96-11742. Removal of Obsolete Regulations Concerning Owner-Operators  

  • [Federal Register Volume 61, Number 92 (Friday, May 10, 1996)]
    [Rules and Regulations]
    [Pages 21387-21388]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-11742]
    
    
    
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    DEPARTMENT OF TRANSPORTATION
    Surface Transportation Board
    
    49 CFR Parts 1164 and 1311
    
    [STB Ex Parte No. 545]
    
    
    Removal of Obsolete Regulations Concerning Owner-Operators
    
    AGENCY: Surface Transportation Board.
    
    ACTION: Final rule.
    
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    SUMMARY: The Surface Transportation Board (the Board) is removing from 
    the Code of Federal Regulations obsolete regulations concerning owner-
    operators.
    
    EFFECTIVE DATE: May 10, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Beryl Gordon, (202) 927-7513. [TDD for 
    the hearing impaired: (202) 927-5721.]
    
    SUPPLEMENTARY INFORMATION: Effective January 1, 1996, the ICC 
    Termination Act of 1995, Pub. L. No. 104-88, 109 Stat. 803 (ICCTA) 
    abolished the Interstate Commerce Commission (ICC) and established the 
    Board within the Department of Transportation. Section 204(a) of ICCTA 
    provides that ``[t]he Board shall promptly rescind all regulations 
    established by the [ICC] that are based on provisions of law repealed 
    and not substantively reenacted by this Act.''
        Generally, prior to enactment of the Motor Carrier Act of 1980 
    (MCA-80), motor common and contract carriers needed licenses from the 
    ICC (certificates for common carriers, permits for contract carriers) 
    in order to operate. These licenses were based on public convenience 
    and necessity and fitness standards. Motor common and contract carriers 
    could only charge rates that were filed with the ICC in tariffs or 
    schedules.
        The regulations involved here relaxed these regulatory requirements 
    for owner-operators transporting food. The part 1164 regulations were 
    based on former 49 U.S.C. 10922(b)(4)(E), 10923(b)(5)(A), and 11145(c). 
    The part 1311 regulations were based on former 49 U.S.C. 10762(a)(1) 
    and 10762(g), as well as former sections 10922(b)(4)(E) and 
    10923(b)(5)(A). Under the Trucking Industry Regulatory Reform Act 
    (TIRRA), Title II of the Hazardous Materials Transportation Act 
    Amendments of 1994, Pub. L. No. 103-311 (August 26, 1994), and the 
    ICCTA, these statutory provisions were repealed, and we are accordingly 
    removing the obsolete part 1164 and part 1311 regulations.
    
    PART 1164--LICENSING
    
        Sections 5(a)(3) and 10(a)(2) of the MCA-80 provided exceptions for 
    owner-operators to the licensing provisions then generally applicable 
    for obtaining certificates and permits. These sections of the MCA-80 
    were codified, as here relevant, at former 49 U.S.C. 10922(b)(4)(E) and 
    49 U.S.C. 10923(b)(5)(A). Owner-operators were allowed to obtain 
    operating authority from the ICC to transport food and certain other 
    commodities 1 through a fitness-only application procedure.2 
    The ICC issued regulations implementing the new statute in Owner-
    Operator Food Transportation, 132 M.C.C. 521 (1981) (Owner-
    Operator).3
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        \1\  These commodities were food and other edible products 
    included for human consumption (excluding alcoholic beverages and 
    drugs), agricultural limestone, and fertilizers and other soil 
    conditioners. For brevity, these commodities will be referred to as 
    food products.
        \2\  The statute limited this provision to transportation by the 
    owner of the vehicle, except in emergency situations, and to 
    situations in which the annual tonnage of food products transported 
    did not exceed the annual tonnage of exempt commodities transported. 
    Former 49 U.S.C. 11145(c) required the ICC to ``streamline'' the 
    annual method of reporting tonnage.
        \3\  These regulations were originally found in 49 CFR part 
    1138, but they were redesignated at 49 CFR part 1164 on November 1, 
    1982 (47 FR 49534). They defined the term ``emergency situations'' 
    and promulgated an annual reporting requirement to certify 
    compliance with the statute's annual tonnage limitation.
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        TIRRA again amended former sections 10922 and 10923. Sections 207 
    and 208 of TIRRA eliminated the provisions of 49 U.S.C. 10922(b)(4)(E) 
    and 49 U.S.C. 10923(b)(5)(A) and also modified other parts of sections 
    10922 and 10923 to apply the fitness-only standard to all non-household 
    goods motor property common and contract carrier applicants. See 
    Revised MC-Licensing Appl. Forms and Regs., 10 I.C.C.2d 386, 387 
    (1994).4 Thus, since the passage of TIRRA, owner operators have 
    been able to obtain authority to transport food products under that 
    standard regardless of the annual tonnage and ownership of the 
    vehicle.5
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        \4\  Effective January 1, 1995, the ICC was to issue authorities 
    to carriers upon finding that the applicant was in compliance with 
    (1) ICC regulations and safety requirements; (2) DOT safety fitness 
    requirements; and (3) minimum financial responsibility requirements 
    established by the ICC pursuant to 49 U.S.C. 10927.
        \5\  Truck licensing was again changed under the ICCTA. 
    Permanent licensing for motor carriers of property was eliminated. 
    49 U.S.C. 13902. Now, motor carriers are registered for a term 
    determined by the Secretary of Transportation based on fitness 
    standards (safety and insurance) similar to those in TIRRA. A two-
    year transition period is established to allow motor common and 
    contract carriers to be issued certificates and permits under the 
    TIRRA framework. 49 U.S.C. 13902(d). Although ICCTA eliminates the 
    distinction between motor common and contract carriage, each carrier 
    can be separately registered during the transition period.
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        Because former sections 10922(b)(E)(5), 10923(b)(5)(A), and 
    11145(c) have been eliminated, we will remove the obsolete regulations 
    at 49 CFR part 1164.
    
    PART 1311--RATE FILINGS
    
        Section 5(a) of the MCA-80 modified for owner-operators the 
    requirement to file tariffs and schedules: former 49 U.S.C. 10762 was 
    amended by the addition of a new subsection (g) mandating the 
    streamlining of rate filing requirements of motor carriers holding 
    authority issued under former section 10922(b)(4)(E) and 
    10923(b)(5)(a). Also, former section 10762(a)(1) was amended
    
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    to require the filing of only minimum rates for owner-operator 
    transportation of food products. In Owner-Operator, supra, the ICC 
    adopted regulations at 49 CFR part 1311 that permitted owner-operators 
    of food products to file, in lieu of tariffs or schedules, a letter 
    statement containing the transportation services performed and the 
    minimum rates.6
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        \6\ The ICC later eliminated by exemption the requirement that 
    motor contract carriers file a schedule of rates. Exemption--Mtr. 
    Contr. Car.--Tariff Filing Requirements, 133 M.C.C. 150 (1983), 
    aff'd sub nom. Central & Southern Motor Freight Ass'n v. United 
    States, 757 F.2d 301 (D.C. Cir. 1985), cert. denied, 474 U.S. 1019 
    (1985).
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        Section 206 of TIRRA further amended former section 10762(a)(1) by 
    removing the tariff filing requirement for individually (as 
    distinguished from collectively) set rates of motor common carriers of 
    property (other than household goods and carriers involved with water 
    carriers in the noncontiguous domestic trade). Motor contract carriers 
    were no longer required to file actual or minimum rates.7
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        \7\ Although sections 207 and 208 of TIRRA eliminated former 
    sections 10922(b)(4)(E) and 10923(b)(5)(A), TIRRA did not remove 
    former section 10762(g), the provision for streamlined rate filing 
    for owner-operator transportation of food products.
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        The ICCTA further modified the rate filing requirements. Former 
    section 10762(g) was removed. Now, under 49 U.S.C. 13702, motor 
    carriers only need to file a tariff with the Board for transportation 
    in noncontiguous domestic trade (with certain exceptions).
        Because the statutory bases for the part 1311 regulations have been 
    repealed, we are eliminating these obsolete rules.
        This action will not significantly affect either the quality of the 
    human environment or the conservation of energy resources.
    
    List of Subjects
    
    49 CFR Part 1164
    
        Foods, Freight, Motor carriers, Reporting and recordkeeping 
    requirements.
    
    49 CFR Part 1311
    
        Foods, Freight, Motor carriers.
    
        Decided: April 24, 1996.
    
        By the Board, Chairman Morgan, Vice Chairman Simmons, and 
    Commissioner Owen.
    Vernon A. Williams,
    Secretary.
    
    PARTS 1164 AND 1311--[REMOVED]
    
        For the reasons set forth in the preamble and under the authority 
    of 49 U.S.C. 721(a), title 49, chapter X of the Code of Federal 
    Regulations is amended by removing parts 1164 and 1311.
    
    [FR Doc. 96-11742 Filed 5-9-96; 8:45 am]
    BILLING CODE 4915-00-P
    
    

Document Information

Effective Date:
5/10/1996
Published:
05/10/1996
Department:
Surface Transportation Board
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-11742
Dates:
May 10, 1996.
Pages:
21387-21388 (2 pages)
Docket Numbers:
STB Ex Parte No. 545
PDF File:
96-11742.pdf
CFR: (2)
49 CFR 1164
49 CFR 1311