[Federal Register Volume 64, Number 164 (Wednesday, August 25, 1999)]
[Notices]
[Pages 46468-46470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22000]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA--1999--6086; (Formerly FRA Docket No. SBR 97-1)]
RIN No. 2130-AB15
Notice of Public Meeting
AGENCY: Federal Railroad Administration (FRA), Department of
Transportation (DOT).
ACTION: Notice of public meeting.
-----------------------------------------------------------------------
SUMMARY: In this notice, FRA announces a public meeting that will take
place on September 28, 1999 in Washington, D. C. The purpose of the
meeting is to discuss the definition of ``small entity,'' for purposes
of FRA's small business communication and enforcement policies and
procedures, in order to determine the scope of the entities subject to
those programs. FRA previously published an Interim Policy Statement
Concerning Small Entities Subject to the Railroad Safety Laws and
invited comment on the definition of ``small entity'' at that time. FRA
received comments from interested parties and plans to discuss those at
this meeting.
DATES: Meeting Date: The public meeting will be held on September 28,
1999; 10 a.m. in Conference Room 1 of the FRA, 1120 Vermont Ave., NW,
Seventh Floor, Washington, DC.
Written Comments: (1) Written comments must be submitted to DOT's
Central Docket Management Facility by September 20, 1999. Commenters
should reference the docket number and
[[Page 46469]]
submit two copies of their comments. Any party that submitted comments
to Notice #1 of this proceeding, in former docket number SBR 97-1, need
not file comments in this proceeding unless the party has additional or
alternate information to submit to FRA.
Notice of Attendance: Any party who wishes to attend or participate
in the public hearing should notify the FRA Docket Clerk by September
20, 1999.
ADDRESSES: Written Comments: Written comments should be submitted to
the DOT's Central Docket Management Facility at Room PL 401, 400
Seventh Street, SW, Washington, DC 20590-0001. All documents in the
docket are available for inspection and copying at DOT's Central Docket
Management Facility, Plaza level of the Nassif Building at the US
Department of Transportation, Room PL 401, 400 Seventh Street, SW,
Washington, DC 20590-0001 between the hours of 10 a.m. and 5 p.m.
Contents of the docket are also available for viewing on the Internet
at http://dms.dot.gov.
Registration: Persons wishing to register for the meeting may do so
by contacting Ms. Renee Bridgers, FRA Docket Clerk at 202-493-6030 or
by writing her at Office of Chief Counsel, Mail Stop 10, Federal
Railroad Administration, 1120 Vermont Avenue, NW, Washington, DC 20590.
Ms. Bridgers may also be contacted by e-mail at
[email protected] Any party wishing to attend and participate
in the public meeting should notify Ms. Bridgers no later than
September 20, 1999.
FOR FURTHER INFORMATION PLEASE CONTACT:
(1) Principal Program Officer: Edward R. English, Director, Office
of Safety Enforcement, 400 Seventh Street, SW, Mail Stop 25,
Washington, DC 20590; telephone: 202-493-6244.
(2) Principal Economist: Jeffery Horn, Office of Safety Analysis,
Planning and Evaluation Division, 400 Seventh Street, SW, Mail Stop 25,
Washington, DC 20590; telephone: 202-493-6283.
(3) Principal Attorney: Christine Beyer, Office of Chief Counsel,
FRA, 400 Seventh Street, SW, Mail Stop 10, Washington, DC 20590;
telephone: 202-493-6027.
SUPPLEMENTARY INFORMATION:
I. Background
FRA has broad statutory authority to regulate all areas of railroad
safety, and pursuant to that authority, administers comprehensive
regulatory and enforcement programs to address the safety of equipment,
track and roadbed, and workplace safety in the railroad industry. FRA's
implementation of these regulatory and enforcement programs includes
consideration of the unique concerns of small entities and seeks to
minimize adverse economic burdens on them where possible. Small
businesses play a vital role in the economic and operational health of
the railroad industry, and consequently, it has been FRA's longstanding
policy to devote attention to the special needs of small entities, both
in the way the agency communicates and in the agency's enforcement
efforts.
The Congress enacted The Small Business Regulatory Enforcement and
Fairness Act of 1996 (SBREFA) to address a variety of issues relating
to the federal treatment of small businesses. SBREFA established new
requirements for federal agencies to follow with respect to small
entities, created new duties for the Small Business Administration
(SBA), and amended the Regulatory Flexibility Act (5 U.S.C. 601, et
seq.) and the Equal Access to Justice Act (5 U.S.C. 501, et seq.)
SBREFA required federal agencies to institute communication and
enforcement polices that would give consideration to the unique
concerns of small businesses within their jurisdiction. As a result of
SBREFA, FRA formalized its existing communication and enforcement
policies by incorporating them into written form, and published the
Interim Policy Statement Concerning Small Entities Subject to the
Railroad Safety Laws (Interim Policy Statement) on August 11, 1997. 62
FR 43024. The Interim Policy Statement outlines FRA's communication
efforts and commitments with respect to small entities, and explains
how the agency seeks to accommodate the unique characteristics and
limited profit margins of small companies in enforcing the railroad
safety standards.
II. Definition of Small Entity in the Railroad Industry
In the Interim Policy Statement, FRA articulated its communication
and enforcement policies concerning small entities, and discussed the
meaning of the term ``small entity'' for purposes of the formalized
policies. The Interim Policy Statement explained that SBREFA
incorporated the definition for ``small entity'' established by
existing law for those businesses to be covered by the federal
policies. See, 5 U.S.C. 601, 15 U.S.C. 632, 13 CFR part 121. Generally,
a small entity is a business concern that is independently owned and
operated, and is not dominant in it field of operation. SBA was granted
authority to develop size categories through regulation, which clarify
the term ``small entity'' by industry, using number of employees or
annual income as criteria. In the SBA regulations, main line railroads
with 1500 or fewer employees, and switching or terminal establishments
with 500 or fewer employees constitute small entities. However, an
agency may establish one or more other definition for this term, in
consultation with the SBA and after opportunity for public comment,
that are appropriate to the agency's activities. Also, ``small
governmental jurisdictions'' that serve populations of 50,000 or less
are small entities. (This is significant for the railroad industry
because commuter operations are governmental jurisdictions, and some
may fit within this statutory definition for small governmental
jurisdictions, or small entities, for purposes of treatment under
SBREFA.)
As the Interim Policy Statement noted, the Interstate Commerce
Commission (ICC) had developed a size classification system for freight
railroads, based on annual operating revenue, long before SBA's
regulations establishing size categories were promulgated. (The
qualifying criteria for the ICC classifications are set forth in 49 CFR
part 1201.) The ICC classification system has been used pervasively by
the railroad industry and FRA to identify entities by size, and the
Surface Transportation Board (STB), which succeeded the ICC, has not
changed these classifications. In consultation with SBA, and as a
result of its own judgment concerning railroad safety and appropriate
limits on the number and economic status of companies that should take
advantage of the benefits provided by SBREFA and the Interim Policy
Statement, FRA determined that the ICC size classifications should be
used, at least on an interim basis, in the railroad industry.
Therefore, the Interim Policy Statement established that ``small
entity'' in the railroad industry would be Class III railroads,
shippers and railroad contractors that meet the economic limits set for
Class III railroads, and commuter operations that serve population
centers of 50,000 or less. The current annual operating revenue
benchmark for Class III railroads is $20 million, adjusted by applying
the railroad revenue deflator adjustment; this figure may change, based
on calculations made by the STB and consistent with economic trends.
However, FRA requested comments from the industry concerning this
decision, and alternate classifications that would identify small
companies in need of special treatment in such a way
[[Page 46470]]
that railroad safety would not be compromised and the intent of SBREFA
would be met.
In addition to establishing this interim definition for the
railroad industry in the Interim Policy Statement, FRA requested
comment on a variety of potential definitions: (1) Fifteen employees
subject to the hours of service laws, which Congress used as a
benchmark for small business exemptions in the hours of service law, 49
U.S.C. 21102(b); (2) a total of at least 400,000 person/hours worked
annually, which equates to approximately 200 employees and which FRA
has used as a size classification previously; (3) the Class III
designation currently in use; (4) the employee delineations established
by SBA regulation; (5) any combination of these; and (6) entirely new
designations. FRA invited comment on these possible definitions from
all interested parties, and asked those submitting comments to provide
the rationale for the proposals offered, including economic and
employee data, operating concerns, and an explanation of how SBREFA's
intent would be met by adoption of a particular definition. In
addition, FRA stated that the agency would conduct a public meeting to
discuss comments received and adoption of a permanent definition for
``small entity.''
In response to the Interim Policy Statement, the National Railroad
Construction and Maintenance Association, Inc. (NRC) and The American
Short Line Railroad Association (now known as The American Short Line
and Regional Railroad Association) (ASLRRA) submitted comments to FRA.
The comments of these organizations are available for review in the
docket of this proceeding. In general terms, the NRC urged FRA to adopt
the 400,000/person hours designation, and the ASLRRA urged FRA to
expand its definition to include Class II, as well as Class III
companies, in its definition of ``small entity.'' Class II railroads
are those with annual operating revenues in excess of $20 million and
less than $250 million.
FRA will hold a public meeting on September 28 at 10:00 a.m. to
discuss these proposals, others FRA has outlined above, and all other
appropriate proposals that have not yet been illuminated. FRA also
requests comment on methods by which flexibility might be incorporated
into the definition to address changing economic trends; sudden changes
in employee staffing levels; the development of low cost, innovative
equipment improvements; and other future events that could make the
definition FRA adopts now obsolete in a very short time. It is
important to note that any new definition of ``small entity'' FRA
adopts in this proceeding must be consistent with the principles of
railroad safety and the intent of SBREFA. That is to say, a definition
based solely on economic considerations would not suffice. FRA's
statutory mandate and SBREFA require that the safety and health of the
public, railroad employees, and the environment are the predominant
concerns where a company's economic fitness is juxtaposed against them.
Therefore, FRA asks that commenters and participants in the public
meeting address how their respective proposals would meet the statutory
requirements involved, if the definition proposed broadly covers a
substantial sector of the industry, or includes entities in robust
financial condition. Participants should keep in mind that the ``small
entity'' definition FRA ultimately adopts will not necessarily
determine the reach of any particular safety rule. This determination
will be used in FRA's communication and enforcement policies under
SBREFA. FRA may, as it has in the past, choose different criteria to
determine the applicability, content, or effective date of any
regulatory provision.
Although the public meeting will be transcribed by a court
reporter, it will be conducted in an informal manner. Participants who
wish to make an opening statement concerning FRA's definition of
``small entity'' may do so. However, FRA anticipates that all
participants and agency representatives will engage in an informal
dialogue of questions and answers concerning this subject.
Comments Requested
FRA invites written comments on the definition of ``small entity,''
potential alternate definitions, and supporting rationale for the
suggested alternative definitions. Please direct all written comments
to the DOT's Central Docket Management Facility, Room PL 401, 400
Seventh Street, SW Washington, DC 20590-0001. Any party that prepared
written comments in response to Notice No. 1 in this proceeding in 1997
need not file comments again, unless there is additional or alternate
information to share.
Any party wishing to attend the public meeting must notify the FRA
Docket Clerk in writing by September 20; any party wishing to attend
and participate in the meeting must notify the FRA Docket Clerk in
writing by September 20, 1999.
Submitted in Washington, DC, on August 20th, 1999.
Jolene M. Molitoris,
Administrator.
[FR Doc. 99-22000 Filed 8-24-99; 8:45 am]
BILLING CODE 4910-06-P
