[Federal Register Volume 63, Number 212 (Tuesday, November 3, 1998)]
[Proposed Rules]
[Pages 59263-59274]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29412]
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DEPARTMENT OF TRANSPORTATION
Bureau of Transportation Statistics
49 CFR Part 1420
[Docket No. BTS-98-4659]
RIN 2139-AA05
Revision to Reporting Requirements for Motor Carriers of Property
AGENCY: Bureau of Transportation Statistics, DOT.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Bureau of Transportation Statistics (BTS) proposes to
adopt new accounting and reporting provisions that would provide data
for current needs while significantly reducing the annual compliance
burden. This rulemaking is being conducted to implement portions of the
ICC Termination Act of 1995, which transferred the motor carrier
financial and operating data collection program to the Department of
Transportation and made several changes to the motor carrier program.
Class I motor carriers would file much shortened quarterly reports and
file a simplified annual report form based largely on the current Form
M-2. Class II carriers would continue filing only annually and would
use the same simplified form as class I carriers. In addition, the
Bureau proposes a system for considering requests for exemptions from
filing and from public release of data. With this document, BTS is also
withdrawing its proposal to establish a negotiated rulemaking advisory
committee to assist in developing the regulations. This rulemaking
action is taken on the Bureau's initiative.
DATES: Comments must be submitted by December 3, 1998.
ADDRESSES: Please direct comments to the Docket Clerk, Docket No. BTS-
98-4659, Department of Transportation, 400 Seventh Street, SW., Room
PL-401, Washington, D.C. 20590, from 10 a.m. to 5 p.m. ET, Monday
through Friday, except Federal Holidays.
Comments should identify the regulatory docket number and be
submitted in duplicate to the address listed above. Commenters wishing
the Department to acknowledge receipt of their comments must submit
with those comments a self-addressed stamped postcard on which the
following statement is made: Comments on Docket BTS-98-4659 . The
Docket Clerk will date stamp the postcard and mail it back to the
commenter.
If you wish to file comments using the Internet, you may use the
U.S. DOT Dockets Management System website at http://dms.dot.gov.
Please follow the instructions online for more information.
FOR FURTHER INFORMATION CONTACT: David Mednick, K-2, Bureau of
Transportation Statistics, 400 Seventh Street, SW., Washington, DC
20590; (202) 366-8871; fax: (202) 366-3640; e-mail:
david.mednick@bts.gov.
SUPPLEMENTARY INFORMATION:
I. Electronic Access
All comments submitted will be available for examination in the
Rules Docket both before and after the closing date for comments.
Internet users can access all comments received by the U.S. DOT
Dockets, Room PL401, at the address: http://dms.dot.gov. Please follow
the instructions online for more information and help.
An electronic copy of this document may be downloaded using a modem
and suitable communications software from the Federal Register
Electronic Bulletin Board Service at (202) 512-1661. If you have access
to the Internet, you can obtain an electronic copy at http://
www.access.gpo.gov/su_2/3docs/aces/aces140.html or http://www.bts.gov/
mcs/rulemaking.html.
II. Background
Authority
The Secretary of Transportation has authority to establish
regulations for the collection of certain data from motor carriers of
property and others. Section 103 of the ICC Termination Act of 1995,
Pub. L. 104-88, 109 Stat. 803 (1995) (codified at 49 U.S.C. 14123).
This authority has been delegated to the Director of the Bureau of
Transportation Statistics (BTS). 49 CFR 1.71.
Brief History of the Program
The Interstate Commerce Commission (ICC) collected financial data
from
[[Page 59264]]
regulated motor carriers from the 1930's until its sunset at the end of
1995, when data collection was transferred to the Department of
Transportation (DOT). See 49 U.S.C. 11145 and its implementing
regulations at 49 CFR Part 1420.\1\ Between 1978 and 1994, ICC
significantly reduced the reporting requirements. It substantially
shortened report forms and eased record retention requirements. These
changes followed the shift in the ICC's focus from close economic
regulation of the motor carrier industry to industry oversight. The
last revision to accounting and reporting requirements, ICC's Ex Parte
No. MC-206, 10 I.C.C.2d 329 (1994), contains additional background
information.
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\1\ The regulations were recently transferred from 49 CFR Part
1249 to 49 CFR Part 1420. See Reports of Motor Carriers;
Redesignation of Regulations Pursuant to the ICC Termination Act of
1995, 63 FR 52192 (September 30, 1998).
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The Current Program
The data collection program, as currently specified, has been in
place since 1994, and is set forth in 49 CFR Part 1420. For motor
carriers of property, the current regulations create three classes of
carriers based on revenue. Class I carriers are those with annual
operating revenues of $10 million or more, and they file annual report
Form M-1 and quarterly report Form QFR. Class II carriers have annual
operating revenues of between $3 and 10 million, file a simpler annual
report, Form M-2, and do not file a quarterly report. Class III
carriers have annual operating revenues of less than $3 million and are
not required to file any periodic financial reports.
Unless otherwise prohibited by law, individual carrier reports are
made available to the public. BTS is aware of three federal agencies
that use the data regularly--the Bureau of Economic Analysis (in
developing the national accounts), the Department of Defense's Military
Traffic Command (to help assess potential carriers for shipping
military goods), and the General Services Administration (to help in
evaluating its shipment rates). Other agencies have used the data for
special studies. Private sector users include motor carriers, shippers,
industry analysts, labor unions, segments of the insurance industry,
investment analysts, and the consultants and data vendors that support
these users.
The New Statutory Provisions
This rulemaking is being conducted to implement the ICC Termination
Act of 1995 (the Act), which abolished the ICC and transferred some
former ICC functions to DOT. Revision is necessary because the Act made
several changes to the program. Similar to the legislation replaced by
the Act, then codified at 49 U.S.C. 11145, the Act requires DOT to
collect certain data from motor carriers of property and motor carriers
of passengers:
The Secretary shall require Class I and Class II motor carriers
to file with the Secretary annual financial and safety reports, the
form and substance of which shall be prescribed by the Secretary;
except that, at a minimum, such reports shall include balance sheets
and income statements.
The former 49 U.S.C. 11145 did not explicitly charge ICC to collect
information relevant to safety and did not specify minimum data to be
collected. The Act also allows DOT to collect certain other data as
needed:
The Secretary may require motor carriers, freight forwarders,
brokers, lessors, and associations, or classes of them as the
Secretary may prescribe, to file quarterly, periodic, or special
reports with the Secretary and to respond to surveys concerning
their operations.
The Act specifies the criteria to be used in designing the reporting
program. DOT must consider: (1) safety needs; (2) the need to preserve
confidential business information and trade secrets and prevent
competitive harm; (3) private sector, academic, and public use of
information in the reports; and (4) the public interest. In the Act,
Congress has also explicitly called on DOT to ``streamline and
simplify'' these reporting requirements to the maximum extent
practicable.
Unlike the former 49 U.S.C. 11145, the Act authorizes two types of
exemptions from the reporting requirements. Each exemption is based on
certain criteria and is granted for a three-year period. The first is
an exemption from filing report forms. The requestor ``must
demonstrate, at a minimum, that an exemption is required to avoid
competitive harm and preserve confidential business information that is
not otherwise publicly available.'' The second is an exemption from
public release of data reported by the carrier. Similar to the other
exemption, the requestor must demonstrate that ``the exemption
requested is necessary to avoid competitive harm and to avoid the
disclosure of information that qualifies as a trade secret or
privileged or confidential information under section 552(b)(4) of title
5.'' Further, for the latter exemption the requestor must not be a
publicly held corporation or must not be subject to financial reporting
requirements of the Securities and Exchange Commission.
In addition to implementing the Act, the proposed changes are being
made within the framework of other policies and in light of current
conditions. The Paperwork Reduction Act of 1995 set a government-wide
goal for the reduction of information collection burdens by at least 25
percent by the end of fiscal year 1998 and calls on agencies to improve
the quality and use of federal information to strengthen decision
making, accountability, and openness in government and society. The
President's Regulatory Reinvention Initiative asked agencies to reduce
by half the frequency of reports that the public is required to
provide. As the motor carrier industry continues to experience
structural changes and with the sunset of the ICC, the data needs of
the public and private sectors have changed. Modernization must also
take into account recent significant improvements in technologies to
collect, process, and disseminate data.
Proposed Changes Regarding the Reporting Forms
In determining the data items to be collected, BTS started with the
income statement and balance sheet of the current Form M-2, since these
elements are required under the new Act. From this starting point, data
items, and the amount of detail for data items, were added or
subtracted. In applying the four criteria, BTS received information
from a variety of sources: comments received during the recent renewal
process for Forms M-1, M-2, and QFR, comments received during the
proposal to conduct negotiated rulemaking, customer feedback, and
experience gained in administering the data collection program. Based
on these, BTS is proposing several changes to the reporting
requirements. As detailed below, we invite your comments on this
proposal.
Under the proposal, both class I and class II carriers would submit
annually a modified version of Form M-2 to be called Form M. Quarterly
reporting would be retained for class I carriers but would be
drastically reduced. The Bureau believes that the information on the
new Form M and on the modified QFR would serve the large majority of
current information needs, while reducing the burden on industry by 45
percent. The number of data items for Form M would be slightly less
than the current Form M-2's and we estimate respondent burden would
drop from ten hours to nine for class II carriers. Class I carriers
would experience a greater decrease, from the current 25 burden hours
for Form M-1 to nine hours for the new form. We estimate that the
burden hours for the new Form QFR would be reduced from two hours to a
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half hour. The change in reporting burden is summarized in the tables
below.
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Burden hours/report
Number of -------------------------- Total hours
carriers Annual Quarterly
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Current
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Class I..................................................... 900 25 2 29,700
Class II.................................................... 1,900 10 ........... 19,000
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Total................................................... 2,800 ........... ........... 48,700
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Under proposed changes
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Class I..................................................... 900 9 .5 9,900
Class II.................................................... 1,900 9 ........... 17,100
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Total................................................... 2,800 ........... ........... 27,000
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Proposal regarding public release of data
Unlike the former 49 U.S.C. 11145, the Act explicitly authorizes
two types of exemptions--an exemption from the reporting requirements
and an exemption from public release of data. For each, the requestor
must demonstrate, at a minimum, that the exemption is required to avoid
competitive harm. If a carrier meets the applicable standard and is
granted confidentiality, business information would not be publicly
disclosed. The carrier would then no longer qualify for an exemption
from filing. Therefore, BTS proposes to consider only requests for
exemptions from public release, and not for exemptions from reporting
requirements. With confidentiality protection, confidential information
would not be released publicly, and competitive harm would no longer be
a concern.
Under the Act, 49 U.S.C. 14123(c), requests for confidentiality
must go through a notice and comment period and DOT must make a
decision within 90 days of the request. BTS proposes the following
procedure. Petitions relating to a current year's report must be
received by the report's due date. The petition can be made either
before submission of the report or simultaneous with submission.
Carriers filing a petition after a report's deadline will not be able
to later request confidentiality for the report. The report either
would have already been submitted, and therefore already been available
to the public, or the report should have been submitted but was not.
Regarding content of the petition, at a minimum it must contain
specific evidence that the carrier is likely to suffer competitive
harm.
DOT will publish a Federal Register notice listing the petitions
received for a given report and announcing a 30-day public comment
period. DOT will make a decision on the petitions within 90 days of the
report's due date. By waiting until all petitions for exemptions are
received for a given report, those who wish to comment will be able to
do so at one time rather than throughout the year. DOT will not release
a petitioning carrier's reports to the public while its petition is
pending.
Copies of the Forms
You can request copies of current or proposed forms from the
contact listed in this notice. If you have access to the Internet, you
can also obtain copies at http://www.bts.gov/mcs/rulemaking.htm.
Proposal To Establish a Negotiated Rulemaking Advisory Committee
BTS had earlier proposed establishing a negotiated rulemaking
advisory committee in 61 FR 64849 (Dec. 9, 1996). The committee was to
consider relevant issues and attempt to reach a consensus in developing
regulations to implement the ICC Termination Act of 1995 regarding
motor carriers of property. After receiving comments on this proposal
and holding a public meeting on the subject, BTS determined that this
process would not provide a significant advantage over conventional
informal rulemaking. One of the factors to consider before choosing
negotiated rulemaking is whether there is a reasonable likelihood that
a committee will reach consensus on the proposed rule within a fixed
period of time. BTS believes that consensus would not be reached in
these circumstances on several of the issues, primarily on public
release of the reports.
III. Request for Comments
The goal of this proposed rulemaking is to reach an equitable and
practical balance, within the context of the ICC Termination Act of
1995, between the need for information and the goal of reducing
reporting burden. BTS examined the accounting and reporting
requirements in an effort to continue collecting meaningful data on the
motor carrier industry while streamlining these requirements where
possible. This proposal would create a simplified report for those
carriers earning over $10 million in annual operating revenues while
continuing to provide data helpful to understanding the industry. It
would also implement a process for companies to seek confidentiality
protection to avoid competitive harm. BTS requests comments concerning
the above revisions to the information collection. You may wish to
address one or more of the following topics: (1) Whether particular
data items should be included or deleted from the annual and quarterly
reporting requirements and why; (2) whether the instructions for the
data items should be carried over from the current forms or whether
they should be modified; (3) whether BTS should continue quarterly
reporting; (4) how your comments to the proposal relate to the four
areas of consideration listed in 49 U.S.C. 14123(b); (5) whether BTS
accurately estimated the reporting burden and costs; (6) how BTS can
minimize reporting burden, including the use of automated collection
techniques or other forms of information technology; (7) the proposed
process for handling requests for exemptions; (8) ways to reduce the
burden on any segments of the industry that may be disproportionately
affected, such as small entities; (9) how BTS can enhance the quality,
utility, or clarity of the information collected; and (10) whether the
regulations are clearly written.
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IV. Rulemaking Analyses and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
This proposed rule is not considered a significant regulatory
action under section 3(f) of Executive Order 12866 and, therefore, is
not subject to review by the Office of Management and Budget.
This proposed rule is not considered significant under the
regulatory policies and procedures of the Department of Transportation
(44 FR 11034). The proposal would reduce industry reporting burden by
21,700 hours or 45 percent. BTS estimates that the annual cost of
reporting to be just over $1 million for the industry. This breaks down
to $418 per year for class I carriers and $342 per year for class II
carriers. The estimate is based on reporting costs of $38 per hour
including overhead.
The major beneficiaries of the data collection are the federal
government, the motor carrier industry, industry associations,
transportation investment analysts, transportation research analysts,
and motor carrier safety analysts. The program provides data that are
used in developing the national accounts, data for monitoring industry
trends, and data useful to the public and private sectors regarding the
operation and health of the trucking industry and individual carriers.
Executive Order 12612
This proposed rule has been analyzed in accordance with the
principles and criteria contained in Executive Order 12612
(``Federalism'') and DOT has determined the rule does not have
sufficient federalism implications to warrant the preparation of a
Federalism Assessment.
Initial Regulatory Flexibility Analysis
I certify this proposed rule will not have a significant economic
impact on a substantial number of small entities. The definition of
``small business'' is contained in the Small Business Administration's
small business size standard regulations. For motor carriers of
property, small businesses are those with annual receipts of up to
$18.5 million. Under the current classification, there are about 2,800
reporting carriers of which an estimated 2,180 (or 78 percent) are
small businesses (all class II carriers and 31 percent of class I
carriers are classified as small businesses). The proposed amendments
would decrease reporting burden for all reporting carriers. Class I
carriers would realize a 67 percent reduction in burden hours while
class II would realize a 10 percent reduction.
Environmental Assessment
The Bureau of Transportation Statistics has analyzed the proposed
amendments for the purposes of the National Environmental Protection
Act. The proposed amendments will not have any impact on the quality of
the human environment. Accordingly, an Environmental Impact Statement
is not required.
Initial Paperwork Reduction Act Analysis
The reporting and record keeping requirements associated with this
rule are being sent to the Office of Management and Budget in
accordance with 44 U.S.C. Chapter 35 under OMB Numbers 2139-0002, 2139-
0004, and 2139-0005. Administration: Bureau of Transportation
Statistics. Titles: Quarterly Report of Class I Motor Carriers of
Property, Annual Report of Class I Motor Carriers of Property, and
Annual Report of Class II Motor Carriers of Property. Need for
Information: information on the health of the motor carrier of property
industry, its impact on the economy, and industry changes that may
affect national transportation policy. Frequency: Annually. Burden
Estimate: 27,000 annual hours. Average Annual Burden Hours per
Respondent: class I carriers--11 annual hours, class II carriers--9
annual hours. For further information contact: Office of Information
and Regulatory Affairs, Office of Management and Budget, Room 10235,
New Executive Office Building, Washington, DC 20503; Attention Desk
Officer for the Bureau of Transportation Statistics or David Mednick at
the address listed above under For Further Information Contact.
Regulation Identifier Number
A regulation identifier number (RIN) is assigned to each regulatory
action listed in the Unified Agenda of Federal Regulations. The
Regulatory Information Service Center publishes the Unified Agenda in
April and October of each year. The RIN number 2139-AA05 contained in
the heading of this document can be used to cross reference this action
with the Unified Agenda.
List of Subjects in 49 CFR Part 1420
Motor carriers, Reporting and classification.
Proposed Rule
Accordingly, the Bureau of Transportation Statistics proposes to
amend 49 CFR Part 1420 Reports of Motor Carriers, as follows:
PART 1420--REPORTS OF MOTOR CARRIERS
The authority citation for Part 1420 is revised to read as follows:
Authority: 49 U.S.C. 14123.
2. Section 1420.1 is revised to read as follows:
Sec. 1420.1 Annual reports of motor carriers of property, motor
carriers of household goods, and dual authority carriers.
(a) Annual Report Form M. All class I and class II common and
contract carriers of property, including household goods and dual
authority motor carriers, must file Motor Carrier Annual Report Form M.
Carriers must file the annual report on or before March 31 of the year
following the year to which it relates. For classification criteria,
see Sec. 1420.2.
(b) Quarterly Report Form QFR. All class I common motor carriers of
property and class I household goods motor carriers must complete and
file motor carrier Quarterly Report Form QFR (Form QFR). The quarterly
accounting periods end on March 31, June 30, September 30, and December
31. The quarterly reports must be filed within 30 calendar days after
the end of the reporting quarter.
(c) Carriers must file the quarterly and annual reports in
duplicate with the Bureau of Transportation Statistics, K-27, U.S.
Department of Transportation, 400 Seventh Street, SW., Washington, DC
20590. You can obtain copies of the report forms from the Bureau of
Transportation Statistics.
3. In section 1420.2, paragraph (b)(4) is revised to read as
follows:
Sec. 1420.2 Classification of carriers--motor carriers of property,
household goods carriers, and dual property carriers.
* * * * *
(b) * * *
(4) Carriers must notify the Bureau of Transportation Statistics
(BTS) of any change in classification or any change in annual operating
revenues that would cause a change in classification. The carrier may
request a waiver or an exception from the regulations in this part in
unusual or extenuating circumstances, where the classification process
will unduly burden the carrier, such as partial liquidation or
curtailment or elimination of contracted services. The request must be
in writing, specifying the conditions justifying the waiver or
exception. BTS will notify the carriers of any change in
classification.
* * * * *
4. In section 1420.2(b)(5), remove the term ``an Annual Report
(Form M-1 or
[[Page 59267]]
Form M-2)'' and add ``Annual Report Form M'' in its place.
5. In section 1420.2, paragraph (c) is removed (Note A is
unchanged).
6. Section 1420.6 is added to read as follows:
Sec. 1420.6 Requests for exemptions from public release.
(a) In general. This section governs requests for exemptions from
public release of reports filed under Sec. 1420.1.
(b) Criteria. The Bureau of Transportation Statistics (BTS) will
grant a request upon a proper showing that:
(1) The filer is not a publicly held corporation or the filer is
not subject to financial reporting requirements of the Securities and
Exchange Commission; and
(2) The exemption is necessary to avoid competitive harm and to
avoid the disclosure of information that qualifies as trade secret or
privileged or confidential information under 5 U.S.C. 552(b)(4).
(c) Valid requests. For a request to be valid, it must contain, at
a minimum, assertions that the request meets the criteria in paragraph
(b) of this section, including specific evidence that the carrier is
likely to suffer competitive harm.
(d) Procedure. Requests for an exemption under this section may be
made at any time during the year. However, a request will be deemed
applicable to only those reports due on or after the date the request
is received. Petitions received after a report's due date will only be
considered for the following year's or quarter's report. Except as
provided in this paragraph, requests must be made separately for report
Forms M and QFR. After each due date of reports specified in
Sec. 1420.1, DOT will publish a notice in the Federal Register listing
all of the valid pending requests for an exemption from public release
and giving a 30-day public comment period. DOT will grant or deny each
request no later than 90 days after the due date of the report for
which the request applies. DOT will either publish a notice in the
Federal Register specifying whether the request was granted or denied,
or will give notice directly to the carrier, or will do both. A carrier
submitting a petition regarding Form M can also request that it cover
Form QFR, in which case DOT will decide both requests at the same time.
Assuming the carrier's fiscal year coincides with the calendar year,
the following table summarizes report and petition deadlines:
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Report and petition
Report due Decision due
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Annual Form M............... March 31............ June 30.
First Quarter Form QFR...... April 30............ July 31.
Second Quarter Form QFR..... July 31............. October 31.
Third Quarter Form QFR...... October 31.......... January 31.
Fourth Quarter Form QFR..... January 31.......... April 30.
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(e) Pendency. A request is deemed pending from the date it is
received by BTS until it is granted or denied by BTS. BTS will not
release publicly, unless otherwise required by law, any report for
which a valid request for an exemption from public release is pending.
(f) Period of exemptions. If a request for an exemption under this
section is granted, BTS will not publicly release any reports covered
by the granted exemption, unless otherwise required by law. Exemptions
granted under this section will cover a period of three reporting
years.
Note: The following forms will not appear in the Code of Federal
Regulations.
Robert A. Knisely,
Deputy Director.
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[FR Doc. 98-29412 Filed 11-2-98; 8:45 am]
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