[Federal Register Volume 64, Number 55 (Tuesday, March 23, 1999)]
[Rules and Regulations]
[Pages 13916-13923]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6849]
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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
and Household Goods
AGENCY: Bureau of Transportation Statistics, DOT.
ACTION: Final rule.
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SUMMARY: The ICC Termination Act of 1995 transferred the motor carrier
financial and operating data collection program to the Department of
Transportation and made several changes to it. This final rule revises
the data collection forms and reduces the reporting requirements. Class
I and Class II motor carriers of property are now required to file a
revised annual report form called Form M. Class I carriers are also
required to file quarterly report Form QFR, which has been
substantially reduced. The rules also adopt a system whereby motor
carriers can request exemptions from filing and from public release of
their reported data.
DATES: This final rule is effective on April 22, 1999.
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
You can examine all comments that were submitted to the Rules
Docket concerning this rulemaking at: Department of Transportation, 400
Seventh Street, SW., Room PL-401, Washington, DC 20590, from 10 a.m. to
5 p.m., Monday through Friday, except Federal holidays. Internet users
can access the comments at the address: http://dms.dot.gov. Search for
Docket Number 4659. Please follow the instructions online for more
information and help.
You can download an electronic copy of this document 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.bts.gov/mcs/rulemaking.htm.
II. Copies of the Revised Report Forms
If you have Internet access, you can view and download copies of
the revised Form M and Form QFR at www.bts.gov/mcs/rulemaking.htm. You
can also obtain copies by calling BTS at (202) 366-4383. Carriers
required to file report will receive a full information package,
including the revised report forms.
III. Regulatory History
On November 3, 1998, the Bureau of Transportation Statistics (BTS)
published a Notice of Proposed Rulemaking (NPRM) which proposed rules
for revising the data collected from Class I and II motor carriers of
property and household goods (63 FR 59263). It also proposed a system
for carriers to request exemptions from filing reports and exemptions
from public release of their reported data. On November 25, 1998, BTS
published a notice extending
[[Page 13917]]
the comment period until January 15, 1999 (63 FR 65163). BTS is
publishing a Supplemental Notice of Proposed Rulemaking (SNPRM) on a
related topic in this issue of the Federal Register. For more
information about the authority and background to this rulemaking,
please refer to the NPRM.
IV. Background
The U.S. government has collected information on motor carriers for
much of this century, even after the industry was greatly deregulated.
The government and others have used these data in a number of ways and
for a number of purposes. The data collection rules were last reviewed
and modified by the Interstate Commerce Commission (ICC) in 1994. Under
the data collection program now in place, motor carriers of property
are classified 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 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.
Since the last change in 1994, the ICC Termination Act of 1995 (the
ICCTA) made several changes to the ICC's data collection program and
transferred it to the Department of Transportation (DOT). Similar to
the legislation replaced by the ICCTA, then codified at 49 U.S.C.
11145, the ICCTA 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 the ICC to collect
information relevant to safety and did not specify minimum data to be
collected. The ICCTA 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 ICCTA 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 ICCTA,
Congress 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 ICCTA 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 light of the ICCTA, we (BTS) believe it is necessary for us to
weigh the continuing need for gathering accurate and consistent data
against the burden the reporting requirements place on carriers who
must comply with them. On November 3, 1998, BTS issued a Notice of
Proposed Rulemaking (NPRM), which proposed changes to the annual and
quarterly data collection forms and proposed procedures for carriers to
request exemptions from filing and from public release of their
reports. We sought comments concerning the use of the data we collect,
why we should or should not continue to collect those data, and what
procedures we should have for carriers that believe data in their
report contain confidential business information. In response, 21
organizations and individuals submitted comments. The comments came
from organizations in three broad groups--respondents (motor carriers
and trade associations), data analysts, and other data users.
V. General Summary of the Comments
Some commenters (mostly trucking companies) advocate reducing or
eliminating the reporting requirement. They argue that carrier reports
represent an unwarranted intrusion into their privacy by allowing
competitors to see their financial statements and are unnecessary
because the reports are not used for any regulatory purpose. That is,
while none of the commenters suggested the burden of completing the
proposed forms was significant, some wished to protect data they
consider to be confidential. Other commenters (including some
representing carriers and carrier associations) felt the proposal
struck the right balance between the needs of respondents and the needs
of data users. A third group requested that more data be collected
because the proposed reduction meant a loss in the utility of the data.
The comments we received confirm that carrier data are used and
needed by a diversity of parties and that some of these uses require
access to individual carrier data. They are used by private entities
and governmental bodies to track the performance of the motor carrier
industry and subgroups within it. Some representatives and associations
of insurance companies state that knowledge of the financial condition,
type of commodities hauled, and equipment of the carriers is essential
to their underwriting operations. The data collected helps users review
the financial status of Class I and Class II motor carriers to evaluate
potential safety risks for particular firms and to define the aggregate
relationship between financial conditions and safety. Information plays
a role in analyzing various aspects of the motor carrier industry such
as safety, productivity, and its role in the economy. Carriers use the
information to benchmark their performance in order to strive for
continuous improvement and efficiency.
After considering arguments on both sides of these issues, we
conclude that we should go forward with the proposed annual and
quarterly report forms with relatively minor modifications. We also
conclude that the proposed procedures for handling requests for
confidentiality and for exemptions from filing should be modified to
clarify the standards that will be used, improve the process for all
involved, and provide stronger assurances that firms will not be
competitively harmed.
VI. The Report Forms
For BTS, the basic purposes of the data collection program are: (1)
to provide the data DOT needs to fulfill its
[[Page 13918]]
responsibilities in overseeing the motor carrier industry; and (2) to
help BTS fulfill its own statutory mandate to provide information on
all modes of transportation for decision makers in the public and
private sectors. We recognize that BTS and others in DOT have not made
much direct use of individual carrier data. Rather, we have relied on
summary data to better understand the industry. Under BTS's general
statutory mandate (49 U.S.C. 111) and under the ICCTA, BTS is required
to consider not only the Department of Transportation's information
needs but also how information is used by others, including those in
the private sector. Thus it is relevant that data collected may help
third parties, such as motor carriers, insurance companies, and
researchers, do their jobs. Given the ICCTA's safety emphasis, we must
also give weight to third party use of the data to enhance safety, a
use cited in comments by labor unions, representatives and associations
of insurance companies, and university researchers. Collecting only
bottom-line balance sheet and income statement data, as some commenters
favor, would not be useful for analyzing industry and carrier safety.
Conversely, providing the scope and detail of data desired by all users
would fail to streamline and simplify the reporting requirements.
Therefore, BTS has retained data items of critical importance and
eliminated those that are now of more limited value. The revisions to
the report forms represent a balance between the interest in reducing
burden and the interest in providing important safety and economic data
concerning the trucking industry.
The Annual Form
While some commenters endorsed the proposed forms, others suggested
specific changes. Those supporting a reduction in proposed Form M
wanted something approaching the minimum data requirements identified
in the ICCTA--basic balance sheets and income statements. Those
supporting expanding proposed Form M requested: (1) Greater detail on
payables, receivables, and debt; (2) additional expense detail; (3)
employment, compensation, and benefits data; (4) operating statistics
with detail by industry segments; and (5) expanding the list of revenue
commodity groups. The U.S. Department of Commerce's Bureau of Economic
Analysis (BEA) has requested that BTS retain the following data
contained in the proposed form: (1) The operating revenue section; (2)
the operating supplies and expenses section; (3) most of the data items
listed under miscellaneous expenses; (4) miles, tons, and ton-miles;
and (5) the revenue equipment section. They use the data in preparing
the national accounts of the United States economy.
In light of these comments, we will make some changes to the annual
form we proposed. The resulting new form will still greatly reduce the
amount of data currently collected. Most of the changes being made to
the proposed Form M are technical changes to data items that will not
add to reporting burden. These changes will make reporting more
consistent with carriers' internal systems and therefore easier. The
substantive changes being made to the proposed Form M are: (1)
Expanding the Revenue Commodity Group table to include more freight
types; (2) removing detail on Carrier Operating Property; (3) splitting
Freight Operating Revenue into two categories--Intercity and Other; (4)
increasing the categories for wages in the Wages and Salaries section
from two to four; (5) adding separate line items for Interest Expenses
and Extraordinary Items to the Net Income section; (6) dividing the
Operating Statistics section into Less than Truckload and Truckload for
general freight carriers; (7) adding a section on Employment and
Compensation; and (8) adding a column for Cost of Units Acquired to the
Revenue Equipment section. Except for the last, each of these
substantive additions is an item already reported on both the current
Form M-1 and Form M-2. Many of the changes are being made to provide
categories that are consistent with motor carrier accounting systems
and prior data collections, and will permit the kinds of distinctions
and analyses needed for safety and other purposes. The employment data,
containing the minimum amount of detail needed for most analyses, are
being added in response to commenters who noted the importance of this
information, particularly to analysis regarding driver shortage and
driver hours of service issues.
The revised Form M will have only five schedules (balance sheet,
income statement, operating information, revenue equipment, and
employment information) and will require little time to complete. The
creation of a Form M will result in a significant reduction in
reporting burden for Class I carriers, while continuing to provide key
information on their operations. In fact, we estimate that it should
take no more than 10 hours annually to prepare Form M, compared to 25
hours for Form M-1. Although the burden will remain the same for Class
II carriers, the ICC greatly reduced Class II reporting burden in 1994
with the introduction of the current M-2.
The Quarterly Form
Commenters representing the motor carrier industry disagreed about
whether to eliminate the quarterly reporting requirement, keep the
requirement as proposed, or expand on the proposal. All data analysts
and users supported keeping and/or expanding the quarterly report. Some
commenters called for additional data based on the need for timely
information to detect motor carrier financial difficulties, and
therefore potential safety problems. One commenting carrier wanted
quarterly data for benchmarking its operations. Suggested additions
included collection of more detailed information on freight revenue and
on non-operating income, and collection of operating information
detailed by industry segment. BEA has requested that BTS retain
quarterly collection of operating revenue and expenses for its
quarterly Gross Domestic Product estimates.
We will retain Form QFR, albeit greatly reduced from its current
size. As the pace of society quickens so does the need for more timely
data. Yet, because of the burden filing four times a year represents,
we have reduced the number of data items to a small fraction of what is
currently collected. A half-dozen line items are being added to the
proposed form, though the resulting survey will still be much shorter
than the current QFR. The report will include net income and a small
amount of operating information to keep the form consistent with the
annual data collection. The basic quarterly information we will collect
is described by commenters as being easy to compile since it is
maintained for other internal purposes. Yet it will help users monitor
emerging trends in the dynamic trucking industry and will enable
carriers to benchmark their operations. The public will also be able to
periodically monitor the strength and viability of carriers,
particularly those experiencing financial difficulties.
Reporting Carriers
The current program collects data from only Class I and II
carriers. This has been based on the assumption that data from the
largest carriers represent an accurate indicator of the industry
because these companies comprise such a large share of the industry
revenue and traffic volume. We could reduce the universe of reporting
carriers further still, as one commenter suggested, by changing the
revenue limits of the classifications. However, this could seriously
hamper BTS's function in providing data for understanding the
[[Page 13919]]
industry and monitoring its health. Therefore, BTS will retain the
current classification definitions. One commenter called for an
exemption from reporting for all privately held companies stating that
the collected information is private and therefore confidential. Since
the vast majority of carriers are privately held, we believe the data
collection would be rendered meaningless and this would subvert the
intent of the ICCTA.
VII. Confidentiality
Some commenters expressed concerns about the proposed procedures
for handling requests for exemptions from filing and exemptions from
the public release of data. A major concern was about the public
release of individual carrier data. The commenters state that many
carriers are privately held companies and that competitive harm could
result from disclosing the information to third parties, particularly
shippers or competing carriers. These commenters suggested changes to
the proposal they believe would better protect carriers from potential
competitive harm. First, BTS could restrict access to individual
carrier data. Second, assuming individual carrier data are made
publicly available, BTS could limit the data items it collects.
Potential detrimental affects would be reduced if BTS collected fewer
data items or less detailed data.
Other commenters, including some representing motor carriers,
supported the proposed procedures for handling requests for exemptions
from filing and public release of carrier reports. These commenters
state that the data collected are of critical importance to
understanding the motor carrier industry and to monitoring motor
carrier safety. Therefore, the information is in the public interest
and DOT should not withhold it from public release. They state that not
only should the Department monitor the financial condition of each
motor carrier in order to protect the public interest, but that the
prompt release of the information will result in even closer scrutiny
and a concomitant increase in the protection accorded the public.
Exemptions From Filing
Some commenters disagreed with BTS's proposal that exemptions from
filing not be allowed since no competitive harm could result if reports
are kept confidential. They pointed out that publicly held firms cannot
request confidentiality protection. Furthermore, all carriers should
have at least the option to request relief from the filing requirement
as allowed by the ICCTA. Unlike exemptions from public release, notice
and comment are not necessary with an exemption from filing, plus the
carrier would be relieved of submitting reports.
BTS will allow carriers to request exemptions from filing based on
confidential business information. As required by the ICCTA, the
carrier will need to ``demonstrate, at a minimum, that an exemption is
required to avoid competitive harm and preserve confidential business
information that is not otherwise publicly available.'' As discussed
below, this is the same standard as for Exemption Four of the Freedom
of Information Act (FOIA) (5 U.S.C. 552(b)(4)). BTS notes that while it
will consider all requests, it will be difficult for a carrier to meet
the minimum showing. A privately held carrier that meets the
requirements would also be eligible for confidentiality protection and
the availability of this option would likely render moot any claim for
further competitive harm requiring an exemption from filing. For a
publicly held carrier, most of the reported information would likely be
publicly available through other channels. Nonetheless, BTS will
consider requests for exemptions from filing.
Exemptions From Public Release
Regarding the procedures for requesting confidentiality, a number
of changes were suggested. The comments were that: (1) BTS should
publish a notice indicating its decisions; (2) parties wishing to
comment on requests should have access to the request; (3) reports
should be held confidential while a request is pending; (4) requests
should be allowed within a reasonable time after a report's deadline;
(5) requests should be allowed anytime, regardless of the report due
date; (6) BTS should decide the requests individually instead of en-
masse; and (7) if a request is granted the confidentiality period
should last three years.
Based on these comments, BTS will use the following revised
procedure. A carrier may request that its annual report be exempt from
public release. If so, the carrier must submit a request that must be
received by the annual report due date. This gives carriers flexibility
in making their request. BTS, in response to comments received, will
use as the received date either the date the request is physically
received or the date it is postmarked. BTS will allow a late request if
there are extenuating circumstances and the requesting carrier gives
adequate notice within a reasonable time of the extenuating
circumstances. To protect the data of potential requestors, all annual
reports received by BTS will be withheld from public release from the
time they are received until at least the annual report's due date,
which is also the request's due date. Carriers making a request after
the report's due date, except as discussed above, 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.
After the annual report's due date, BTS will continue to withhold
from public release those reports from carriers that have requested
confidentiality. BTS will publish a Federal Register notice inviting
public comment on the requests. BTS plans to use the DOT Dockets
Management System to facilitate access to the requests and comments
received. BTS will decide each request within 90 days of the annual
report's due date. After the 90-day period from the annual report's due
date, BTS will continue to withhold from public release those reports
receiving an exemption from public release. If an exemption is granted,
the confidentiality period will last for three years, unless otherwise
required by law.
If a carrier wishes to request confidentiality for quarterly
reports, it must submit its request at the same time it submits its
request covering the annual report. For example, to request
confidentiality for any or all of the four 1999 Form QFRs, the request
must be included with the petition covering the 1998 Form M. Both
requests will be decided in the 90-day period and quarterly reports
will be released neither before the request due date nor while there is
a request pending. As noted subsequently, BTS is granting an extension
for filing of the 1998 Form M and for the Form QFR for the first
quarter of 1999.
One commenter, a motor carrier, wanted the 90-day decision period
to begin not on the report due date but on the date the request was
made. We point out that all carriers' reports will be withheld from
public release up to the report's due date and any report for which
there is a pending request will be withheld from public release until a
decision is made. Furthermore, BTS will not decide the requests en-
masse. Regardless of the decision date, each request will be decided
individually since a request must be based on circumstances particular
to a carrier and based on the explanation it provides. Thus, a carrier
would not benefit if the decision period started before the report
[[Page 13920]]
due date. This system also gives carriers more leeway for submitting
requests for confidentiality than the one the commenter advocates.
Under the latter, a request would have to be made only before or
simultaneously with filing of the carrier's report. But under the
former, a request could be made anytime up to the report's due date,
regardless of when the carrier files its report. Perhaps a carrier may
wish to request confidentiality, and wait for the decision, before
filing its report. However, regardless of when the decision is made and
regardless of whether the request is granted or denied, the report is
required under law by the due date.
Regarding the criteria for deciding requests, some commenters
supported the proposed standard that a carrier should be required to
explain the particular or unique circumstances that would show why its
data should be treated differently than other carriers' data. Other
commenters felt the proposed confidentiality standards were vague and
asked BTS to further clarify them. One objected to the requirement that
a carrier show specific evidence of competitive harm favoring instead
having the carrier simply allege harm and show evidence that it does
not customarily release the data. Another commenter wanted BTS to make
a blanket determination that all privately held carriers meet the
threshold for confidentiality protection since it is common knowledge
that the information is sensitive and since public release would not be
in the public interest.
The ICCTA's standard for withholding information from public
release is the same as the standard contained in Exemption Four FOIA.
Exemption four covers ``trade secrets and commercial or financial
information obtained from a person (that is) privileged or
confidential.'' Since the standards are the same, BTS will follow FOIA
law on the standard that must be met. Information is confidential under
Exemption Four if disclosure would be likely to cause substantial harm
to the competitive position of the person from whom the information was
obtained or would impair a protectable government interest. To clarify
the criteria and keep it closely in line with established FOIA law, BTS
will change the wording of its proposal. BTS will require that a
carrier provide information on (1) whether the information is
confidential; (2) the measures taken by carrier to prevent disclosure;
and (3) either how disclosure would cause competitive harm or how
disclosure would impair a protectable government interest. Under this
showing, a carrier must do more than make a ``blanket'' assertion or
conclusory statement that it meets the standard for an exemption from
public release. These more detailed rules are based on those issued by
the Department of Transportation's National Highway Traffic Safety
Administration. Those rules allow persons to request confidential
treatment of data they submit to that agency and they have worked well
for many years (see 49 CFR part 512).
VIII. Extension of Report Due Dates
Usually, the annual report covering 1998 (the 1998 Form M) would be
due on March 31, 1999. Because of the revisions to regulations
contained in this final rule, including changes to the forms, BTS is
hereby extending that report's due date. The 1998 annual report must be
filed on or before May 31, 1999. This will give carriers enough time to
complete the forms. As soon as possible, BTS will send the revised Form
M to carriers and make it available on its web site at: www.bts.gov/
mcs/info.html. We note that very little has changed on the form, except
to remove data items. Where changes have been made to a data item, it
has usually been done to make it more consistent with carriers'
internal systems and thus easier to complete.
A request for an exemption from filing (covering just the annual
report or covering the annual report and the reports for the following
quarters) must be received by the due date of the annual report.
Therefore, a carrier submitting a request for an exemption from filing
the 1998 Form M and/or the 1999 QFRs, must do so before May 31, 1999.
Likewise, a request for an exemption from public release (covering just
the annual report or covering the annual report and the reports for the
following quarters) must be received by the due date of the annual
report. Again, a request covering the 1998 Form M and/or the 1999 QFRs
must therefore be received by May 31, 1999. The extension of the 1998
annual report due date will also affect the date that carrier reports
are made publicly available under the new 49 CFR 1420.10.
The quarterly report for the first quarter of 1999 is normally due
on April 30, 1999. Because of the revisions to regulations contained in
this final rule, including changes to the Form QFR, BTS is hereby
extending the due date for the first quarter of 1999. The report will
also be due on May 31, 1999.
IX. Supplemental Notice of Proposed Rulemaking
Today, BTS is also publishing a Supplemental Notice of Proposed
Rulemaking (SNPRM). This is being done to address an issue that was
raised by some commenters but was not part of the NPRM. These
commenters urged BTS not to release individual carrier data at all.
They stated that there is no strong public interest in having the
information made available to the public, or at least available to
those that would use it for private purposes, such as competing
carriers. Furthermore, they feel the information is commercially
sensitive. This issue is outside of the scope of the NPRM, which only
addressed procedures and criteria for individual carriers to request
exemptions from filing and public release of data based on individual
circumstances. It did not ask whether all or any data collected should
be generally withheld because of the confidential nature of the data.
The SNPRM proposes revised rules on confidentiality that are designed
to minimize any potential detrimental affects of public access to
individual carrier data to the extent possible under law. They do this
by restricting access to individual carrier data for those data items
that are most sensitive. For more information on the SNPRM, please
refer to the Proposed Rules section in this issue of the Federal
Register.
X. Rulemaking Analyses and Notices
Executive Order 12866 and DOT Regulatory Policies and Procedures
This rule is not considered a significant regulatory action under
section 3(f) of Executive Order 12866 and therefore is not reviewed by
the Office of Management and Budget.
This final rule is not considered significant under the regulatory
policies and procedures of the Department of Transportation (44 FR
11034). It would reduce industry reporting burden by 18,900 hours or 39
percent. BTS estimates that the annual cost of reporting to be just
over $1.1 million for the industry. This breaks down to $456 per year
for Class I carriers and $380 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 and preparing the Gross
[[Page 13921]]
Domestic Product estimates, 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.
Regulatory Flexibility Analysis
Under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), BTS
must consider whether a final rule would 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 changes decrease
reporting burden hours for Class I carriers by 64 percent. In addition,
the changes do not impose any new regulatory requirements, directly or
indirectly, on small entities. Therefore, BTS certifies this final rule
will not have a significant economic impact on a substantial number of
small entities.
Paperwork Reduction Act Analysis
The Form M and Form QFR have been reviewed and approved by the
Office of Management and Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. Chapter 35). An agency may not conduct or
sponsor, and a person is not required to respond to a collection of
information unless it displays a currently valid OMB control number.
The control numbers for these information collections are OMB Numbers
2139-0002 and 2139-0004. Administration: Bureau of Transportation
Statistics. Titles: Quarterly Report of Class I Motor Carriers of
Property and Household Goods, Annual Report of Class I and Class II
Motor Carriers of Property and Household Goods. Need for Information:
information that are used in developing the national accounts and
preparing the Gross Domestic Product estimates, 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. Frequency: Quarterly and Annually. Burden
Estimate: 29,800 annual hours. Average Annual Burden Hours per
Respondent: Class I carriers--12 annual hours, Class II carriers--10
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.
Other Determinations
BTS has analyzed the this action for the purposes of the National
Environmental Protection Act. It will not have a significant impact
upon the quality of the human environment or the conservation of energy
resources. Accordingly, an Environmental Impact Statement is not
required. BTS has analyzed this action in accordance with the
principles and criteria contained in Executive Order 12612
(``Federalism'') and determined that the rule does not have sufficient
federalism implications to warrant the preparation of a federalism
assessment. This action does not impose unfunded mandates under the
Unfunded Mandates Reform Act of 1995. It does not result in costs of
$100 million or more to state, local, or tribal governments, in the
aggregate, or to the private sector, and is the least burdensome
alternative that achieves the objectives of the rule. Similarly,
because this rule does not create an unfunded Federal mandate on state,
local or tribal governments the requirements of section 1(a) of
Executive Order 12875, Enhancing Intergovernmental Partnerships, do not
apply to this rule. This final rule does not have potential takings
implication under Executive Order 12630 because it does not authorize
any takings. In accordance with Executive Order 12630, regarding
Governmental Action and Interference with Constitutionally Protected
Property Rights, BTS finds that this final rule implicates no takings,
in that it does not propose or implement licensing, permitting, or
other conditions, requirements, or limitations on private use, nor does
it require dedications or exactions from owners of private property.
BTS has reviewed this final rule in accordance with Executive Order
12988, Civil Justice Reform, and has determined that this rule meets
the applicable standards provided in section 3(b) of the Executive
Order. Nor does this rule require OMB review in accordance with
Executive Order 13045, entitled Protection of Children from
Environmental Health Risks and Safety Risks.
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.
Accordingly, the Bureau of Transportation Statistics amends 49 CFR
part 1420 Reports of Motor Carriers, as follows:
PART 1420--REPORTS OF MOTOR CARRIERS
1. 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 property carriers.
(a) Annual Report Form M. All class I and class II common and
contract carriers of property, including household goods and dual
property motor carriers, must file Motor Carrier Annual Report Form M
(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 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) Where to file reports. Carriers must file the quarterly and
annual reports with the Bureau of Transportation Statistics at the
address in Sec. 1420.6. You can obtain blank copies of the report forms
from the Bureau of Transportation Statistics.
3. In Sec. 1420.2, paragraph (a) remove the phrase ``subject to the
Interstate Commerce Act''.
4. In Sec. 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
[[Page 13922]]
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 these regulations 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.
* * * * *
5. In Sec. 1420.2(b)(5), remove the term ``an Annual Report (Form
M-1 or Form M-2)'' and add ``Annual Report Form M'' in its place.
6. In Sec. 1420.2, paragraph (c) is removed (Note A is unchanged).
7. Section 1420.8 is added to read as follows:
Sec. 1420.8 Requests for exemptions from filing.
(a) In General. This section governs requests for exemptions from
filing of reports required under Sec. 1420.1.
(b) Criteria. The Bureau of Transportation Statistics (BTS) may
grant a request upon a proper showing that the exemption is necessary
to preserve confidential business information that is not otherwise
publicly available. Information is considered to be confidential when:
(1) Disclosure of the information in the carrier's report would be
likely to cause substantial harm to the carrier's competitive position;
or
(2) Disclosure of information in the report would be likely to
impair protectable government interests.
(c) Contents of a request. The contents of a request for an
exemption from filing must contain, at a minimum, the contents that are
required for a request for an exemption from public release contained
in Sec. 1420.9(c). A carrier's request may include any other grounds as
to why the request should be granted.
(d) When requests are due. The timing of a request for an exemption
from filing is the same as the timing for a request for an exemption
from public release contained in Sec. 1420.9(d). The table below
summarizes report and request due dates.
------------------------------------------------------------------------
Request due
Report Report due by by
------------------------------------------------------------------------
Annual Form M................ March 31.................. March 31
First Quarter Form QFR....... April 30.................. March 31
Second Quarter Form QFR...... July 31................... March 31
Third Quarter Form QFR....... October 31................ March 31
Fourth Quarter Form QFR...... January 31................ March 31
------------------------------------------------------------------------
(e) Decision to grant or deny a request.
(1) A request will be denied if it fails to provide all of the
supporting information required in paragraph (c) of this section or if
the supporting information is insufficient to establish that
information in the carrier's report meets the criteria in paragraph (b)
of this section.
(2) BTS will grant or deny each request within a reasonable period
of time. BTS will notify the carrier of its decision. The decision by
BTS shall be administratively final.
(f) Pendency. While a request is pending, the carrier is required
to submit any reports required under Sec. 1420.1.
(g) Period of exemptions. If a request for an exemption under this
section is granted, the carrier will be exempt from the reporting
requirements of Sec. 1420.1 for a period of three reporting years.
(h) Modification of a decision to grant a request. If a request is
granted it remains in effect in accordance with its terms, unless
modified by a later finding that the decision was clearly erroneous. If
BTS believes such a finding should be made, BTS will notify the
requesting carrier in writing of the reasons for the modification. The
carrier may seek reconsideration of the modification.
8. Section 1420.9 is added to read as follows:
Sec. 1420.9 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 the carrier is not a
publicly held corporation or that the carrier is not subject to
financial reporting requirements of the Securities and Exchange
Commission, and that 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). Information is considered to be confidential when:
(1) Disclosure of the information in the carrier's report would be
likely to cause substantial harm to the carrier's competitive position;
or
(2) Disclosure of information in the report would be likely to
impair protectable government interests.
(c) Contents of a request. A request for an exemption from public
release must contain information supporting the claim. While the
supporting information may contain opinions, the request must consist
of objective data to the extent possible. General or nonspecific
assertions or analysis will be insufficient to support a request if BTS
is unable to find that the criteria are met. The supporting information
must show:
(1) That the information claimed to be confidential is a trade
secret, or commercial or financial information that is privileged or
confidential.
(2) Measures taken by the carrier to ensure that the information
has not been disclosed or otherwise made available to any person,
company, or organization other then the carrier.
(3) Insofar as is known by the carrier, the extent to which the
information has been disclosed, or otherwise become available, to
persons other than the carrier, and why such disclosure or availability
does not compromise the confidential nature of the information.
(4) If the carrier asserts that disclosure would be likely to
result in substantial competitive harm, what the harmful effects of
disclosure would be, why the effects should be viewed as substantial,
and the causal relationship between the effects and disclosure.
(5) If the carrier asserts that disclosure would be likely to
impair protectable government interests, what the effects of disclosure
are likely to be and why disclosure is likely to impair such interests.
(d) When requests are due.
(1) 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.
Requests received
[[Page 13923]]
after a report's due date will only be considered for the following
year's report.
(2) A request will be deemed received on the date the request is
physically received or, if it is sent by mail, on the date it is
postmarked.
(3) BTS will only allow a late request if there are extenuating
circumstances and the carrier gives adequate notice within a reasonable
time of the extenuating circumstances.
(4) A carrier submitting a request relating to the annual report
can also request that it cover the quarterly reports for the upcoming
year. In this case BTS will decide both requests at the same time.
Requests covering the quarterly reports must be received by the due
date of the annual report which relates to the prior year. The table in
paragraph (e) of this section summarizes report, request, and decision
due dates.
(e) Decision to grant or deny a request.
(1) After each due date of each annual report specified in
Sec. 1420.1, BTS will publish a notice in the Federal Register
requesting comments on any requests received under this section that
are valid and pending.
(2) A request will be granted only if it provides all of the
supporting information required in paragraph (c) of this section and if
the supporting information is sufficient to establish that information
in the carrier's report meets the criteria in paragraph (b) of this
section.
(3) If the carrier fails to comply with the timing requirements of
paragraph (d) of this section, the claim for confidentiality will be
waived unless BTS is notified of extenuating circumstances before the
information is disclosed to the public and BTS finds that the
extenuating circumstances warrant consideration of the claim.
(4) BTS will grant or deny each request no later than 90 days after
the request's due date as defined in paragraph (d) of this section. The
decision by BTS shall be administratively final. The table below
summarizes report, request, and decision due dates.
----------------------------------------------------------------------------------------------------------------
Report Report due Request due Decision due
----------------------------------------------------------------------------------------------------------------
Annual Form M................... March 31..................... March 31..................... June 30
First Quarter Form QFR.......... April 30..................... March 31..................... June 30
Second Quarter Form QFR......... July 31...................... March 31..................... June 30
Third Quarter Form QFR.......... October 31................... March 31..................... June 30
Fourth Quarter Form QFR......... January 31................... March 31..................... June 30
----------------------------------------------------------------------------------------------------------------
(5) If a request is granted, BTS will notify carrier of that
decision and of any appropriate limitations.
(6) If a request for confidentiality is denied, BTS will notify the
carrier of that decision and that the information will be made
available to the public not less than ten working days after the
carrier has received notice of the denial. The notice will specify the
reasons for denying the request.
(f) 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.
(g) Period of exemptions. If a request for an exemption under this
section is granted, BTS will not publicly release the reports covered
by the granted exemption, unless otherwise required by law, for a
period of three years from the report's due date.
(h) Modification of a decision to grant a request. If a request is
granted it remains in effect in accordance with its terms, unless
modified by a later finding that the decision was clearly erroneous. If
BTS believes such a finding should be made, BTS will notify the
requesting carrier in writing of the reasons for the modification and
that the carrier's report will be made available to the public in not
less than ten working days from the date of receipt of notice under
this paragraph. The carrier may seek reconsideration of the
modification.
9. Section 1420.10 is added to read as follows:
Sec. 1420.10 Public release of motor carrier of property data.
(a) In general. Unless other provided in this section, the data
contained in a report filed under Sec. 1420.1 shall be made publicly
available, but no sooner than the due date for the report.
(b) Exceptions relating to exemptions from public release.
(1) If a request for an exemption from public release is pending
under Sec. 1420.9, BTS will not publicly release the reports covered by
the request until at least the time that a decision to grant or deny
the request is made.
(2) If a carrier is granted an exemption from public release under
Sec. 1420.9, BTS will not publicly release the reports covered by the
granted exemption for a period of three years from the report's due
date.
(c) Other exceptions. Notwithstanding any other provision of this
part, information may be released:
(1) If the data are included in aggregate industry statistics that
do not identify the individual carrier;
(2) To other components of the Department of Transportation for
their internal use only;
(3) If required by law;
(4) With the consent of the carrier filing the report; or
(5) To contractors, if necessary for the performance of a contract
with BTS.
10. Section 1420.6 is added to read as follows:
Sec. 1420.6. Address.
The following address must be used by motor carriers when
submitting a report, requesting an exemption from filing a report, or
requesting an exemption from public release of a report: Bureau of
Transportation Statistics, U.S. Department of Transportation, K-27, 400
Seventh St., SW., Washington, DC 20590. This address may also be used
for general correspondence regarding the data collection program
described in this section.
Ashish Sen,
Director, Bureau of Transportation Statistics.
[FR Doc. 99-6849 Filed 3-22-99; 8:45 am]
BILLING CODE 4910-FE-P
