[Federal Register Volume 64, Number 139 (Wednesday, July 21, 1999)]
[Proposed Rules]
[Pages 39111-39112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18643]
[[Page 39111]]
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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: Withdrawal of proposed rule.
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SUMMARY: The Bureau of Transportation Statistics (BTS) published a
Supplemental Notice of Proposed Rulemaking on March 23, 1999, regarding
its motor carrier financial and operating data collection program. The
proposal would have restricted access to individual carrier data for
some of the operating statistics, revenue equipment, and employment
data items. Access to these data items would have been limited to the
Department of Transportation and to such persons and in such
circumstances as DOT determined to be in the public interest or
consistent with the Department's regulatory functions and
responsibilities. Most of the comments strongly opposed adopting the
proposed rule. After considering the issues raised by the comments, BTS
is withdrawing the Supplemental Notice of Proposed Rulemaking.
DATES: The proposed amendment to Sec. 1420.10, published on March 23,
1999 (64 FR 13948), is withdrawn on July 21, 1999.
FOR FURTHER INFORMATION CONTACT: David Mednick, K-1, 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. Background
Under 49 U.S.C. 14123 and its implementing regulations at 49 CFR
1420, BTS collects financial and operating information from for-hire
motor carriers of property and household goods. The data are collected
on annual Form M, filed by Class I and Class II carriers, and quarterly
Form QFR, filed only by Class I carriers. The data are used by the
Department of Transportation, other federal agencies, motor carriers,
shippers, industry analysts, labor unions, segments of the insurance
industry, investment analysts, and the consultants and data vendors
that support these users. Among the uses of the data are: (1)
Developing the U.S. national accounts and preparing the quarterly
estimates of the Gross Domestic Product; (2) measuring the performance
of the for-hire motor carrier industry and segments within it; (3)
monitoring carrier safety; (4) benchmarking carrier performance; and
(5) analyzing motor carrier safety, productivity, and its role in the
economy.
On November 3, 1998, BTS initiated a rulemaking to consider what
data items BTS should collect and how BTS should implement a system
whereby carriers could, in order to avoid competitive harm, request
that their reported information be kept confidential or that they be
excused from filing (63 FR 59263). The final rule was published on
March 23, 1999 (64 FR 13916). On the same day, BTS published a
Supplemental Notice of Proposed Rulemaking (SNPRM) concerning access to
motor carrier financial and operating information reported to BTS (64
FR 13948). Under current policy, all reported data are made available
at the carrier level. The only exception is when a carrier is granted
confidentiality under 49 CFR 1420.9 based on competitive harm, in which
case its report is withheld from public release for three years. BTS
reviewed this policy in light of comments received during the
rulemaking and the governing legislation. Under the legislation, in
designing the data collection program BTS 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 other words, BTS has to consider both
confidentiality issues and data access issues.
The proposed regulation was therefore intended to strike a balance
between the interests of respondents, many of whom do not want data
they believe are proprietary and sensitive made available to
competitors, shippers, and the public, and the interests of data users,
who often need access to individual carrier data. While most data would
be fully available, BTS sought to withhold the most sensitive data
items from general release. Those data items receiving protection would
be available only for key uses and this limitation would apply to data
reported by all carriers. For these data items, access would be allowed
only as follows: (1) Aggregate statistics that do not identify a
particular carrier would be available to the public; (2) individual
carrier data would be available only to Department of Transportation
users and those users whose access is ``in the public interest or
consistent with the Department's regulatory functions and
responsibilities;'' and (3) individual carrier data previously kept
confidential would be available to the public after three years.
III. General Summary of the Comments
BTS received 10 comments on the proposal, from the American Moving
and Storage Association, the Central Analysis Bureau, the Inland Marine
Underwriters Association, the International Brotherhood of Teamsters,
Landstar System, Jack A. Nickerson, Transportation Technical Services,
the Transportation Trades Department of the AFL-CIO, University of
Michigan Trucking Industry Program, and Klaas T van't Veld. Nine of the
commenters were opposed to the proposal and wanted it withdrawn; one
supported the proposal as written.
Landstar System supported the proposal, stating that it would
withhold certain sensitive information and struck a reasonable balance.
The comments opposing the proposal were generally based on three
arguments: (1) BTS does not have the authority to restrict access to
data, except case-by-case based on carrier requests; (2) public
availability of the data does not and will not cause competitive harm
to the reporting carrier; and (3) the proposed system would impair
important uses of the data.
IV. Withdrawal of the Proposed Rule
BTS appreciates both the concern that sensitive information be
protected to the extent possible and the concern that the insurance
industry, safety analysts, other researchers, and other data users
[[Page 39112]]
have timely access to information about the motor carrier industry and
individual motor carriers. BTS has carefully reviewed the comments
received. After considering the concerns raised on both sides of the
issue, we are convinced that the proposal as written would not
accomplish the goal of striking an appropriate balance and that BTS
does not have enough experience with respect to the recent changes made
to the program to make adequate adjustments. BTS is therefore
withdrawing the supplemental proposal.
The SNPRM requested comments on whether and why public availability
of the identified data items, or other data items, would be likely to
cause substantial competitive harm. BTS received comments from only one
carrier, which said the information was sensitive and release would
cause competitive harm. Additionally, in the initial rulemaking, BTS
received several similar generalized assertions. However, BTS received
no explanation or examples of how public access would cause competitive
harm for carriers generally, leaving the assertions unsupported.
BTS is also concerned that the changes it proposed were premature.
The possibility of competitive harm resulting from public release of
data is inextricably intertwined with what data items are collected.
The types of data collected, the level of detail they are collected at,
and how those data can be put together with other available data must
all be considered. In the final rule published the same day as the
SNPRM, BTS made many changes to the report forms, eliminating some
categories of data items and either reducing detail or changing what is
collected in others. The amount of information reported by Class I
carriers was reduced by 64 percent. For Class II carriers, the burden
was not reduced, but the report form was significantly changed. The
feedback BTS received regarding confidentiality was based largely on
the old forms. Therefore, BTS does not know how the changes in the
forms impact the confidentiality issue. Also, before the final rule was
published, carriers did not have a mechanism for requesting
confidentiality. Now individual carriers can request confidentiality
protection based on a competitive harm standard. If a carrier meets the
standard, BTS must withhold its report from public release. Carriers
can also request an exemption from filing based on a similar standard.
In order to know what further protections are needed, if any, BTS must
review how effective these new mechanisms are. In sum, in order for BTS
to accomplish its goal of striking an appropriate balance, it needs to
gain more experience with the major changes it recently made.
Gaining experience and additional information will also be critical
in solving several problems pointed out in the comments. For instance,
while it may sound reasonable to limit access to certain classes of
users--those classes where access would be least likely to cause
competitive harm--this presents several practical problems. For
instance, researchers would be able to conduct safety and policy-
relevant studies with carrier-level data, but the researchers would not
be able to publish their results at the carrier level. Not only would
this preclude the presentation of many of the meaningful findings, but
others would not be able to examine and critique their work. Similarly,
it is not clear whether safety researchers outside of academia would
have access, although safety is certainly a concern to many others. For
instance, how would access work with organizations such as trucking
associations or labor unions, which are likely to have broad interests
including safety? Thus, the proposal would not achieve its goal of not
impeding access for safety and other key uses. While these problems
have been raised, no solutions--other than withdrawing the proposal--
were suggested.
While we will continue to monitor the issue and seek feedback from
respondents and data users, BTS believes it would be unwise to proceed
at this time. Any changes would have to come after the benefit of more
experience regarding the recent changes and a deeper understanding of
the issues. BTS can then determine whether and how to make further
adjustments regarding access to reported data.
V. Effect on the Availability of Reported Data
While the SNPRM was pending, BTS did not release any reported data
from the 1998 annual report and the 1999 quarterly reports. By
withdrawing this proposal, BTS will make that information available,
except as otherwise prohibited by law. For instance, pursuant to 49 CFR
1420.10, BTS will not release data where a carrier's report has been
granted confidential treatment or is covered by a pending
confidentiality request.
Ashish Sen,
Director.
[FR Doc. 99-18643 Filed 7-20-99; 8:45 am]
BILLING CODE 4910-FE-P
