
Property Damage (BI&PD) insurance; this final rule requires the filing 
of evidence of such insurance with FMCSA. The Agency will be addressing 
the financial responsibility requirements for private non-hazardous 
material carriers separately from the URS final rule.
    The Agency is requiring filings of evidence of financial 
responsibility for new applicants to be completed within 90 days of the 
date that an application is submitted (49 CFR 390.205(a)), or within 90 
days of the date that the notice of application is published in the 
FMCSA Register, if a carrier is also seeking operating authority 
registration (49 CFR 365.109). The Agency is not providing a grace 
period for financial responsibility filing by existing exempt for-hire 
motor carriers or private motor carriers hauling HM. Such carriers must 
file by the compliance date of the final rule.
    FMCSA is requiring insurers, surety companies, and financial 
institutions to convert to a web-based format when electronically 
filing evidence of financial responsibility (49 CFR 387.323). FMCSA 
currently accepts insurance filings in three formats: paper filings, 
electronic (ASCII) filings, and web-based filings. Web-based filings 
will promote efficiencies for FMCSA, insurers, sureties, financial 
institutions, and the public.
7. Process Agent Designations
    FMCSA requires all for-hire and private motor carriers, brokers, 
and freight forwarders to designate process agents via electronic 
submission as a precondition for receiving USDOT registration and/or 
operating authority registration, when applicable (49 CFR 366.1). 
Current regulations require only entities that must register under 49 
U.S.C. chapter 139 to designate a process agent (i.e., non-exempt for-
hire motor carriers, property brokers, and freight forwarders), and the 
regulations permit hard copy submissions. Private motor carriers are 
already mandated by 49 U.S.C. 503 to designate process agents, although 
FMCSA has not until now promulgated a rule requiring them to do so. 
Although there is no statutory requirement that exempt for-hire 
carriers file process agent designations, the Secretary is authorized 
under 49 U.S.C. 31133(a)(8) to prescribe recordkeeping and reporting 
requirements for motor carriers and other entities subject to the 
Agency's safety oversight. Thus, FMCSA will extend the process agent 
designation requirement to include such carriers, as well as private 
carriers, to enhance the public's ability to serve legal process on 
responsible individuals when seeking compensation for losses resulting 
from a crash involving a commercial motor vehicle (CMV) operated by any 
motor carrier, regardless of the carrier's regulatory status.
    The final rule also makes revisions to the Agency's designation of 
process agent regulations to provide greater certainty that process 
agent designations are accurate and that process agents are able to 
receive and serve on their client principals notices in court or 
administrative proceedings against regulated entities. Current 
regulations permit a carrier to fulfill its process agent designation 
requirements by listing an association or corporation that has filed 
with FMCSA a list of process agents for each State (blanket agent). To 
help ensure that such designations are up to date, new Sec.  366.6(b) 
requires that changes to designations be reported to FMCSA within 30 
days of the change. In response to public comments, the Agency has 
added, in Sec.  366.6(c), a new requirement that a motor carrier, 
broker, or freight forwarder report changes in name, address, or 
contact information to its process agents and/or the company making a 
blanket designation on its behalf within 30 days of the change. 
Finally, the Agency has added Sec.  366.6(d) to require process agents 
and blanket agents who file process agent designations on behalf of 
motor carriers, brokers, and freight forwarders to report termination 
of their contracts to provide process agent services for designated 
entities within 30 days of termination.
    The Agency is requiring that new filings of designation of process 
agents be completed within 90 days of the date that an application is 
submitted, or within 90 days of the date that the notice of the 
application is published in the FMCSA Register if a carrier is also 
seeking operating authority registration under 49 CFR 365.109. An 
applicant is prohibited from operating until these filings are made and 
its USDOT Number has been activated. Existing private and exempt for-
hire motor carriers will have a 180-day grace period (starting from the 
final rule compliance date) to file process agent designations. (49 CFR

[[Page 52613]]

366.2(b)). The grace period is necessary to accommodate the anticipated 
high volume of new filings under the URS.
8. Transfers of Operating Authority
    FMCSA amends its regulations to require notification of transfers 
of operating authority registration. This final rule revises subpart D 
of title 49 CFR part 365, Transfers of Operating Authority, to reflect 
the Agency's current statutory authority over transfers of operating 
authority. Although FMCSA proposed to repeal this subpart, the Agency 
has since determined that it is in the public interest to require non-
exempt for-hire motor carriers, property brokers, and freight 
forwarders that register under chapter 139 to notify FMCSA when these 
entities merge, transfer, or lease their operating rights. The Agency 
no longer accepts or reviews requests for transfers of operating 
authority. FMCSA believes, however, that it is necessary to require the 
reporting aspects of the regulations governing these transactions. 
These reporting requirements will enable the Agency to identify the 
parties responsible for the business operations of a for-hire motor 
carrier, broker, or freight forwarder.
9. Impacts on State Registration Systems
    This final rule allows motor carriers registering their vehicles in 
States that participate in the Performance and Registration Information 
System Management (PRISM) Program to satisfy the USDOT registration and 
biennial update requirements by electronically filing the required 
information with the State \12\ according to its policies and 
procedures, provided the State has integrated the USDOT registration/
update capability into its vehicle registration program (49 CFR 
390.203). If State procedures do not allow a motor carrier to file the 
Form MCSA-1 or to submit updates within the required 24-month window, 
the motor carrier will need to complete such filing directly with 
FMCSA. The Agency plans to work collaboratively with PRISM States to 
implement IT specifications to ensure a seamless transition to the URS.
---------------------------------------------------------------------------

    \12\ As used in this context, State refers to the agency in a 
PRISM Program State responsible for CMV registration (for example, a 
Department of Motor Vehicles, Motor Vehicle Administration, State 
Driver Licensing Agency, or Taxation and Revenue Authority).
---------------------------------------------------------------------------

10. Compliance Dates
    The compliance date for the majority of this final rule is 26 
months from the date of publication in the Federal Register. We have 
set this date to ensure sufficient time to develop URS. The Agency 
determined that enforcement of the biennial update requirement through 
the imposition of civil penalties is so important that the compliance 
date for this requirement (49 CFR 390.19(b)(4)) will occur as soon as 
possible (November 1, 2013). Motor carriers and intermodal equipment 
providers are already required to update their registration information 
every 24 months under Sec.  390.19. The Agency believes it is very 
important for regulated entities to update their registration 
information biennially. Timely updates are critical to FMCSA's 
compliance and enforcement program because they increase the likelihood 
that the Agency will be able to accurately identify, locate, and 
contact regulated entities to carry out its mission. The Agency, 
therefore, is implementing the regulatory provision stating that anyone 
failing to comply with the biennial update requirement is subject to 
civil penalties beginning November 1, 2013 rather than waiting an 
additional 24 months to implement this significant enforcement tool. 
For similar reasons, FMCSA is implementing the new enforcement 
provision that states the penalties for operating a CMV providing 
transportation in interstate commerce without a USDOT Registration and 
an active USDOT Number (Sec.  392.9b).

C. Benefits and Costs \13\
---------------------------------------------------------------------------

    \13\ Calculations presented in this section may be subject to 
rounding errors.
---------------------------------------------------------------------------

    FMCSA classified the costs and benefits calculated in the 
regulatory evaluation as either changes in fees, resource costs,\14\ or 
benefits. Changes in fees are neutral and will not result in a net gain 
(benefit) or loss (cost) from a societal perspective. For example, if 
FMCSA were to eliminate a fee previously paid by motor carriers, that 
group would receive a benefit. However, the benefit would be offset by 
an equal cost to the Agency in the form of lost revenues. Unlike 
changes in fees, changes in resource costs and benefits do result in 
either a cost or a benefit to society. The Agency estimated the costs 
and benefits associated with implementing the following major URS 
provisions:
---------------------------------------------------------------------------

    \14\ Resource costs are expenditures of capital or labor 
incurred by the industry or Agency.
---------------------------------------------------------------------------

     A new requirement for private and exempt for-hire motor 
carriers, cargo tank facilities, and intermodal equipment providers 
(IEPs) to pay FMCSA registration fees; \15\
---------------------------------------------------------------------------

    \15\ Throughout the Regulatory Evaluation, cargo tank facilities 
and IEPs are referred to as ``other entities.''
---------------------------------------------------------------------------

     A new requirement for private carriers and exempt for-hire 
motor carriers to acquire the services of process agents and file proof 
of designations with FMCSA;
     A new requirement for private HM and exempt for-hire motor 
carriers to file proof of liability insurance with FMCSA--these 
entities are already subject to the financial responsibility 
requirements of 49 CFR part 387;
     A reduction of the current reinstatement fee for non-
exempt for-hire motor carriers, brokers, and freight forwarders and new 
reinstatement fees for exempt for-hire and private HM carriers;
     Elimination of FMCSA review and approval of operating 
authority registration transfers, including the $300 fee, while still 
requiring notification of transfers of operating authority;
     Elimination of filing fees for name changes;
     Introduction of new Form MCSA-1 filing requirements; and
     Mandatory electronic filing of Form MCSA-1.
    Table 3 presents the total benefits of the URS rule for each 
provision. For the industry, total benefits amount to $1.4 million and 
fee savings amount to $7.3 million over the 10-year analysis period 
(2014-2023). For the Agency, total benefits during this period amount 
to $27.4 million and an additional $65.3 million in fees received.
    This rule will improve the ability of FMCSA safety investigators to 
locate small and medium-sized private and exempt for-hire motor 
carriers for enforcement action because investigators will be able to 
work with the newly-designated process agents to locate hard-to-find 
motor carriers. The Agency believes that a more efficient Compliance, 
Safety, Accountability (CSA) Program due to the URS Rule will lead to 
increased safety benefits. However, to present a conservative estimate 
of the benefits of the URS rule, we only estimate the benefit of time 
saved by the Agency due to a more efficient CSA Program.

[[Page 52614]]



                                       Table 3--Total Benefits of URS Rule
                                             [10-year present value]
----------------------------------------------------------------------------------------------------------------
                                                             Benefits                   Fees received/saved
               URS Rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................              $0     $20,922,981              $0              $0
Eliminating Transfer/Name Change Requirements...               0               0       2,522,258               0
New Applicant Fee...............................               0               0               0      63,583,722
Insurance Filing................................               0               0               0       1,691,808
Process Agent Filing............................               0       3,130,736               0               0
Cancellations and Reinstatements................               0               0       4,808,126               0
New MCSA-1 Application Form.....................       1,354,631       3,391,089               0               0
                                                 ---------------------------------------------------------------
    Total Benefits..............................       1,354,631      27,444,807       7,330,384      65,275,530
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

    Table 4 presents the total costs associated with the URS final 
rule. The URS final rule will result in an anticipated resource cost to 
industry of $26.4 million and a resource cost to FMCSA of approximately 
$135,000 over the 10-year analysis period (2014-2023).\16\ The total 
societal cost of the URS final rule is thus approximately $26.5 million 
($26,380,935+$135,158). The industry also will pay additional fees of 
$65.3 million, and the Agency will experience an average decrease in 
fee revenues of $7.3 million over the 10-year analysis period.
---------------------------------------------------------------------------

    \16\ The resource cost to FMCSA for building the IT system is 
not included in the economic analysis.

                                        Table 4--Total Costs of URS Rule
                                             [10-year present value]
----------------------------------------------------------------------------------------------------------------
                                                          Resource costs                  Fees paid/lost
               URS Rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................        $538,894              $0              $0              $0
Eliminating Transfer/Name Change Requirements...          38,236               0               0       2,522,258
New Applicant Fee...............................               0               0      63,583,722               0
Insurance Filing................................         676,723               0       1,691,808               0
Process Agent Filing............................      25,067,012               0               0               0
Cancellations and Reinstatements................          60,070         135,158               0       4,808,126
New MCSA-1 Application Form.....................               0               0               0               0
                                                 ---------------------------------------------------------------
    Total Costs.................................      26,380,935         135,158      65,275,530       7,330,384
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

    FMCSA calculated the net societal benefits of the URS final rule by 
subtracting the total (industry and Agency) 10-year costs from the 
total 10-year benefits for each provision. The cost to industry 
associated with fee changes is offset by an equal gain to FMCSA due to 
increased revenues from fees. Table 5 presents the net benefits of the 
proposed rule. Total societal net benefits of the URS final rule are 
estimated to be $2.3 million, negative $25.0 million for the industry 
(which is less than $50 per entity) and positive $27.3 million for 
FMCSA. The industry will pay $57.9 million more in fees (total fees 
paid and fees saved). This increase in fees to the industry is offset 
by a total $57.9 million increase in fees received by FMCSA 
(representing a net of fees lost and fees received). FMCSA believes the 
fees and costs of the URS rule will not lead to a reduction in industry 
competitiveness.

                                        Table 5--Net Benefits of URS Rule
                                             [10-year present value]
----------------------------------------------------------------------------------------------------------------
                                                           Net benefits                      Net fees
               URS Rule provision                ---------------------------------------------------------------
                                                     Industry         Agency         Industry         Agency
----------------------------------------------------------------------------------------------------------------
Mandatory Electronic Filing.....................       -$538,891     $20,922,981              $0              $0
Eliminating Transfer/Name Change Requirements...         -38,236               0       2,522,258      -2,522,258
New Applicant Fee...............................               0               0     -63,583,722      63,583,722
Insurance Filing................................        -676,723               0      -1,691,808       1,691,808
Process Agent Filing............................     -25,067,012       3,130,736               0               0
Cancellations and Reinstatements................         -60,070        -135,158       4,808,126      -4,808,126
New MCSA-1 Application Form.....................       1,354,631       3,391,089               0               0
Net Benefits....................................     -25,026,304      27,309,648     -57,945,146      57,945,146
                                                 ---------------------------------------------------------------

[[Page 52615]]

 
    Societal Net Benefits.......................             2,283,344
                                                                 0
----------------------------------------------------------------------------------------------------------------
Note: Numbers may not add due to rounding.

IV. Background

A. Legal Authority

    FMCSA promulgates the Unified Registration System final rule in 
response to sec. 103 of the ICC Termination Act of 1995 (ICCTA) [Pub. 
L. 104-88, 109 Stat. 803, 888, Dec. 29, 1995] and subtitle C of title 
IV of the Safe, Accountable, Flexible, Efficient Transportation Equity 
Act: A Legacy for Users (SAFETEA-LU) [Pub. L. 109-59, 119 Stat. 1144, 
1761, Aug. 10, 2005]. This rulemaking action is also consistent with 
the requirements of 31 U.S.C. 9701 and 49 U.S.C. 13301, 31133(a)(8), 
31134, and 31136(a).
    Pursuant to 49 U.S.C. 13908, which was enacted into law by section 
103 of the ICCTA, Congress directed the Secretary in cooperation with 
the States, and after notice and opportunity for public comment, to 
issue regulations to replace four existing information systems with a 
single, on-line, Federal system. These Agency systems were: (1) The 
USDOT identification number system; (2) the since-repealed Single State 
Registration System (SSRS) under 49 U.S.C. 14504; (3) the registration 
system contained in 49 U.S.C. chapter 139; and (4) the financial 
responsibility information system under 49 U.S.C. 13906.
    Congress also directed the Secretary, in developing this 
rulemaking, to consider whether to integrate the requirements of 49 
U.S.C. 13304 regarding service of process in court proceedings into the 
new system. Congress intended for the new system to serve as a 
clearinghouse and depository of information on, and identification of, 
all foreign and domestic motor carriers, brokers, and freight 
forwarders, and other entities required to register with the Department 
as well as information on safety fitness and compliance with minimum 
levels of financial responsibility.
    The language of 49 U.S.C. 13908(c), as enacted by the ICCTA, also 
authorized the Secretary to ``establish, under section 9701 of title 31 
[of the U.S. Code], a fee system for registration and filing evidence 
of financial responsibility under the new system under subsection (a). 
Fees collected under the fee system shall cover the costs of operating 
and upgrading the registration system, including all personnel costs 
associated with the system.''
    Pursuant to the Unified Carrier Registration Act of 2005, subtitle 
C of title IV of SAFETEA-LU, Congress modified some of the elements of 
the unified registration system required by the ICCTA. In particular, 
SAFETEA-LU changed the scope of the Secretary's responsibility to 
develop a registration system to replace the SSRS. It also modified the 
requirement that fees collected under the new system cover the costs of 
operating and upgrading the registration system and placed limitations 
on certain fees that the Agency could charge. Section 4304 of SAFETEA-
LU reiterated the congressional requirement for a single, on-line, 
Federal system to replace the four individual systems identified under 
49 U.S.C. 13908 and also mandated inclusion of the service of process 
agent systems under 49 U.S.C. 503 and 13304. SAFETEA-LU refers to the 
Federal online replacement system as the Unified Carrier Registration 
System. The Agency considers the URS announced in both the May 2005 
notice of proposed rulemaking (NPRM) and the October 2011 SNPRM to be 
the Unified Carrier Registration System.\17\
---------------------------------------------------------------------------

    \17\ Under section 4305 of SAFETEA-LU (which enacted 49 U.S.C. 
14504a), Congress replaced the SSRS with the Unified Carrier 
Registration (UCR) Agreement. Registration and payment of fees under 
the UCR Agreement are not the responsibility of FMCSA; the SSRS was, 
and the UCR Plan and Agreement is, administered by the participating 
States. However, as provided by 49 U.S.C. 13908(b), information 
about the compliance of entities subject to the UCR Agreement will 
be available through the URS when that system has been developed.
---------------------------------------------------------------------------

    Notwithstanding the reference to 49 U.S.C. 14504 in section 4304 of 
SAFETEA-LU, section 4305(a) of SAFETEA-LU repealed 49 U.S.C. 14504, 
which governed the SSRS, effective January 1, 2007. The legislative 
history indicates that the purpose of the UCR Plan and Agreement is 
both ``to replace the existing outdated system [SSRS]'' for 
registration of interstate motor carrier entities with the States and 
to ``ensure that States don't lose current revenues derived from SSRS'' 
(S. Rep. 109-120, at 2 (2005)).\18\ Today's final rule incorporates the 
requirements imposed by SAFETEA-LU.
---------------------------------------------------------------------------

    \18\ The Senate bill's provisions were enacted ``with 
modifications.'' H. Conf. Rep. No. 109-203, at 1020 (2005).
---------------------------------------------------------------------------

    Title 31 U.S.C. 9701 (the so-called ``User Fee Statute'') 
establishes general authority for agencies to ``charge for a service or 
thing of value provided by the Agency.'' Accordingly, FMCSA is 
authorized to charge fees under URS that will enable the Agency to 
recoup costs associated with processing registration applications and 
administrative filings. Prior to the enactment of the Moving Ahead for 
Progress in the 21st Century Act (MAP-21),\19\ 49 U.S.C. 13908(d) 
required establishment of registration fees that, as nearly as 
possible, cover the costs of processing the registration, provided the 
fees do not exceed $300. MAP-21 removed the $300 fee cap.
---------------------------------------------------------------------------

    \19\ Public Law 112-141, 126 Stat. 405. MAP-21 was signed into 
law on July 6, 2012.
---------------------------------------------------------------------------

    Section 206 of the Motor Carrier Safety Act of 1984 [Pub. L. 98-
554, title II, 98 Stat. 2832, October 30, 1985, 49 U.S.C. App. 2505, 
recodified at 49 U.S.C. 31136] requires the Secretary to prescribe 
regulations on commercial motor vehicle safety. The regulations shall 
prescribe minimum safety standards for CMVs. At a minimum, the 
regulations shall ensure that: (1) CMVs are maintained, equipped, 
loaded, and operated safely; (2) the responsibilities imposed on 
operators of CMVs do not impair their ability to operate the vehicles 
safely; (3) the physical condition of operators of CMVs is adequate to 
enable them to operate the vehicles safely; and (4) the operation of 
CMVs does not have a deleterious effect on the physical condition of 
the operators (49 U.S.C. 31136(a)). Section 32911 of MAP-21 added a new 
subsection (5) to sec. 31136(a), requiring FMCSA regulations to ensure 
that an operator of a CMV is not coerced by a motor carrier, shipper, 
receiver, or transportation intermediary to operate a CMV in violation 
of a regulation promulgated under section 31136 or 49 U.S.C. chapters 
51 or 313.
    Today's final rule streamlines the existing registration process 
and ensure

[[Page 52616]]

that FMCSA can more efficiently track motor carriers, freight 
forwarders, brokers, intermodal equipment providers and cargo tank 
facilities to maximize safety. It implements the mandate under 49 
U.S.C. 31136(a)(1) that FMCSA's regulations ensure that CMVs are 
maintained and operated safely. Because the rule applies almost 
entirely to motor carriers and imposes no operational responsibilities 
on drivers, FMCSA believes that coercion of drivers to violate the 
rule, in contravention of section 31136(a)(5), will not occur. This 
regulation will not impair a driver's ability to operate vehicles 
safely (49 U.S.C. 31136(a)(2)), and will not impact the physical 
condition of drivers (49 U.S.C. 31136(a)(3) and (4)).
    Legal authority for requiring notification to the Agency of 
transfers of operating authority registration (and for requiring exempt 
for-hire motor carriers to file process agent designations) can be 
found at 49 U.S.C. 13301 and 31133. Under 49 U.S.C. 13301(b), the 
Secretary has broad authority to obtain from persons information 
regarding carriers and brokers the Secretary decides is necessary to 
carry out the Agency's commercial regulatory responsibilities, as 
enumerated in title 49, subtitle IV, part B. The term ``carriers'' 
includes freight forwarders (49 U.S.C. 13102(3)). In addition, 49 
U.S.C. 31133(a)(8) authorizes the Secretary to prescribe recordkeeping 
and reporting requirements for motor carriers and other entities 
subject to the Agency's safety oversight.

B. Regulatory History

    The Federal Highway Administration (FMCSA's predecessor agency) 
issued an advance notice of proposed rulemaking (ANPRM) announcing 
plans to develop a single, online, Federal information system in August 
1996.\20\ The ANPRM solicited specific detailed information from the 
public about each of the systems to be replaced by the URS, the 
conceptual design of the URS, uses and users of the information to be 
collected, and potential costs.
---------------------------------------------------------------------------

    \20\ Advance Notice of Proposed Rulemaking, Motor Carrier 
Replacement Information/Registration System, 61 FR 43816 (Aug. 26, 
1996).
---------------------------------------------------------------------------

    On May 19, 2005, FMCSA published an NPRM describing a proposal to 
merge all of the prescribed information systems except the SSRS into a 
unified, online Federal system.\21\ The Agency subsequently revised the 
May 2005 proposal in an October 26, 2011 SNPRM to incorporate new 
congressionally mandated provisions in SAFETEA-LU, and modified certain 
proposals in response to comments to the NPRM.\22\ The SNPRM also 
included changes necessitated by final rules published subsequent to 
publication of the NPRM that directly impacted the URS. In the SNPRM, 
the Agency substantially altered the regulatory drafting approach 
proposed in the NPRM by creating a straightforward requirement for all 
entities to register and biennially update registration information 
under the new URS and by compiling a centralized cross-reference to 
existing safety and commercial regulations necessary for compliance 
with the registration requirements. The Agency abandoned previous 
efforts to reorganize all registration and new entrant requirements 
under a single part under title 49, Code of Federal Regulations (CFR) 
chapter III.
---------------------------------------------------------------------------

    \21\ Notice of Proposed Rulemaking, Unified Registration System, 
70 FR 28990 (May 19, 2005).
    \22\ Supplemental Notice of Proposed Rulemaking, Unified 
Registration System, 76 FR 66506 (Oct. 26, 2011).
---------------------------------------------------------------------------

    MAP-21 affects a number of rules that FMCSA is currently working 
on, including this one. Because MAP-21 was enacted several months after 
the close of the comment period for the SNPRM, the public has not had 
an opportunity to comment on provisions of the Act that may have an 
impact on the URS. Rather than delay issuance of this final rule, and 
to ensure an appropriate opportunity for public participation in the 
changes necessitated by MAP-21, the Agency will initiate a separate 
rulemaking proceeding(s) to address most of the needed changes. In some 
cases, these changes will not require rulemaking and will be addressed 
during the implementation phase of the URS. In other cases, minor or 
technical changes that involve little exercise of Agency discretion in 
the MCSA-1 Form and Instructions, which would not require notice and 
comment rulemaking, have been made to conform with MAP-21.\23\
---------------------------------------------------------------------------

    \23\ Under section 553(b)(3)(B) of the Administrative Procedure 
Act [5 U.S.C. 553(b)(3)(B)] (APA), notice and comment rulemaking is 
not required when the Agency for good cause finds that notice and 
public procedure are impracticable, unnecessary, or contrary to the 
public interest. The changes made in response to MAP-21 were limited 
to modifying the MCSA-1 Form and Instructions to incorporate new 
statutory language regarding affiliations with other regulated 
entities. The SNPRM had proposed different, but similar language; 
thus the modification was clearly within the scope of the issues 
that were subject to notice and comment in the SNPRM. For this 
reason, the agency believes that, consistent with the APA, providing 
further opportunity for further public comment on these limited 
changes is unnecessary.
---------------------------------------------------------------------------

V. Discussion of Comments

A. Summary of Comments

    FMCSA received comments to the URS SNPRM from nine respondents: 
American Trucking Associations (ATA),\24\ Greyhound, Inc. 
(Greyhound),\25\ the Missouri Department of Transportation (MoDOT),\26\ 
the National Automobile Dealers Association--American Truck Dealers 
Division (NADA-ATDD),\27\ the National Private Truck Council 
(NPTC),\28\ the National School Transportation Association (NSTA),\29\ 
the National Tank Truck Carriers (NTTC),\30\ the Owner-Operator 
Independent Drivers Association (OOIDA),\31\ and the Transportation 
Intermediaries Association (TIA).\32\ These entities consist of 
industry trade groups, a State government, and a motor carrier.
---------------------------------------------------------------------------

    \24\ Docket No. FMCSA-1997-2349-0184.
    \25\ Docket No. FMCSA-1997-2349-0182.
    \26\ Docket No. FMCSA-1997-2349-0186.
    \27\ Docket No. FMCSA-1997-2349-0188.
    \28\ Docket No. FMCSA-1997-2349-0187.
    \29\ Docket No. FMCSA-1997-2349-0185.
    \30\ Docket No. FMCSA-1997-2349-0189.
    \31\ Docket No. FMCSA-1997-2349-0190.
    \32\ Docket No. FMCSA-1997-2349-0183.
---------------------------------------------------------------------------

    Respondents generally supported the concept of a unified 
registration system as described in the SNPRM, but some expressed 
concerns about potential negative impacts on Federal/State partnership 
initiatives such as the UCR Agreement, the PRISM Program, the CSA 
Program, and the New Entrant Safety Assurance Program. There were also 
comments about the proposed Form MCSA-1 being too lengthy and overly 
complicated to use. OOIDA, ATA, and MoDOT proposed extensive 
corrections, revisions, and enhancements to the proposed form and 
instructions. NTTC commented that it wished to be associated with ATA's 
comments.

B. Overly Complex Application Form

    NPTC, ATA, and NADA-ATDD commented that the proposed MCSA-1 Form 
and its Instructions were overly complex. NPTC commented that the 
proposed MCSA-1 Form was too long and complicated for applicants to use 
without professional assistance. NADA-ATTD commented that the proposed 
form was unnecessarily long and overly complex for FMCSA to expect 
accurate compliance. Similarly, ATA commented that the proposed Form 
MCSA-1 was too lengthy, awkward, and complicated to encourage, or even 
permit, compliance by entities that would have to use it. However, 
these commenters did express support for an online application process.

[[Page 52617]]

    Specifically, ATA commented that while it supported the requirement 
to file the MCSA-1 Form online, the proposed MCSA-1 was not well-suited 
for online filing because a longer form requires different treatment 
online. If the MCSA-1 Form could not be simplified, this commenter 
recommended that the form be split into a number of separate forms, 
along either functional lines or according to the type of entity 
required to report. NADA-ATTD strongly urged FMCSA to consider 
revisions to the MCSA-1 to make it more applicable to small, private 
motor carriers. This commenter recommended that the Agency issue 
another SNPRM outlining these changes before implementation of the URS. 
NADA-ATTD commented that FMCSA had not explained sufficiently why the 
substantial additions to this form were necessary, especially for small 
motor carriers.
    FMCSA Response. The Agency included the proposed Form MCSA-1 and 
Instructions in the SNPRM to illustrate the new unified application 
form around which the URS will be built, to disclose the complete list 
of registration information that the Agency will collect from the 
public and record in the URS, and to announce that the Agency will no 
longer require the individual forms associated with safety and 
commercial registration today. The paper Form MCSA-1 and Instructions 
included in the SNPRM was necessary to provide notice of and seek 
comment on the information FMCSA was proposing to collect and the 
Agency's explanation of those data fields. Form MCSA-1 is not intended 
to be completed in hardcopy but as an online, interactive application.
    When the URS program is fully implemented, the electronic version 
of the Form MCSA-1 will be considerably less complex and lengthy than 
the paper version because URS will guide the applicant to only those 
portions of the MCSA-1 Form pertinent to the particular applicant's 
operations, thus skipping all irrelevant sections that do not apply. 
The application process will mimic the interactive, interview format of 
popular tax preparation software, and will use software similar to that 
used by the U.S. Department of Education in the Free Application for 
Student Aid (FAFSA), in contrast with a static PDF fillable form. 
Applicants will be asked only those questions applicable to their 
specific operations. An applicant's answers to the initial MCSA-1 
questions, including operation classification (Section A, question 15) 
and reason for filing (pre-Section A), will determine which sections of 
the MCSA-1 Form that entity will be subsequently prompted to fill. As 
suggested in ATA's comments, an applicant will not need to view the 
sections of the MCSA-1 Form that were not applicable to that entity. 
The Agency's goal is to eliminate as much of the guesswork as possible 
from the electronic registration process and to receive accurate 
information. As explained throughout this final rule, FMCSA received 
and has adopted many helpful suggestions for corrections, improvements, 
and clarifications to the MCSA-1 Form and Instructions. The updated 
MCSA-1 Form and Instructions are available in the docket FMCSA-1997-
2349 for the public to view.
    The online, interactive application process will particularly 
assist small carriers by requiring applicants to view only the portions 
of the MCSA-1 Form that are relevant to them, based on their answers to 
the first few questions. Thus, the electronic filing process will save 
a small carrier the needless effort of reading through portions of a 
form or instructions that they need not submit. Questions will display 
on the left side of the screen and a pop-up screen will appear on the 
right with instructions, as well as examples of acceptable responses.
    To explain how the system will work, we will walk through a mock 
registration scenario for a private non-HM property motor carrier we 
will call ``Example Private Trucking'' (EPT). Since EPT is applying to 
operate as a private carrier, the regulations for obtaining operating 
authority registration under 49 CFR part 365, or filing evidence of 
financial responsibility under 49 CFR part 387, would not apply. To 
obtain a USDOT registration, EPT will be prompted to complete only 5 of 
the 16 sections on Form MCSA-1: Section A (Business Description); 
Section B (Operation Classification); Section M (Compliance 
Certifications); Section N (Applicant's Oath); and Section P (Filing 
Fee). The online URS would also prompt EPT to designate a process 
agent. After EPT completes the registration information and process 
agent designation, FMCSA would immediately issue an active USDOT Number 
and flag the motor carrier for participation in the New Entrant Safety 
Assurance Program. The biennial update will require EPT to submit even 
less information than the initial registration process.

C. Insufficient Technical Information

    ATA expressed concern about the lack of technical details regarding 
the planned URS design in the SNPRM. ATA stated that because the URS is 
a data-processing system, the technical details of its design are of 
critical importance to its eventual effectiveness in accomplishing its 
stated purpose and functions.
    In particular, ATA expressed concern about the lack of details 
regarding the proposal that motor carriers could fulfill their biennial 
registration update obligations by filing with their base States under 
the PRISM Program. ATA stated that this procedure would be difficult to 
coordinate, and commented that the SNPRM disclosed so little detail 
with respect to these plans that it could not assess their feasibility, 
or their chances for success. Therefore, this commenter recommended 
that FMCSA provide a clearer description of what is intended in 
connection with PRISM State registration in an additional SNPRM. ATA 
commented that the public interest in this key element of the 
registration function was too great for the matter to be handled by 
amendments to the PRISM procedures.
    FMCSA Response. With regards to system specifications, FMCSA is 
unable to provide these details at this time because the Agency is 
completing the regulatory aspects of the URS project in advance of the 
completion of the IT system requirements development. The Agency has 
published several final rules with associated IT requirements that must 
be scheduled to coincide with imminent regulatory compliance dates 
earlier than the URS compliance date. Meanwhile, each year the Agency 
delays finalization of the URS rule increases the possibility that new 
requirements and corresponding system changes could be imposed. The 
Agency opted to complete the URS rulemaking project separately from the 
associated IT development project to provide adequate notice of the new 
registration requirement, and set a compliance date that builds in 
sufficient lead time for regulatory compliance and system development. 
The Agency plans to work collaboratively with PRISM States to implement 
IT specifications to ensure a seamless transition to the URS.

D. Applicability

1. Cargo Tank Program
    ATA recommended that FMCSA's cargo tank registration program be 
excluded from the URS, or at least not included in Form MCSA-1. To 
support its recommendation, ATA asserted that the cargo tank program's 
exclusion would help to prune the MCSA-1 Form to a more manageable 
size. ATA further stated that the cargo tank program is not

[[Page 52618]]

per se a transportation program,\33\ and can reasonably be handled in 
another manner.
---------------------------------------------------------------------------

    \33\ In its comments to the NPRM, ATA stated that the cargo tank 
registration program is not a motor carrier program because it 
applies only to persons engaged in the manufacture, assembly, 
inspection and testing, certification, or repair of a cargo tank. 
Docket No. FMCSA-1997-2349-0168.
---------------------------------------------------------------------------

    FMCSA Response. The Agency believes all FMCSA-regulated entities 
must be subject to the URS registration requirement because section 
4304 of SAFETEA-LU amended 49 U.S.C. 13908(b) to require the Federal 
on-line replacement system to:

``serve as a clearinghouse and depository of information on, and 
identification of, all foreign and domestic motor carriers, motor 
private carriers, brokers, freight forwarders, and others required 
to register with the U.S. Department of Transportation, including 
information with respect to a carrier's safety rating, compliance 
with required levels of financial responsibility, and compliance 
with the provisions of 49 U.S.C. 14504a.'' (Emphasis added).

As explained in the SNPRM, FMCSA interprets this statutory provision as 
authorizing the inclusion of all entities regulated by FMCSA in the 
URS.\34\ Although the cargo tank registration program is not a motor 
carrier program, FMCSA believes that merging the Cargo Tank 
Registration Process with the URS will best further the congressional 
intent to create a unified system of information and registration, as 
expressed in the SAFETEA-LU provision quoted above.
---------------------------------------------------------------------------

    \34\ See 76 FR 66506, 66512-66513.
---------------------------------------------------------------------------

    Moreover, Pipeline and Hazardous Materials Safety Administration 
(PHMSA) regulations at 49 CFR part 107, subpart F govern the 
registration procedures for persons who are engaged in the manufacture, 
assembly, inspection and testing, certification, or repair of a cargo 
tank or a cargo tank motor vehicle manufactured in accordance with a 
DOT specification under subchapter C of 49 CFR chapter III or under 
terms of a special permit issued under 49 CFR part 107.\35\ Under Sec.  
107.502(d), PHMSA requires cargo tank facilities to complete their 
registration requirements with FMCSA. As previously mentioned, the 
electronic Form MCSA-1 will be designed so only cargo tank facility 
applicants would encounter the questions that apply exclusively to 
cargo tank registration.
---------------------------------------------------------------------------

    \35\ See 49 CFR part 107, subpart F, Registration of Cargo Tank 
and Cargo Tank Motor Vehicle Manufacturers, Assemblers, Repairers, 
Inspectors, Testers, and Design Certifying Engineers.
---------------------------------------------------------------------------

    See section V.M for a discussion of FMCSA's rationale not to 
collect additional cargo tank information on the Form MCSA-1.
2. Certain Intrastate HM Carriers
    NTTC recommended that FMCSA require all transporters of bulk HM in 
tank vehicles to register with the Agency using Form MCSA-1, including 
intrastate-only carriers. This commenter stated ``that while it 
believed all intrastate [HM] carriers should be required to register 
with FMCSA,'' it was limiting its request ``to those carriers who 
transport [hazardous] materials in bulk in tank vehicles.'' NTTC 
expressed concern that under the CSA Program, HM carriers will only be 
measured against other interstate carriers or intrastate carriers from 
States that require them to get a USDOT Number. NTTC asserted that 
because only 31 States require intrastate HM carriers to obtain a USDOT 
Number, the Safety Measurement System HM Behavioral Analysis Safety 
Improvement Category (BASIC) may not truly measure HM carriers against 
their peers since it will not have information on all HM carriers.
    NTTC encouraged the DOT to incorporate into its registration 
process a requirement whereby intrastate tank truck carriers of HM 
register with FMCSA. NTTC commented that if this rule is not the 
appropriate vehicle to require registration of intrastate tank truck 
carriers of HM with FMCSA, then it requested that the Department 
consider its comment submission to be a petition for rulemaking. NTTC 
commented that a ``OneDOT'' approach in the near term would be to 
require that any HM tank truck carrier applying to register with PHMSA 
must first be registered with FMCSA. This commenter stated that the 
PHMSA transporter registration program does not exclude intrastate 
carriers.
    FMCSA Response. Generally, the Agency does not have authority to 
regulate motor carriers that operate exclusively in intrastate commerce 
because the statutes on which most of FMCSA's commercial regulations 
and safety regulations are based apply primarily to transportation in 
interstate commerce.\36\ The only Federal safety regulations applicable 
to motor carriers that operate exclusively in intrastate commerce are 
the commercial driver's license (CDL) requirement for drivers operating 
commercial motor vehicles (CMVs) as defined in 49 CFR 383.5; controlled 
substances and alcohol testing for all persons required to possess a 
CDL; minimum levels of financial responsibility for intrastate 
transportation of certain quantities of HM; applicable portions of the 
HM regulations in 49 CFR parts 100-180; and the requirement to obtain a 
Hazardous Materials Safety Permit (HMSP). As a result, the Agency will 
not accommodate this request at this time. The Agency, however, will 
accept NTTC's filing as a petition for rulemaking, and will handle the 
issue at a later date.
---------------------------------------------------------------------------

    \36\ See 49 U.S.C. 31132(1) (defining ``commercial motor 
vehicle'' for purposes of safety regulation as ``a self-propelled or 
towed vehicle used on the highways in interstate commerce to 
transport passengers or property . . .'') (emphasis added); 49 
U.S.C. 13501 (giving FMCSA general jurisdiction over transportation 
in interstate and foreign commerce for purposes of commercial 
regulation).
---------------------------------------------------------------------------

3. Hazardous Materials Safety Permit Applicants
    The SNPRM table entitled ``Entities Required to Register under the 
Unified Registration System'' explained that an HMSP applicant was a 
``motor carrier that transports in interstate or intrastate commerce 
any of the HM, in the quantity indicated for each, listed under 49 CFR 
385.403.'' \37\ NTTC recommended that FMCSA change this SNPRM table so 
that the entry that described HMSP applicants would read as follows: 
``A motor carrier that transports in interstate or intrastate commerce 
any of the HM, in the quantity indicated for each, listed under 49 CFR 
172.101.''
---------------------------------------------------------------------------

    \37\ See 76 FR 66506, 66514.
---------------------------------------------------------------------------

    FMCSA Response. FMCSA intentionally referenced the list of HM and 
quantities in 49 CFR 385.403, because the HMSP is not required for 
every hazardous material listed under 49 CFR 172.101 titled, ``Table of 
Hazardous Materials and Special Provisions.'' The HMSP is required only 
for the HM transported in an amount or manner listed under Sec.  
385.403.
    Under 49 U.S.C. 5109(b), Congress authorized the Secretary to 
prescribe the types and quantities of HM which are subject to an HMSP, 
stipulating that the list must, at a minimum, include the four types of 
HMs listed in section 5109(b). The Secretary delegated responsibility 
for implementing section 5109 to the FMCSA Administrator. See 49 CFR 
1.87(d)(2). In 2004, FMCSA published a final rule establishing a 
national HMSP program for motor carriers that transport in interstate 
or intrastate commerce the HM listed and transported in the amount or 
manner prescribed in Sec.  385.403(a)-(f).\38\
---------------------------------------------------------------------------

    \38\ See Final Rule, Hazardous Materials Safety Permits, 69 FR 
39350 (June 30, 2004).
---------------------------------------------------------------------------

4. Mexico-Domiciled Motor Carriers
    MoDOT commented that the Agency should exclude all Mexican carriers 
from completing Form MCSA-1, including carriers with operations

[[Page 52619]]

limited to the border commercial zones. This commenter asserted that it 
is confusing to have some of the Mexican carriers complete this form 
and others complete the old OP-1(MX) and MCS-150 forms.
    FMCSA Response. The Agency is adopting the approach proposed for 
Mexico-domiciled carriers in the SNPRM. FMCSA will subject all entities 
under its jurisdiction to the URS registration requirement, to the 
extent practicable. Applications from Mexico-domiciled long-haul 
carriers, however, will continue to be processed separate from the URS 
because the U.S.-Mexico border is open to only those carriers 
participating in the pilot program with distinct requirements.\39\ The 
North American Free Trade Agreement (NAFTA) authorized the Agency to 
apply different standards for long-haul Mexico-domiciled carriers due 
to concerns about regulatory disparities between Mexico and the United 
States. Because the results of the pilot program are still uncertain, 
it would be premature to include long-haul Mexico-domiciled carriers in 
the URS at this time. FMCSA may include such carriers in the URS in the 
future, if appropriate.
---------------------------------------------------------------------------

    \39\ See Pilot Program on the North American Free Trade 
Agreement (NAFTA) Long-Haul Trucking Provisions, 76 FR 40420 (July 
8, 2011); see generally http://www.fmcsa.dot.gov/intl-programs/
trucking/Trucking-Program.aspx (last accessed Apr. 2, 2012).
---------------------------------------------------------------------------

    FMCSA disagrees with MoDOT that all Mexico-domiciled carriers, 
including those confined to the border commercial zones, should be 
excluded from the URS based on possible confusion. Commercial zone 
Mexico-domiciled carriers already file different forms, and are subject 
to different rules, than Mexico-domiciled long-haul carriers. Including 
Mexico-domiciled commercial zone carriers in the URS, moreover, is 
consistent with the statutory mandate to include foreign carriers in 
the system.
5. Non-Motor Carrier Leasing Companies
    MoDOT requested that the Agency provide a specific definition for 
the term ``leasing company'' and instructions for how these entities 
should complete Form MCSA-1. According to MoDOT, there may be instances 
where such companies act as a motor carrier, but in other cases they do 
not. When the leasing company is not a motor carrier, MoDOT commented 
that the company needs to know how to complete the MCSA-1 Form, which 
sections apply to it, and how to report or not report its number of 
vehicles.
    FMCSA Response. FMCSA contacted MoDOT to gain a clearer 
understanding of this comment and learned it is actually a request for 
FMCSA to require non-motor carrier leasing companies to register in URS 
so that States have a source through which they can identify these 
entities to collect UCR Agreement fees.\40\ Therefore, the Agency 
regards this as an ``applicability'' issue rather than a form-related 
one.
---------------------------------------------------------------------------

    \40\ See Memorandum, Telephone Conversation with Barbara Hague, 
Missouri Department of Transportation, Motor Carrier Services, 
Document ID No. FMCSA-1997-2349-0178-0193; Memorandum and Contact 
with Missouri Department of Transportation Clarification of Issue 
Involving Leasing Companies, Document ID No. FMCSA-1997-2349-0192.
---------------------------------------------------------------------------

    Under new FMCSA PRISM procedures that took effect on or about 
September 1, 2012, non-motor carrier leasing companies are no longer 
required to obtain USDOT Numbers. On August 9, 2010, FMCSA announced 
the elimination of ``registrant-only'' USDOT Numbers as part of the 
PRISM Program.\41\ As stated in that notice, FMCSA originally developed 
the concept of a registrant-only USDOT Number to identify registered 
owners of CMVs that are not motor carriers, but lease their CMVs to 
entities that are motor carriers. FMCSA concluded, however, that 
registrant-only USDOT Numbers were being used differently than the 
Agency intended, impeding its ability to track motor carriers' safety 
violations.
---------------------------------------------------------------------------

    \41\ Notice of Procedural Changes to the Performance and 
Registration Information Systems Management Program, 75 FR 47883 
(Aug. 9, 2010).
---------------------------------------------------------------------------

    For example, in several cases, law enforcement personnel conducting 
inspections and crash investigations were presented with registrant-
only numbers of the leasing companies providing the vehicles instead of 
the USDOT Numbers of the motor carriers operating the vehicles. In 
these instances, the data could not be assigned to the record of a 
motor carrier. Motor carriers that improperly used registrant-only 
numbers, therefore, were evading FMCSA safety oversight, including 
compliance reviews and New Entrant Safety Audits. If safety events are 
not properly attributed to the motor carrier operating the CMVs, FMCSA 
cannot factor those events into the motor carriers' safety ratings and 
other assessments. This situation results from the misidentification of 
a vehicle and is a marking issue, rather than an IT or URS issue.
    Accordingly, FMCSA decided to eliminate the PRISM procedure that 
requires non-motor carrier applicants, including leasing companies, to 
obtain registrant-only USDOT Numbers. PRISM Program States were 
directed to modify their systems, forms, instruction manuals, computer 
systems' validation and safety edits, renewal applications and MCS-150 
edits and procedures by August 31, 2011. FMCSA planned to eliminate the 
practice of allowing non-motor carrier applicants to obtain registrant-
only USDOT Numbers by September 1, 2011. On August 31, 2011, however, 
FMCSA extended the effective date for making the change to eliminate 
the registrant-only entry to September 1, 2012.\42\
---------------------------------------------------------------------------

    \42\ See Notice, Extension of Effective Date, 76 FR 54288 (Aug. 
31, 2011).
---------------------------------------------------------------------------

    Because FMCSA does not regulate non-motor carrier leasing 
companies, they will not be included within the URS and will not have 
to complete the Form MCSA-1. FMCSA will deactivate the USDOT Numbers 
issued to leasing companies prior to October 23, 2015. Beginning 
September 1, 2012, the Agency notified each entity registered as a 
Registrant to either deactivate its USDOT Number or change its 
operation type to the appropriate carrier operation. If such actions 
are not taken, the Agency will deactivate those USDOT Numbers.
6. School Bus Operations
    The NSTA commented that, as it understood the proposed rule, school 
bus operations (home-to-school-to-home routes) continue to be exempt 
from URS. Therefore, a for-hire school bus contractor would register 
under URS only if the contractor also provides charter transportation, 
such as school activity trips. If this were the case, the NSTA 
commented that it believed the contractor would check the box on the 
proposed form in Section A, question 17a, for Charter and Special 
Operations. The NSTA requested clarification from FMCSA that under the 
sections on the Form MCSA-1 that ask for the number of vehicles and the 
number of drivers who will be operating in the United States, the 
contractor need enter only the portion of its vehicles and drivers that 
are used in charter operations, and not the portion that are used in 
school bus operations. NSTA also requested clarification as to whether 
Section G, question 36 (Government Funding Status) of Form MCSA-1 
includes a contract between a municipality and a school bus contractor 
for school transportation service, if such contract includes activity 
transportation.
    FMCSA Response. This final rule does not in any way affect the 
school bus exemption. Motor carriers that provide charter 
transportation services under contract to schools, and that are subject 
to FMCSA jurisdiction, remain subject to registration requirements with 
regard

[[Page 52620]]

to the need to obtain authority to operate an interstate for-hire motor 
carrier, maintain minimum levels of financial responsibility and file 
proof of coverage, and acquire and maintain proof of designation of 
process. The drivers employed by these carriers are subject to FMCSA's 
requirements for commercial driver's licenses and the controlled 
substances and alcohol testing rules. Such a contractor that provides 
charter transportation would check the box on the MCSA-1 Form in 
Section A for Charter and Special Operations, which has been renumbered 
as question 15a. In response to the NSTA's specific questions, the 
contractor need enter only the portion of its vehicles and drivers that 
are used in interstate charter operations, and not the portion that are 
used solely in school bus operations, as defined in 49 CFR 390.5. In 
compliance reviews, the Agency also does not count the number of buses 
used for exempt transportation.
    Regarding Form MCSA-1, the question regarding Government Funding 
Status, which has been renumbered as question 34, does not include a 
contract between a municipality and a school bus contractor for school 
transportation service, if such contract includes activity 
transportation. The question is directly related to the requirements of 
49 U.S.C. 13902. Under 49 U.S.C. 13902(b), the Agency is obligated to 
grant an application for regular-route operating authority filed by a 
private recipient of government financial assistance if the applicant 
can show that it is fit, willing, and able to serve the route, unless a 
protestant comes forward and affirmatively demonstrates that granting 
the application would be inconsistent with the public interest. Under 
49 U.S.C. 13902(b)(8)(B), the term ``private recipient of government 
assistance'' is defined as ``any person (other than a public recipient 
of government assistance) who received governmental financial 
assistance in the form of a subsidy for the purchase, lease, or 
operation of any bus.'' Based on this definition, FMCSA believes that 
payments made by a municipality to a for-hire school bus operator to 
provide non-exempt transportation of students would be considered 
compensation rather than a subsidy and, thus, not within the confines 
of section 13902(b)(8)(B). Therefore, such an applicant would not be 
considered a private recipient of government assistance under these 
circumstances, and the public interest standard would not apply.
    Generally, for specific interpretations of existing regulatory 
requirements, any member of the public may contact the FMCSA Office of 
Policy or visit the FMCSA regulatory guidance Web site at http://www.fmcsa.dot.gov/rules-regulations/administration/fmcsr/fmcsrguide.aspx?section_type=G.

E. Mandatory Electronic Filing

    The SNPRM proposed the adoption of an exclusively online electronic 
registration system.\43\ ATA endorsed requiring entities filing 
applications or updating their information with FMCSA to do so 
electronically. However, this commenter recommended that FMCSA 
establish a backup process for the mandatory electronic filing 
requirement, should the Agency's electronic system be temporarily 
unavailable for some reason, such as a natural disaster or terrorist 
attack.
---------------------------------------------------------------------------

    \43\ See 76 FR 66506, 66519.
---------------------------------------------------------------------------

    FMCSA Response. The Federal government, including FMCSA, recognizes 
the need for emergency planning. FMCSA already builds in redundancies 
for its systems under its Continuity of Operations Planning (COOP) to 
prevent such failures. In accordance with National Institute of 
Standards and Technology (NIST) guidelines (NIST 800-34, Contingency 
Planning Guide for Information Technology Systems), the FMCSA IT 
Security Team will develop a Contingency Plan and Disaster Recovery 
Plan for the URS in the event that a disaster occurs to ensure the 
continuation of vital business processes. This plan will provide an 
effective solution that can be used to recover all vital business 
processes within the required time frame.

F. Biennial Update

    FMCSA proposed to require electronic updates to Form MCSA-1 
biennially.\44\ MoDOT asked if FMCSA will automatically deactivate the 
USDOT Number (and revoke corresponding operating authority 
registration) of those entities that have not updated their MCS-150s 
within the 2-year requirement as of the final rule effective date. 
MoDOT believes that doing so would be extremely helpful in cleaning old 
data from the system.
---------------------------------------------------------------------------

    \44\ See 76 FR 66506, 66594 (proposed 49 CFR 390.101(d)).
---------------------------------------------------------------------------

    FMCSA Response. The Agency will not automatically deactivate a 
USDOT Number for any entity currently registered within the system 
solely on the basis that it has not completed a biennial update 
requirement that may come due on the compliance date of the final rule. 
The Agency believes that such entities should first receive a warning 
regarding this regulatory change. Therefore, beginning November 1, 2013 
(the compliance date of the revised biennial update provision), the 
Agency will issue a warning letter 30 days in advance of a biennial 
update deadline to notify the entity that its USDOT Number will be 
deactivated if it fails to comply with the biennial update requirement.
    Only after an entity has failed to heed that warning will the 
Agency begin deactivating USDOT registrations for failure to update the 
information on Form MCSA-1 and consider imposing civil penalties. 
FMCSA, however, would not retroactively apply sanctions against 
entities that had not met the biennial update requirement by November 
1, 2013.

G. Administrative Filings

1. Timeframe for Filing Changes to Name, Address
    FMCSA proposed to require all entities to notify FMCSA of any 
changes to the information in Section A of Form MCSA-1 (e.g., a change 
in legal name, form of business, or address) within 20 days of the 
precipitating change.\45\ ATA recommended retaining the current 45-day 
deadline for notification of such changes. In support of its request, 
ATA stated that because the nature of many of these changes (e.g., a 
change of address, change of business name, etc.) implies a disruption 
in the ordinary routines of a business entity, it may be unrealistic to 
expect such expeditious notification. This commenter also stated that 
the SNPRM proposed no changes to 49 CFR 365.413, regarding the 
procedure for motor carrier name changes.
---------------------------------------------------------------------------

    \45\ See 76 FR 66506, 66586 (proposed 49 CFR 365.509(a)).
---------------------------------------------------------------------------

    FMCSA Response. Although ATA does not provide specific regulatory 
references to a 45-day notification requirement, the only current 
regulations containing such a requirement are Sec. Sec.  365.509, 
368.4, and 385.609. These regulations apply to motor carriers domiciled 
in Mexico or outside of North America.
    In response to ATA's comments and for purposes of consistency, 
FMCSA amends all change reporting deadlines to 30 days after the date 
of the change event (see Sec. Sec.  390.201(d)(4), 365.509(a), 
366.6(b), 368.4(a), 385.405(d), and 385.609(a)(2)). FMCSA has added an 
additional 10 days to the update requirement and believes that a 30-day 
requirement is reasonable and would not be more disruptive to a 
carrier's business than the 45-day requirement proposed by ATA.

[[Page 52621]]

2. Financial Responsibility for Certain FTA Grantees
    The SNPRM explained that for a passenger carrier that provides 
transportation within a transit service area located in more than one 
State under an agreement with a Federal, State, or local government 
funded, in whole or in part, with a grant under 49 U.S.C. 5307, 5310, 
or 5311, the minimum financial responsibility requirement is the 
highest level of financial responsibility required for any of the 
States in which it operates.\46\ FMCSA explained that this aspect of 
the proposal was a consequence of 49 U.S.C. 31138(e)(4), which exempts 
section 5307, 5310, and 5311 grantees from the Federal general 
financial responsibility requirements and instead subjects them to 
applicable State requirements.
---------------------------------------------------------------------------

    \46\ See 76 FR 66506, 66520.
---------------------------------------------------------------------------

    Greyhound expressed support for the proposed financial 
responsibility requirements for such FTA grantees, particularly the 
language added to the Form MCSA-1 Instructions that states that the 
FMCSA financial responsibility requirements ``do not apply to entities 
providing transportation service within a transit service area under an 
agreement with a Federal, State, or local government funded in whole or 
in part with a grant under 49 U.S.C. 5307, 5310, or 5311.'' However, 
Greyhound expressed concern that the proposed amendments to 49 CFR 
387.33, Financial responsibility, minimum levels, only referred to 
entities that provide transportation services within a transit service 
area located in more than one State.\47\ This commenter stated that it 
believes FMCSA's changes were intended to apply to transit operators 
whether they are operating in just one State or across State lines. 
Greyhound suggested that, because of the complexity of this issue, 
FMCSA should state clearly that it is using its authority under 49 
U.S.C. 31138(e)(4) to authorize transit providers that operate in only 
one State, but participate in interline relationships with interstate 
carriers, to meet their FMCSA financial responsibility requirements by 
complying with the financial responsibility requirements of the State 
in which they operate. This commenter requested similar clarifying 
language to 49 CFR 387.33.
---------------------------------------------------------------------------

    \47\ See 76 FR 66506, 66589 (proposed 49 CFR 387.33(b)).
---------------------------------------------------------------------------

    FMCSA Response. FMCSA has, at Greyhound's suggestion, added 
language to 49 CFR 387.33(b), as well as to 49 CFR 387.303, Security 
for the protection of the public: minimum limits, to clarify that FTA 
grantees providing service within a transit service area and are 
subject to the special insurance requirements of 49 U.S.C. 31138(e), 
are also subject to these requirements when they operate in a single 
State, but participate in providing interstate service by entering into 
interline agreements with interstate carriers. The instructions to Form 
MCSA-1 (Section K) have also been modified to incorporate this 
clarification, as requested by the commenter.
3. Financial Responsibility for Private HM Carriers
    FMCSA proposed to require a private motor carrier hauling HM in 
interstate commerce to file evidence of financial responsibility with 
the Agency.\48\ The NPRM explained that these carriers are already 
required by statute (49 U.S.C. 31138 and 31139) and regulations (49 CFR 
part 387) to obtain and maintain public liability insurance, and that 
the proposed change would merely require filing of evidence of 
financial responsibility with FMCSA.\49\
---------------------------------------------------------------------------

    \48\ See 76 FR 66506, 66515, 66594 (proposed 49 CFR 
390.103(a)(2)(ii)).
    \49\ See 70 FR 28990, 28997.
---------------------------------------------------------------------------

    NPTC questioned the need to require private motor carriers 
transporting HM in interstate commerce to file evidence of financial 
responsibility with FMCSA as a condition for obtaining registration and 
believes the Agency offered no compelling policy reason for requiring 
private HM carriers to now file evidence of liability coverage. NPTC 
stated that currently, regulations permit private HM carriers to meet 
financial responsibility requirements by maintaining a copy of the HM 
liability endorsement (Form MCS-90) at the company's principal place of 
business, subject to review upon reasonable demand by enforcement 
officials. This commenter asserted that absent evidence of lack of 
compliance with liability insurance requirements, it sees no need to 
impose a new filing mandate on private motor carriers transporting HM.
    FMCSA Response. Congress expressly authorized FMCSA to require a 
private motor carrier to file evidence of financial responsibility with 
the Agency (49 U.S.C. 31139; SAFETEA-LU section 4120). At this time, 
the Agency has elected to require only those private motor carriers 
that transport HM in interstate commerce to make these filings.
    FMCSA believes that the potentially greater human toll and 
environmental consequences of HM-involved CMV incidents make it even 
more important to ensure that private HM carriers under its 
jurisdiction can adequately cover liabilities arising from such 
incidents as a condition for granting registration. Further, the filing 
requirement for private HM carriers would assure members of the public 
that such carriers have the financial means to compensate them for 
injuries or damages caused by negligence. These filings also would 
increase public accessibility to insurance information and would enable 
FMCSA to more effectively track insurance cancellations. This new 
requirement for private HM carriers will not impose a significant new 
burden because, as explained above, these carriers are already required 
to maintain public liability insurance. Filing evidence of insurance 
coverage with FMCSA, as opposed to maintaining evidence of coverage at 
the place of business, will require the filing of a form with the 
Agency.\50\ FMCSA believes that this nominal cost for private HM 
carriers is warranted to achieve the benefits noted above. As discussed 
in the SNPRM, there will be a 3-month moratorium on enforcement of the 
filing requirement after the compliance date of this final rule. The 
moratorium would not apply to new applicants for USDOT registration. 
Therefore, the Agency is establishing the financial responsibility 
filing requirement for private HM carriers as proposed.
---------------------------------------------------------------------------

    \50\ See 49 CFR 387.15, Forms.
---------------------------------------------------------------------------

4. Blanket Agents
    FMCSA proposed to expand its existing designation of process agent 
requirements to private and exempt for-hire carriers.\51\ The Agency's 
designation of process agent regulations (49 CFR part 366) permit a 
carrier to fulfill its process agent designation requirements by 
listing an association or corporation that has filed with FMCSA a list 
of process agents for each State (blanket agent) on the required Form 
BOC-3.
---------------------------------------------------------------------------

    \51\ See 76 FR 66506, 66525 and 70 FR 28990, 28999.
---------------------------------------------------------------------------

    OOIDA suggested that the designation of process agent requirements 
could be made more effective if motor carriers using a blanket agent 
are required to update the BOC-3 designation form along with the 
biennial update of the MCSA-1. OOIDA also noted that service of process 
on a motor carrier may be impeded if the motor carrier does not report 
address changes to the blanket agent, or if the blanket agent withdraws 
from offering process agent services without notice. This commenter 
pointed

[[Page 52622]]

out that 49 CFR 366.5 permits a carrier to satisfy its process agent 
designation requirements by listing a blanket agent on its BOC-3, and 
that such listing could satisfy the carrier's designation requirement 
indefinitely, regardless of whether any relationship is maintained 
between the blanket agent and the motor carrier. OOIDA commented that 
the regulations would not ensure that a motor carrier's process agent 
designations are updated and accurate unless the biennial update 
requirement is also expanded to include the BOC-3 Form. Further, OOIDA 
stated that 49 CFR 366.6, Cancellation or change, is silent concerning 
the ability of the blanket agent to cancel the designation, and only 
allows the motor carrier to take such action.
    FMCSA Response: The Agency has revised the final rule to 
accommodate this commenter's concerns. FMCSA agrees that the current 
service of process agent requirements should be modified to provide 
greater certainty that process agent designations are accurate and that 
process agents are able to receive and serve on their clients/
principals notices in court or administrative proceedings on regulated 
entities. Accordingly, the Agency has revised 49 CFR 366.6 in several 
respects. First, in Sec.  366.6(a), we have clarified that the process 
agent or blanket agent, in addition to the motor carrier, broker, or 
freight forwarder, may cancel or change a process agent designation by 
filing a new designation with the Agency. To help ensure that such 
designations are up to date, Sec.  366.6(b) requires that changes to 
designations be reported to FMCSA within 30 days of the change. This 
will provide more timely notice of such changes than a biennial update 
requirement would and are consistent with other notifications of change 
required by the rule.
    In response to OOIDA's concern that a process agent would be unable 
to serve notices on a motor carrier if the carrier does not notify the 
agent of a change of address, the Agency has added, in Sec.  366.6(c), 
a new requirement that a motor carrier, broker or freight forwarder 
report changes in name, address, or contact information to its process 
agents and/or the company making a blanket designation on its behalf 
within 30 days of the change.
    Finally, while FMCSA does not have jurisdiction over process agents 
and blanket agents, they should report to the Agency when their 
contract or relationship with the entity they represent terminates. 
Motor carriers, other entities we regulate, and the public depend upon 
these process agents and blanket agents to keep their information 
current. Thus, the Agency has added new Sec.  366.6(d), which requires 
process agents and/or companies to provide FMCSA with a notice of 
termination within 30 days of the termination. FMCSA's Office of 
Registration and Safety Information currently authorizes blanket agents 
to submit process agent designations on behalf of regulated entities. 
Failure to keep process agent information up to date may result in the 
withdrawal of Agency authorization.
    Overall, the amendments to the requirements in part 366 will help 
ensure that the process agent designation regulations serve their 
purpose of assisting members of the public seeking compensation for 
losses involving a CMV. Accurate process agent information from all 
parties to the transaction enables the public to serve process in 
lawsuits on the correct party in any State in which a motor carrier, 
broker, or freight forwarder operates. Additionally, FMCSA uses the 
information to locate hard-to-find carriers for compliance 
interventions and to serve notices for civil penalty enforcement 
actions, out-of-service orders, and other administrative proceedings. 
Therefore, these requirements will ensure that the Agency can properly 
enforce its regulations against violators.

H. Potential URS Impacts on Existing Systems and Programs

    A few commenters expressed concerns about potential negative 
impacts of URS implementation on Federal/State partnership initiatives 
such as the UCR Agreement, the PRISM Program, the CSA Program, and the 
New Entrant Safety Assurance Program. FMCSA assures stakeholders that 
the Agency will consult with them in planning, developing and testing 
the new URS information system to prevent conflicts with such programs.
1. Impacts on PRISM Program
Inconsistent Motor Carrier Registration Data
    MoDOT requested that FMCSA clarify how the proposed URS information 
requirements will impact the PRISM Program. In particular, MoDOT 
commented that information concerning carrier registration is passed to 
the States within the States' Commercial Vehicle Information Exchange 
Window (CVIEW) snapshot, and is used when companies plate their 
vehicles under the International Registration Plan (IRP). This 
commenter stated that inconsistent data when information is validated 
for the PRISM Program is confusing for the States and the industry.
    FMCSA Response. PRISM ensures that a vehicle does not receive 
license plates without identification of the carrier responsible for 
the safety of the vehicle during the registration year. By using 
vehicle registration sanctions, PRISM serves as a powerful incentive 
for unsafe carriers to improve their safety performance. CVIEW data has 
various purposes while PRISM data specifically targets certain vehicles 
and motor carriers. FMCSA believes these data programs are 
complementary, not inconsistent.
    PRISM Program States should transition to the Form MCSA-1 and the 
Agency will provide training to ensure seamless implementation. PRISM 
grant funds may also be available to provide financial assistance. 
Aside from use of the new Form MCSA-1 as described in this final rule, 
FMCSA does not anticipate that the changes to the URS will 
significantly impact the operations of the State's PRISM or CVIEW 
program. States participating in PRISM will continue to perform PRISM 
functions such as issuing USDOT Numbers, mandating the update to the 
MCSA-1, and applying vehicle registration sanctions when appropriate.
Type of Operation Classification on the MCSA-1 Form
    MoDOT expressed concerns regarding how the practice of changing a 
carrier's interstate operation classification to intrastate when no 
interstate transportation has been performed would be affected by the 
proposed URS requirements. This commenter explained that the FMCSA 
Electronic Field Operations Training Manual (eFOTM) states that if a 
State attempts to perform a New Entrant Safety Audit and determines 
that the carrier has not performed any interstate transportation, the 
State should not perform a New Entrant Safety Audit, but instead should 
change the carrier's interstate operation classification to intrastate. 
The eFOTM further instructs States to tell the motor carrier to go 
online and change its operation from ``Intrastate'' to ``Interstate'' 
when it begins to operate in interstate commerce.
    MoDOT also requested clarification regarding proposed 49 CFR 
365.110, which stated that the operating authority will not become 
permanent until the applicant satisfactorily completes the New Entrant 
Safety Assurance Program. The commenter asked what would happen to a 
carrier's operating authority when no interstate transportation has 
been performed within a designated period of time and

[[Page 52623]]

the States are told not to perform a safety audit (per the eFOTM 
procedures). MoDOT asked whether States should be permitted to 
deactivate the USDOT Number if no interstate activity has been 
performed within a designated time frame and the State does not require 
a USDOT Number for intrastate operations. MoDOT further asked whether 
States should be allowed to perform the safety audit if the carrier 
intends to operate in interstate commerce in order to ensure that the 
company is ``ready'' and meets all requirements for operating in 
interstate commerce.
    FMCSA Response. Currently, the eFOTM procedures direct a safety 
investigator/auditor not to conduct a safety audit if he or she learns 
the motor carrier has not yet begun interstate operations when the 
audit is being scheduled and to reclassify its interstate operation 
classification within the Motor Carrier Management Information System 
(MCMIS) to intrastate. The Agency is aware of this issue and will 
ensure it is not carried over into the URS, which will resolve other 
issues raised by MoDOT regarding the intrastate/interstate operation 
classification. Because the issue is not caused by the URS registration 
requirements, it is considered beyond the scope of the final rule and 
will be dealt with separately. The Agency is developing and will 
implement policies and procedures to address this unintended 
consequence of changing the operation classification for New Entrant 
Safety Assurance Program purposes. Any changes to the eFOTM that are 
needed will be made as the policies and procedures are developed, 
independently of this final rule.
Contradiction With PRISM Program State's International Registration 
Plan
    MoDOT expressed concern about changing any requirement within the 
PRISM procedures to suspend a license plate when an application for 
USDOT registration is rejected during FMCSA's review because this could 
contradict the terms of the IRP. This commenter stated that depending 
on the timeframe of the vehicle registration and the reporting period, 
applicants may be allowed to operate within two different registration 
periods with estimated mileage only.
    FMCSA Response. As has historically been the case, PRISM States 
impose vehicle registration sanctions when a motor carrier has been 
prohibited from operating by FMCSA, normally when an out-of-service 
order has been issued. An application rejected during FMCSA review, 
however, is not the result of an out-of-service order.
    In this final rule, the applicant cannot begin operations or mark a 
CMV with the USDOT Number until after the date of the Agency's written 
notice that the USDOT Number has been activated. PRISM State vehicle 
registration sanctions will continue to apply only in those cases when 
FMCSA has issued an out-of-service order.
PRISM Program State Assistance With Electronic Filing
    Given the electronic filing requirement for Form MCSA-1 under URS, 
MoDOT expressed concern about how it could help Missouri carriers with 
the new registration filing or biennial updates associated with the 
PRISM Program. MoDOT commented that it would not want to receive or 
input information from a paper application form to assist its customers 
in complying with the new registration requirement.
    FMCSA Response. As noted above, PRISM Program States should update 
their IRP to comply with the new URS registration requirement, 
including mandatory electronic filing. The Agency continues to believe 
that mandatory electronic filing is feasible and would result in cost 
and time savings to both applicants and FMCSA.\52\ In 2008, an 
estimated 78 percent of U.S. motor carrier new applicants 
electronically filed their initial registrations, and this number is 
projected to steadily increase to 88 percent by 2016.\53\ Furthermore, 
the Internet is publicly accessible via libraries and other public 
facilities. FMCSA recognizes that this change could impose a burden on 
entities that do not have readily accessible means to file 
electronically or that do not wish to file electronically, and has 
estimated these costs in detail in the Regulatory Evaluation.\54\ In 
future years, the FMCSA estimates that only 12 percent of applicants 
would be expected to still file by paper, if that option were 
available. The estimated cost savings of a mandatory electronic filing 
requirement that would accrue to other carriers and to the Agency is 
much greater than the costs to those carriers that would choose to 
continue to file by paper; mandatory electronic filing, therefore, is a 
cost effective requirement. The Agency sought, but did not receive 
comment on the SNPRM's Regulatory Evaluation's estimate of the impact 
of mandatory electronic filing.
---------------------------------------------------------------------------

    \52\ See section 3.2 of the Final Regulatory Evaluation of the 
Unified Registration System, which is available in the docket, for a 
discussion of the costs and benefits of the mandatory electronic 
filing.
    \53\ See Appendix A of the Final Regulatory Evaluation of the 
Unified Registration System, which is available in the docket.
    \54\ Id.
---------------------------------------------------------------------------

2. Impacts on UCR Agreement
    The SNPRM explained that Congress established the UCR Plan and 
Agreement to replace the SSRS for registration of interstate motor 
carriers with the States, and to ensure that States did not lose 
revenues derived from the SSRS.\55\ The UCR Plan and Agreement 
established fee schedules under which States collect fees from carriers 
based on the number of qualifying CMVs in their fleets.
---------------------------------------------------------------------------

    \55\ See 76 FR 66506, 66507.
---------------------------------------------------------------------------

    MoDOT pointed out unintended impacts of MCMIS and PRISM on the UCR 
Agreement and urged the Agency to address them within the URS final 
rule. For example, information on the Form MCS-150 is used to determine 
fees paid to the States under the UCR Agreement. MoDOT requested that 
FMCSA ensure that replacing Form MCS-150 with Form MCSA-1 would not 
jeopardize such fee determination.
    OOIDA identified an existing problem that could inappropriately 
create a liability to pay UCR fees for a year when a carrier was not 
operating. Specifically, this commenter stated that when a carrier 
attempts to provide the data needed to reactivate suspended or inactive 
authority, the current system will not allow the numerical value of 
``0'' (zero) miles to be inputted for the previous year even where 
there has been no activity. The carrier must input a value of ``1'' 
mile in order for the system to accept the application. Having to make 
any mileage declaration could create a liability to pay UCR fees for a 
year where there was no operation. OOIDA recommended allowing carriers 
to enter zero miles in the data field to resolve the issue.
    FMCSA Response. The Agency has revised Form MCSA-1 to ensure that 
replacing Form MCS-150 with Form MCSA-1 will not jeopardize fee 
determination under the UCR Agreement. A Federal statute, 49 U.S.C. 
14504a(f)(3), allows States to use the Form MCS-150 as a source of 
information about the number of vehicles in a motor carrier's fleet for 
purposes of determining a carrier's fees under the UCR Agreement. The 
number of CMVs owned or operated for the purpose of determining the 
level of fees charged for registering with the UCR Plan is either ``the 
number of commercial motor vehicles the [carrier] or freight forwarder 
has indicated it operates on its most recently filed MCS-150 or the 
total number of such vehicles it owned or operated for the 12-month

[[Page 52624]]

period ending on June 30 of the year immediately prior to the 
registration year of the Unified Carrier Registration System.'' \56\ 
The new Form MCSA-1 is the functional equivalent of the MCS-150. FMCSA 
construes the reference at the end of the statutory quote above to the 
``Unified Carrier Registration System'' as the UCR Agreement because 
the Unified Carrier Registration System (which FMCSA calls the URS) 
does not have a registration year.
---------------------------------------------------------------------------

    \56\ Id.
---------------------------------------------------------------------------

    The Agency has revised Form MCSA-1 to collect information about the 
number of vehicles in an applicant's fleet that are used solely in 
intrastate commerce. See Form MCSA-1, Section B, question 22(d). This 
revision is in response to comments from MoDOT about disparities in 
data reported by motor carriers during UCR Agreement and FMCSA 
registrations with regard to fleet size and suggestions for improving 
the ability to reconcile these inconsistencies. FMCSA believes this 
change will improve the ability to determine fees for the UCR Agreement 
pursuant to 49 U.S.C. 14504a(f)(3). This new entry will not increase 
the information collection burden on applicants because they are able 
to estimate with reasonable accuracy the number of vehicles operating 
in interstate and intrastate commerce, respectively.
    With respect to the mileage issue, the Agency is modifying its 
systems to accept a value of ``0'' (zero) in the mileage field and to 
require motor carriers to report vehicle miles traveled (VMT) data for 
the previous 12 months rather than for the previous calendar year. The 
MCSA-1 Instructions (question 21) have been modified accordingly. These 
changes are being implemented outside of this rulemaking process.

I. Transfers of Operating Authority and Concerns About Reincarnated 
Carriers

    In the SNPRM, the Agency proposed to eliminate 49 CFR part 365, 
subpart D, governing transfers of operating authority.\57\ FMCSA 
reasoned that ICCTA removed the Agency's statutory authority to approve 
transfers of authority and did not prohibit such transfers.
---------------------------------------------------------------------------

    \57\ See 76 FR 66506, 66519.
---------------------------------------------------------------------------

    TIA expressed support for the proposed elimination of 49 CFR part 
365, subpart D. However, TIA cautioned against simplifying the 
application and registration process to the point it would increase 
reincarnated carriers. TIA commented that FMCSA must be careful to 
establish the application and registration process in a way that will 
address certain abuses that have arisen under the current system, and 
that retains adequate protections for the shipping public. TIA 
requested that the Agency continue to allow MC Numbers to reflect a 
broker's business history. To prevent churning of operating authorities 
by unscrupulous or fraudulent operators, TIA encouraged FMCSA to take 
steps to conduct a thorough review of repeat applications by carriers 
or brokers filed within the same year to create an active database of 
companies. This commenter suggested that the Agency link the URS or 
other registration requirement with operating authority. Finally, to 
further prevent churning and confusion in the marketplace, TIA 
suggested that FMCSA prohibit the sale of authority numbers outside the 
sale of the company.
    FMCSA Response. The ICCTA repealed 49 U.S.C. 10926, which gave the 
Interstate Commerce Commission (ICC) specific authority to review and 
approve transfers of operating authority which historically was 
assigned to non-exempt and for-hire motor carriers, brokers, and 
freight forwarders. However, FMCSA has never allowed and will continue 
to disallow transfers of USDOT numbers which have been issued for 
safety-related registration and now will become the unique identifier 
for FMCSA-regulated entities. The commenter, however, brought up 
legitimate concerns about potential carrier safety record-related 
impacts of the URS combining commercial operating authority and safety 
registration under the same USDOT Number.
    Although ICCTA removed the Agency's authority under former 49 
U.S.C. 10926 to approve transfers of authority, it did not prohibit 
FMCSA from requiring notice of transfers. The Agency's statutory 
authority permits it to obtain information from carriers and brokers, 
and from the employees of such entities, that FMCSA decides is 
necessary to carry out its regulatory responsibilities.\58\
---------------------------------------------------------------------------

    \58\ 49 U.S.C. 13301(b).
---------------------------------------------------------------------------

    This rule will result in the development of a registration system 
that combines information associated with the Agency's safety and 
commercial registration systems in a way that does not exist today. 
FMCSA believes that combining these separate Agency information systems 
into the URS will improve the Agency's ability to detect and prevent 
unscrupulous motor carriers that reinvent themselves to avoid 
compliance with regulations and enforcement actions. The Agency 
believes it can identify these reincarnated carriers despite 
discontinuing issuance of the MC Numbers because a motor carrier's 
safety history is associated with its USDOT Number, not its MC Number. 
All for-hire motor carriers that have MC Numbers and are subject to the 
Agency's safety jurisdiction also have USDOT Numbers.
    Today, the Agency uses several screening algorithms to identify 
potential reincarnated carriers, which will continue under the URS. For 
example, the Agency already has implemented a New Applicant Screening 
(NAS) Process. The Agency currently uses the NAS to provide additional 
scrutiny to all applications involving passenger carrier and household 
goods (HHG) authority. However, without a transfer notification 
requirement, this and other protections discussed in the SNPRM may be 
insufficient to quickly identify reincarnated carriers. Absent a 
notification requirement, a carrier's operating authority could change 
hands through the sale of a company, and the safety history of the 
transferor company could be lost if the transferee company already has 
its own USDOT Number that it will continue to use with its newly 
acquired operating authority. This would result in a loophole that 
would allow a carrier to avoid a bad safety history by obtaining a new 
USDOT Number and shedding its old USDOT Number and poor safety history.
    In response to the concerns expressed by TIA, therefore, the Agency 
has decided to require, in new Sec.  390.201(d)(5), that a person who 
obtains operating authority through a transfer, as defined in part 365, 
subpart D, notify FMCSA of the transfer within 30 days of consummation 
of the transaction by filing either an updated Form MCSA-1 or a new 
Form MCSA-1, if the transferee did not have an existing USDOT Number at 
the time of transfer. Section 390.201(d)(5) also requires the 
transferor to file an updated Form MCSA-1 to notify FMCSA of the 
transfer, which will allow the Agency to maintain accurate records of 
entities' operating authorities. When providing the transfer of 
operating authority information on an updated Form MCSA-1, a transferee 
or transferor would check ``Notification of Transfer of Operating 
Authority (Both Transferor and Transferee)'' as the reason for filing, 
and the information that the online Form MCSA-1 will require is the 
name, address, phone number, and USDOT Numbers of the transferor and 
transferee. They will also need to scan

[[Page 52625]]

and provide an electronic copy of the operating authority being 
transferred.
    The information provided with a notification of transfer of 
authority will ensure that the Agency's IT systems are up to date and 
that the safety history associated with a carrier's operating authority 
and its associated USDOT Number remains connected with that operating 
authority, regardless of any changes in the entities that own that 
operating authority. FMCSA is also revising part 365, subpart D, to 
specify the procedures for motor carriers, property brokers, and 
freight forwarders to report to FMCSA transactions that result in the 
transfer of operating authority. Section 365.403(a) defines transfer as 
``any transaction in which an operating authority issued to one person 
is taken over by another person or persons who assume legal 
responsibility for the operations. Such transactions include a purchase 
of all or some of the assets of a company, a merger of two or more 
companies, or acquisition of controlling interest in a company through 
a purchase of company stock.'' Section 365.403(c) defines person as an 
``individual, partnership, corporation, company, association, or other 
form of business, or a trustee, receiver, assignee, or personal 
representative of any of these entities.'' Finally, Sec.  365.405 
references Sec.  390.201(d)(5) and specifies that both the transferor 
and the transferee must supply the full name, address, and USDOT 
Numbers of the transferor and transferee (if the transferee has a USDOT 
Number), as well as a copy of the operating authority being 
transferred.
    The Form MCSA-1 and Instructions have been revised to accommodate a 
filing for purposes of notification of transfer of operating authority 
(see section O). In particular, the Agency has added an additional 
reason for filing: ``Notification of Transfer of Operating Authority 
(Transferor or Transferee),'' which will have no associated fee. If a 
person filing the Form MCSA-1 checks this reason, the user will be 
directed to Section O (Notification of Transfer of Operating 
Authority). The applicant will first be asked whether it is a 
transferor or a transferee. If the applicant is a transferee, the 
applicant will be prompted to confirm whether or not it has a USDOT 
Number. If the transferee does not yet have a USDOT Number, the 
applicant will be re-directed to Section A, and the applicant will be 
required to fill out all applicable sections of the Form MCSA-1 as a 
new applicant.
    If the transferee has an existing USDOT Number, and in all cases 
for the transferor filing the MCSA-1 for purposes of notification of 
transfer of operating authority, Section O will prompt the applicant to 
enter the name, address, contact information, and USDOT Number for both 
the transferor and the transferee. As it does with all new applicants 
for a USDOT Number, the Agency will determine whether the transferee is 
willing and able to comply with applicable regulatory requirements, and 
will ensure that the transferee has satisfied all applicable 
administrative filing requirements, before activating the transferee's 
USDOT Number. The Form MCSA-1 Instructions have been revised to explain 
the new reason for filing and to direct transferors and transferees on 
how to enter data in Section O.

J. Reinstatement of Operating Authority

    Related to issues of churning operating authority by reincarnated 
carriers, TIA also urged FMCSA to prohibit the practice of reinstating 
authority numbers that have been inactive for more than 12 months. This 
commenter cited data from Internet Truckstop that 22 percent of 
reinstated MC Numbers were not reinstated by the original owner (i.e., 
that they had been purchased by a different company). TIA stated that 
any change in ownership usually flags a change in the company's methods 
of operation and business practices, quoting an Internet Truckstop 
report. For these reasons, TIA recommended that entities should be 
prohibited from purchasing and reinstating a retired MC Number, unless 
someone purchases the entire company. TIA urged FMCSA to completely 
retire MC Numbers and USDOT Numbers that have been out of service for 
more than 12 months.
    FMCSA Response. As was stated in the SNPRM, FMCSA no longer has 
authority under former 49 U.S.C. 10926 to approve transfers of 
operating authority. However, the final rule requires motor carriers 
and other regulated entities to notify FMCSA of any transactions that 
may directly or indirectly result in the transfer of operating 
authority (see section V.I). This notification requirement will help 
FMCSA keep track of possible churning of operating authority 
registrations by unsafe carriers. Operating authority or a USDOT Number 
may become inactive for legitimate business reasons. For example, a 
small carrier may decide to lease its vehicles and drivers to another 
authorized carrier for a period of time rather than operate under its 
own MC or USDOT Number because it may be economically beneficial to do 
so. Or, a carrier that may have decided to operate solely in intrastate 
commerce may subsequently resume operations as an interstate carrier. 
FMCSA believes that adopting TIA's proposal to permanently ``retire'' 
MC and USDOT Numbers that have been inactive for more than 12 months, 
thus requiring carriers to apply for new numbers and re-enter the new 
entrant program, would be unduly burdensome for carriers that have 
legitimate reasons for temporary deactivation.

K. Unauthorized Re-Brokering of Freight

    The SNPRM proposed that URS apply to property brokers because 
section 4302 of SAFETEA-LU requires the Federal on-line replacement 
system to ``serve as a clearinghouse and depository of information on, 
and identification of, all foreign and domestic carriers, motor private 
carriers, brokers, freight forwarders, and others required to register 
with the Department of Transportation . . .'' \59\ TIA asked FMCSA to 
issue separate operating authority numbers to entities operating as 
both motor carriers and property brokers so that the Agency could 
prevent unauthorized re-brokering of freight, and to enable shippers to 
know which type of entity they are dealing with at the time of 
arranging for the transportation of cargo. This commenter asserted that 
many motor carriers currently operate under the misperception that 
registering as a motor carrier entitles them to broker freight to other 
motor carriers when they cannot handle it themselves.
---------------------------------------------------------------------------

    \59\ 49 U.S.C. 13908(b); see 76 FR 66506, 66512.
---------------------------------------------------------------------------

    TIA commented that the unauthorized re-brokering of freight has led 
to many commercial problems for its member brokers. Further, TIA stated 
that when undisclosed re-brokering of freight occurs, carriers with 
poor safety histories--often those that would have never been chosen by 
the shipper or broker--can remain in business and circumvent the 
safeguards intended to discourage the use of unsafe carriers. Thus, TIA 
reasoned that unauthorized re-brokering of freight by motor carriers 
also frustrates the efforts of government and the industry to promote 
the use of safe carriers.
    TIA commented that the proposed URS and Form MCSA-1 would 
perpetuate the confusion caused by the current FMCSA registration 
system (inherited from the ICC) by permitting an entity to use a single 
registration process to apply for authority as both a carrier and 
broker, and by using a single USDOT Number to cover them both. This 
commenter asserted that this characteristic of the registration system 
makes it impossible for the party

[[Page 52626]]

tendering the cargo to be sure which operating authority the carrier is 
choosing to exercise. Therefore, TIA urged FMCSA to require separate 
applications for motor carrier, broker, and freight forwarder 
authority, and to assign different USDOT Numbers for motor carrier and 
broker authority, even when they are held by the same entity.
    FMCSA Response. A ``broker'' is a party who, for compensation, 
arranges, or offers to arrange the transportation of property by an 
authorized motor carrier.\60\ When shipments are transported by motor 
carriers, both the carrier and the shipper may use brokers as agents in 
connection with the movement of goods. Currently, entities may hold 
authority to operate as both a motor carrier and a broker, either under 
their own name or through affiliated companies.
---------------------------------------------------------------------------

    \60\ 49 U.S.C. 13102(2).
---------------------------------------------------------------------------

    Prior to enactment of MAP-21, separate broker authority was not 
necessarily required for motor carriers to lawfully tender freight to 
other motor carriers for transportation, provided the motor carrier 
arranged for the transportation of shipments which they are authorized 
to transport and which they have accepted and legally bound themselves 
to transport.\61\ Section 32915 of MAP-21 amended 49 U.S.C. 13902 to 
prohibit a motor carrier from providing broker services unless it first 
registers as a broker under 49 U.S.C. 13904.
---------------------------------------------------------------------------

    \61\ 49 CFR 371.2(a).
---------------------------------------------------------------------------

    Section 32914 of MAP-21 also amended 49 U.S.C. 13901 to require 
distinctive USDOT Numbers for each type of authority issued. For 
example, an entity applying for both broker and motor carrier authority 
would receive a different USDOT Number for each type of authority. This 
MAP-21 provision also requires that the USDOT Number include an 
``indicator'' of the type of authority issued. FMCSA will address these 
MAP-21 requirements in a separate rulemaking, at a later date.

L. Americans With Disabilities Act (ADA) Compliance

    Greyhound stated that FMCSA continues to refuse to make compliance 
with the ADA an issue to be considered before registering motor 
carriers of passengers. Greyhound commented that enactment of the Over-
the-Road Bus Transportation Accessibility Act of 2007 (OTRB Act), 
Public Law 110-291, requires FMCSA to assess an applicant's willingness 
and ability to comply with DOT's ADA regulations at 49 CFR part 37, 
subpart H in the same way the Agency considers the applicant's ability 
to comply with other applicable regulations, such as those pertaining 
to safety and financial responsibility. Greyhound commented that FMCSA 
must gather sufficient information to make the basic ADA fitness 
determination.
    Greyhound also requested that FMCSA modify the equipment list 
requirements on page 6 of the proposed Form MCSA-1 to ensure that all 
fixed-route operators comply with requirements regarding lift-equipped 
vehicles or provision of equivalent service, as applicable. Greyhound 
also urged that New Entrant Safety Audits be expanded to include 
questions regarding compliance with lift-equipped vehicle requirements 
for both demand responsive and fixed-route passenger carriers.
    FMCSA Response. Although the OTRB Act required FMCSA to consider an 
applicant's willingness and ability to comply with DOT's ADA 
regulations in determining whether to grant its application for 
operating authority, it did not mandate a particular means of doing so. 
Section G of Form MCSA-1 requires passenger carrier applicants to 
certify that they are ``fit, willing, and able to comply with all 
pertinent statutory and regulatory requirements, including the U.S. 
Department of Transportation's Americans with Disabilities Act 
regulations for over-the-road bus companies located at 49 CFR part 37, 
subpart H, if applicable.'' After explaining differences in terminology 
between the part 37 regulations and FMCSA regulations, the Form directs 
the applicant to the Agency's Web site for a general overview of the 
Department's ADA regulations. This certification is more specific than 
the certification in Section M of Form MCSA-1, in which all applicants 
must certify that they are willing and able to comply ``with all 
pertinent statutory and regulatory requirements and regulations issued 
or administered by the U.S. Department of Transportation, including 
operational regulations, safety fitness requirements, motor vehicle 
safety standards and minimum financial responsibility, and designation 
of process agent requirements.'' Thus, at the application stage, the 
Agency will assess an applicant's willingness and ability to comply 
with ADA requirements through self-certification. If a member of the 
public or a potential competitor has evidence that an applicant is not 
willing and able to comply with DOT's ADA regulations, they may raise 
this issue in a protest to the application filed in accordance with 49 
CFR part 365, subpart B.
    Regarding the modification of the equipment list requirements, 
FMCSA believes that the certification in Section G of Form MCSA-1 
complies with the OTRB Act and that it is unnecessary to require 
applicants to include detailed ADA compliance information on the 
application form. FMCSA indicated in the SNPRM that it would verify ADA 
compliance during the New Entrant Safety Audit stage. New Entrant 
Safety Audits are generally conducted within 9 months after a new 
entrant for-hire passenger carrier is issued operating authority 
registration and in the future will be conducted within 120 days as 
required by MAP-21. At this time, the Agency will probe into the 
carrier's ADA compliance. Although it is beyond the scope of this 
rulemaking, the Agency will consider augmenting the New Entrant Safety 
Audit to include verifying compliance by both fixed-route and demand 
responsive passenger carriers with the fleet standards and/or 
equivalent service standard contained in 49 CFR 37.183 and 185.
    If noncompliance with DOT's ADA regulations is discovered in the 
course of the safety audit or a Compliance Review, FMCSA will, in 
accordance with a Memorandum of Understanding with the U.S. Department 
of Justice (DOJ), either forward the information to DOJ for appropriate 
action or conduct its own investigation and attempt to resolve the 
violations. We believe that these procedures are sufficient to meet the 
Agency's obligations under the OTRB Act.

M. Other Suggested Revisions to MCSA-1 Form and Instructions

    OOIDA, ATA, NTTC and MoDOT proposed extensive corrections, 
revisions and enhancements to the proposed form and instructions. In 
this section, the Agency discusses comments on the MCSA-1 Form and 
Instructions not otherwise addressed above. FMCSA has made corrections 
to the typographical errors that commenters pointed out.
General
Applicants Accustomed to MCS-150 Terms and Instructions
    ATA commented that where an existing form, such as the MCS-150, has 
been in use for years, and those filing it have become accustomed to 
the form and its instructions, it may be advisable, whenever possible, 
to continue to use the same language as the existing form, and the same 
instructions.
    FMCSA Response. The Agency acknowledges that some of the terms used 
in Form MCSA-1 are new and unfamiliar to entities that do not require 
operating authority. However, these

[[Page 52627]]

entities will need to provide only information pertinent to their 
specific operations. FMCSA will strive to make the online system and 
instructions as clear as possible when designing and implementing the 
new system, and will provide examples to clarify registration processes 
whenever feasible.
Use of the Word ``Applicant''
    ATA commented that although the MCSA-1 Form is a multi-purpose 
form, throughout the form and instructions the filer is referred to as 
the ``applicant,'' although only a minority, perhaps a small minority, 
of filers would be applicants for operating authority registration. ATA 
commented that the result would be confusion for those other than 
applicants, as such entities would be uncertain as to what parts of 
Form MCSA-1 apply to them. This commenter recommended that the Form 
MCSA-1 and Instructions use a more general, neutral term, such as 
``filer.''
    FMCSA Response. The Agency disagrees and is retaining the use of 
the word applicant in Form MCSA-1 and the Instructions. Under the URS, 
every entity under FMCSA jurisdiction is considered an applicant for 
registration, not just those requesting operating authority. We 
recognize, however, that some existing entities will also file changes 
to their name, address, form of business, and/or updates to their 
registration information on the Form MCSA-1, but they too will be 
considered as ``applicants'' requesting a change or update in their 
registration data. Because the Agency wants to ensure that the 
information entered on Form MCSA-1 pertains to the entity seeking 
registration or other appropriate actions and not a third-party filing 
company, FMCSA believes the use of a more general term (such as 
``filer'') would be inappropriate. All entities must indicate their 
``Reasons to File'' the Form MCSA-1. Because the Form MCSA-1 is 
electronic, entities will be directed to the appropriate sections that 
need to be completed once they indicate their reason for filing. This 
aspect of the URS will eliminate any uncertainty as to what parts of 
Form MCSA-1 apply to entities filing the form. Accordingly, the Agency 
will use the term ``applicant,'' rather than filer, throughout the URS 
rule, the Form MCSA-1, and the Instructions. In addition, sec. 32105 of 
MAP-21, which adds new section 31134 to Title 49, U.S. Code, requires 
persons subject to the Agency's safety jurisdiction to submit an 
``application'' to receive a USDOT Number. The universe of 
``applicants'' is therefore not limited to persons seeking operating 
authority registration.
References to Federal Statutes or Regulations
    ATA pointed out that on the first page of the proposed Instructions 
for Form MCSA-1, in the line immediately above the bullet points, a 
reference is made to ``interstate commerce as defined in 49 CFR 
390.5.'' The commenter asserted that this sort of technical reference 
would not be encouraging to unsophisticated applicants as they begin to 
engage with this already intimidating form. Further, ATA commented that 
if applicants do read the referenced regulation, they may be misled 
again, to believe that interstate commerce only includes movements by 
vehicles that cross state lines. This commenter stated that, in 
general, references to Federal statutes or regulations will rarely be 
helpful.
    FMCSA Response. Generally, the Agency cites Federal regulations and 
statutes in the Form MCSA-1 and Instructions because cross referencing 
these sources is more efficient than spelling out definitions and 
requirements throughout these documents and the statutes and 
regulations provide the basis for applicable registration requirements. 
Inserting language from the statutes or regulations would require 
changes to the MCSA-1 Form and/or Instructions whenever modifications 
were made to the statutory or regulatory language. However, in the 
interest of making the instructions easier to understand, the Agency 
has included additional clarifications wherever feasible.
NTSB Recommendation H-11-1: Collecting Additional Cargo Tank 
Information
    As noted in the SNPRM, in 2009 the National Transportation Safety 
Board (NTSB), as part of its accident report concerning a 2009 crash 
involving a cargo tank vehicle, recommended that FMCSA revise the MCS-
150 Form to require HM carriers to report the number of types of USDOT 
specification cargo tanks (i.e., cargo tank vehicles designed and self-
certified by the vehicle manufacturer as meeting the applicable PHMSA 
standards for use in transporting HM) owned or leased by the carriers 
and provide other pertinent data displayed on the specification plates 
of such tanks (Recommendation H-11-1).\62\ NTSB recommended that FMCSA 
require this information to be updated annually. In the SNPRM, the 
Agency sought comments on this NTSB recommendation.\63\ NTTC quoted 
this NTSB recommendation, noting that NTSB recommended that data be 
collected from all intrastate and interstate carriers. No other 
commenter addressed NTSB Recommendation H-11-1.
---------------------------------------------------------------------------

    \62\ See http://www.ntsb.gov/investigations/summary/HAR1101.html 
(last accessed July 30, 2012).
    \63\ See 76 FR 66506, 66522.
---------------------------------------------------------------------------

    FMCSA Response. The FMCSA acknowledges the intent of the NTSB 
recommendation but the Agency has opted not to include a requirement in 
the URS final rule for the collection of the cargo tank vehicle 
information recommended by the NTSB. Based on FMCSA's experience 
working with PHMSA and the cargo tank industry to address safety 
issues, and our understanding of the role of crash investigations or 
inquiries in identifying likely causes or contributing factors of 
crashes and HM incidents, the Agency does not need the cargo tank 
vehicle data in question.
    First, the fact that a specification cargo tank vehicle was 
involved in a recordable crash would not in and of itself trigger a 
need for industry-wide tank vehicle data. In the absence of a crash or 
incident involving the unintended release of HM, and a subsequent 
investigation of the cause of the release of the material, the 
industry-wide data would serve only as a census of cargo tank vehicles 
used to transport HM. This census would not cover tank vehicles used to 
transport other materials even though such vehicles would be 
susceptible to crashes. FMCSA would know the total number of 
specification tank vehicles in use but there would be little if any 
analytical value concerning the risks of future crashes. FMCSA notes 
that through its existing motor carrier reporting requirements, which 
are continued through this rulemaking, the Agency has access to 
information on the identity of interstate motor carriers transporting 
HM in quantities requiring placards, which includes the interstate 
carriers operating specification cargo tank vehicles that are the 
subject of the NTSB's interest.
    Second, if there is a crash or incident involving the unintentional 
release of HM and the investigation or inquiry suggests that a design, 
fabrication, or maintenance issue may have contributed to the release 
of the HM, FMCSA and PHMSA already have the tools needed to effectively 
address the issue(s) without imposing a new information collection 
burden on the transportation industry. If there is a concern that a 
cargo tank vehicle from a specific manufacturer may not comply with 
PHMSA's standards, the

[[Page 52628]]

subsequent investigation would determine whether the problem is with 
the fabrication and/or maintenance of the specific tank vehicle 
involved in the crash or incident; involves multiple cargo tank 
vehicles produced by the same manufacturer; involves multiple cargo 
tanks serviced by the same repair facility; involves multiple cargo 
tanks operated by the same carrier; or, involves multiple 
manufacturers' cargo tanks in the specification series. The Department 
does not need the information collection for these scenarios to address 
the issue because FMCSA and PHMSA would work with the cargo tank 
manufacturers and repair facilities to take appropriate actions to 
resolve the safety concerns. FMCSA and PHMSA would work with the 
manufacturers and repair facilities involved to gather up-to-date 
information on how many specification tank vehicles had been sold or 
serviced and which customers were operating those vehicles.
    In the event the investigation suggests flaws with one or more 
manufacturers' specification tank vehicle series, the agencies would 
work together to inform the cargo tank industry (manufacturers, 
registered repair facilities, and carriers) and the enforcement 
community of the problem and what actions should be taken to address 
the problem. For example, FMCSA could issue a safety bulletin or alert, 
or publish a Federal Register notice announcing the discovery of the 
non-compliant tanks. The Agency has taken a similar action in the past 
to alert carriers to safety problems and to direct them to immediately 
discontinue use of the unsafe cargo tanks until repairs and 
recertification were completed.
    And, if necessary, the agencies would work together to determine 
what regulatory actions may need to be considered to provide a long-
term solution. As with the previous scenarios, the NTSB's recommended 
information collection burden would not have provided any practical 
information useful in addressing the problem.
    If there is a problem with the actual regulatory standard for a 
specification series, i.e., the manufacturers' tank designs conform to 
the PHMSA standards in effect on the date of manufacture but the 
standards for that series need to be upgraded, the collection of data 
does not help FMCSA and PHMSA because the agencies do not have a 
practical means with which to address such problems short of conducting 
a rulemaking to require or prohibit certain actions by manufacturers, 
repair facilities, and carriers. At the point the agencies consider a 
rulemaking, FMCSA and PHMSA could query the vehicle manufacturers to 
obtain cargo tank vehicle data needed to support the preparation of 
rulemaking documents. The information collection burden recommended by 
the NTSB would therefore be unnecessary.
    For the reasons given above, the Agency excludes from the final 
rule the collection of cargo tank data from motor carriers. The Agency 
will formally notify the NTSB in writing to request closure of the 
recommendation. NTTC's specific comment relating to URS applicability 
to intrastate HM carriers was addressed in section V.D.2.
Other Comments About the MCSA-1 Form
Section A, MC, MX, and FF Number(s)
    MoDOT recommended that proposed question 10, in Section A of Form 
MCSA-1 should be deleted if all entities registered under the URS are 
to be identified solely by the USDOT Number. Proposed question 10 
required the applicant to list MC, MX, and FF Number(s) (if updating).
    FMCSA Response. The Agency agrees with MoDOT and has removed 
question 10 from Form MCSA-1 because regulated entities will be 
identified solely by USDOT Number. However, applicants must disclose 
MC, MX and FF Numbers concerning business relationships and 
affiliations with other entities registered with FMCSA (or its 
predecessor agencies) in response to question 43 of Form MCSA-1 because 
the Agency will use the information to deter reincarnated carriers as 
discussed in this section under ``Section K, Disclosure of 
Relationships with other FMCSA-regulated Entities.''
Section A, Form of Business
    Proposed question 13 (Form of Business) in Section A asked an 
applicant to indicate its form of business by checking all of the 
following that apply: Sole Proprietor, Partnership, Limited Liability 
Company, Corporation, or Unit of State or Local Government. MoDOT 
recommended that FMCSA change the instruction for a Sole Proprietor. 
MoDOT commented that under the IRS definition, ``[a] sole proprietor is 
someone who runs an unincorporated business by himself or herself.'' 
The proposed instructions read ``Sole Proprietor--Individuals who 
operate a business in their own name.'' MoDOT stated that this gives 
the impression that more than one individual could be included as a 
sole proprietor. Therefore, this commenter recommended that the 
instruction be changed to read: ``Sole Proprietor--An individual who 
operates a business in his or her own legal name.''
    MoDOT further recommended that question 13 include ``Limited 
Liability Partnerships and Trusts'' as an option to check for form of 
business. ATA questioned why question 13 (Form of Business) instructs 
the applicant to ``select all that apply.'' This commenter asked how 
more than one could apply.
    FMCSA Response. In response to MoDOT's request, the Agency added 
the requested business forms, ``Limited Liability Partnerships'' and 
``Trusts,'' as well as a data field marked ``Other'' for question 12 
(formerly question 13). The instructions to question 12 include 
definitions for ``Limited Liability Partnership'' and ``Trust'' and 
instruct the applicant to use the data field marked ``Other'' to 
indicate any business forms not listed on the application. The term 
``Limited Liability Partnership (LLP)'' is defined as a ``partnership 
in which some or all partners (depending on the jurisdiction) have 
limited liability. In an LLP, no partner is responsible or liable 
(directly or indirectly) for an obligation of the partnership due to 
another partner's misconduct or negligence, thus shielding innocent 
members of these partnerships from liability.''
    The term ``Trust'' is defined as a ``relationship whereby property 
(real or personal, tangible or intangible) is transferred by one party 
(settlor) to be held by another party (trustee) for the benefit of a 
third party or parties (beneficiary(ies)). In effect, a trust is a 
legal device designed to provide financial assistance or something of 
value to someone without giving the person total control over the trust 
assets. It may be revocable or irrevocable, express or implied. The 
trustee owes a fiduciary duty to the beneficiaries (the beneficial 
owners of the trust property) and is obligated to administer the trust 
in accordance with both the terms of the trust and the governing law.''
    Additionally, the Agency has revised the definition of ``sole 
proprietor'' in the Form MCSA-1 Instructions to read: ``An individual 
who owns and operates a business normally in his or her legal name and 
in which there is no legal distinction between the owner and the 
business. In some jurisdictions the proprietor can use a trade name or 
business name other than his or her legal name, but the individual is 
also required to file a `doing business as (dba)' statement with local 
authorities. Every asset of the business is owned by the proprietor and 
all debts of the business are his or hers as well.''

[[Page 52629]]

    Regarding the direction that applicants ``select all that apply,'' 
we agree with ATA that only one form of business or company structure 
should apply here. Because the form of business or company structure 
may vary, each legal entity should have its own USDOT Number 
identifier. Accordingly, we have replaced the phrase ``select all that 
apply'' on question 12 of the MCSA-1 Form with ``select the one 
business form that applies.''
Section A, Gross Annual Revenue
    ATA commented that on page 8 of the proposed MCSA-1 Instructions, 
and on page 3 of the proposed MCSA-1 Form, the applicant is to enter 
its ``gross annual revenue'' (proposed Form MCSA-1 question 16). This 
commenter stated that this is a new requirement not proposed in the 
NPRM. ATA questioned what purpose such a requirement could serve. ATA 
stated that private motor carriers are, by definition, engaged 
primarily in businesses other than transportation, and many motor 
carriers operate ancillary businesses as well. Further, ATA commented 
that many businesses rightly regard gross revenue data as proprietary. 
ATA asserted that a requirement to provide gross annual revenue is 
unwarranted without a full explanation of a valid regulatory purpose, 
which FMCSA has not provided. This commenter recommended that the MCSA-
1 Form remove the requirement to enter this information.
    FMCSA Response. The Agency has revised the Form MCSA-1 and 
Instructions to no longer require information about an applicant's 
``gross annual revenue.'' FMCSA, however, may revisit this issue in the 
future.
Section B, Mileage
    MoDOT requested that FMCSA clarify the instruction for proposed 
question 23 (Mileage) to make clear who reports the mileage of vehicles 
owned by the applicant but leased by the applicant to another carrier, 
versus vehicles leased by the applicant from others to use in the 
applicant's business. The proposed instruction read: ``Estimate the 
miles traveled by applicant's [CMVs] during the last calendar year. It 
makes no difference if the CMVs were leased by the applicant or owned 
by the applicant. . . .'' MoDOT commented that this proposed 
instruction appears to cover all the vehicles owned by the applicant, 
whether or not used by the applicant.
    FMCSA Response. The Agency agrees with MoDOT that the proposed 
question 23 instruction (question 21 instruction in the final rule) 
should be clarified to require reporting the mileage of all CMVs used 
in the applicant's operations. The question 21 instruction has been 
revised to read:

Enter the total mileage of all [CMVs] to the nearest 10,000 miles 
operated by the applicant for the previous 12 months (whether leased 
or owned). If the applicant has been in operation for less than 12 
months, enter mileage operated to date. If the applicant has not 
operated within the last 12 months, enter the number ``0.''

    The Agency has also similarly modified question 21 on the MCSA-1 
Form. FMCSA has also eliminated the ``Calendar Year'' entry field from 
the MCSA-1 Form because the Agency has decided to request carrier 
mileage operated in the previous 12 months.
Section B, Number of Vehicles
    MoDOT requested that FMCSA add further information to the Form 
MCSA-1 Instructions for question 24(a), which requires applicants to 
list the number of vehicles with weights greater than or equal to 
10,001 pounds that it will operate in the United States. This commenter 
requested that the Agency make the instruction absolutely clear what 
vehicles are to be counted and included in this section. For a motor 
carrier that owns and leases some of its vehicles to other motor 
carriers, MoDOT asked whether the owner or the lessee is responsible 
for reporting those vehicles. MoDOT commented that without 
clarification, vehicle counts may be reported twice, once by the owner 
and once by the lessee.
    MoDOT also commented that while question 24(c) requires applicants 
to list the number of vehicles with weights greater than or equal to 
10,001 pounds that it will operate in interstate commerce, nothing in 
the question 24(a) instructions indicates that vehicles listed under 
24(a) include operations in intrastate and interstate commerce. This 
commenter recommended that similar language be used within an item in 
order to be consistent and to easily understand the difference between 
questions 24(a) and 24(c). MoDOT commented that the proposed question 
24 instructions were not clear and gave the impression that question 
24(c) was requiring the total number of vehicles shown in (a), which it 
may not be.
    FMCSA Response. The Agency agrees with MoDOT that the proposed 
question 24 instructions may be confusing. For this reason, and for 
other reasons explained below, the Agency is revising proposed question 
24 (renumbered question 22 in the final rule) on both the Form MCSA-1 
and on the Form MCSA-1 Instructions. As explained above in section 
V.D.5, beginning on or about September 1, 2012, FMCSA discontinued 
issuing USDOT Numbers to non-motor carrier leasing companies and such 
companies would not fill out Form MCSA-1.
    When responding to renumbered question 22, applicants should 
provide the number of each type of CMV that the company uses in its 
U.S. operations broken out by the method used to acquire the vehicle 
(owned, term-leased or trip-leased). Owned means the company holds 
title to the CMV, term leased means the vehicle is leased for a 
specific time period or term of contract, and trip leased means the CMV 
is leased on a trip-by-trip basis as needed. If the company owns or 
leases a school bus, mini-bus, passenger van, or limousine, then it 
would indicate the number of each type of passenger-carrying CMV (by 
its passenger-carrying capacity) that is owned, term leased or trip 
leased. For passenger-carrying vehicles, it would count the driver as a 
passenger when determining a vehicle's passenger-carrying capacity.
    The Agency amends renumbered question 22 on the Form MCSA-1 and 
Instructions by adding a section (d) to require applicants to provide 
the number of vehicles that are operated or will be operated solely in 
intrastate commerce, while section (c) continues to require applicants 
to provide the number of vehicles that operate interstate. The 
instructions to question 22(a) (proposed question 24(a)) have been 
clarified to explain that a CMV is ``operated'' for purposes of this 
question ``if the vehicle is registered under Federal or State law, or 
both, in the name of the carrier, or is controlled by the carrier under 
a trip lease or long-term lease agreement (more than 30 days) during 
any given year. If a freight forwarder operates CMVs, it is also 
required to enter its fleet size on the MCSA-1 Form. Both a motor 
carrier and a freight forwarder (if operating CMVs) must include the 
number of CMVs operated under a trip lease or long-term lease agreement 
in their fleet size determinations.''
Section K, Administrative Filings Information
    MoDOT recommended that FMCSA delete within Section K any 
information concerning the insurance company and the filing of 
financial responsibility; the name of the insurance company; policy 
number, date issued, etc. (proposed question 44). MoDOT also 
recommended that FMCSA delete the requirement to document within the 
MCSA-1 Form whether the Designation of Agents for Service of Process 
Form (BOC-3) is on file or will be filed

[[Page 52630]]

(proposed question 46). With respect to both of these recommendations, 
MoDOT commented that the information on file with the Agency should be 
sufficient proof and documentation to determine if the applicant is in 
compliance with the financial responsibility and process agent filing 
requirements. This commenter reasoned that if the responses to 
questions 44 and 46 were inconsistent with the filings received, 
someone would be required to intervene and question the validity of the 
application.
    FMCSA Response. FMCSA is retaining proposed question 44 relating to 
financial responsibility on the MCSA-1 Form (renumbered as question 42 
in the final rule) because the information provided is useful in 
identifying, at the application stage, unsafe carriers that attempt to 
``reincarnate'' as new carriers. However, URS will not prevent an 
applicant that does not yet have this information from completing an 
application. FMCSA has removed proposed question 46 from the MCSA-1 
Form because providing a simple confirmation that an applicant has 
submitted the BOC-3 Form to the Agency does not provide any useful 
information that the Agency does not already have.
Section K, Disclosure of Relationships With Other FMCSA-Regulated 
Entities
    MoDOT also recommended that FMCSA remove column 2, in Section K, 
proposed question 45. Proposed question 45 would require an applicant 
to disclose all relationships that it has had (currently or in the past 
three years) with other FMCSA-regulated entities. The blank table 
requires an applicant to list the following information about such 
relationships: USDOT Number, MC/MX/FF number, company's name, and 
company's latest USDOT safety rating (as columns 1, 2, 3, and 5, 
respectively). MoDOT noted that the MC/MX/FF numbers will be superseded 
by the USDOT Number.
    ATA commented that the instructions for question 45 regarding the 
reporting of affiliations were unclear. ATA requested clarification of 
what ``affiliation'' means in this context: ``Is it the narrow, highly 
technical signification of the federal tax regulations, or some other 
meaning? At its broadest, the word can mean any business, familial, or 
personal connection whatever.''
    FMCSA Response. The Agency is retaining column 2 in proposed 
question 45 (renumbered as question 43) on the MCSA-1 Form, as 
proposed. The MC/MX/FF number information is necessary for FMCSA to 
preserve within the URS registration record for an entity all 
historical information relating to the MC/MX/FF number. For example, if 
a motor carrier transfers its operating authority to another person, 
the transferor's historical information associated with the MC number 
would be recorded in the URS registration record for the transferee. 
This erects another barrier to reincarnated carriers.
    As for the instructions to this question and the term 
``affiliation,'' FMCSA is incorporating the language of sec. 32105 of 
MAP-21 in defining ``affiliation.'' Under this section, an applicant 
for a USDOT Number must disclose any past or current relationship, 
through common ownership, common management, common control, or common 
familial relationship to any other person or applicant for registration 
who was determined to be unfit, unwilling, or unable to comply with 
applicable regulatory requirements during the 3-year period before the 
date of the filing of the application. The MCSA-1 Instructions for 
question 43 have been modified to reflect the MAP-21 requirement.
Comments About MCSA-1 Instructions
Instructions for Reasons To File
    ATA commented that on page 4 of the proposed instructions, under 
the information provided about the ``New Entrant Reapplication'' reason 
for filing, the last two sentences are confusing and perhaps 
contradictory. On the proposed Form MCSA-1 Instructions, these 
sentences read: ``If the motor carrier failed to schedule a New Entrant 
Safety Audit, did not appear for a safety audit, or failed a safety 
audit and did not submit corrective actions, the motor carrier must 
start the process from the beginning. If the motor carrier failed the 
safety audit, it must also demonstrate that it has corrected the 
deficiencies that resulted in revocation of its registration.'' 
(emphasis in proposed language).
    FMCSA Response. The Agency has renumbered the ``Reasons to File'' 
listed in the Instructions to the MCSA-1 to be consistent with how they 
are listed on the Form MCSA-1. In both documents, ``New Entrant 
Reapplication'' is the second option under ``Reasons to File.'' There 
is a $300.00 fee for this transaction.
    The language is not contradictory in that a new entrant whose USDOT 
registration has been revoked and whose operations have been placed out 
of service by FMCSA may re-apply for USDOT registration but must wait 
until 30 days after the date of revocation to do so. If revocation 
resulted from the new entrant's failure to schedule or submit to a 
safety audit, the new entrant must file an updated Form MCSA-1, pay the 
$300.00 filing fee, pass a safety audit and re-start the 18-month 
safety monitoring program commencing from the date the application is 
approved. But if revocation resulted from the fact that the new entrant 
failed the safety audit, the new entrant must do all of the following: 
File an updated Form MCSA-1; pay the $300.00 filing fee; provide 
evidence of corrective action; and re-start the 18-month safety 
monitoring program commencing from the date the application is 
approved. If the new entrant is a for-hire motor carrier subject to 
chapter 139 and also has its operating authority revoked, it must re-
apply for operating authority as set forth in part 365. If revocation 
was based on the new entrant's failure to file the minimum amounts of 
financial responsibility or designate agents for service of process, it 
must also complete administrative filings as well in the reapplication 
process. The instructions for the new entrant reapplication ``Reason to 
File'' have been expanded to include this additional explanation.
Biennial Update Instructions
    ATA suggested that the Form MCSA-1 should state plainly, and as 
often as may be helpful, that while an applicant is required to update 
its data every 24 months, it may do so as often as it likes. This 
commenter stated that the PRISM Program effectively requires annual 
updates, a discrepancy that continues to confuse many carriers.
    FMCSA Response. In response to ATA's suggestion, the Agency has 
added the statement ``An entity may also update its record with FMCSA 
at any time within this 24-month period'' to the Form MCSA-1 
Instructions' explanation of the Biennial Update reason for filing.
Instructions for Agency Notification in the Event of Change in 
Ownership, Management, or Control
    ATA commented that on page 5 of the proposed Form MCSA-1 
Instructions, at the top, there is a remnant of the 2005 NPRM's 
proposed requirement that a carrier must notify FMCSA within 20 days of 
any change in ownership, management or control. ATA recommended that 
this language be deleted from the Instructions.
    FMCSA Response. The Form MCSA-1 Instructions have been modified to 
remove the requirement that a carrier must notify FMCSA within 20 days 
of any change in ownership, management or control. However, the Agency 
is requiring, in 49 CFR 365.405 and

[[Page 52631]]

390.201(d)(5), that the parties involved in any transaction that 
results in the transfer of an entity's operating authority must report 
the transfer to FMCSA on Form MCSA-1 within 30 days of consummation of 
the transaction. A new ``reason for filing'' category has been added to 
the Form MCSA-1 for this purpose titled ``Notification of Transfers of 
Operating Authority.'' Both the transferor and transferee will be 
required to submit the MCSA-1 Form to ensure that a transfer of 
operating authority actually occurred. FMCSA needs this information to 
help it identify potential churning of operating authority by entities 
who seek to avoid an unfavorable regulatory compliance history by 
purchasing another company or its operating authority.
Section A Instructions, Addresses
    ATA commented that on pages 5 and 6 of the instructions, some of 
the requirements with respect to the applicant's name and address seem 
arbitrary. This commenter recommended that the Instructions not state 
so definitely that a ``terminal address'' is not acceptable. ATA stated 
that many trucking companies' headquarters offices may, in effect, be 
terminals, and asked which address these companies are to use if the 
use of a terminal address is prohibited.
    This commenter further questioned why the Instructions indicate 
that a post office box is prohibited for a mailing address, if a 
company provides a physical location for the principal place of 
business. ATA commented that many of the smallest trucking companies 
operate almost wholly out of a vehicle, and that the use of any 
physical address to receive mail may involve a lack of security for 
such companies, not to mention inconvenience. This commenter noted that 
the current Form MCS-150 does not prohibit P.O. boxes.
    FMCSA Response. The Agency has revised the MCSA-1 Instructions in 
line with these recommendations, and has clarified the FMCSA's use of 
each address. In particular, FMCSA has removed the prohibition against 
providing post office boxes as a mailing address because the Agency 
will only conduct on-site visits (when necessary) at the principal 
place of business address, which may not be a post office box. The 
instructions also will no longer prohibit the use of a terminal address 
for principal place of business as long as the address meets the 
definition of a principal place of business.
Section B Instructions, Driveaway-Towaway Operations
    MoDOT requested that FMCSA provide a specific definition and 
instructions concerning driveaway-towaway operations. This commenter 
stated that the current MCS-150 Form requires an entry for the number 
of vehicles owned by the motor carrier even though the company may not 
own any motor vehicles when all the power units driven are considered 
cargo. MoDOT asked how companies that perform this service complete 
Form MCSA-1, which sections apply to them, and how they must report or 
not report the number of vehicles.
    FMCSA Response. A new applicant filing to conduct driveaway-towaway 
operations is a motor carrier and must complete section A, B, K, N, and 
P of Form MCSA-1. Under section B, question 20 (formerly question 22), 
that motor carrier would select ``driveaway-towaway'' as Cargo Type and 
report mileage in question 21 (formerly question 23). Under question 
22(a) (formerly 24(a)), the number of vehicles used in the towaway 
operation must be reported. Because driveaway operations involve 
operation of an unladen or empty vehicle that is not owned or leased by 
the motor carrier, question 22(a) would not apply. So a motor carrier 
that engages exclusively in driveaway operations would not be required 
to enter vehicle information in question 22(a).
    The instructions for section B, question 22(a) now include a 
statement that ``the number of vehicles does not need to be reported 
for driveaway operations,'' which reflects the definition for 
``driveaway-towaway'' found in Sec.  390.5.
    This definition was added to the MCSA-1 Instructions under question 
15 (Operation Classification). Form MCSA-1, section B, question 22(a) 
(formerly question 24(a)) includes ``towaway'' in the breakout of 
vehicle types since the number of vehicles will need to be reported for 
these operations.

VI. Section-by-Section Analysis

    This rule amends 49 CFR part 360 in reference to fees; part 365 
procedures governing applications for operating authority and transfers 
of operating authority; part 366 procedures for designations of process 
agents; part 368 procedures governing applications to operate in 
municipalities in the United States on the United States-Mexico 
international border or within the commercial zones of such 
municipalities; part 385 safety fitness procedures; part 387 levels of 
financial responsibility; part 390 general applicability of the FMCSRs 
and part 392 regarding the driving of commercial motor vehicles.

A. Part 360, Fees for Motor Carrier Registration and Insurance

    The Agency revises part 360 as proposed in the SNPRM. Section 360.1 
sets out fees for registration-related services, such as records 
searches, copying, and certification. It also specifies that no service 
fees under this section will be charged to a Federal agency; a State or 
local government; or any representative of a motor carrier, motor 
private carrier, leasing company, broker, or freight forwarder 
accessing information related to the entity for the individual use of 
such entity.
    Section 360.3 sets out the filing fees. This section also addresses 
the appropriate manner of payment, and the conditions under which an 
entity may receive or request a waiver or reduction of filing fees. As 
in current Sec.  360.3, this section also indicates that separate 
filing fees are required for each type of authority sought in each 
transportation mode, such as broker authority for motor property 
carriers. A separate filing fee is also required for the filing of 
applications for 120-day temporary operating authority when there is a 
national emergency or natural disaster, regardless of whether such 
application is related to an application for corresponding permanent 
operating authority. FMCSA is retaining the existing fees for self-
insurance pending consideration of changes in these fees in a separate 
rulemaking.
    Section 360.5 specifies the procedure FMCSA will follow if the 
Agency determines it is necessary to update the URS user fees.

B. Part 365, Rules Governing Applications for Operating Authority

    FMCSA revises Sec.  365.101(a) and 365.101(h) to remove references 
to ``common'' and ``contract'' carriers because section 4303(c) of 
SAFETEA-LU required the Agency to discontinue designating operating 
authority as ``common'' or ``contract'' carriage.\64\ FMCSA removes and 
reserves Sec.  365.103 relating to a modified procedure.
---------------------------------------------------------------------------

    \64\ 49 U.S.C. 13902(f), as amended by SAFETEA-LU, section 
4303(c).
---------------------------------------------------------------------------

    The Agency amends Sec.  365.105, Starting the application process: 
Form MCSA-1, FMCSA Registration/Update (USDOT Number--Operating 
Authority Application), to replace references to obsolete OP series 
forms with ``Form MCSA-1'' and to reduce the number of operational 
categories from six to three

[[Page 52632]]

so it is clear that the fee for operating authority applies only to the 
general categories of motor carrier, broker, and freight forwarder, and 
not to each individual subgroup of these categories listed in Section 
A, questions 15a, 15b, 15c, and 15d of Form MCSA-1.
    Revised Sec.  365.107, Types of applications, replaces references 
to OP series forms with ``Form MCSA-1.'' FMCSA has also removed 
obsolete references to common and contract carriage in Sec.  365.107, 
as required by SAFETEA-LU. Under Sec.  365.107(e), the Agency will 
grant temporary operating authority only in cases of national emergency 
or natural disaster, and following an emergency declaration under 49 
CFR 390.23, Relief from regulations. Entities granted temporary 
operating authority will need to file evidence of financial 
responsibility with FMCSA.
    The Agency revises Sec.  365.109, Review of the application, to 
require new filings of both evidence of financial responsibility and 
designation of agents for service of process to be completed within 90 
days of the date that the notice of application is published in the 
FMCSA Register. As explained in the SNPRM, the 90-day time period 
combines the existing 20-day initial deadline and 60-day extension 
period and adds 10 more days for Agency processing. FMCSA has also 
removed the phrase in current Sec.  365.109(b) that indicates that the 
FMCSA Register publication of a summary of an application is considered 
``a preliminary grant of authority.'' Instead, Sec.  365.109(b) now 
indicates that a summary of the application will be published in the 
FMCSA Register to give notice to the public in case anyone wishes to 
oppose the application.
    FMCSA adds new Sec.  365.110, Need to complete New Entrant Safety 
Assurance Program, which specifies that operating authority does not 
become permanent until the applicant satisfactorily completes the New 
Entrant Safety Assurance Program in 49 CFR part 385, subpart D. The 
Agency revises Sec.  365.111, Appeals to rejections of the application, 
to provide the address and appropriate FMCSA office to which an 
applicant should address an appeal when its application is rejected. 
The Agency revises Sec.  365.119, Opposed applications, to specify that 
parties opposing an application are required to send a copy of their 
protests to both the applicant and FMCSA, that all protests must 
include statements made under oath, and that there are no personal 
appearances or formal hearings where there are protests to 
applications.
    The Agency revises Sec.  365.201, Definitions, to remove the 
reference to ``permanent authority.'' Section 365.201 now reads: ``A 
person wishing to oppose a request for operating authority files a 
protest. A person filing a valid protest is known as a protestant.'' 
The Agency revises Sec.  365.203, Time for filing, to provide the 
address and appropriate FMCSA office to which a person should address a 
protest. FMCSA removes and reserves Sec.  365.301, Applicable rules, in 
49 CFR part 365, subpart C, General Rules Governing the Application 
Process, because applications for operating authority are not subject 
to the Agency's Rules of Practice in 49 CFR part 386.
    As explained above in section V.I, the Agency revises subpart D of 
part 365 of title 49 CFR, Transfers of Operating Authority. Although 
FMCSA proposed to remove most of this subpart in the SNPRM, the Agency 
has since determined that the public interest necessitates requiring 
non-exempt for-hire motor carriers, brokers and freight forwarders to 
notify FMCSA of transactions that may directly or indirectly result in 
the transfer or lease of their operating authority. The Agency will no 
longer accept or review requests for transfers of operating authority. 
However, FMCSA believes that it is necessary to carry forward the 
reporting aspects of the regulations governing these transactions. See 
section V.I above for a discussion of these changes.
    In 49 CFR part 365, subpart E, Special Rules for Certain Mexico-
domiciled Carriers, the Agency amends Sec.  365.507, FMCSA action on 
the application, to no longer permit an applicant to submit a hard copy 
of Form BOC-3 (Designation of Agents--Motor Carriers, Brokers and 
Freight Forwarders); an applicant or its process agent company must 
electronically file Form BOC-3. As discussed in section V.G.1 above, 
FMCSA revises Sec.  365.509, Requirement to notify FMCSA of change in 
applicant information, to require an applicant to notify FMCSA within 
30 days of any change or correction to the information in parts I, IA 
or II of Form OP-1(MX) or in Form BOC-3 during the application process 
or after having been granted provisional operating authority. The 
regulations previously contained a 45-day notification requirement, but 
this has been changed to 30 days in order to be consistent with similar 
notification requirements applicable to entities subject to the URS.

C. Part 366, Designation of Process Agent

    The Agency amends Sec.  366.1, Applicability, to include private 
and exempt for-hire motor carriers and freight forwarders among those 
entities that are required to acquire the services of process agents 
and file proof of designations with FMCSA. Effective April 25, 2016, 
Sec.  366.2, Form of designation, is amended to specify a 180-day grace 
period (from the final rule compliance date) for all existing private 
and exempt for-hire motor carriers to file process agent designations. 
FMCSA makes minor revisions to Sec.  366.3, Eligible persons, to make 
the reference to State officials gender neutral. The Agency revises 
Sec.  366.4, Required States, to specify that every motor carrier must 
designate process agents for all 48 contiguous States and the District 
of Columbia, unless its operating authority registration is limited to 
fewer than 48 States and DC, in which case it must designate process 
agents for each State in which it is authorized to operate and for each 
State traversed during such operations. Although this exception was not 
proposed in the SNPRM, the Agency has determined that it is necessary 
because while property carriers are given nationwide authority, 
passenger carriers operating over regular routes (particularly 
governmental entities) may have geographically-limited operating 
authority. FMCSA also adds a paragraph 366.4(c), which indicates that 
every freight forwarder must make a designation for each State in which 
its offices are located or in which contracts will be written.
    The Agency revises Sec.  366.5, Blanket designations, to specify 
that brokers and freight forwarders (in addition to motor carriers) may 
make the required designation of process agents by specifying the name 
of an association or corporation that has filed a list of process 
agents for each State with FMCSA. As discussed in sections III.B.7 and 
V.G.4 above, the Agency revises Sec.  366.6, Cancellation or change, to 
clarify that the process agent or blanket agent, in addition to the 
motor carrier, broker, or freight forwarder, may cancel or change a 
process agent designation by filing a new designation with FMCSA 
(366.6(a)). To help ensure that such designations are up-to-date, Sec.  
366.6(b) requires that changes to designations be reported to FMCSA 
within 30 days of the change. In response to public comments, the 
Agency has added, in Sec.  366.6(c), a new requirement that a motor 
carrier, broker or freight forwarder report changes in name, address, 
or contact information to its process agents and/or the company making 
a blanket designation on its behalf within 30 days of the change. 
Finally, the Agency adds Sec.  366.6(d) to

[[Page 52633]]

require process agents and blanket agents who file process agent 
designations on behalf of motor carriers, brokers, and freight 
forwarders to report to FMCSA terminations of their contracts with 
regulated entities within 30 days of the termination. If process agents 
and/or blanket agents do not keep their information up to date, FMCSA 
may withdraw their authority to make process agent designations.

D. Part 368, Application for a Certificate of Registration To Operate 
in Municipalities in the United States on the United States-Mexico 
International Border or Within the Commercial Zones of such 
Municipalities

    FMCSA revises Sec.  368.3, Applying for a certificate of 
registration, to replace obsolete references to the OP-2 and MCS-150 
forms with references to ``Form MCSA-1.'' The Agency revises Sec.  
368.4, Requirement to notify FMCSA of change in applicant information, 
to require applicants to notify the Agency within 30 days of any 
changes or corrections to the information in Section A of Form MCSA-1. 
The revisions to this section also replace obsolete form references 
with references to ``Form MCSA-1.'' FMCSA revises Sec.  368.8, Appeals, 
to change the Agency office to which applicants should address an 
appeal to a denial of an application.

E. Part 385, Safety Fitness Procedures

    In 49 CFR part 385, subpart D, New Entrant Safety Assurance 
Program, the Agency revises Sec.  385.301, What is a motor carrier 
required to do before beginning interstate operations?, to specify that 
all for-hire motor carriers must obtain operating authority in addition 
to registering and obtaining a USDOT Number, unless they are 
exclusively providing transportation that is exempt from the commercial 
registration requirement in 49 U.S.C. chapter 139. FMCSA also revises 
this section to reference the new registration procedures in 49 CFR 
part 390 in addition to the instructions for obtaining operating 
authority located in 49 CFR part 365. This revised section also 
clarifies that, although the New Entrant Safety Assurance Program 
regulations of subpart D do not apply to Mexico-domiciled motor 
carriers, such carriers must register with FMCSA by following the 
procedures described in 49 CFR parts 365, 368, and 390.
    The Agency revises Sec.  385.303, How does a motor carrier register 
with the FMCSA?, to reference the new Form MCSA-1. The Agency revises 
Sec.  385.305, What happens after the FMCSA receives a request for new 
entrant registration?, to specify in paragraph (c) that upon completion 
of the application form, the new entrant will be issued an inactive 
USDOT Number, and that an applicant may not begin operations nor mark a 
CMV with the USDOT Number until after the date of the Agency's written 
notice that the USDOT Number has been activated. The Agency also 
revises this section to specify that violators of this section may be 
subject to penalties under Sec.  392.9b(b), and to replace a reference 
to the obsolete Form MCS-150 with the new Form MCSA-1. Finally, 
paragraph (d) of this section is being revised to reference new Sec.  
390.201(b) and add a new paragraph heading to improve the reader's 
understanding of the section.
    FMCSA revises Sec.  385.329, May a new entrant that has had its 
USDOT new entrant registration revoked and its operations placed out of 
service reapply?, to replace references to obsolete Form MCS-150 with 
references to Form MCSA-1. The Agency also revises this section to 
specify that if the new entrant is a for-hire motor carrier subject to 
the registration provisions of 49 U.S.C. chapter 139 and also had its 
operating authority revoked, it must re-apply for operating authority 
as set forth in Sec.  390.201(b) and 49 CFR part 365.
    In 49 CFR part 385, subpart E, Hazardous Materials Safety Permits, 
the Agency revises Sec.  385.405, How does a motor carrier apply for a 
safety permit?, to replace references to obsolete forms with references 
to Form MCSA-1. FMCSA also revises this section to specify that a motor 
carrier holding an HMSP must report to the Agency any change in the 
information on Form MCSA-1 within 30 days of the change. FMCSA revises 
Sec. Sec.  385.409, 385.419, and 385.421 to replace references to 
obsolete forms with references to Form MCSA-1.
    In 49 CFR part 385, subpart H, Special Rules for New Entrant Non-
North America-Domiciled Carriers, the Agency revises Sec.  385.603, 
Application, to replace references to obsolete forms with references to 
Form MCSA-1. The Agency revises Sec.  385.607, FMCSA action on the 
application, to indicate that the Form BOC-3 (Designation of Agents--
Motor Carriers, Brokers and Freight Forwarders) may only be submitted 
electronically. FMCSA revises Sec.  385.609, Requirement to notify 
FMCSA of change in applicant information, to indicate that motor 
carriers subject to this subpart must notify the Agency of any changes 
or corrections to the information in Section A of Form MCSA-1 that 
occur in the application process or after the motor carrier has been 
granted new entrant registration within 30 days of the change.
    In 49 CFR part 385, subpart I, Safety Monitoring System for Non-
North American Carriers, the Agency revises Sec.  385.713, Reapplying 
for new entrant registration, to replace references to obsolete Form 
MCS-150 with references to Form MCSA-1. This revised section will also 
clarify that if the new entrant is a for-hire carrier subject to the 
registration provisions under 49 U.S.C. 13901 and also has had its 
operating authority revoked, it must reapply for operating authority as 
set forth in 49 CFR part 365 and in new Sec.  390.201(b).

F. Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers

    In 49 CFR part 387, subpart A, Motor Carriers of Property, the 
Agency adds Sec.  387.19 to specify that insurers of exempt for-hire 
and private motor carriers that transport HM in interstate commerce 
must file certificates of insurance, surety bonds, and other securities 
and agreements with FMCSA electronically in accordance with the 
requirements and procedures set forth in Sec.  387.323, Electronic 
filing of surety bonds, trust fund agreements, certificates of 
insurance and cancellations.
    In 49 CFR part 387, subpart B, Motor Carriers of Passengers, FMCSA 
revises Sec.  387.33, Financial responsibility, minimum levels, by 
adding a paragraph (b) to clarify the specific URS registration and 
financial responsibility obligations for FTA grantees who receive 
grants under 49 U.S.C. 5307, 5310, or 5311. In particular, this section 
specifies that the minimum level of financial responsibility for a 
motor vehicle used by such a carrier to provide transportation services 
within a transit service area located in more than one State must be 
the highest level required for any of the States in which it operates. 
This section clarifies that this requirement also applies to transit 
service providers who operate in only one State but interline with 
other passenger carriers that provide interstate transportation within 
or outside the transit service area. This section specifies that these 
transit service providers must register as for-hire passenger carriers 
under 49 CFR parts 365 and 390, identify the State(s) in which they 
operate under the applicable grants, and certify on their registration 
that they have in effect financial responsibility levels in an amount 
equal to or greater than the highest level required by any of the 
States in which they are operating under a qualifying grant.

[[Page 52634]]

    FMCSA adds Sec.  387.43, Electronic filing of surety bonds, trust 
fund agreements, certificates of insurance and cancellations, to 
specify that insurers of for-hire motor carriers of passengers must 
file certificates of insurance, surety bonds, and other securities and 
agreements electronically in accordance with the requirements and 
procedures set forth in Sec.  387.323, Electronic filing of surety 
bonds, trust fund agreements, certificates of insurance and 
cancellations. Section 387.43 also specifies that this section does not 
apply to Mexico-domiciled passenger motor carriers, which are excepted 
from the Sec.  387.31(b) requirement that policies of insurance, surety 
bonds, and endorsements to satisfy the financial responsibility minimum 
requirements must remain in effect continuously.
    In 49 CFR part 387, subpart C, Surety Bonds and Policies of 
Insurance for Motor Carriers and Property Brokers, the Agency revises 
Sec.  387.301, Surety bond, certificates of insurance, or other 
securities, to remove obsolete references to common and contract 
carriers, as required by SAFETEA-LU. Regarding Sec.  387.303, Security 
for the protection of the public: Minimum limits, as explained in 
section V.G.2 above, FMCSA adds a new subparagraph 387.303(b)(1)(iii) 
to clarify that the minimum level of financial responsibility for a 
motor vehicle used by an FTA grantee motor carrier to provide 
transportation services within a transit service area located in more 
than one State must be the highest level required for any of the States 
in which it operates. This new subparagraph also reiterates the other 
financial responsibility clarifications described above in the 
discussion of Sec.  387.33. Although FMCSA proposed in the SNPRM to 
revise Sec.  387.303 to restore a previously removed provision and to 
remove obsolete references to effective dates in Sec.  387.303(b)(2), a 
recently issued FMCSA technical amendment made these changes. These 
changes restored a provision that established minimum public liability 
limits of $300,000 for fleets that consist only of vehicles with Gross 
Vehicle Weight Ratings (GVWRs) of under 10,000 pounds, except that 
10,000 pounds was changed to 10,001 pounds to be consistent with the 
statutory definition of CMV. Because these changes were made in a 
recently issued technical amendment, the Agency is not making those 
changes in this final rule.
    The Agency also revises Sec. Sec.  387.313, Forms and procedures; 
387.323, Electronic filing of surety bonds, trust fund agreements, 
certificates of insurance and cancellation; 387.413, Forms and 
procedures; and 387.419, Electronic filing of surety bonds, 
certificates of insurance and cancellations, to clarify that electronic 
filing is mandatory and not optional. In 49 CFR part 387, subpart D, 
Surety Bonds and Policies of Insurance for Freight Forwarders, FMCSA 
revises Sec.  387.403, General requirements, to expand freight 
forwarder BI&PD insurance requirements to all freight forwarders 
performing transfer, collection, or delivery service. As explained in 
the SNPRM, under the current regulations, only HHG freight forwarders 
performing transfer, collection, or delivery service are subject to a 
BI&PD insurance requirement. These regulations were transferred without 
changes from the Interstate Commerce Commission following enactment of 
the ICCTA. However, although the ICCTA expanded the Agency's 
jurisdiction over freight forwarders, which had been previously limited 
to HHG freight forwarders, to all freight forwarders, the regulations 
were not amended to reflect the Agency's broadened jurisdiction. FMCSA 
believes there is no basis for limiting the BI&PD insurance requirement 
to HHG freight forwarders.\65\
---------------------------------------------------------------------------

    \65\ A technical amendment has also been made to insert the 
phrase ``transfer, collection, or delivery service'' in place of 
``transfer, collection, and delivery service'' to conform with the 
statutory language at 49 U.S.C. 13906(c)(1).
---------------------------------------------------------------------------

G. Part 390, Federal Motor Carrier Safety Regulations; General

    The Agency revises Sec.  390.3, General applicability, to remove 
references to Sec.  390.19. In paragraph 390.3(g)(4), a reference to 
Sec.  390.19(a)(1) has been replaced with a reference to Sec.  390.201. 
Paragraph 390.3(h), Intermodal equipment providers, is revised to 
remove reference to a December 2009 compliance date. The Agency adds 
paragraphs 390.3(i) and 390.3(j) to reference the safety regulations 
that are applicable to brokers and freight forwarders required to 
register with FMCSA pursuant to 49 U.S.C. chapter 139. The Agency adds 
paragraph 390.3(k) to specify that the rules in 49 CFR part 390, 
subpart E, Unified Registration System, apply to each cargo tank and 
cargo tank motor vehicle manufacturer, assembler, repairer, inspector, 
tester, and design certifying engineer that is subject to registration 
requirements under 49 CFR 107.502 and 49 U.S.C. 5108.
    The Agency revises the definition of ``exempt motor carrier'' in 
Sec.  390.5, Definitions, to mean ``a person engaged in transportation 
exempt from economic regulation by the [FMCSA] under 49 U.S.C. chapter 
135,'' rather than under 49 U.S.C. 13506, as specified in the current 
regulation because not all the statutory exemptions in chapter 135 are 
contained within section 13506.
    FMCSA makes changes to Sec.  390.19 in two phases. First, effective 
November 1, 2013, the Agency amends Sec.  390.19 by adding a new 
paragraph (b)(4), which states that anyone failing to comply with the 
biennial update requirement is subject to civil penalties. As explained 
above, FMCSA determined that enforcement of the biennial update 
requirement through the imposition of civil penalties is so important 
that the date for this provision will occur as soon as possible.
    In the second phase of Sec.  390.19 changes, which are effective on 
the main compliance date for the rule, October 23, 2015, FMCSA revises 
Sec.  390.19, Motor carrier identification reports for certain Mexico-
domiciled motor carriers, to specify that only Mexico-domiciled long-
haul carriers must file Form MCS-150 with FMCSA.\66\ These carriers 
must file Form MCS-150 before they begin operations and an update every 
24 months. This provision continues to allow the MCS-150 to be 
submitted to the agency via hard copy. Paragraph 390.19(e) instructs 
these carriers to submit the Form MCS-150 along with their application 
for operating authority (OP-1(MX)). Paragraph 390.19(h)(2) specifies 
that a Mexico-domiciled long-haul carrier must pass the pre-
authorization safety audit under Sec.  365.507, and that the Agency 
will not issue a USDOT Number until expiration of the protest period 
provided in Sec.  365.115 and--if a protest is received--after FMCSA 
denies or rejects the protest.
---------------------------------------------------------------------------

    \66\ Effective on the main compliance date for this final rule, 
the biennial update requirement and accompanying civil penalties 
provision are applicable to the new Form MCSA-1 in addition to the 
MCS-150. Effective October 23, 2015, the biennial update requirement 
for the Form MCSA-1 is located at Sec.  390.201, as discussed below.
---------------------------------------------------------------------------

    FMCSA amends Sec.  390.21, which addresses the marking of CMVs and 
intermodal equipment, by revising subparagraph (b)(1) to reference new 
Form MCSA-1 in addition to Form MCS-150 when specifying the name of the 
carrier that must appear in a vehicle marking because Mexico-domiciled 
long-haul carriers are not included in the URS and will continue to use 
the Form MCS-150 when this rule is implemented. Specifically, the 
Agency revises Sec.  390.21(b)(1) to state that the marking information 
must display the ``legal name or a single trade name of the motor 
carrier operating the self-

[[Page 52635]]

propelled CMV, as listed on the Form MCSA-1 or the motor carrier 
identification report (Form MCS-150) and submitted in accordance with 
Sec.  390.201 or Sec.  390.19, as appropriate.'' The Agency revises 
Sec.  390.40, What responsibilities do intermodal equipment providers 
have under the Federal Motor Carrier Safety Regulations (49 CFR parts 
350-399)?, to replace a reference to obsolete Form MCS-150C with a 
reference to Form MCSA-1.
    FMCSA adds a new subpart E, Unified Registration System, which 
includes Sec. Sec.  390.201 through 390.209. Section 390.201, USDOT 
Registration, establishes the general requirement for all regulated 
entities, except Mexico-domiciled long-haul carriers, to obtain USDOT 
registration by electronically filing Form MCSA-1 and to provide FMCSA 
biennial updates to the registration information.
    Paragraph 390.201(c)(1) states that persons who fail to file Form 
MCSA-1 before beginning operations, or who fail to file timely biennial 
updates, are subject to civil penalties under 49 U.S.C. 521(b)(2)(B) or 
49 U.S.C. 14901(a), as appropriate. Persons are also subject to civil 
penalties if they furnish misleading information or make false 
statements on Form MCSA-1.
    Paragraph 390.201(c)(2) provides for the issuance of an inactive 
USDOT Number upon receipt and processing of Form MCSA-1, which will be 
activated after completion of all applicable administrative filings. It 
further states that an applicant may not begin operations until after 
its USDOT Number has been activated.
    Paragraph 390.201(c)(3) requires that a carrier must display a 
valid USDOT Number on each CMV. Motor carriers will not be required to 
remove the obsolete numbers (e.g., MC) from their vehicles and those 
numbers may be used for other purposes such as advertising or 
marketing. However, FMCSA encourages carriers to omit these obsolete 
numbers from new or repainted vehicles.
    Paragraphs 390.201(d)(2) and (d)(3) require biennial updates to be 
filed on the last day of a specific month, which is determined based on 
the last digit of the entity's USDOT Number. Paragraph 390.201(d)(4) 
specifies that a registered entity must notify the Agency of a change 
in legal name, form of business, or address within 30 days of the 
change by filing an updated Form MCSA-1. Paragraph 390.201(d)(5) 
requires a person who obtains operating authority through a transfer, 
as defined in part 365, subpart D, to notify FMCSA of the transfer 
within 30 days of consummation of the transfer by filing an updated 
Form MCSA-1, if the transferee had an existing USDOT number at the time 
of the transfer, or a new Form MCSA-1 if the transferee did not have an 
existing USDOT Number at the time of transfer. Paragraph 390.201(d)(5) 
also requires the transferor to file a Form MCSA-1 indicating that it 
has transferred its operating authority to the transferee. Both the 
transferee and the transferor are also required to scan and submit a 
copy of the operating authority that is being transferred. See section 
V.I above for a discussion of these requirements. The filing of updated 
information under either paragraph 390.201(d)(4) or 390.201(d)(5) does 
not relieve a registered entity from the requirement to file an updated 
Form MCSA-1 every 24 months in accordance with paragraph 390.201(d)(3).
    Section 390.203, PRISM State registration/biennial updates, 
specifies that a motor carrier that registers its vehicles in a PRISM 
Program State can satisfy the USDOT registration and biennial update 
requirements in Sec.  390.201 by electronically filing the required 
information with the State, provided the State has integrated the USDOT 
registration/update capability into its vehicle registration program. 
Section 390.205, Special requirements for registration, requires all 
for-hire motor carriers, private motor carriers that transport HM in 
interstate commerce, brokers, and freight forwarders to file evidence 
of financial responsibility to receive USDOT registration. This section 
also specifies that all motor carriers (both private and for-hire), 
brokers, and freight forwarders required to register under the URS must 
designate an agent for service of process pursuant to 49 CFR part 366.
    Section 390.207, Other governing regulations, lists and provides 
cross-references to other governing regulations that are applicable to 
those requesting USDOT registration. Section 390.209, Pre-authorization 
safety audit, directs a non-North America-domiciled motor carrier that 
requests authority to conduct interstate commerce within the United 
States to Sec.  385.607(c) for detailed information about the 
requirement to complete a pre-authorization safety audit as a pre-
condition for receiving USDOT registration.

H. Part 392, Driving of Commercial Motor Vehicles

    Effective November 1, 2013, the Agency adds a new Sec.  392.9b, 
Prohibited transportation, to prohibit a motor carrier with an inactive 
DOT Number from operating a CMV and to notify carriers violating this 
provision that they are subject to civil penalties in accordance with 
49 U.S.C. 521.

VII. Regulatory Evaluation of the URS Final Rule: Summary of the 
Calculation of Benefits and Costs \67\
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    \67\ Calculations presented in this section may by subject to 
rounding errors.
---------------------------------------------------------------------------

    A summary of the benefits and costs of the URS final rule, 
including total net benefits, can be found in section III.C above. This 
section summarizes the calculation of the costs and benefits for each 
URS provision. FMCSA refers readers to the final Regulatory Evaluation, 
which can be found in the docket, for the Agency's full discussion of 
the analysis of benefits and costs of the URS.
    All costs and benefits were calculated over a 10-year period in 
nominal dollars, restated in real 2010 dollars, and discounted to 
present value using a rate of seven percent per Office of Management 
and Budget (OMB) guidelines. A full discussion of the data used, 
assumptions made, and calculations performed is in the Regulatory 
Evaluation, which can be found in the public docket for the URS final 
rule.

A. New Registration Fees Under the URS

    Currently, only non-exempt for-hire motor carriers, property 
brokers, and freight forwarders must pay a one-time registration fee to 
FMCSA of $300. However, under the URS, FMCSA will require exempt for-
hire, private motor carriers and other entities to pay a registration 
fee as well. Section 4304 of SAFETEA-LU provided that the fee for new 
URS applicants shall as nearly as possible cover the costs of 
processing the registration but shall not exceed $300. The $300 limit 
was removed by section 32106 of MAP-21. FMCSA determined that it would 
charge all new applicants the maximum fee of $300 authorized by 
SAFETEA-LU, even though the amount needed to cover the 10-year Agency 
costs associated with processing the registration filings based on 
projections of annual new applicants and Agency processing costs 
exceeded $300 per filing. Although MAP-21 eliminated the $300 limit, 
the final rule retains the $300 fee proposed in the SNPRM because the 
Agency has not developed preliminary estimates on appropriate fees to 
cover the full costs of operating its URS program, or issued for public 
comment a proposal concerning such fees. The Agency has opted to 
initiate, at a later date, a separate rulemaking proceeding to solicit 
public comment on this issue,

[[Page 52636]]

rather than delay issuance of this final rule.
    FMCSA forecasted $360,122,795 in upgrading and operating costs of 
the registration system over the 10-year period from 2014 through 2023. 
This total includes the costs to operate the new motor carrier 
licensing and insurance system. The total also includes the cost for 
FMCSA to vet all new applicant for-hire carriers.\68\
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    \68\ The FMCSA has authority to vet all for-hire carriers, but 
is currently vetting only for-hire household goods and passenger 
carriers. During the vetting process, FMCSA reviews the application 
for completeness and compares the applicant's data with existing 
carrier data in order to identify noncompliant carriers seeking 
authority under a different name. If an application is incomplete, 
FMCSA will contact the applicant to obtain missing information. If 
FMCSA determines that an applicant is an unsafe carrier or the 
application remains materially incomplete after contacting the 
applicant, FMCSA will reject the application. The applicant is 
provided an opportunity to appeal the rejection and submit 
additional evidence to support its position that the application 
should be approved.
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    A portion of these licensing, insurance, and vetting costs will be 
defrayed by fee revenues other than new applicant registration fees. 
The FMCSA estimated fees collected for various insurance filings to be 
$6,943,479 over the 10-year period, and subtracted the 10-year present 
value of other fee revenues ($6,943,479) from the licensing, insurance, 
and vetting cost estimate to arrive at $353,179,316 in present value 
costs that the Agency must recover through the registration fee. FMCSA 
divided this cost estimate by its projection of dollars collected per 
dollar of fee ($486,678) \69\ to arrive at a fee of $725. For the 
reasons stated above, FMCSA will charge $300 per new applicant. Though 
a portion of the fees will cover some of the costs of FMCSA's review of 
applications, the $300 fee will not be sufficient to cover all of these 
review costs.
---------------------------------------------------------------------------

    \69\ This number was calculated by multiplying the number of new 
registrants in each year by $1, discounting to find the present 
value, and summing over the 10-year period of the analysis.
---------------------------------------------------------------------------

    The cost to industry associated with the change will be $63,583,722 
in discounted dollars over the 10-year period (shown in Table 6). This 
cost to industry will be offset by an equal benefit to the Agency 
resulting from the revenues generated through the new registration 
fees.

      Table 6--Proposed Change in FMCSA Registration Fee to New Applicants by Operation and Classification
----------------------------------------------------------------------------------------------------------------
                                                                                                       Total
            Operation classification              Number  (2014-    Fee change     Total  (2010      (present
                                                       2023)                            $)            value)
----------------------------------------------------------------------------------------------------------------
Exempt For-Hire Carriers........................          44,449             300     $13,334,700     $10,083,170
Private Carriers and other entities \*\.........         235,945             300      70,753,500      53,500,522
                                                 ---------------------------------------------------------------
    Total.......................................         280,294  ..............      84,088,200      63,583,722
----------------------------------------------------------------------------------------------------------------
\*\ Cargo tank facilities and IEPs.

B. Designation of Process Agents

    FMCSA amends 49 CFR part 366 to require private and exempt for-hire 
carriers to file process agent designation information with the Agency. 
FMCSA believes that requiring exempt for-hire carriers to file process 
agent designations would enhance safety and it is not cost prohibitive. 
FMCSA's data show that exempt carriers appear to be comparable to the 
general carrier population when it comes to crash rate and unfit 
determinations. Therefore, it is equally important that FMCSA be able 
to quickly identify the appropriate individual(s) on whom to serve 
notices of enforcement actions. In 2011 and 2012, exempt for-hire 
carriers constituted about 10 percent of unfit determinations made by 
FMCSA resulting from compliance reviews. An analysis conducted by the 
Agency to examine the safety profile of exempt for-hire carriers 
indicated that these carriers had much higher post-identification crash 
rates than private carriers, but lower post-identification crash rates 
than non-exempt for-hire carriers.\70\ Additional information 
supporting the Agency's decision to require exempt for-hire motor 
carriers to file process agent designations with the Agency is found in 
section 3.8 of the regulatory evaluation for this final rule.
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    \70\ The analysis was run using the 2009 Safety Management 
System (SMS) Effectiveness Test to look at the post identification 
crash rates of: (1) Carriers with recent activity that meet 
screening criteria that ensure they are operational during the 
evaluation period; and (2) carriers with 1 or more Behavior Analysis 
and Safety Improvement Categories (BASICs) above FMCSA's SMS 
intervention thresholds. This analysis essentially identifies who 
the Agency would have identified had it ran SMS in January 2010 and 
then what those carriers post-identification crash rates were 
between January 2010 and June 2011. The analysis showed that exempt 
for-hire and exempt for-hire plus another classification experienced 
higher crash rates (4.0 percent and 3.3 percent, respectively) than 
private carriers (1.7 percent). The difference in crash rates is 
even larger when examining those carriers with one or more BASICs 
above the intervention threshold, with exempt for-hire carriers 
having a crash rate of 5.8 percent, as compared to private carriers 
having a crash rate of 2.2 percent.
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    Although under SAFETEA-LU carriers will not be assessed a fee when 
filing this information, there is still a cost to industry associated 
with engaging a process agent. The FMCSA estimated, based on price 
quotes available from process agents, that the cost to engage a process 
agent is currently about $35 per carrier. This cost was assumed to 
cover the minimal filing cost to the process agent.\71\ No processing 
cost was assumed for FMCSA for this electronic filing.
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    \71\ The $35.00 process agent filing cost is based on an 
internet search of process agents conducted May 7th, 2013 found on 
the FMCSA Web site (http://www.fmcsa.dot.gov/registration-licensing/licensing/agents.htm).
---------------------------------------------------------------------------

    The Agency calculated $7,199,122 in discounted costs to industry 
associated with new-applicant private and exempt for-hire carrier 
process agent filings for 2014 through 2023.
    FMCSA assumed that no private and exempt for-hire motor carriers 
with recent activity have designated process agents. The Agency 
calculated one-time compliance costs for affected carriers with recent 
activity of $10,546,445 based on its estimate of 301,327 private and 
exempt for-hire carriers with recent activity in 2014.
    Finally, FMCSA, based on discussions with the FMCSA Commercial 
Enforcement Division, estimated that 10 percent of private and exempt 
for-hire motor carriers with recent activity will change their process 
agents each year. The Agency calculated discounted costs to industry of 
$7,321,445 associated with re-filing activities over the 10-year 
analysis period. FMCSA also calculated the Agency resource cost to 
process the carrier process agent changes.
    Non-exempt for-hire motor carriers, brokers and freight forwarders 
currently must file designations of process agents via a ``BOC-3'' 
filing. Under the URS final rule, FMCSA is requiring both private and 
exempt for-hire carriers to make the same filings.
    This requirement will improve the ability of FMCSA safety 
investigators to locate small and medium-sized private

[[Page 52637]]

and exempt for-hire motor carriers for enforcement action and 
compliance-related activities because investigators would be able to 
work with the newly-designated process agents to locate hard-to-find 
motor carriers. If the time saved is used by safety investigators to 
conduct more safety interventions, the Agency believes this will lead 
to increased safety benefits. However, to present a conservative 
estimate of the benefits of the URS final rule, we only estimate the 
benefit of time saved by the Agency due to more efficient 
interventions.
    The FMCSA investigators sometimes spend 20 hours or more attempting 
to locate motor carriers, and in some cases are unable to track down 
the subject carrier altogether. The FMCSA estimated that the 
availability of process agent information would save field staff an 
average of 15 hours in cases involving hard-to-locate carriers.
    In 2002, States conducted 216 carrier searches per year on average. 
In 2003, FMCSA Division Offices reported between 10 and 100 cases per 
State in which field staff had significant trouble locating a motor 
carrier on whom they wished to conduct compliance reviews, with most 
Division Offices reporting fewer than 25 such instances.
    FMCSA estimated that 15 enforcement cases per State per year (or 
roughly two thirds of the ``difficult'' cases) will benefit from 
dramatically reduced search costs because of the requirement for 
private and exempt for-hire carriers to designate process agents.
    The estimates of 15 saved hours per difficult case and 15 difficult 
cases per year per division result in 225 (15 x 15) annual staff hours 
saved per State, or 11,475 (225 x (50 States + District of Columbia) 
annual staff hours saved in total. Assuming the Agency would allocate 
all of the annual saved staff hours to reducing labor costs, FMCSA 
estimated the value of this annual benefit by multiplying the total 
annual hours saved (11,475) by the Agency wage rate presented in 
section 2 of the Regulatory Evaluation for the Unified Registration 
System Final Rule, which is in the docket for this rulemaking. For 
example, in 2014, the saved staff hours would benefit the Agency by 
reducing labor costs by $424,917 (11,475 x $37.03).
    FMCSA projected this annual benefit over the 10-year analysis 
period to arrive at a total benefit of $4.2 million in 2010 dollars. 
FMCSA discounted this benefit to present value applying a seven percent 
discount rate consistent with the other portions of this analysis. The 
Agency arrived at a total benefit due to reduced labor cost (i.e., 
increased efficiency) of $3.2 million over the 10-year analysis period.
    In total, the regulatory changes requiring exempt for-hire and 
private carriers to file process agent designations are estimated to 
result in a cost of $25,067,012 to industry and a benefit to the Agency 
of $3,130,736, and thus a societal net benefit of -$21,936,276.\72\ The 
Agency sought, but did not receive, comments on how the process agent 
filing process can be made less costly.
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    \72\ Current regulations (49 CFR part 366) require only motor 
carriers and brokers that are subject to the 49 U.S.C. chapter 139 
commercial registration requirements to designate a process agent. 
Exempt for-hire motor carriers and private carriers are currently 
not required to file process agent designations. The URS rule 
requires all for-hire and private motor carriers, brokers, and 
freight forwarders to designate process agents via electronic 
submission as a precondition for receiving USDOT registration and/or 
operating authority registration, when applicable. Of the roughly 
$25 million in total resource costs to the industry for the 
designation of process agents, only $4 million is incurred by exempt 
for-hire carriers. The majority of the resource costs resulting from 
this provision ($21 million) are incurred by private carriers, who 
are required by statute to designate process agents.
---------------------------------------------------------------------------

    In addition to the Agency time savings realized through the process 
agent designation requirement, FMCSA believes it provides 
unquantifiable benefits to both FMCSA and the public. FMCSA believes 
that the unquantifiable benefits, which are discussed further in 
subsequent paragraphs, outweigh the costs.
    When FMCSA needs to serve notices, such as out-of-service orders on 
entities the Agency has deemed an imminent hazard or unsafe/unfit, it 
attempts to provide the notification through three means--hand 
delivery, U.S. mail, and/or by using a process agent to accomplish 
service. The purpose of the designation of process provisions is to 
ensure a carrier has been notified of the Agency order or notice, and 
if it continues to operate in violation of the properly served order or 
notice, the carrier could not claim it was unaware of the service. 
Thus, the process agents are an important component of the registration 
process as they eliminate the possibility for a carrier/regulated 
entity to claim that it was not served with effective notification of 
Agency action because of relocation or other circumstances.
    Beyond FMCSA's usage, the designation of a process agent enhances 
the public's ability to serve legal process on responsible entities 
when seeking compensation for property loss/damage or personal injury 
resulting from a crash involving a commercial motor vehicle operated by 
any motor carrier, regardless of where the incident took place. 
Similarly, the designated process agent can receive service of process 
concerning any court proceeding involving commercial transactions 
between a carrier and an aggrieved party. With a regulated entity's 
USDOT number or name, a member of the public can currently access 
process agent information through the FMCSA Web site at http://safer.fmcsa.dot.gov/CompanySnapshot.aspx and, thus, can complete 
service of legal process even if service cannot be effected directly on 
the carrier, broker, or freight forwarder.

C. Financial Responsibility

    Under the URS final rule, the insurance representatives of all new 
applicant exempt for-hire and private HM carriers will need to file 
evidence of financial responsibility with FMCSA, and the carriers will 
be assessed a $10 filing fee.\73\ FMCSA calculated 10-year fee costs of 
$460,331 to industry using its estimate of new applicant exempt for-
hire and private HM carriers. This $460,331 cost to industry is offset 
by an equal benefit to the Agency resulting from revenues from the new 
fees.
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    \73\ Section 4304 of SAFETEA-LU caps financial responsibility 
filing fees at $10. The filing fee is paid to FMCSA by the insurance 
company making the filing on behalf of the carrier and is passed on 
to the carrier by the insurance company.
---------------------------------------------------------------------------

    The $10 fee is a transfer from the industry to the Agency, but the 
industry will incur resource costs associated with filing. The FMCSA 
assumed it would take insurance companies a minimal amount of time to 
file the required proof of insurance for each carrier they insure. 
Because these filings are handled electronically, FMCSA assigned a cost 
of only $4 per filing, assuming 10 minutes of time for a clerk. The 
Agency calculated the resource cost to new applicant exempt for-hire 
and private HM carriers by multiplying its projection of filing costs 
by its estimate of new applicants over the 10-year period to arrive at 
a total discounted resource cost to industry of $184,132.
    FMCSA is requiring existing exempt for-hire and private HM carriers 
to file proof of insurance. Using the Agency's 2008 MCMIS data, FMCSA 
estimated that in 2014 there will be 48,308 exempt for-hire carriers 
with recent activity and 25,019 private HM carriers with recent 
activity. The Agency calculated a discounted cost to industry of 
$693,890 associated with the fees. This cost to industry is offset by 
an equal benefit to the Agency due to the revenues from the fees.
    FMCSA calculated the resource cost to carriers with recent activity 
by multiplying its $4 filing cost estimate by

[[Page 52638]]

the total exempt for-hire and private HM carriers with recent activity 
to arrive at a discounted resource cost of $733,270.
    Currently, all for-hire motor carriers, property brokers, and 
freight forwarders performing transfer, collection and delivery service 
must maintain current proof of financial responsibility on file with 
FMCSA to remain in ``active'' status. If an insurance company or 
financial institution notifies FMCSA of cancellation of coverage, 
carriers, property brokers, and freight forwarders must file evidence 
of replacement coverage before the policy, bond, or trust fund 
termination date. Under this final rule, exempt for-hire and private HM 
carriers will be subject to the same URS requirements. There is a $10 
fee associated with filing proof of replacement financial 
responsibility. These provisions ensure the continuity of insurance 
coverage by exempt-for hire, private HM carriers and all freight 
forwarders. This security will pay any final judgment recovered against 
any entity for bodily injuries to or the death of any person resulting 
from the negligent operation, maintenance or use of CMVs in 
transportation, or for loss of or damage to property of others in 
connection with their transportation service. FMCSA may at any time 
refuse to accept or may revoke its acceptance of any surety bond, 
certificate of insurance, or other security or agreement that does not 
comply with 49 CFR part 387 or fails to provide adequate public 
protection.
    Based on 2008 MCMIS data, roughly 8.56 percent of non-exempt for-
hire carriers with recent activity filed proof of replacement liability 
insurance coverage with the Agency. The FMCSA assumed the same portion 
of the exempt for-hire and private HM carriers will file proof of 
replacement insurance following a policy cancellation. The Agency thus 
calculated the fees associated with evidence of financial 
responsibility replacement filings resulting from this proposed change 
by multiplying the $10 filing fee by 8.56 percent of the exempt for-
hire and private HM carriers with recent activity each year. This 
calculation resulted in a discounted cost to industry over the 10-year 
analysis period of $498,207. This cost to industry will be offset by an 
equal benefit to the Agency in the form of new fees received.
    FMCSA calculated the resource cost to carriers with recent activity 
by multiplying its replacement filing cost estimate by 8.56 percent of 
the population of exempt for-hire and private HM carriers with recent 
activity. This resulted in a total discounted resource cost to 
operating carriers over the 10-year analysis period of $199,283. Again, 
no costs were attributed to the Agency for these filings.
    Changes in requirements for financial responsibility filings 
resulted in a total 10-year cost to industry of $1,691,808. This cost 
to industry due to changes in requirements, however, is offset by an 
equal benefit to FMCSA for revenues from fees associated with the 
increased number of filings. Therefore, the societal costs due to 
changes in fees are zero. These changes are estimated to result in 
total 10-year resource costs to industry of $676,723.

D. Cancellation and Reinstatement of USDOT Numbers/Operating Authority

    As discussed in the previous section, non-exempt for-hire motor 
carriers, property brokers, and freight forwarders must maintain 
current proof of financial responsibility (liability insurance, bond, 
or trust fund information) with FMCSA to retain their operating 
authority. If an insurance company or financial institution notifies 
FMCSA of cancellation of coverage, carriers, property brokers, and 
freight forwarders must file evidence of replacement coverage before 
the policy, bond, or trust fund termination date. The operating 
authorities of entities that do not file the required updates are 
revoked and these entities must apply for reinstatement of their 
operating authority by making the necessary filings. This final rule 
requires exempt for-hire, private HM carriers, and all freight 
forwarders providing transfer, collection, and delivery service to file 
and maintain proof of liability insurance as a condition for obtaining 
and retaining an active USDOT Number. FMCSA will deactivate the USDOT 
Number of noncompliant entities, who would be required to reactivate 
their USDOT registrations in order to resume operations subject to 
FMCSA jurisdiction.
    Under the current system, carriers requesting reinstatement of 
operating authority must file a written request for reinstatement, pay 
an $80 fee (on-line by credit card, by phone with a credit card, or by 
mail with a check) and make the applicable financial responsibility 
filing. Once the payment is received and applicable filings are made, 
the FMCSA information system matches up the payment with the filings 
and automatically issues a reinstatement letter at 5 a.m. on the next 
business day. Under the URS established in today's final rule, carriers 
requesting reinstatement will make the request electronically using 
Form MCSA-1, pay a $10 fee, and complete applicable filings showing 
that their insurance is back in effect. The Agency aspect of the 
reinstatement process will remain the same under the URS.
    FMCSA discusses these changes below in the following categories:
    (a) Reinstatement for non-exempt for-hire carriers, brokers, and 
freight forwarders; and
    (b) Reinstatement for exempt for-hire and private HM carriers.
Reinstatement for Non-Exempt For-Hire Carriers, Brokers and Freight 
Forwarders
    Under the current system, non-exempt for-hire carriers, brokers and 
freight forwarders pay an $80 fee and file a written request for 
reinstatement. Under the URS established in today's final rule, these 
carriers will request reinstatement using Form MCSA-1, pay a $10 fee 
and make the applicable insurance filing. The Agency assumed that the 
cost of this requirement is minimal, and is approximately equal to that 
of filing proof of insurance ($4). The Agency determined that it incurs 
slightly less than $10 per request to process reinstatement requests. 
The $10 reinstatement fee will be sufficient to defray Agency 
processing costs. FMCSA calculated savings by non-exempt for-hire 
carriers, brokers and freight forwarders applying for reinstatement by 
multiplying the $70 reduction in fees for these carriers by the number 
of affected carriers to arrive at a 10-year discounted saving of 
$4,958,302. This industry benefit will be offset by an equal cost to 
the Agency due to the loss of revenues from the fees.
Reinstatement for Exempt For-Hire and Private HM Carriers
    Under the current system, exempt for-hire and private HM carriers 
do not file insurance-related reinstatements. Under the URS established 
in today's final rule, these carriers will pay a $10 fee and file 
updated information. Using 2008 MCMIS data, FMCSA calculated that 2.58 
percent of exempt for-hire and private HM carriers would let their 
insurance coverage lapse and later file reinstatement requests. The 
Agency determined that it incurs slightly less than $10 per request to 
process reinstatement requests. The $10 reinstatement fee will be 
sufficient to defray Agency processing costs. FMCSA calculated fees 
associated with this activity by multiplying the $10 fee by the number 
of affected carriers to arrive at a 10-year discounted cost of 
$150,176. This industry cost will be offset by an equal benefit to the 
Agency due to the gain in revenues from the fees.
    There is a resource cost to industry associated with making these

[[Page 52639]]

reinstatement requests. As noted above, FMCSA assumed that the costs 
associated with completing the applicable filings would equal the costs 
associated with filing proof of insurance and process agent 
designations ($4). FMCSA calculated discounted costs to industry of 
$60,070 associated with filing activities over the 10-year analysis 
period.
    FMCSA calculated discounted costs to the Agency of $135,158 
associated with processing exempt for-hire and private HM carrier 
reinstatements over the 10-year analysis period.
Cumulative Reinstatement Costs and Benefits
    Changes in fees for reinstatement of USDOT Numbers and/or 
commercial operating authority resulted in a total 10-year saving to 
industry of $4,808,126. This saving to industry, however, is offset by 
an equal cost to FMCSA in lost revenues from fees associated with 
reinstatements. The changes are estimated to result in total 10-year 
resource costs of $60,070 to industry and $135,158 to FMCSA for a total 
resource cost to society of $195,229. There are also qualitative 
benefits to the Agency and the public from these requirements. The 
extension of the financial responsibility filing and reinstatement of 
authority requirements to exempt for-hire and private hazmat carriers 
ensures that the Agency the proper and updated proof and documentation 
of financial responsibility of those regulated entities. These 
requirements also ensure that motor carriers will have the incentive to 
maintain and operate their vehicles in a safe manner and that they will 
maintain, and provide evidenced of, an appropriate level of financial 
responsibility for motor vehicles operated on public highways.

E. Transfers and Name Changes

    Under the URS, the Agency will no longer require ownership, 
management, and control certification when processing applicant 
requests for name, address, or form of business changes. Motor carriers 
will be required to report changes in management when completing their 
Form MCSA-1 biennial updates, and will retain their existing USDOT 
Number. No new or replacement USDOT Numbers will be issued. The Agency 
estimates that approximately 494 requests for transfers of operating 
authority will be filed with FMCSA in 2014, based on 2012 data 
projected to 2014. Each of the carriers who requested a transfer of 
operating authority paid a $300 filing fee to FMCSA for this activity. 
Under the URS, FMCSA will not review or approve transfer requests. As 
indicated above, our statutory authority to approve transfers under 
former 49 U.S.C. 10926 was eliminated by the ICCTA. The Agency will, 
however, institute a process under which it will not approve transfers, 
but will require entities involved in these transfers to notify FMCSA 
of the transaction by submitting an online Form MCSA-1.
    Based on the 2012 data projected to 2014, FMCSA estimated 
discounted industry benefits of $1,176,535 over 10 years from the 
elimination of the transfer application fee. This benefit to industry 
will be offset by an equal cost to the Agency resulting from the loss 
of revenues from the transfer application fee. Because FMCSA will still 
require notification of the transfer by both the transferor and the 
transferee, FMCSA calculated the resource cost for filing the 
notification of transfers over the 10-year period to arrive at a total 
cost of $38,236 over 10 years.
    FMCSA is eliminating the $14 filing fee currently assessed to non-
exempt for-hire motor carriers and others that change their business 
names. This action will result in a cost savings to industry and a 
matching cost to the Agency. In 2008, the Agency processed 11,141 name 
change requests. Based on the 2008 data, projected to 2014, FMCSA 
estimated 10-year discounted benefits to industry of $1,345,722 over 
the 10-year period. This $1,345,722 benefit to industry will be offset 
by an equal cost to the Agency resulting from the loss of name change 
filing fee revenues.
    Elimination of transfer and name change filing fees resulted in a 
total 10-year cost savings to industry of $2,522,258. The cost savings 
to industry due to changes in filing fees, however, will be offset by 
an equal cost to the Agency resulting from reduced revenues from these 
filing fees. Therefore, the projected societal costs due to elimination 
of the fees are zero. These changes will result in resource costs of 
$38,236 to industry. The total reduction in fees for transfers and name 
changes is the sum of $1,176,535 and $1,345,722, or $2,522,258; this 
sum is a gain to industry and an equal loss to FMCSA.

F. The New Application Form--MCSA-1

    The new Form MCSA-1 will replace existing FMCSA registration forms. 
There will be a time cost savings for those who presently file multiple 
application forms. New applicant non-exempt for-hire motor carriers 
currently file an OP-1 series form and the MCS-150 Form with FMCSA. 
Property brokers and freight forwarders file an OP-1 series form only. 
All other entities file forms in the MCS-150 series.
    FMCSA estimated an average completion time of just over 20 minutes 
each \74\ for the MCS-150 series forms and 2 hours for the OP-1 forms. 
FMCSA determined that 56.45 percent of new applicants file OP-1 series 
forms, and 92.45 percent of new applicants file MCS-150 forms. Based on 
these percentages, FMCSA calculated the current average new applicant 
filing completion time as just under 1 hour and 26 minutes.
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    \74\ The MCS-150 Form has been estimated to require 20 minutes, 
and the MCS-150B Form a slightly longer 26 minutes. Because only 
about 2 percent of carriers file the MCS-150B, the average is very 
close to 20 minutes. There is also an MCS-150C Form, but it is much 
less frequently used.
---------------------------------------------------------------------------

    The Agency is requiring all new applicants except Mexico-domiciled 
motor carriers requesting to conduct long-haul operations within the 
United States to file only Form MCSA-1. Based on field testing, FMCSA 
estimated that it would take those new applicants who would have used 
the OP-1 Form 2 hours and 10 minutes to complete the new form. The 
FMCSA assumes that the time required for entities who would have used 
only the MCS-150 or 150B would not change if they used the MCSA-1 Form 
instead. Multiplying 2 hours and 10 minutes by 56.45 percent (the 
percent of new applicants that file OP-1 series forms), and adding just 
over 20 minutes times the difference between 92.45 percent (the percent 
of new applicants that file MCS-150 forms) and 56.45 percent yields 
just over 1 hour and 20 minutes. Thus, FMCSA estimated a weighted 
average time savings of almost 6 minutes for each new applicant (that 
is, just under 1 hour and 26 minutes minus just over 1 hour and 20 
minutes).
    Using its adjusted average hourly wage estimate for drivers \75\ 
and its projection of new applicants, FMCSA estimated a 10-year 
discounted resource cost savings to industry of $1,354,631 attributable 
to completing the new MCSA-1 Form instead of the forms it will replace.
---------------------------------------------------------------------------

    \75\ Note: This activity may be performed by someone other than 
a driver. However, FMCSA assumed the person performing the activity 
would earn a wage similar to that of a driver and used the driver 
wage rate as the best indicator of cost for this activity.
---------------------------------------------------------------------------

    FMCSA also calculated Agency time saved associated with processing 
the new MCSA-1 Form. Based on the Agency's estimate that, due to 
reductions in data entry, it would save 20 minutes of processing time 
from not using the OP-1 series form, and its

[[Page 52640]]

determination that 56.45 percent of new applicants file the form, FMCSA 
estimated an 11-minute time savings per applicant. The Agency 
multiplied the adjusted average hourly wage estimate for the Agency by 
the time saved processing the new MCSA-1 Form and the number of annual 
new applicants to obtain a 10-year discounted resource cost savings of 
$3,391,089.
    These changes are estimated to result in total 10-year resource 
cost savings to industry of $1,354,621 and resource cost savings to 
FMCSA of $3,391,089. The sum of the resource cost savings to industry 
and FMCSA equals $4,745,720, which is the total benefit to society.

G. Mandatory Electronic Filing of the MCSA-1

    By requiring electronic submissions, FMCSA expects to reduce 
processing costs. Electronic submissions have the additional benefit of 
reducing erroneous data through automated data quality checks and 
increasing the transparency of the data included in the URS. The Agency 
believes that the cost savings resulting from reduced labor time and 
paperwork, and the benefits associated with reducing erroneous data and 
improving data transparency, would be difficult to achieve without 
mandating electronic filing. This change, however, could impose a 
burden on entities that do not have the means to file electronically or 
that do not wish to file electronically.
    To assess this potential burden, and to determine what alternatives 
to electronic filing would be available to small entities, FMCSA 
conducted a detailed cost-benefit analysis, ``Report on Benefits and 
Costs of Mandatory Electronic Filing for FMCSA's Unified Registration 
System,'' which is included as Appendix A to the regulatory evaluation. 
The Agency calculated costs and benefits associated with electronic 
filing by using estimates of the amount of time required to file the 
form and the number of expected applicants. The present value of the 
benefits resulting from mandatory electronic filing is $20,922,981 in 
benefits to FMCSA. The industry experiences a resource cost from 
mandatory electronic filing of $538,894. Thus, the net present value of 
the benefits associated with requiring mandatory electronic filing less 
the costs results in a total net benefit to society of $20,384,087 over 
a 10-year period.

VIII. Rulemaking Analyses and Notices

A. Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures as Supplemented by E.O. 13563

    FMCSA has determined that this rule is a significant regulatory 
action within the meaning of Executive Order 12866, as supplemented by 
E.O. 13563, and is significant within the meaning of Department of 
Transportation regulatory policies and procedures (DOT Order 2100.5 
dated May 22, 1980; 44 FR 11034, February 26, 1979) because it is 
expected to generate significant public interest. However, the 
estimated economic costs do not exceed the $100 million annual 
threshold for economic significance. The OMB has reviewed this rule.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act [Pub. L. 96-354, 5 U.S.C. 601-612] 
requires Federal agencies to take small businesses' concerns into 
account when developing, writing, publicizing, promulgating, and 
enforcing regulations. To achieve this, the Act requires that agencies 
detail how they have met these concerns through a Regulatory 
Flexibility Analysis (RFA). The Agency listed six elements that were 
addressed during FMCSA's final rulemaking stage.
    (1) A description of the reasons why the Agency is taking this 
action.
    FMCSA takes this action in response to section 103 of the ICCTA, as 
amended by section 4304 of SAFETEA-LU, which, among other things, 
requires the Secretary to develop regulations to replace four current 
identification and registration systems with a single, online, Federal 
system. The purpose of this rule is to consolidate and simplify current 
Federal registration processes and to increase public accessibility to 
data about interstate motor carriers, property brokers, freight 
forwarders, and other entities. Pursuant to the statutory mandate, 
FMCSA will charge registration and administrative fees that will enable 
FMCSA to recoup the costs associated with processing registration 
applications and administrative filings and maintaining this system.
    (2) A succinct statement of the objectives of, and legal basis for, 
the rule. The ICCTA created a new 49 U.S.C. 13908 directing ``[t]he 
Secretary, in cooperation with the States, and after notice and 
opportunity for public comment,'' . . . to ``issue regulations to 
replace the current Department of Transportation identification number 
system, the single State registration system under section 14504, the 
registration system contained in this chapter, and the financial 
responsibility information system under section 13906 with a single, 
on-line, Federal system.''
    Section 13908(d) of title 49, United States Code (U.S.C.), 
authorizes the Secretary to establish, under 31 U.S.C. 9701, a fee 
system for the Unified Carrier Registration System according to certain 
guidelines providing for fee limits for registration, filing evidence 
of financial responsibility and filing information regarding agents for 
service of process.
    These directives specifically require FMCSA to undertake some of 
the actions in this rule. The remaining related changes facilitate the 
smooth operation of a unified Federal on-line registration system.
    (3) A description and, where feasible, an estimate of the number of 
small entities to which the rule will apply. FMCSA will subject all 
regulated entities to the rule requirement.\76\ Carriers are not 
required to report revenue to the Agency, but are required to provide 
the Agency with the number of power units (PU) they operate, when they 
register with the Agency, and to update this figure biennially. Because 
FMCSA does not have direct revenue figures for all motor carriers, PUs 
serve as a proxy to determine the carrier size that would qualify as a 
small business given the Small Business Administration (SBA) revenue 
threshold. In order to produce this estimate, it is necessary to 
determine the average revenue generated by a PU.
---------------------------------------------------------------------------

    \76\ Due to data availability issues, FMCSA discusses the 
determination of a small entity based on revenue for carriers. The 
burden calculations, however, consider the impacts on all entities 
engaging in interstate commerce.
---------------------------------------------------------------------------

    With regard to truck PUs, the Agency determined in the Electronic 
On-Board Recorders and Hours-of-Service Supporting Documents Rulemaking 
RIA \77\ that a PU produces about $174,000 in revenue annually 
(adjusted for inflation to 2010 dollars).\78\ According to the SBA, 
motor carriers with annual revenue of $25.5 million are considered 
small businesses.\79\ This equates to 147 PUs (146.55 = $25,500,000/
$174,000). Thus, FMCSA

[[Page 52641]]

considers motor carriers of property with 147 PUs or fewer to be small 
businesses for purposes of this analysis. The Agency then looked at the 
number and percentage of property carriers with recent activity that 
would fall under that definition (of having 147 PUs or fewer). The 
results show that at least 99 percent of all interstate property 
carriers with recent activity have 147 PUs or fewer.\80\ This amounts 
to 515,000 carriers (99 percent of 520,000 active motor carriers = 
514,800, rounded to the nearest thousand). Therefore, an overwhelming 
majority of interstate carriers of property would be considered small 
entities.
---------------------------------------------------------------------------

    \77\ FMCSA Regulatory Analysis, ``Electronic On-Board Recorders 
and Hours of Service Supporting Documents,'' NPRM. FR: 76: 41 
(February 1, 2011) p. 5537. (68 FR 22456, April 23, 2003).
    \78\ GDP Deflator. Available from the Bureau of Economic 
Analysis online at http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=13&Freq=Qtr&FirstYear=2006&LastYear=2008.

    \79\ U.S. Small Business Administration Table of Small Business 
Size Standards matched to North American Industry Classification 
(NAIC) System codes, effective August 22, 2008. See NAIC subsector 
484, Truck Transportation.
    \80\ MCMIS, as of June 17, 2010.
---------------------------------------------------------------------------

    With regards to bus power units, the Agency conducted a preliminary 
analysis to estimate the average number of power units (PUs) for a 
small entity earning $7 million annually,\81\ based on an assumption 
that a passenger carrying CMV generates annual revenues of $150,000. 
This estimate compares reasonably to the estimated average annual 
revenue per power unit for the trucking industry ($172,000). A lower 
estimate was used because buses generally do not accumulate as many VMT 
per power unit as trucks,\82\ and it is assumed therefore that they 
would generate less revenue on average. The analysis concluded that 
passenger carriers with 47 PUs or fewer ($7,000,000 divided by 
$150,000/PU = 46.7 PU) would be considered small entities. The Agency 
then looked at the number and percentage of passenger carriers 
registered with FMCSA that would fall under that definition (of having 
47 PUs or less). The results show that 28,838 \83\ (or 99 percent) of 
all active registered passenger carriers have 47 PUs or less. 
Therefore, the overwhelming majority of passenger carriers would be 
considered small entities.
---------------------------------------------------------------------------

    \81\ The SBA increased the annual revenue small business 
threshold for passenger carriers from $7 million to $14 million in a 
final rule titled, ``Small Business Standards: Transportation and 
Warehousing. (77 FR 10943, published February 24, 2012) The 
preparation of this Regulatory Flexibility Act Analysis preceded the 
publication of that final rule and the publication of FMCSA's 
upcoming new motor carrier counts. Both changes are not expected to 
impact the general conclusions of this Regulatory Flexibility Act 
Analysis.
    \82\ FMCSA Large Truck and Bus Crash Facts 2008, Tables 1 and 
20; http://www.fmcsa.dot.gov/facts-research/LTBCF2008/Index-2008Large TruckandBusCrashFacts.aspx.
    \83\ FMCSA MCMIS snapshot on 2/19/2010.
---------------------------------------------------------------------------

    This 147 PU figure for trucks would be applicable to private 
carriers as well: because the sizes of the fleets they are able to 
sustain are indicative of the overall size of their operations, large 
CMV fleets can generally only be managed by large firms. There is a 
risk, however, of overstating the number of small businesses because 
the operations of some large non-truck or bus firms may require only a 
small number of CMVs.
    This rule will affect roughly 600,000 small carriers with recent 
activity annually on an ongoing basis.\84\ The Agency expects a larger 
number of affected entities in the first year of the analysis period 
when exempt for-hire carriers with recent activity and private carriers 
with recent activity make administrative filings for the first time. 
The first-year costs of the URS rule on new entrants will be equal to 
0.249 percent of average revenue for a trucking motor carrier and 0.286 
percent of average revenue for a passenger motor carrier. The first-
year costs of the URS rule on carriers with recent activity will be 
equal to 0.064 percent of average revenue for a trucking motor carrier 
and 0.073 percent of average revenue for a passenger motor carrier.
---------------------------------------------------------------------------

    \84\ This population estimate originates from tables 1 and 2, 
above. FMCSA used the median year estimate to account for the net 
growth in new entrants and the carriers with recent activity.
---------------------------------------------------------------------------

    (4) A description of the reporting, recordkeeping, and other 
compliance requirements of the rule, including an estimate of the 
classes of small entities that will be subject to the requirements and 
the type of professional skills necessary for preparation of the report 
or record. This rule primarily concerns submission of information to 
FMCSA in support of registration. While this includes recordkeeping and 
reporting for non-exempt for-hire carriers, there will only be the 
replacement of one type of reporting with another. Therefore, there is 
no increase in reporting or recordkeeping requirements for non-exempt 
for-hire carriers. Non-exempt for-hire carriers are already required to 
pay a $300 registration fee, so there will be no change in financial 
burden for these entities as a result of the Agency's implementation of 
the rule. Private and exempt for-hire carriers will have the same 
replacement reporting and recordkeeping requirements as non-exempt for-
hire carriers regarding general registration but will also have to 
designate a process agent for the first time under the rule. Exempt 
for-hire and private HM carriers will have to file proof of insurance 
for the first time. These requirements are new but will not impose 
significant reporting or recordkeeping requirements on the affected 
entities, as the filings will be made by insurance companies on the 
carriers' behalf. New entrant exempt for-hire carriers, private 
carriers, and other entities are not currently required to pay a 
registration fee but will be required to pay a $300 registration fee 
under the rule. For nearly all affected entities, this fee will 
represent a small fraction (well below one percent, even for very small 
firms that do little more than operate a single truck) of their annual 
revenues; on an annualized basis the cost will be even smaller. The 
FMCSA will require property brokers and freight forwarders to register 
with FMCSA and obtain USDOT Numbers under the rule, which is a new 
requirement. However, these entities already register with FMCSA and 
the USDOT Number will simply be a replacement for the MC Numbers or FF 
Numbers currently issued to brokers and freight forwarders, 
respectively. The new reporting or recordkeeping requirements will not 
impose any significant burden. Like non-exempt for-hire carriers, new 
entrant brokers and freight forwarders are currently required to pay a 
$300 registration fee, so there will be no change in financial burden 
on these entities.
    The FMCSA does not expect that any special skills for new 
applicants will be necessary beyond the ability to access the Internet 
and respond to questions with information about their organization and 
operations.
    (5) An identification, to the extent practicable, of all relevant 
Federal rules that may duplicate, overlap, or conflict with this rule. 
The FMCSA is aware of Federal rules that may duplicate this rule to 
some extent for hazardous materials motor carriers required to 
register. Although some basic identification information may be filed 
with both FMCSA and PHMSA, another USDOT modal administration, there is 
no conflict. PHMSA requires shippers and transporters of certain types 
and quantities of hazardous materials to register in its Hazardous 
Materials Registration System. Transportation modes required to 
register with PHMSA include motor carriers, airlines, ship lines, and 
railroads. The PHMSA Hazardous Materials Registration System cannot be 
combined with URS because entities other than those under FMCSA 
jurisdiction must register in PHMSA's system.
    (6) A description of any significant alternatives to the rule which 
minimize any significant impacts on small entities. The Agency has not 
identified any significant alternatives to the rule that could lessen 
the burden on small entities without compromising its goals or 
statutory mandate. Because small businesses are such a large part of 
the demographic the Agency regulates, providing alternatives to small 
business to permit noncompliance with FMCSA

[[Page 52642]]

regulations is not feasible and not consistent with sound public 
policy.

C. Unfunded Mandates Reform Act of 1995

    The final rule will not impose an unfunded Federal mandate, as 
defined by the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1532 et 
seq.), that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $143.1 
million (which is the value equivalent of $100,000,000 in 1995, 
adjusted for inflation to 2010 levels) or more in any 1 year.

D. National Environmental Policy Act

    The Agency analyzed this 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, issued 
March 1, 2004 (69 FR 9680), that this action is categorically excluded 
(CE) under Appendix 2, paragraphs 6(e), 6(h) and 6(y)(2) of the Order 
from further environmental documentation. The CE under Appendix 2, 
paragraph 6(e) relates to establishing regulations and actions taken 
pursuant to the requirements concerning applications for operating 
authority and certificates of registration. The CE under Appendix 2, 
paragraph 6(h) relates to establishing regulations and actions taken 
pursuant to the requirements implementing procedures to collect fees 
that will be charged for motor carrier registrations and insurance for 
the following activities: (1) Application filings; (2) records 
searches; and (3) reviewing, copying, certifying, and related services. 
The CE under Appendix 2, paragraph 6(y)(2) addresses regulations 
implementing motor carrier identification and registration reports. In 
addition, the Agency believes that this rule includes no extraordinary 
circumstances that will have any effect on the quality of the human 
environment. Thus, the rule does not require an environmental 
assessment or an environmental impact statement.
    FMCSA also has 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 because it involves policy development and 
rulemaking activities regarding registration of regulated entities with 
FMCSA for commercial, safety and financial responsibility purposes. See 
40 CFR 93.153(c)(2)(vi). The changes would not result in any emissions 
increases nor will they have any potential to result in emissions that 
are above the general conformity rule's de minimis emission threshold 
levels. Moreover, it is reasonably foreseeable that the actions will 
not increase total CMV mileage or change the routing of CMVs, how CMVs 
operate, or the CMV fleet-mix of motor carriers. This rule was mandated 
under section 103 of the ICCTA. It will consolidate and simplify the 
Federal registration processes and increase public accessibility to 
data about interstate and foreign motor carriers, property brokers, 
freight forwarders, and other entities.

E. Paperwork Reduction Act \85\
---------------------------------------------------------------------------

    \85\ The calculations presented in this section may be subject 
to rounding errors.
---------------------------------------------------------------------------

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal Agency must obtain approval from OMB for each 
collection of information it conducts, sponsors, or requires through 
regulations. The FMCSA analyzed this rule and determined that its 
implementation will streamline the information collection burden on 
motor carriers and other regulated entities, relative to the baseline, 
or current paperwork collection processes. This includes streamlining 
the FMCSA registration, insurance, and designation of process agent 
filing processes and implementing mandatory electronic online filing of 
these applications, as well as eliminating some outdated filing 
requirements. Because FMCSA plans to implement new filing requirements 
upon certain groups of entities during the first year, the initial 
filing population and corresponding burden is higher than in subsequent 
years when carriers only need to update the information. This is 
primarily due to the assumption that all existing private and exempt 
for-hire carriers will file proof of process agent designation in the 
first year and the existing private motor carriers transporting 
hazardous materials interstate and exempt-for-hire carriers will file 
evidence of insurance, as a result of the new requirements set forth in 
this rule. However, once the initial process agent and insurance filing 
requirements for existing carriers are met, the overall net result will 
be a more streamlined process in future years for FMCSA registration of 
motor carriers, brokers, freight-forwarders, and other entities the 
Agency regulates.
    This rule will create a new information collection to cover the 
requirements set forth in FMCSA Form MCSA-1. There are also five 
approved information collections that will be affected by this rule as 
follows: (1) OMB Control No. 2126-0013, titled ``Motor Carrier 
Identification Report;'' (2) OMB Control No. 2126-0015, titled 
``Designation of Agents, Motor Carriers, Brokers and Freight 
Forwarders;'' (3) OMB Control No. 2126-0016, titled ``Licensing 
Application for Motor Carrier Operating Authority;'' (4) OMB Control 
No. 2126-0017, titled ``Financial Responsibility, Trucking, and Freight 
Forwarding;'' and (5) OMB Control No. 2126-0019, titled ``Application 
for Certificate of Registration for Foreign Motor Carriers and Foreign 
Motor Private Carriers.'' The new MCSA-1 Form will replace the forms 
covered by 2126-0013, 0016, and 0019. The rule will also increase the 
number of entities that will be required to file information on process 
agents (2126-0015) and insurance coverage (2126-0017).
    The total burden for the five approved information collections 
noted above is 225,739 hours. The table below captures the burden hours 
associated with the five approved information collections.

                                         Information Collection Burdens
----------------------------------------------------------------------------------------------------------------
                                                         Burden hours        Burden hours
                  OMB Approval No.                    currently approved     proposed \1\           Change
----------------------------------------------------------------------------------------------------------------
2126-NEW............................................                   0             205,412             205,412
2126-0013...........................................             109,005                   0           (109,005)
2126-0015...........................................               5,833              60,371              54,538
2126-0016...........................................              55,143                   0            (55,143)
2126-0017...........................................              54,158              68,391              14,233

[[Page 52643]]

 
2126-0019...........................................               1,600                   0             (1,600)
                                                     -----------------------------------------------------------
    Total...........................................             225,739             334,174             108,435
----------------------------------------------------------------------------------------------------------------
\1\ The figures in this column reflect first year information collection burdens. Many of these information
  collections will significantly decrease in later years.
Note: Numbers may not add due to rounding.

    An explanation of how each of the six information collections shown 
above is affected by this rule is provided below.
    OMB Control No. 2126-NEW, titled ``Unified Registration System, 
Form MCSA-1.'' The new form replaces the forms covered by three 
existing information collections--OMB Control Numbers 2126-0013, 2126-
0016, and 2126-0019. The estimated time to complete the form for 
purposes of new applicant registration, biennial updates, notification 
of changes, notification of transfers in operating authority, and 
reinstatements is 205,412 burden hours [147,038 hours for new 
applicants (61,280 new motor carriers, brokers, freight forwarders, and 
other entities x 1.34 hours per form + 48,450 intrastate non-hazmat 
carriers x 1.34 hours per form) + 55,877 hours for biennial updates 
(292,000 motor carriers, brokers, freight forwarders, and other 
entities + 43,265 intrastate non-hazmat applicants required to file in 
year one x 10 minutes per form, divided by 60 minutes/hr) + 2,017 hours 
for name/address change requests (12,103 requests x 0.167 hours) + 165 
hours for notification of transfer (987 x 0.167 hours) + 315 
reinstatements (1,891 x 0.167 hours)].
    OMB Control No. 2126-0013, titled ``Motor Carrier Identification 
Report, Applications for USDOT Number.'' All of the requirements under 
this information collection covering the MCS-150, MCS-150B, and MCS-
150C forms are folded into OMB Control No. 2126-NEW (see above) and the 
forms replaced by the MCSA-1 Form. Forms MCS-150 and OP-1(MX) will be 
retained for the small number of Mexico-domiciled carriers that seek 
authority to operate beyond the United States municipalities on the 
United States-Mexico border and their commercial zones because they are 
not included within the scope of the URS rule.
    OMB Control No. 2126-0015, titled ``Designation of Agents, Motor 
Carriers, Brokers, and Freight Forwarders.'' This information 
collection, which requires motor carriers and others to designate 
process agents that can be served with legal papers, was approved at 
5,833 burden hours. This information collection increased to 60,371 
burden hours [327,226 new applicants x 10 minutes per filing/60 
minutes/hr + 35,000 currently file the BOC-3 x 10 minutes per filing/60 
minutes/hr]. This increase was due to FMCSA's proposal to extend the 
designation of process agent filing requirement to include private 
motor carriers and exempt for-hire motor carriers. The FMCSA assumed 
that no existing private or exempt for-hire motor carriers had process 
agents on file and that all designated agents with FMCSA as a result of 
the proposed requirements set forth in this rule.
    OMB Control No. 2126-0016, titled ``Licensing Applications for 
Motor Carrier Operating Authority.'' This information collection, which 
covers for-hire carriers, freight forwarders, and property brokers, was 
approved at 55,143 burden hours. Under this action, all requirements 
included in this information collection are folded into OMB Control No. 
2126-NEW (see above) and the forms replaced by the MCSA-1. Basic 
identification information that applicants complete on these forms and 
MCS-150 forms will only need to be completed once under this rule.
    OMB Control No. 2126-0017, titled ``Financial Responsibility--Motor 
Carriers, Freight Forwarders and Brokers.'' This information 
collection, which in almost all cases requires insurers to file a 
certification of coverage for certain entities, was approved at 54,158 
burden hours. Changes were required to this information collection due 
to FMCSA's requirement for exempt for-hire motor carriers and private 
interstate motor carriers of hazardous materials to file proof of 
liability insurance with FMCSA. As all but a few of these filings are 
electronic (self-insurance filings will still be done on paper), the 
time required is adjusted downward to reflect the efficiencies gained. 
The revised burden is 68,391 hours [409,149 filings x 10 minutes/60 
plus 5 self-insurance filings x 40 hrs].
    OMB Control No. 2126-0019, titled ``Application for Certificate of 
Registration for Foreign Motor Carriers and Foreign Motor Private 
Carriers.'' Under this proposal, the requirements included in this 
approved information collection for the OP-2 Form, which covers 
operating authority for Mexico-domiciled carriers that operate solely 
in the commercial zones on the border, are folded into OMB Control No. 
2126-NEW (see above), resulting in a net decrease of 1,600 burden 
hours.
    The actions contained in this rule, affecting five approved 
information collections and one new information collection, result in a 
net increase of 108,435 burden hours in the Agency's information 
collection budget for the first year.

F. Executive Order 12630 (Taking of Private Property)

    This rule will not affect a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

G. Executive Order 12988 (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. Executive Order 13045 (Protection of Children)

    Executive Order 13045, ``Protection of Children from Environmental 
Health Risks and Safety Risks'' (April 23, 1997, 62 FR 19885), requires 
that agencies issuing economically significant rules, which also 
concern an environmental health or safety risk that an Agency has 
reason to believe may disproportionately affect children, must include 
an evaluation of the environmental health and safety effects of the 
regulation on children. Section 5 of Executive Order 13045 directs an 
Agency to submit for a covered regulatory action an evaluation of its 
environmental health or safety effects

[[Page 52644]]

on children. This rule is not an economically significant rule and will 
not create an environmental risk to health or risk to safety that might 
disproportionately affect children.

I. Executive Order 13132 (Federalism)

    This rule has been analyzed in accordance with the principles and 
criteria in Executive Order 13132, dated August 4, 1999 (64 FR 43255, 
August 10, 1999). The FMCSA consulted with State licensing agencies 
participating in its PRISM Program to discuss anticipated impacts of 
the May 2005 NPRM upon their operations. The Agency has taken into 
consideration their comments in its decision-making process for this 
rule. Thus, FMCSA has determined that this rule will not have 
significant Federalism implications or limit the policymaking 
discretion of the States.

J. Executive Order 12372 (Intergovernmental Review)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this program.

K. Executive Order 13211 (Energy Supply, Distribution, or Use)

    FMCSA has analyzed this rule under Executive Order 13211, ``Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use'' and has determined that this is not a 
significant energy action within the meaning of section 4(b) of the 
Executive Order. This is a procedural action, is not economically 
significant, and will not have a significant adverse effect on the 
supply, distribution, or use of energy.

L. Privacy Impact Analysis

    The FMCSA conducted a privacy impact assessment of this rule as 
required by section 522(a)(5) of division H of the FY 2005 Omnibus 
Appropriations Act, Public Law 108-447, 118 Stat. 3268 (Dec. 8, 2004) 
[set out as a note to 5 U.S.C. 552a]. The assessment considers any 
impacts of the final rule on the privacy of information in an 
identifiable form and related matters. FMCSA has determined that this 
rule will impact the handling of personally identifiable information 
(PII). FMCSA has also determined the risks and effects the rulemaking 
might have on collecting, storing, and sharing PII and has examined and 
evaluated protections and alternative information handling processes in 
order to mitigate potential privacy risks. The PIA for this rule is 
available for review in the docket.

List of Subjects

49 CFR Part 360

    Administrative practice and procedure, Brokers, Buses, Freight 
forwarders, Hazardous materials transportation, Highway safety, 
Insurance, Motor carriers, Motor vehicle safety, Moving of household 
goods, Penalties, Reporting and recordkeeping requirements, Surety 
bonds.

49 CFR Part 365

    Administrative practice and procedure, Brokers, Buses, Freight 
forwarders, Motor carriers, Moving of household goods.

49 CFR Part 366

    Brokers, Motor carriers, Freight forwarders, Process agents.

49 CFR Part 368

    Administrative practice and procedure, Insurance, Motor carriers.

49 CFR Part 385

    Administrative practice and procedure, Highway safety, Motor 
carriers, Motor vehicle safety, Reporting and recordkeeping 
requirements.

49 CFR Part 387

    Buses, Freight, Freight forwarders, Hazardous materials 
transportation, Highway safety, Insurance, Intergovernmental relations, 
Motor carriers, Motor vehicle safety, Moving of household goods, 
Penalties, Reporting and recordkeeping requirements, Surety bonds.

49 CFR Part 390

    Highway safety, Intermodal transportation, Motor carriers, Motor 
vehicle safety, Reporting and recordkeeping requirements.

49 CFR Part 392

    Highway safety, Motor carriers.

    In consideration of the foregoing, FMCSA amends 49 CFR chapter III, 
parts 360, 365, 366, 368, 385, 387, 390, and 392 as set forth below:

0
1. Revise part 360 to read as follows:

PART 360--FEES FOR MOTOR CARRIER REGISTRATION AND INSURANCE

Sec.
360.1 Fees for registration-related services.
360.3 Filing fees.
360.5 Updating user fees.

    Authority:  31 U.S.C. 9701; 49 U.S.C. 13908; and 49 CFR 1.87.


Sec.  360.1  Fees for registration-related services.

    Certifications and copies of public records and documents on file 
with the Federal Motor Carrier Safety Administration (FMCSA) will be 
furnished on the following basis, pursuant to USDOT Freedom of 
Information Act regulations at 49 CFR part 7:
    (a) Certificate of the Director, Office of Management and 
Information Services, as to the authenticity of documents, $12;
    (b) Service involved in locating records to be certified and 
determining their authenticity, including clerical and administrative 
work, at the rate of $21 per hour;
    (c) Copies of the public documents, at the rate of $.80 per letter 
size or legal size exposure. A minimum charge of $5 will be made for 
this service; and
    (d) Search and copying services requiring information technology 
(IT), as follows:
    (1) A fee of $50 per hour for professional staff time will be 
charged when it is required to fulfill a request for electronic data.
    (2) The fee for computer searches will be set at the current rate 
for computer service. Information on those charges can be obtained from 
the Office of Information Technology (MC-RI).
    (3) Printing will be charged at the rate of $.10 per page of 
computer-generated output with a minimum charge of $1. There will also 
be a charge for the media provided (e.g., CD ROMs) based on the 
Agency's costs for such media.
    (e) Exception. No fee shall be charged under this section to the 
following entities:
    (1) Any Agency of the Federal Government or a State government or 
any political subdivision of any such government for access to or 
retrieval of information and data from the Unified Carrier Registration 
System for its own use; or
    (2) Any representative of a motor carrier, motor private carrier, 
broker, or freight forwarder (as each is defined in 49 U.S.C. 13102) 
for the access to or retrieval of the information related to such 
entity from the Unified Carrier Registration System for the individual 
use of such entity.


Sec.  360.3  Filing fees.

    (a) Manner of payment. (1) Except for the insurance fees described 
in the next sentence, all filing fees must be paid at the time the 
application, petition, or other document is electronically filed. The 
service fee for insurance, surety or self-insurer accepted certificate 
of insurance, surety bond or other instrument submitted in lieu of a 
broker

[[Page 52645]]

surety bond must be charged to an insurance service account established 
by FMCSA in accordance with paragraph (a)(2) of this section.
    (2) Billing account procedure. A request must be submitted to the 
Office of Registration and Safety Information (MC-RS) at http://www.fmcsa.dot.gov to establish an insurance service fee account.
    (i) Each account will have a specific billing date within each 
month and a billing cycle. The billing date is the date that the bill 
is prepared and printed. The billing cycle is the period between the 
billing date in one month and the billing date in the next month. A 
bill for each account that has activity or an unpaid balance during the 
billing cycle will be sent on the billing date each month. Payment will 
be due 20 days from the billing date. Payments received before the next 
billing date are applied to the account. Interest will accrue in 
accordance with 31 CFR 901.9.
    (ii) The Federal Claims Collection Standards, including disclosure 
to consumer reporting agencies and the use of collection agencies, as 
set forth in 31 CFR part 901, will be utilized to encourage payment 
where appropriate.
    (iii) An account holder who files a petition for bankruptcy or who 
is the subject of a bankruptcy proceeding must provide the following 
information to the Office of Registration and Safety Information (MC-
RS) at http://www.fmcsa.dot.gov:
    (A) The filing date of the bankruptcy petition;
    (B) The court in which the bankruptcy petition was filed;
    (C) The type of bankruptcy proceeding;
    (D) The name, address, and telephone number of its representative 
in the bankruptcy proceeding; and
    (E) The name, address, and telephone number of the bankruptcy 
trustee, if one has been appointed.
    (3) Fees will be payable through the U.S. Department of Treasury 
secure payment system, Pay.gov, and are made directly from the payor's 
bank account or by credit/debit card.
    (b) Any filing that is not accompanied by the appropriate filing 
fee will be rejected.
    (c) Fees not refundable. Fees will be assessed for every filing 
listed in the schedule of fees contained in paragraph (f) of this 
section, titled, ``Schedule of filing fees,'' subject to the exceptions 
contained in paragraphs (d) and (e) of this section. After the 
application, petition, or other document has been accepted for filing 
by FMCSA, the filing fee will not be refunded, regardless of whether 
the application, petition, or other document is granted or approved, 
denied, rejected before docketing, dismissed, or withdrawn.
    (d) Multiple authorities. (1) A separate filing fee is required for 
each type of authority sought, for example broker authority requested 
by an entity that already holds motor property carrier authority or 
multiple types of authority requested in the same application.
    (2) Separate fees will be assessed for the filing of temporary 
operating authority applications as provided in paragraph (f)(2) of 
this section, regardless of whether such applications are related to an 
application for corresponding permanent operating authority.
    (e) Waiver or reduction of filing fees. It is the general policy of 
the Federal Motor Carrier Safety Administration not to waive or reduce 
filing fees except as follows:
    (1) Filing fees are waived for an application that is filed by a 
Federal government agency, or a State or local government entity. For 
purposes of this section the phrases ``Federal government agency'' or 
``government entity'' do not include a quasi-governmental corporation 
or government subsidized transportation company.
    (2) Filing fees are waived for a motor carrier of passengers that 
receives a grant from the Federal Transit Administration either 
directly or through a third-party contract to provide passenger 
transportation under an agreement with a State or local government 
pursuant to 49 U.S.C. 5307, 5310, 5311, 5316, or 5317.
    (3) The FMCSA will consider other requests for waivers or fee 
reductions only in extraordinary situations and in accordance with the 
following procedure:
    (i) When to request. At the time that a filing is submitted to 
FMCSA, the applicant may request a waiver or reduction of the fee 
prescribed in this part. Such request should be addressed to the 
Director, Office of Registration and Safety Information.
    (ii) Basis. The applicant must show that the waiver or reduction of 
the fee is in the best interest of the public, or that payment of the 
fee would impose an undue hardship upon the requester.
    (iii) FMCSA action. The Director, Office of Registration and Safety 
Information, will notify the applicant of the decision to grant or deny 
the request for waiver or reduction.
    (f) Schedule of filing fees:

------------------------------------------------------------------------
      Type of proceeding                                       Fee
------------------------------------------------------------------------
Part I: Registration
    (1).......................  An application for      $300.
                                 USDOT Registration
                                 pursuant to 49 CFR
                                 part 390, subpart E.
    (2).......................  An application for      $100.
                                 motor carrier
                                 temporary authority
                                 to provide emergency
                                 relief in response to
                                 a national emergency
                                 or natural disaster
                                 following an
                                 emergency declaration
                                 under Sec.   390.23
                                 of this subchapter.
    (3).......................  Biennial update of      $0.
                                 registration..
    (4).......................  Request for change of   $0.
                                 name, address, or
                                 form of business.
    (5).......................  Request for             $0.
                                 cancellation of
                                 registration.
    (6).......................  Request for             $10.
                                 registration
                                 reinstatement.
    (7).......................  Designation of process  $0.
                                 agent.
    (8).......................  Notification of         $0.
                                 Transfer of Operating
                                 Authority.
Part II: Insurance
    (9).......................  A service fee for       $10 per accepted
                                 insurer, surety, or     certificate,
                                 self-insurer accepted   surety bond or
                                 certificate of          other
                                 insurance, surety       instrument
                                 bond, and other         submitted in
                                 instrument submitted    lieu of a
                                 in lieu of a broker     broker surety
                                 surety bond.            bond.
    (10)......................  (i) An application for  $4,200.
                                 original
                                 qualification as self-
                                 insurer for bodily
                                 injury and property
                                 damage insurance
                                 (BI&PD).
                                (ii) An application     $420.
                                 for original
                                 qualification as self-
                                 insurer for cargo
                                 insurance.
------------------------------------------------------------------------


[[Page 52646]]

Sec.  360.5  Updating user fees.

    (a) Update. Each fee established in this subpart may be updated, as 
deemed necessary by FMCSA.
    (b) Publication and effective dates. Notice of updated fees shall 
be published in the Federal Register and shall become effective 30 days 
after publication.
    (c) Payment of fees. Any person submitting a filing for which a 
filing fee is established must pay the fee applicable on the date of 
the filing or request for services.
    (d) Method of updating fees. Each fee shall be updated by updating 
the cost components comprising the fee. However, fees shall not exceed 
the maximum amounts established by law. Cost components shall be 
updated as follows:
    (1) Direct labor costs shall be updated by multiplying base level 
direct labor costs by percentage changes in average wages and salaries 
of FMCSA employees. Base level direct labor costs are direct labor 
costs determined by the cost study in Regulations Governing Fees For 
Service, 1 I.C.C. 2d 60 (1984), or subsequent cost studies. The base 
period for measuring changes shall be April 1984 or the year of the 
last cost study.
    (2) Operations overhead shall be developed on the basis of current 
relationships existing on a weighted basis, for indirect labor 
applicable to the first supervisory work centers directly associated 
with user fee activity. Actual updating of operations overhead shall be 
accomplished by applying the current percentage factor to updated 
direct labor, including current governmental overhead costs.
    (3)(i) Office general and administrative costs shall be developed 
on the basis of current levels costs, i.e., dividing actual office 
general and administrative costs for the current fiscal year by total 
office costs for the office directly associated with user fee activity. 
Actual updating of office general and administrative costs shall be 
accomplished by applying the current percentage factor to updated 
direct labor, including current governmental overhead and current 
operations overhead costs.
    (ii) The FMCSA general and administrative costs shall be developed 
on the basis of current level costs; i.e., dividing actual FMCSA 
general and administrative costs for the current fiscal year by total 
Agency expenses for the current fiscal year. Actual updating of FMCSA 
general and administrative costs shall be accomplished by applying the 
current percentage factor to updated direct labor, including current 
governmental overhead, operations overhead and office general and 
administrative costs.
    (4) Publication costs shall be adjusted on the basis of known 
changes in the costs applicable to publication of material in the 
Federal Register or FMCSA Register.
    (e) Rounding of updated fees. Updated fees shall be rounded as 
follows. (This rounding procedure excludes copying, printing and search 
fees.)
    (1) Fees between $1 and $30 shall be rounded to the nearest $1;
    (2) Fees between $30 and $100 shall be rounded to the nearest $10;
    (3) Fees between $100 and $999 shall be rounded to the nearest $50; 
and
    (4) Fees above $1,000 shall be rounded to the nearest $100.

PART 365--RULES GOVERNING APPLICATIONS FOR OPERATING AUTHORITY

0
2. The authority citation for part 365 is revised to read as follows:

    Authority:  5 U.S.C. 553 and 559; 49 U.S.C. 13101, 13301, 13901-
13906, 13908, 14708, 31133, 31138, and 31144; 49 CFR 1.87.


0
3. Amend Sec.  365.101 by revising paragraphs (a) and (h) to read as 
follows:


Sec.  365.101  Applications governed by these rules.

* * * * *
    (a) Applications for certificates of motor carrier registration to 
operate as a motor carrier of property or passengers.
* * * * *
    (h) Applications for Mexico-domiciled motor carriers to operate in 
foreign commerce as for-hire or private motor carriers of property 
(including exempt items) between Mexico and all points in the United 
States. Under NAFTA Annex 1, page I-U-20, a Mexico-domiciled motor 
carrier may not provide point-to-point transportation services, 
including express delivery services, within the United States for goods 
other than international cargo.
* * * * *


Sec.  365.103  [Removed and Reserved]

0
4. Remove and reserve Sec.  365.103.


0
5. Revise Sec.  365.105 to read as follows:


Sec.  365.105  Starting the application process: Form MCSA-1, FMCSA 
Registration/Update (USDOT Number--Operating Authority Application).

    (a) Each applicant must apply for operating authority by 
electronically filing Form MCSA-1, FMCSA Registration/Update (USDOT 
Number--Operating Authority Application), to request authority pursuant 
to 49 U.S.C. 13902, 13903 or 13904 to operate as a:
    (1) Motor carrier of property or passengers,
    (2) Broker of general commodities or household goods, or
    (3) Freight forwarder of general commodities or household goods.
    (b) A separate filing fee in the amount set forth at 49 CFR 
360.3(f) is required for each type of authority sought in Sec.  
365.105(a).
    (c) Form MCSA-1 is an electronic application and is available, 
including complete instructions, from the FMCSA Web site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1'').

0
6. Revise Sec.  365.107 to read as follows:


Sec.  365.107  Types of applications.

    (a) Fitness applications. Motor property applications and certain 
types of motor passenger applications require the finding that the 
applicant is fit, willing and able to perform the involved operations 
and to comply with all applicable statutory and regulatory provisions. 
These applications can be opposed only on the grounds that applicant is 
not fit [e.g., is not in compliance with applicable financial 
responsibility and safety fitness requirements]. These applications 
are:
    (1) Motor carrier of property (except household goods).
    (2) Broker of general commodities or household goods.
    (3) Certain types of motor carrier of passenger applications as 
described in Form MCSA-1.
    (b) Motor carrier of passenger ``public interest'' applications as 
described in Form MCSA-1.
    (c) Intrastate motor passenger applications under 49 U.S.C. 
13902(b)(3) as described in Form MCSA-1.
    (d) Motor carrier of household goods applications, including 
Mexico- or non-North America-domiciled carrier applicants. In addition 
to meeting the fitness standard under paragraph (a) of this section, an 
applicant seeking authority to operate as a motor carrier of household 
goods must:
    (1) Provide evidence of participation in an arbitration program and 
provide a copy of the notice of the arbitration program as required by 
49 U.S.C. 14708(b)(2);
    (2) Identify its tariff and provide a copy of the notice of the 
availability of that tariff for inspection as required by 49 U.S.C. 
13702(c);
    (3) Provide evidence that it has access to, has read, is familiar 
with, and will observe all applicable Federal laws relating to consumer 
protection, estimating, consumers' rights and

[[Page 52647]]

responsibilities, and options for limitations of liability for loss and 
damage; and
    (4) Disclose any relationship involving common stock, common 
ownership, common management, or common familial relationships between 
the applicant and any other motor carrier, freight forwarder, or broker 
of household goods within 3 years of the proposed date of registration.
    (e) Temporary authority (TA) for motor carriers. These applications 
require a finding that there is or soon will be an immediate 
transportation need that cannot be met by existing carrier service.
    (1) Applications for TA will be entertained only when an emergency 
declaration has been made pursuant to Sec.  390.23 of this subchapter.
    (2) Temporary authority must be requested by filing Form MCSA-1.
    (3) Applications for temporary authority are not subject to 
protest.
    (4) Motor carriers granted temporary authority must comply with 
financial responsibility requirements under part 387 of this 
subchapter.
    (5) Only a U.S.-domiciled motor carrier is eligible to receive 
temporary authority.

0
7. Amend Sec.  365.109 by revising paragraphs (a)(5) and (6) and (b) to 
read as follows:


Sec.  365.109  FMCSA review of the application.

    (a) * * *
    (5) All applicants must file the appropriate evidence of financial 
responsibility pursuant to 49 CFR part 387 within 90 days from the date 
notice of the application is published in the FMCSA Register:
    (i) Form BMC-91 or 91X or BMC 82 surety bond--Bodily injury and 
property damage (motor property and passenger carriers; and freight 
forwarders that provide pickup or delivery service directly or by using 
a local delivery service under their control).
    (ii) Form BMC-84--Surety bond or Form BMC-85--trust fund agreement 
(property brokers of general commodities and household goods).
    (iii) Form BMC-34 or BMC 83 surety bond--Cargo liability (household 
goods motor carriers and household goods freight forwarders).
    (6) Applicants also must submit Form BOC-3--Designation of Agents--
Motor Carriers, Brokers and Freight Forwarders--within 90 days from the 
date notice of the application is published in the FMCSA Register.
* * * * *
    (b) A summary of the application will be published in the FMCSA 
Register to give notice to the public in case anyone wishes to oppose 
the application.

0
8. Add Sec.  365.110 to read as follows:


Sec.  365.110  Need to complete New Entrant Safety Assurance Program.

    For motor carriers operating commercial motor vehicles as defined 
in 49 U.S.C. 31132, operating authority obtained under procedures in 
this part does not become permanent until the applicant satisfactorily 
completes the New Entrant Safety Assurance Program in part 385 of this 
subchapter.

0
9. Amend Sec.  365.111 by revising paragraph (a) to read as follows:


Sec.  365.111  Appeals to rejections of the application.

    (a) An applicant has the right to appeal rejection of the 
application. The appeal must be filed at the FMCSA, Office of 
Registration and Safety Information, 1200 New Jersey Ave. SE., 
Washington, DC 20590, within 10 days of the date of the letter of 
rejection.
* * * * *

0
10. Revise Sec.  365.119 to read as follows:


Sec.  365.119  Opposed applications.

    If the application is opposed, opposing parties are required to 
send a copy of their protest to the applicant and to FMCSA. All 
protests must include statements made under oath (verified statements). 
There are no personal appearances or formal hearings.

0
11. Revise Sec.  365.201 to read as follows:


Sec.  365.201  Definitions.

    A person wishing to oppose a request for operating authority files 
a protest. A person filing a valid protest is known as a protestant.

0
12. Revise Sec.  365.203 to read as follows:


Sec.  365.203  Time for filing.

    A protest shall be filed (received at the FMCSA, Office of the 
Associate Administrator for Research and Information Technology, 1200 
New Jersey Ave. SE., Washington, DC 20590) within 10 days after notice 
of the application appears in the FMCSA Register. A copy of the protest 
shall be sent to applicant's representative at the same time. Failure 
timely to file a protest waives further participation in the 
proceeding.


Sec.  365.301  [Removed and Reserved]

0
13. Remove and reserve Sec.  365.301.

0
14. Revise Subpart D to read as follows:
Subpart D--Transfers of Operating Authority
Sec.
365.401 Scope of rules.
365.403 Definitions.
365.405 Reporting requirement.

Subpart D--Transfers of Operating Authority


Sec.  365.401  Scope of rules.

    The rules in this subpart define the procedures for motor carriers, 
property brokers, and freight forwarders to report to FMCSA 
transactions that result in the transfer of operating authority and are 
not subject to approval by the U.S. Surface Transportation Board under 
49 U.S.C. 14303.


Sec.  365.403  Definitions.

    For the purposes of this subpart, the following definitions apply:
    (a) Transfer. A transfer means any transaction in which an 
operating authority issued to one person is taken over by another 
person or persons who assume legal responsibility for the operations. 
Such transactions include a purchase of all or some of the assets of a 
company, a merger of two or more companies, or acquisition of 
controlling interest in a company through a purchase of company stock.
    (b) Operating authority. Operating authority means a registration 
required by 49 U.S.C. 13902 issued to motor carriers; 49 U.S.C. 13903 
issued to freight forwarders; and 49 U.S.C. 13904 issued to brokers.
    (c) Person. An individual, partnership, corporation, company, 
association, or other form of business, or a trustee, receiver, 
assignee, or personal representative of any of these entities.


Sec.  365.405  Reporting requirement.

    (a) Every transfer of operating authority from one person to 
another person must be reported by both the transferee and transferor 
on Form MCSA-1, in accordance with Sec.  390.201(d)(5) of this 
subchapter.
    (b) The following information must be furnished:
    (1) Full name, address and USDOT Numbers of the transferee and 
transferor.
    (2) A copy of the operating authority being transferred.

0
15. Amend Sec.  365.507 by revising paragraph (e)(2) to read as 
follows:


Sec.  365.507  FMCSA action on the application.

* * * * *
    (e) * * *

[[Page 52648]]

    (2) Electronically file, or have its process agent(s) 
electronically file, Form BOC-3--Designation of Agents--Motor Carriers, 
Brokers and Freight Forwarders, as required by part 366 of this 
subchapter; and
* * * * *

0
16. Amend Sec.  365.509 by revising paragraph (a) to read as follows:


Sec.  365.509  Requirement to notify FMCSA of change in applicant 
information.

    (a) A motor carrier subject to this subpart must notify FMCSA of 
any changes or corrections to the information in parts I, IA, or II of 
Form OP-1(MX), or in Form BOC-3--Designation of Agents--Motor Carriers, 
Brokers and Freight Forwarders, during the application process or after 
having been granted provisional operating authority. The carrier must 
notify FMCSA in writing within 30 days of the change or correction.
* * * * *

PART 366--DESIGNATION OF PROCESS AGENT

0
17. The authority citation for part 366 is revised to read as follows:

    Authority:  49 U.S.C. 502, 503, 13303, 13304 and 13908; and 49 
CFR 1.87.


0
18. Revise Sec.  366.1 to read as follows:


Sec.  366.1  Applicability.

    The rules in this part, relating to the filing of designations of 
persons upon whom court or Agency process may be served, apply to for-
hire and private motor carriers, brokers, freight forwarders and, as of 
the moment of succession, their fiduciaries (as defined at 49 CFR 
387.319(a)).

0
19. Effective April 25, 2016, revise Sec.  366.2 to read as follows:


Sec.  366.2  Form of designation.

    (a) Designations shall be made on Form BOC-3--Designation of 
Agents--Motor Carriers, Brokers and Freight Forwarders. Only one 
completed current form may be on file. It must include all States for 
which agent designations are required. One copy must be retained by the 
carrier, broker or freight forwarder at its principal place of 
business.
    (b) Private motor carriers and for-hire motor carriers engaged in 
transportation exempt from economic regulation by FMCSA under 49 U.S.C. 
chapter 135 that are registered with FMCSA as of October 22, 2013 must 
file a Form BOC-3 designation by no later than April 25, 2016. Failure 
to file a designation in accordance with this paragraph will result in 
deactivation of the carrier's USDOT Number.

0
20. Revise Sec.  366.3 to read as follows:


Sec.  366.3  Eligible persons.

    All persons (as defined at 49 U.S.C. 13102(18)) designated as 
process agents must reside in or maintain an office in the State for 
which they are designated. If a State official is designated, evidence 
of his or her willingness to accept service of process must be 
furnished.

0
21. Revise Sec.  366.4 to read as follows:


Sec.  366.4  Required States.

    (a) Motor carriers. Every motor carrier must designate process 
agents for all 48 contiguous States and the District of Columbia, 
unless its operating authority registration is limited to fewer than 48 
States and DC When a motor carrier's operating authority registration 
is limited to fewer than 48 States and DC, it must designate process 
agents for each State in which it is authorized to operate and for each 
State traversed during such operations. Every motor carrier operating 
in the United States in the course of transportation between points in 
a foreign country shall file a designation for each State traversed.
    (b) Brokers. Every broker shall make a designation for each State, 
including DC, in which its offices are located or in which contracts 
will be written.
    (c) Freight forwarders. Every freight forwarder shall make a 
designation for each State, including DC, in which its offices are 
located or in which contracts will be written.

0
22. Revise Sec.  366.5 to read as follows:


Sec.  366.5  Blanket designations.

    Where an association or corporation has filed with the FMCSA a list 
of process agents for each State and DC (blanket agent), motor 
carriers, brokers and freight forwarders may make the required 
designations by using the following statement:
    I designate those persons named in the list of process agents on 
file with the Federal Motor Carrier Safety Administration

by---------------------------------------------------------------------

(name of association or corporation)

and any subsequently filed revisions thereof, for the States in 
which this carrier is or may be authorized to operate (or arrange) 
as an entity of motor vehicle transportation, including States 
traversed during such operations, except those States for which 
individual designations are named.

0
23. Revise Sec.  366.6 to read as follows:


Sec.  366.6  Cancellation or change.

    (a) A designation may be canceled or changed only by a new 
designation made by the motor carrier, broker, or freight forwarder, or 
by the process agent or company filing a blanket designation in 
accordance with Sec.  366.5. However, where a motor carrier, broker or 
freight forwarder's USDOT Number is inactive for at least 1 year, 
designation is no longer required and may be canceled without making 
another designation.
    (b) A change to a designation, such as name, address, or contact 
information, must be reported to FMCSA within 30 days of the change.
    (c) Whenever a motor carrier, broker or freight forwarder changes 
it name, address, or contact information, it must report the change to 
its process agents and/or the company making a blanket designation on 
its behalf in accordance with Sec.  366.5 within 30 days of the change.
    (d) Whenever a process agent and/or company making a blanket 
designation on behalf of a motor carrier, broker, or freight forwarder 
terminates its contract or relationship with the entity, it should 
report the termination to FMCSA within 30 days of the termination. If 
process agents and/or blanket agents do not keep their information up 
to date, FMCSA may withdraw its approval of their authority to make 
process agent designations with the Agency.

PART 368--APPLICATION FOR A CERTIFICATE OF REGISTRATION TO OPERATE 
IN MUNICIPALITIES IN THE UNITED STATES ON THE UNITED STATES-MEXICO 
INTERNATIONAL BORDER OR WITHIN THE COMMERCIAL ZONES OF SUCH 
MUNICIPALITIES.

0
24. The authority citation for part 368 is revised to read as follows:

    Authority:  49 U.S.C. 13301, 13902 and 13908; Pub. L. 106-159, 
113 Stat. 1748; and 49 CFR 1.87.

0
25. Amend Sec.  368.3 by revising paragraphs (a), (b), and (f) and 
removing and reserving paragraph (e) to read as follows:


Sec.  368.3  Applying for a certificate of registration.

    (a) If you wish to obtain a certificate of registration under this 
part, you must electronically file an application that includes the 
following:
    (1) Form MCSA-1--FMCSA Registration/Update (USDOT Number--
(Operating Authority Application)).
    (2) Form BOC-3--Designation of Agents--Motor Carriers, Brokers and 
Freight Forwarders or indicate on the application that the applicant 
will use a process agent service that will submit the Form BOC-3 
electronically.
    (b) The FMCSA will only process your application for a Certificate 
of

[[Page 52649]]

Registration if it meets the following conditions:
    (1) The application must be completed in English;
    (2) The information supplied must be accurate and complete in 
accordance with the instructions to Form MCSA-1 and Form BOC-3.
    (3) The application must include all the required supporting 
documents and applicable certifications set forth in the instructions 
to Form MCSA-1 and Form BOC-3.
* * * * *
    (e) [Reserved]
    (f) Form MCSA-1 is an electronic application and is available, 
including complete instructions, from the FMCSA Web site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1'').

0
26. Amend Sec.  368.4 by revising paragraph (a) to read as follows:


Sec.  368.4  Requirement to notify FMCSA of change in applicant 
information.

    (a) You must notify FMCSA of any changes or corrections to the 
information in Section A of Form MCSA-1--FMCSA Registration/Update 
(USDOT Number--Operating Authority Application), or the Form BOC-3, 
Designation of Agents-Motor Carriers, Brokers and Freight Forwarders, 
during the application process or while you have a Certificate of 
Registration. You must notify FMCSA in writing within 30 days of the 
change or correction.
* * * * *

0
27. Revise Sec.  368.8 to read as follows:


Sec.  368.8  Appeals.

    An applicant has the right to appeal denial of the application. The 
appeal must be in writing and specify in detail why the Agency's 
decision to deny the application was wrong. The appeal must be filed 
with the FMCSA, Office of Registration and Safety Information within 20 
days of the date of the letter denying the application. The decision of 
the Director will be the final Agency order.

PART 385--SAFETY FITNESS PROCEDURES

0
28. The authority citation for part 385 is revised to read as follows:

    Authority:  49 U.S.C. 113, 504, 521(b), 5105(e), 5109, 5113, 
13901-13905, 13908, 31136, 31144, 31148, 31151, and 31502; Sec. 350 
of Pub. L. 107-87; and 49 CFR 1.87.

0
29. Revise Sec.  385.301 to read as follows:


Sec.  385.301  What is a motor carrier required to do before beginning 
interstate operations?

    (a) Before a motor carrier of property or passengers begins 
interstate operations, it must register with FMCSA and receive a USDOT 
Number. In addition, for-hire motor carriers must obtain operating 
authority from FMCSA, unless exclusively providing transportation 
exempt from the commercial registration requirements in 49 U.S.C. 
chapter 139. Both the USDOT Number and operating authority are obtained 
by following registration procedures described in 49 CFR part 390, 
subpart E. Part 365 of this chapter provides detailed instructions for 
obtaining operating authority.
    (b) This subpart applies to motor carriers domiciled in the United 
States and Canada.
    (c) The regulations in this subpart do not apply to a Mexico-
domiciled motor carrier. A Mexico-domiciled motor carrier of property 
or passengers must register with FMCSA by following the registration 
procedures described in 49 CFR parts 365, 368 and 390. Parts 365 (for 
long-haul carriers) and 368 (for commercial zone carriers) of this 
chapter provide detailed information about how a Mexico-domiciled motor 
carrier may obtain operating authority.

0
30. Revise Sec.  385.303 to read as follows:


Sec.  385.303  How does a motor carrier register with the FMCSA?

    A motor carrier registers with FMCSA by completing Form MCSA-1, 
which is an electronic application that must be completed on-line at 
the FMCSA Web site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1''). 
Complete instructions for the Form MCSA-1 also are available at the 
same location.

0
31. Revise Sec.  385.305 to read as follows:


Sec.  385.305  What happens after the FMCSA receives a request for new 
entrant registration?

    (a) The applicant for new entrant registration will be directed to 
the FMCSA Internet Web site (http://www.fmcsa.dot.gov) to secure and/or 
complete the application package online.
    (b) The application package will include the following:
    (1) Educational and technical assistance material regarding the 
requirements of the FMCSRs and HMRs, if applicable.
    (2) Form MCSA-1--FMCSA Registration/Update (USDOT Number--Operating 
Authority Application). This form is used to obtain both a USDOT Number 
and operating authority.
    (c) Upon completion of the application form, the new entrant will 
be issued an inactive USDOT Number. An applicant may not begin 
operations nor mark a commercial motor vehicle with the USDOT Number 
until after the date of the Agency's written notice that the USDOT 
Number has been activated. Violations of this section may be subject to 
the penalties under Sec.  392.9b(b) of this chapter.
    (d) Additional requirements for certain for-hire motor carriers. 
For-hire motor carriers, unless providing transportation exempt from 
the commercial registration requirements in 49 U.S.C. chapter 139, must 
obtain operating authority as prescribed under Sec.  390.201(b) and 
part 365 of this chapter before operating in interstate commerce.

0
32. Amend Sec.  385.329 by revising paragraphs (b) introductory text, 
(b)(1), (c)(1) and (d) to read as follows:


Sec.  385.329  May a new entrant that has had its USDOT new entrant 
registration revoked and its operations placed out of service reapply?

* * * * *
    (b) If the USDOT new entrant registration was revoked because of a 
failed safety audit, the new entrant must do all of the following:
    (1) Submit an updated Form MCSA-1.
* * * * *
    (c) * * *
    (1) Submit an updated Form MCSA-1.
* * * * *
    (d) If the new entrant is a for-hire motor carrier subject to the 
registration provisions of 49 U.S.C. chapter 139 and also has had its 
operating authority revoked, it must re-apply for operating authority 
as set forth in Sec.  390.201(b) and part 365 of this chapter.

0
33. Revise Sec.  385.405 to read as follows:


Sec.  385.405  How does a motor carrier apply for a safety permit?

    (a) Application form. (1) To apply for a new safety permit or 
renewal of the safety permit, a motor carrier must complete and submit 
Form MCSA-1--FMCSA Registration/Update (USDOT Number--Operating 
Authority Application) and meet the requirements under 49 CFR part 390, 
subpart E.
    (2) The Form MCSA-1 also will also satisfy the requirements for 
obtaining and renewing a USDOT Number.
    (b) Where to get forms and instructions. Form MCSA-1 is an 
electronic application and is available, including complete 
instructions, from the FMCSA Web site at http://www.fmcsa.dot.gov 
(Keyword ``MCSA-1'').
    (c) Signature and certification. An official of the motor carrier 
must sign and certify that the information is

[[Page 52650]]

correct on each form the motor carrier submits.
    (d) Updating information. A motor carrier holding a safety permit 
must report to FMCSA any change in the information on its Form MCSA-1 
within 30 days of the change. The motor carrier must use Form MCSA-1 to 
report the new information.

0
34. Amend Sec.  385.409 by revising paragraph (a) to read as follows:


Sec.  385.409  When may a temporary safety permit be issued to a motor 
carrier?

    (a) Temporary safety permit. If a motor carrier does not meet the 
criteria of Sec.  385.407(a), FMCSA may issue it a temporary safety 
permit. To obtain a temporary safety permit, a motor carrier must 
certify on Form MCSA-1 that it is operating in full compliance with the 
HMRs, with the FMCSRs, and/or comparable State regulations, whichever 
is applicable; and with the minimum financial responsibility 
requirements in part 387 of this subchapter or in State regulations, 
whichever is applicable.
* * * * *

0
35. Revise Sec.  385.419 to read as follows:


Sec.  385.419  How long is a safety permit effective?

    Unless suspended or revoked, a safety permit (other than a 
temporary safety permit) is effective for two years, except that:
    (a) A safety permit will be subject to revocation if a motor 
carrier fails to submit a renewal application (Form MCSA-1) in 
accordance with the schedule set forth for filing Form MCSA-1 in part 
390, subpart E, of this subchapter; and
    (b) An existing safety permit will remain in effect pending FMCSA's 
processing of an application for renewal if a motor carrier submits the 
required application (Form MCSA-1) in accordance with the schedule set 
forth in part 390, subpart E, of this subchapter.

0
36. Amend Sec.  385.421 by revising paragraphs (a)(1) and (a)(2) to 
read as follows:


Sec.  385.421  Under what circumstances will a safety permit be subject 
to revocation or suspension by FMCSA?

    (a) * * *
    (1) A motor carrier fails to submit a renewal application (Form 
MCSA-1) in accordance with the schedule set forth in part 390, subpart 
E, of this subchapter.
    (2) A motor carrier provides any false or misleading information on 
its application form (Form MCSA-1) or as part of updated information it 
is providing on Form MCSA-1 (see Sec.  385.405(d)).

0
37. Revise Sec.  385.603 to read as follows:


Sec.  385.603  Application.

    (a) Each applicant applying under this subpart must submit an 
application that consists of:
    (1) Form MCSA-1, FMCSA Registration/Update (USDOT Number--Operating 
Authority Application); and
    (2) A notification of the means used to designate process agents, 
either by submission in the application package of Form BOC-3, 
Designation of Agents--Motor Carriers, Brokers and Freight Forwarders, 
or a letter stating that the applicant will use a process agent service 
that will submit the Form BOC-3 electronically.
    (b) The FMCSA will process an application only if it meets the 
following conditions:
    (1) The application must be completed in English.
    (2) The information supplied must be accurate, complete, and 
include all required supporting documents and applicable certifications 
in accordance with the instructions to Form MCSA-1 and Form BOC-3.
    (3) The application must include the filing fee payable to the 
FMCSA in the amount set forth at 49 CFR 360.3(f)(1).
    (4) The application must be signed by the applicant.
    (c) An applicant must electronically file Form MCSA-1.
    (d) Form MCSA-1 is an electronic application and is available, 
including complete instructions, from the FMCSA Web site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1'').

0
38. Amend Sec.  385.607 by revising paragraph (e)(2) to read as 
follows:


Sec.  385.607  FMCSA action on the application.

* * * * *
    (e) * * *
    (2) File or have its process agent(s) electronically submit, Form 
BOC-3--Designation of Agents--Motor Carriers, Brokers and Freight 
Forwarders, as required by part 366 of this subchapter.
* * * * *

0
39. Amend Sec.  385.609 by revising paragraph (a)(2) and removing 
paragraph (a)(3) to read as follows:


385.609   Requirement to notify FMCSA of change in applicant 
information.

    (a) * * *
    (2) A motor carrier subject to this subpart must notify FMCSA of 
any changes or corrections to the information in Section A of Form 
MCSA-1 that occur during the application process or after the motor 
carrier has been granted new entrant registration. The motor carrier 
must report the changes or corrections within 30 days of the change. 
The motor carrier must use Form MCSA-1 to report the new information.
* * * * *

0
40. Amend Sec.  385.713 by revising paragraphs (b) introductory text, 
(b)(1), (c) introductory text, (c)(1), and (d) to read as follows:


Sec.  385.713  Reapplying for new entrant registration.

* * * * *
    (b) If the provisional new entrant registration was revoked because 
the new entrant failed to receive a Satisfactory rating after 
undergoing a compliance review, the new entrant must do all of the 
following:
    (1) Submit an updated Form MCSA-1, FMCSA Registration/Update (USDOT 
Number--Operating Authority Application);
* * * * *
    (c) If the provisional new entrant registration was revoked because 
FMCSA found the new entrant failed to submit to a compliance review, 
the new entrant must do all of the following:
    (1) Submit an updated Form MCSA-1, FMCSA Registration/Update (USDOT 
Number--Operating Authority Application);
* * * * *
    (d) If the new entrant is a for-hire carrier subject to the 
registration provisions under 49 U.S.C. 13901 and also has had its 
operating authority revoked, it must reapply for operating authority as 
set forth in Sec.  390.201(b) and part 365 of this subchapter.

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR 
CARRIERS

0
41. The authority citation for part 387 is revised to read as follows:

    Authority:  49 U.S.C. 13101, 13301, 13906, 13908, 14701, 31138, 
and 31139; and 49 CFR 1.87.

0
42. Add Sec.  387.19 to subpart A to read as follows:


Sec.  387.19  Electronic filing of surety bonds, trust fund agreements, 
certificates of insurance and cancellations.

    (a) Insurers of exempt for-hire motor carriers, as defined in Sec.  
390.5 of this subchapter, and private motor carriers that transport 
hazardous materials in interstate commerce must file certificates of 
insurance, surety bonds, and other securities and agreements with FMCSA 
electronically in

[[Page 52651]]

accordance with the requirements and procedures set forth at Sec.  
387.323.
    (b) The requirements of this section do not apply to motor carriers 
excepted under Sec.  387.7(b)(3).

0
43. Revise Sec.  387.33 to read as follows:


Sec.  387.33  Financial responsibility, minimum levels.

    (a) General limits. The minimum levels of financial responsibility 
referred to in Sec.  387.31 are prescribed as follows:

SCHEDULE OF LIMITS

Public Liability

For-Hire Motor Carriers of Passengers Operating in Interstate or Foreign
                                Commerce
------------------------------------------------------------------------
                Vehicle seating capacity                  Minimum limits
------------------------------------------------------------------------
(1) Any vehicle with a seating capacity of 16 passengers      $5,000,000
 or more, including the driver \1\......................
(2) Any vehicle with a seating capacity of 15 passengers       1,500,000
 or less, including the driver \2\......................
------------------------------------------------------------------------
1 2 Except as provided in Sec.   387.27(b).

    (b) Limits applicable to transit service providers. Notwithstanding 
the provisions of paragraph (a) of this section, the minimum level of 
financial responsibility for a motor vehicle used to provide 
transportation services within a transit service area located in more 
than one State under an agreement with a Federal, State, or local 
government funded, in whole or in part, with a grant under 49 U.S.C. 
5307, 5310 or 5311, including transportation designed and carried out 
to meet the special needs of elderly individuals and individuals with 
disabilities, will be the highest level required for any of the States 
in which it operates. This paragraph applies to transit service 
providers that operate in more than one State, as well as transit 
service providers that operate in only one State but interline with 
other motor carriers that provide interstate transportation within or 
outside the transit service area. Transit service providers conducting 
such operations must register as for-hire passenger carriers under part 
365, subpart A and part 390, subpart E, of this subchapter, identify 
the State(s) in which they operate under the applicable grants, and 
certify on their registration documents that they have in effect 
financial responsibility levels in an amount equal to or greater than 
the highest level required by any of the States in which they are 
operating under a qualifying grant.

0
44. Add Sec.  387.43 to subpart B to read as follows:


Sec.  387.43  Electronic filing of surety bonds, trust fund agreements, 
certificates of insurance and cancellations.

    (a) Insurers of for-hire motor carriers of passengers must file 
certificates of insurance, surety bonds, and other securities and 
agreements electronically in accordance with the requirements and 
procedures set forth at Sec.  387.323.
    (b) This section does not apply to motor carriers excepted under 
Sec.  387.31(b)(3).

0
45. Amend Sec.  387.301 by revising paragraph (a)(1) to read as 
follows:


Sec.  387.301  Surety bond, certificate of insurance, or other 
securities.

    (a) Public liability. (1) No for-hire motor carrier or foreign 
(Mexican) motor private carrier or foreign motor carrier transporting 
exempt commodities subject to Subtitle IV, part B, chapter 135 of title 
49, United States Code, shall engage in interstate or foreign commerce, 
and no certificate shall be issued to such a carrier or remain in force 
unless and until there shall have been filed with and accepted by the 
FMCSA surety bonds, certificates of insurance, proof of qualifications 
as self-insurer, or other securities or agreements, in the amounts 
prescribed in Sec.  387.303, conditioned to pay any final judgment 
recovered against such motor carrier for bodily injuries to or the 
death of any person resulting from the negligent operation, maintenance 
or use of motor vehicles in transportation subject to Subtitle IV, part 
B, chapter 135 of title 49, U.S.C., or for loss of or damage to 
property of others, or, in the case of motor carriers of property 
operating freight vehicles described in Sec.  387.303(b)(2), for 
environmental restoration.
* * * * *

0
46. Amend Sec.  387.303 by adding paragraph (b)(1)(iii) to read as 
follows:


Sec.  387.303  Security for the protection of the public: Minimum 
limits.

* * * * *
    (b) * * *
    (1) * * *
    (iii) Limits applicable to transit service providers. 
Notwithstanding the provisions of paragraph (b)(1)(ii) of this section, 
the minimum level of financial responsibility for a motor vehicle used 
to provide transportation services within a transit service area under 
an agreement with a Federal, State, or local government funded, in 
whole or in part, with a grant under 49 U.S.C. 5307, 5310 or 5311, 
including transportation designed and carried out to meet the special 
needs of elderly individuals and individuals with disabilities, will be 
the highest level required for any of the States in which it operates. 
This paragraph applies to transit service providers who operate in a 
transit service area located in more than one State, as well as transit 
service providers who operate in only one State but interline with 
other motor carriers that provide interstate transportation within or 
outside the transit service area. Transit service providers conducting 
such operations must register as for-hire passenger carriers under part 
365, subpart A and part 390, subpart E of this subchapter, identify the 
State(s) in which they operate under the applicable grants, and certify 
on their registration documents that they have in effect financial 
responsibility levels in an amount equal to or greater than the highest 
level required by any of the States in which they are operating under a 
qualifying grant.
* * * * *
0
47. Amend Sec.  387.313 by revising paragraphs (b) and (d) to read as 
follows:


Sec.  387.313  Forms and procedures.

* * * * *
    (b) Filing and copies. Certificates of insurance, surety bonds, and 
notices of cancellation must be filed with the FMCSA at http://www.fmcsa.dot.gov.
* * * * *
    (d) Cancellation notice. Except as provided in paragraph (e) of 
this section, surety bonds, certificates of insurance, and other 
securities or agreements shall not be cancelled or withdrawn until 30 
days after written notice has been submitted to http://www.fmcsa.dot.gov on the prescribed form (Form BMC-35, Notice of 
Cancellation Motor Carrier Policies of Insurance under 49 U.S.C. 13906, 
and BMC-36, Notice of Cancellation Motor Carrier and Broker Surety 
Bonds, as appropriate) by the insurance company, surety or sureties, 
motor carrier, broker or other party thereto, as the case may be, which 
period of thirty (30) days shall commence to run from the date such 
notice on the prescribed form is filed with FMCSA at http://www.fmcsa.dot.gov.
* * * * *
0
48. Revise Sec.  387.323 to read as follows:


Sec.  387.323  Electronic filing of surety bonds, trust fund 
agreements, certificates of insurance and cancellations.

    (a) Insurers must electronically file forms BMC 34, BMC 35, BMC 36, 
BMC 82, BMC 83, BMC 84, BMC 85, BMC 91, and BMC 91X in accordance with 
the

[[Page 52652]]

requirements and procedures set forth in paragraphs (b) through (d) of 
this section.
    (b) Each insurer must obtain authorization to file electronically 
by registering with the FMCSA. An individual account number and 
password for computer access will be issued to each registered insurer.
    (c) Filings must be transmitted online via the Internet at http://www.fmcsa.dot.gov.
    (d) All registered insurers agree to furnish upon request to the 
FMCSA a copy of any policy (or policies) and all certificates of 
insurance, endorsements, surety bonds, trust fund agreements, proof of 
qualification to self-insure or other insurance filings.

0
49. Revise Sec.  387.403 to read as follows:


Sec.  387.403  General requirements.

    (a) Cargo. A household goods freight forwarder may not operate 
until it has filed with FMCSA an appropriate surety bond, certificate 
of insurance, qualifications as a self-insurer, or other securities or 
agreements, in the amounts prescribed at Sec.  387.405, for loss of or 
damage to household goods.
    (b) Public liability. A freight forwarder may not perform transfer, 
collection, or delivery service until it has filed with the FMCSA an 
appropriate surety bond, certificate of insurance, qualifications as a 
self-insurer, or other securities or agreements, in the amounts 
prescribed at Sec.  387.405, conditioned to pay any final judgment 
recovered against such freight forwarder for bodily injury to or the 
death of any person, or loss of or damage to property (except cargo) of 
others, or, in the case of freight vehicles described at Sec.  
387.303(b)(2), for environmental restoration, resulting from the 
negligent operation, maintenance, or use of motor vehicles operated by 
or under its control in performing such service.
0
50. Amend Sec.  387.413 by revising paragraph (b) to read as follows:


Sec.  387.413  Forms and procedures.

* * * * *
    (b) Procedure. Certificates of insurance, surety bonds, and notices 
of cancellation must be electronically filed with the FMCSA.
* * * * *

0
51. Revise Sec.  387.419 to read as follows:


Sec.  387.419  Electronic filing of surety bonds, certificates of 
insurance and cancellations.

    Insurers must electronically file certificates of insurance, surety 
bonds, and other securities and agreements and notices of cancellation 
in accordance with the requirements and procedures set forth at Sec.  
387.323.

PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL

0
52. The authority citation for part 390 is revised to read as follows:

    Authority:  49 U.S.C. 508, 13301, 13902, 13908, 31132, 31133, 
31136, 31151, 31502, 31504; sec. 114, Pub. L. 103-311, 108 Stat. 
1673, 1677; sec. 217, Pub. L. 106-159, 113 Stat. 1748, 1767; sec. 
4136, Pub. L. 109-59, 119 Stat. 1144, 1745; and 49 CFR 1.87.


0
53. Revise Sec.  390.3 to read as follows:


Sec.  390.3  General applicability.

    (a) The rules in subchapter B of this chapter are applicable to all 
employers, employees, and commercial motor vehicles that transport 
property or passengers in interstate commerce.
    (b) The rules in part 383 of this chapter, Commercial Driver's 
License Standards; Requirements and Penalties, are applicable to every 
person who operates a commercial motor vehicle, as defined in Sec.  
383.5 of this subchapter, in interstate or intrastate commerce and to 
all employers of such persons.
    (c) The rules in part 387 of this chapter, Minimum Levels of 
Financial Responsibility for Motor Carriers, are applicable to motor 
carriers as provided in Sec.  387.3 or Sec.  387.27 of this chapter.
    (d) Additional requirements. Nothing in subchapter B of this 
chapter shall be construed to prohibit an employer from requiring and 
enforcing more stringent requirements relating to safety of operation 
and employee safety and health.
    (e) Knowledge of and compliance with the regulations. (1) Every 
employer shall be knowledgeable of and comply with all regulations 
contained in this subchapter that are applicable to that motor 
carrier's operations.
    (2) Every driver and employee involved in motor carrier operations 
shall be instructed regarding, and shall comply with, all applicable 
regulations contained in this subchapter.
    (3) All motor vehicle equipment and accessories required by this 
chapter shall be maintained in compliance with all applicable 
performance and design criteria set forth in this subchapter.
    (f) Exceptions. Unless otherwise specifically provided, the rules 
in this subchapter do not apply to--
    (1) All school bus operations as defined in Sec.  390.5 except for 
the provisions of Sec. Sec.  391.15(e) and 392.80;
    (2) Transportation performed by the Federal government, a State, or 
any political subdivision of a State, or an agency established under a 
compact between States that has been approved by the Congress of the 
United States;
    (3) The occasional transportation of personal property by 
individuals not for compensation and not in the furtherance of a 
commercial enterprise;
    (4) The transportation of human corpses or sick and injured 
persons;
    (5) The operation of fire trucks and rescue vehicles while involved 
in emergency and related operations;
    (6) The operation of commercial motor vehicles designed or used to 
transport between 9 and 15 passengers (including the driver), not for 
direct compensation, provided the vehicle does not otherwise meet the 
definition of a commercial motor vehicle, except for the texting 
provisions of Sec. Sec.  391.15(e) and 392.80, and except that motor 
carriers operating such vehicles are required to comply with Sec. Sec.  
390.15, 390.21(a) and (b)(2), 390.201 and 390.205.
    (7) Either a driver of a commercial motor vehicle used primarily in 
the transportation of propane winter heating fuel or a driver of a 
motor vehicle used to respond to a pipeline emergency, if such 
regulations would prevent the driver from responding to an emergency 
condition requiring immediate response as defined in Sec.  390.5.
    (g) Motor carriers that transport hazardous materials in intrastate 
commerce. The rules in the following provisions of this subchapter 
apply to motor carriers that transport hazardous materials in 
intrastate commerce and to the motor vehicles that transport hazardous 
materials in intrastate commerce:
    (1) Part 385, subparts A and E, for carriers subject to the 
requirements of Sec.  385.403 of this subchapter.
    (2) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings, of this subchapter.
    (3) Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers, to the extent provided in Sec.  387.3 of this subchapter.
    (4) Subpart E of this part, Unified Registration System, and Sec.  
390.21, Marking of CMVs, for carriers subject to the requirements of 
Sec.  385.403 of this subchapter. Intrastate motor carriers operating 
prior to January 1, 2005, are excepted from Sec.  390.201.
    (h) Intermodal equipment providers. The rules in the following 
provisions of this subchapter apply to intermodal equipment providers:
    (1) Subpart F, Intermodal Equipment Providers, of Part 385, Safety 
Fitness Procedures.

[[Page 52653]]

    (2) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings.
    (3) Part 390, Federal Motor Carrier Safety Regulations; General, 
except Sec.  390.15(b) concerning accident registers.
    (4) Part 393, Parts and Accessories Necessary for Safe Operation.
    (5) Part 396, Inspection, Repair, and Maintenance.
    (i) Brokers. The rules in the following provisions of this 
subchapter apply to brokers that are required to register with the 
Agency pursuant to 49 U.S.C. chapter 139.
    (1) Part 371, Brokers of Property.
    (2) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings.
    (3) Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers, to the extent provided in subpart C of that part.
    (4) Subpart E of this part, Unified Registration System.
    (j) Freight forwarders. The rules in the following provisions of 
this subchapter apply to freight forwarders that are required to 
register with the Agency pursuant to 49 U.S.C. chapter 139.
    (1) Part 386, Rules of Practice for Motor Carrier, Intermodal 
Equipment Provider, Broker, Freight Forwarder, and Hazardous Materials 
Proceedings.
    (2) Part 387, Minimum Levels of Financial Responsibility for Motor 
Carriers, to the extent provided in subpart D of that part.
    (3) Subpart E of this part, Unified Registration System.
    (k) Cargo tank facilities. The rules in subpart C of this part, 
Unified Registration System, apply to each cargo tank and cargo tank 
motor vehicle manufacturer, assembler, repairer, inspector, tester, and 
design certifying engineer that is subject to registration requirements 
under 49 CFR 107.502 and 49 U.S.C. 5108.


0
54. Amend Sec.  390.5 by revising the definition of ``Exempt motor 
carrier'' to read as follows:


Sec.  390.5  Definitions.

* * * * *
    Exempt motor carrier means a person engaged in transportation 
exempt from economic regulation by the Federal Motor Carrier Safety 
Administration (FMCSA) under 49 U.S.C. chapter 135 but subject to the 
safety regulations set forth in this subchapter.
* * * * *

0
55. Effective November 1, 2013, amend Sec.  390.19 by adding paragraph 
(b)(4) to read as follows:


Sec.  390.19  Motor carrier, hazardous material shipper, and intermodal 
equipment provider identification reports.

* * * * *
    (b) * * *
    (4) A person that fails to complete biennial updates to the 
information pursuant to paragraph (b)(2) of this section is subject to 
the penalties prescribed in 49 U.S.C. 521(b)(2)(B) or 49 U.S.C. 
14901(a), as appropriate, and deactivation of its USDOT Number.
* * * * *

0
56. Effective October 23, 2015, revise Sec.  390.19 to read as follows:


Sec.  390.19  Motor carrier identification reports for certain Mexico-
domiciled motor carriers.

    (a) Applicability. A Mexico-domiciled motor carrier requesting 
authority to provide transportation of property or passengers in 
interstate commerce between Mexico and points in the United States 
beyond the municipalities and commercial zones along the United States-
Mexico international border must file Form MCS-150 with FMCSA as 
follows:
    (b) Filing schedule. Each motor carrier must file the appropriate 
form under paragraph (a) of this section at the following times:
    (1) Before it begins operations; and
    (2) Every 24 months, according to the following schedule:

------------------------------------------------------------------------
          USDOT Number ending in                Must file by last day
------------------------------------------------------------------------
1.........................................  January.
2.........................................  February.
3.........................................  March.
4.........................................  April.
5.........................................  May.
6.........................................  June.
7.........................................  July.
8.........................................  August.
9.........................................  September.
0.........................................  October.
------------------------------------------------------------------------

    (3) If the next-to-last digit of its USDOT Number is odd, the motor 
carrier shall file its update in every odd-numbered calendar year. If 
the next-to-last digit of the USDOT Number is even, the motor carrier 
shall file its update in every even-numbered calendar year.
    (4) A person that fails to complete biennial updates to the 
information pursuant to paragraph (b)(2) of this section is subject to 
the penalties prescribed in 49 U.S.C. 521(b)(2)(B) or 49 U.S.C. 
14901(a), as appropriate, and deactivation of its USDOT Number.
    (c) Availability of forms. The Form MCS-150 and complete 
instructions are available from the FMCSA Web site at http://www.fmcsa.dot.gov (Keyword ``MCS-150''); from all FMCSA Service Centers 
and Division offices nationwide; or by calling 1-800-832-5660.
    (d) Where to file. The Form MCS-150 must be filed with the FMCSA 
Office of Registration and Safety Information. The form may be filed 
electronically according to the instructions at the Agency's Web site, 
or it may be sent to Federal Motor Carrier Safety Administration, 
Office of Registration and Safety Information, MC-RS 1200 New Jersey 
Avenue SE., Washington, DC 20590.
    (e) Special instructions. A motor carrier should submit the Form 
MCS-150 along with its application for operating authority (OP-1(MX)), 
to the appropriate address referenced on that form, or may submit it 
electronically or by mail separately to the address mentioned in 
paragraph (d) of this section.
    (f) Only the legal name or a single trade name of the motor carrier 
may be used on the Form MCS-150.
    (g)(1) A motor carrier that fails to file the Form MCS-150 or 
furnishes misleading information or makes false statements upon the 
form, is subject to the penalties prescribed in 49 U.S.C. 521(b)(2)(B).
    (2) A motor carrier that fails to update the Form MCS-150 as 
required in paragraph (b) will have its USDOT Number deactivated and 
will be prohibited from conducting transportation.
    (h)(1) Upon receipt and processing of the form described in 
paragraph (a) of this section, FMCSA will issue the motor carrier or 
intermodal equipment provider an identification number (USDOT Number).
    (2) A Mexico-domiciled motor carrier seeking to provide 
transportation of property or passengers in interstate commerce between 
Mexico and points in the United States beyond the municipalities and 
commercial zones along the United States-Mexico international border 
must pass the pre-authorization safety audit under Sec.  365.507 of 
this subchapter. The Agency will not issue a USDOT Number until 
expiration of the protest period provided in Sec.  365.115 of this 
chapter or--if a protest is received--after FMCSA denies or rejects the 
protest.
    (3) The motor carrier must display the USDOT Number on each self-
propelled CMV, as defined in Sec.  390.5, along with the additional 
information required by Sec.  390.21.

0
57. Amend Sec.  390.21 by revising paragraph (b)(1) to read as follows:


Sec.  390.21  Marking of self-propelled CMVs and intermodal equipment.

* * * * *

[[Page 52654]]

    (b) * * *
    (1) The legal name or a single trade name of the motor carrier 
operating the self-propelled CMV, as listed on the Form MCSA-1 or the 
motor carrier identification report (Form MCS-150) and submitted in 
accordance with Sec.  390.201 or Sec.  390.19, as appropriate.
* * * * *

0
58. Amend Sec.  390.40 by revising paragraph (a) to read as follows:


Sec.  390.40  What responsibilities do intermodal equipment providers 
have under the Federal Motor Carrier Safety Regulations (49 CFR parts 
350-399)?

* * * * *
    (a) Identify its operations to the FMCSA by filing the Form MCSA-1 
required by Sec.  390.201.
* * * * *
0
59. Add a new subpart E, consisting of Sec. Sec.  390.201 through 
390.209, to part 390 to read as follows:

Subpart E--Unified Registration System
Sec.
390.201 USDOT Registration.
390.203 PRISM State registration/biennial updates.
390.205 Special requirements for registration.
390.207 Other governing regulations.
390.209 Pre-authorization safety audit.

Subpart E--Unified Registration System


Sec.  390.201  USDOT Registration.

    (a) Purpose. This section establishes who must register with FMCSA 
under the Unified Registration System, the filing schedule, and general 
information pertaining to persons subject to the Unified Registration 
System registration requirements.
    (b) Applicability. (1) Except as provided in paragraph (g) of this 
section, each motor carrier (including a private motor carrier, an 
exempt for-hire motor carrier, a non-exempt for-hire motor carrier, and 
a motor carrier of passengers that participates in a through ticketing 
arrangement with one or more interstate for-hire motor carriers of 
passengers), intermodal equipment provider, broker and freight 
forwarder subject to the requirements of this subchapter must file Form 
MCSA-1 with FMCSA to:
    (i) Identify its operations with the Federal Motor Carrier Safety 
Administration for safety oversight, as authorized under 49 U.S.C. 
31144, as applicable;
    (ii) Obtain operating authority required under 49 U.S.C. chapter 
139, as applicable; and
    (iii) Obtain a hazardous materials safety permit as required under 
49 U.S.C. 5109, as applicable.
    (2) A cargo tank and cargo tank motor vehicle manufacturer, 
assembler, repairer, inspector, tester, and design certifying engineer 
that is subject to registration requirements under 49 CFR 107.502 and 
49 U.S.C. 5108 must satisfy those requirements by electronically filing 
Form MCSA-1 with FMCSA.
    (c) General (1)(i) A person that fails to file Form MCSA-1 pursuant 
to paragraph (d)(1) of this section is subject to the penalties 
prescribed in 49 U.S.C. 521(b)(2)(B) or 49 U.S.C. 14901(a), as 
appropriate.
    (ii) A person that fails to complete biennial updates to the 
information pursuant to paragraph (d)(2) of this section is subject to 
the penalties prescribed in 49 U.S.C. 521(b)(2)(B) or 49 U.S.C. 
14901(a), as appropriate, and deactivation of its USDOT Number.
    (iii) A person that furnishes misleading information or makes false 
statements upon Form MCSA-1 is subject to the penalties prescribed in 
49 U.S.C. 521(b)(2)(B), 49 U.S.C. 14901(a) or 49 U.S.C. 14907, as 
appropriate.
    (2) Upon receipt and processing of Form MCSA-1, FMCSA will issue 
the applicant an inactive identification number (USDOT Number). FMCSA 
will activate the USDOT Number after completion of applicable 
administrative filings pursuant to Sec.  390.205(a), unless the 
applicant is subject to Sec.  390.205(b). An applicant may not begin 
operations nor mark a commercial motor vehicle with the USDOT Number 
until after the date of the Agency's written notice that the USDOT 
Number has been activated.
    (3) The motor carrier must display a valid USDOT Number on each 
self-propelled CMV, as defined in Sec.  390.5, along with the 
additional information required by Sec.  390.21.
    (d) Filing schedule. Each person listed under Sec.  390.201(b) must 
electronically file Form MCSA-1 at the following times:
    (1) Before it begins operations; and
    (2) Every 24 months as prescribed in paragraph (d)(3) of this 
section.
    (3) (i) Persons assigned a USDOT Number must file an updated Form 
MCSA-1 every 24 months, according to the following schedule:

------------------------------------------------------------------------
          USDOT Number ending in              Must file by last day of
------------------------------------------------------------------------
1.........................................  January.
2.........................................  February.
3.........................................  March.
4.........................................  April.
5.........................................  May.
6.........................................  June.
7.........................................  July.
8.........................................  August.
9.........................................  September.
0.........................................  October.
------------------------------------------------------------------------

    (ii) If the next-to-last digit of its USDOT Number is odd, the 
person must file its update in every odd-numbered calendar year. If the 
next-to-last digit of the USDOT Number is even, the person must file 
its update in every even-numbered calendar year.
    (4) When there is a change in legal name, form of business, or 
address. A registered entity must notify the Agency of a change in 
legal name, form of business, or address within 30 days of the change 
by filing an updated Form MCSA-1 reflecting the revised information. 
Notification of a change in legal name, form of business, or address 
does not relieve a registered entity from the requirement to file an 
updated Form MCSA-1 every 24 months in accordance with paragraph (d)(3) 
of this section.
    (5) When there is a transfer of operating authority. (i) Both a 
person who obtains operating authority through a transfer, as defined 
in part 365, subpart D of this subchapter (transferee), and the person 
transferring its operating authority (transferor), must each notify the 
Agency of the transfer within 30 days of consummation of the transfer 
by filing:
    (A) An updated Form MCSA-1, for the transferor, and for the 
transferee, if the transferee had an existing USDOT Number at the time 
of the transfer; or
    (B) A new Form MCSA-1, if the transferee did not have an existing 
USDOT Number at the time of the transfer.
    (C) A copy of the operating authority that is being transferred.
    (ii) Notification of a transfer of operating authority does not 
relieve a registered entity from the requirement to file an updated 
Form MCSA-1 every 24 months in accordance with paragraph (d)(3) of this 
section.
    (e) Availability of form. Form MCSA-1 is an electronic application 
and is available, including complete instructions, from the FMCSA Web 
site at http://www.fmcsa.dot.gov (Keyword ``MCSA-1'').
    (f) Where to file. Persons subject to the registration requirements 
under this subpart must electronically file Form MCSA-1 on the FMCSA 
Web site at http://www.fmcsa.dot.gov.
    (g) Exception. The rules in this subpart do not govern the 
application by a Mexico-domiciled motor carrier to provide 
transportation of property or passengers in interstate commerce

[[Page 52655]]

between Mexico and points in the United States beyond the 
municipalities and commercial zones along the United States-Mexico 
international border. The applicable procedures governing 
transportation by Mexico-domiciled motor carriers are provided in Sec.  
390.19.


Sec.  390.203  PRISM State registration/biennial updates.

    (a) A motor carrier that registers its vehicles in a State that 
participates in the Performance and Registration Information Systems 
Management (PRISM) program (authorized under section 4004 of the 
Transportation Equity Act for the 21st Century [Pub. L. 105-178, 112 
Stat. 107]) alternatively may satisfy the requirements set forth in 
Sec.  390.201 by electronically filing all the required USDOT 
registration and biennial update information with the State according 
to its policies and procedures, provided the State has integrated the 
USDOT registration/update capability into its vehicle registration 
program.
    (b) If the State procedures do not allow a motor carrier to file 
the Form MCSA-1 or to submit updates within the period specified in 
Sec.  390.201(d)(2), a motor carrier must complete such filings 
directly with FMCSA.
    (c) A for-hire motor carrier, unless providing transportation 
exempt from the commercial registration requirements of 49 U.S.C. 
chapter 139, must obtain operating authority as prescribed under Sec.  
390.201(b) and part 365 of this subchapter before operating in 
interstate commerce.


Sec.  390.205  Special requirements for registration.

    (a)(1) General. A person applying to operate as a motor carrier, 
broker, or freight forwarder under this subpart must make the 
additional filings described in paragraphs (a)(2) and (a)(3) of this 
section as a condition for registration under this subpart within 90 
days of the date on which the application is filed:
    (2) Evidence of financial responsibility. (i) A person that 
registers to conduct operations in interstate commerce as a for-hire 
motor carrier, a broker, or a freight forwarder must file evidence of 
financial responsibility as required under part 387, subparts C and D 
of this subchapter.
    (ii) A person that registers to transport hazardous materials as 
defined in 49 CFR 171.8 (or any quantity of a material listed as a 
select agent or toxin in 42 CFR part 73) in interstate commerce must 
file evidence of financial responsibility as required under part 387, 
subpart C of this subchapter.
    (3) Designation of agent for service of process. All motor carriers 
(both private and for-hire), brokers and freight forwarders required to 
register under this subpart must designate an agent for service of 
process (a person upon whom court or Agency process may be served) 
following the rules in part 366 of this subchapter:
    (b) If an application is subject to a protest period, the Agency 
will not activate a USDOT Number until expiration of the protest period 
provided in Sec.  365.115 of this subchapter or--if a protest is 
received--after FMCSA denies or rejects the protest, as applicable.


Sec.  390.207  Other governing regulations.

    (a) Motor carriers. (1) A motor carrier granted registration under 
this part must successfully complete the applicable New Entrant Safety 
Assurance Program as described in paragraphs (a)(1)(i) through 
(a)(1)(iii) of this section as a condition for permanent registration:
    (i) A U.S.- or Canada-domiciled motor carrier is subject to the new 
entrant safety assurance program under part 385, subpart D, of this 
subchapter.
    (ii) A Mexico-domiciled motor carrier is subject to the safety 
monitoring program under part 385, subpart B of this subchapter.
    (iii) A Non-North America-domiciled motor carrier is subject to the 
safety monitoring program under part 385, subpart I of this subchapter.
    (2) Only the legal name or a single trade name of the motor carrier 
may be used on the Form MCSA-1.
    (b) Brokers, freight forwarders and non-exempt for-hire motor 
carriers. (1) A broker or freight forwarder must obtain operating 
authority pursuant to part 365 of this chapter as a condition for 
obtaining USDOT Registration.
    (2) A motor carrier registering to engage in transportation that is 
not exempt from economic regulation by FMCSA must obtain operating 
authority pursuant to part 365 of this subchapter as a condition for 
obtaining USDOT Registration.
    (c) Intermodal equipment providers. An intermodal equipment 
provider is subject to the requirements of subpart D of this part.
    (1) Only the legal name or a single trade name of the intermodal 
equipment provider may be used on the Form MCSA-1.
    (2) The intermodal equipment provider must identify each unit of 
interchanged intermodal equipment by its assigned USDOT Number.
    (d) Hazardous materials safety permit applicants. A person who 
applies for a hazardous materials safety permit is subject to the 
requirements of part 385, subpart E, of this subchapter.
    (e) Cargo tank facilities. A cargo tank facility is subject to the 
requirements of 49 CFR part 107, subpart F, 49 CFR part 172, subpart H, 
and 49 CFR part 180.


Sec.  390.209  Pre-authorization safety audit.

    A non-North America-domiciled motor carrier seeking to provide 
transportation of property or passengers in interstate commerce within 
the United States must pass the pre-authorization safety audit under 
Sec.  385.607(c) of this subchapter as a condition for receiving 
registration under this part.

PART 392--DRIVING OF COMMERCIAL MOTOR VEHICLES

0
60. The authority citation for part 392 is revised to read as follows:

    Authority: 49 U.S.C. 521, 13902, 13908, 31136, 31151, 31502; and 
49 CFR 1.87.


0
61. Effective November 1, 2013, add Sec.  392.9b to read as follows:


Sec.  392.9b  Prohibited transportation.

    (a) USDOT Registration required. A commercial motor vehicle 
providing transportation in interstate commerce must not be operated 
without a USDOT Registration and an active USDOT Number.
    (b) Penalties. If it is determined that the motor carrier 
responsible for the operation of such a vehicle is operating in 
violation of paragraph (a) of this section, it may be subject to 
penalties in accordance with 49 U.S.C. 521.

    Issued under authority delegated under 49 CFR 1.87 on: August 
15, 2013.
Anne S. Ferro,
Administrator.
[FR Doc. 2013-20446 Filed 8-22-13; 8:45 am]
BILLING CODE 4910-EX-P