[Federal Register Volume 60, Number 189 (Friday, September 29, 1995)]
[Notices]
[Pages 50645-50646]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24264]
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INTERSTATE COMMERCE COMMISSION
[Ex Parte No. MC-5 (Sub-No. 12)]
Procedural Change in Authority Revocation Process
AGENCY: Interstate Commerce Commission.
ACTION: Notice of Procedural Change.
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SUMMARY: The purpose of this Notice is to announce changes, effective
October 15, 1995, in the Commission's internal procedures for
revocation of operating authority based upon noncompliance with the
financial security provisions of 49 U.S.C. 10927 and 49 CFR 1043.
DATES: The revised internal procedures announced here will apply to
insurance, surety bond and trust fund notices of cancellation filed on
or after October 15, 1995. Comments must be filed by October 10, 1995.
ADDRESSES: Send comments (an original and 10 copies) referring to:
Docket No. Ex Parte No. MC-5 (Sub-No. 12), Procedural Change in
Authority Revocation Process, to the Office of the Secretary, Case
Control Branch, Interstate Commerce Commission, 1201 Constitution
Avenue, NW., Washington, DC 20423.
FOR FURTHER INFORMATION CONTACT: Dixie E. Horton, (202) 927-5520 or
Patricia A. Burke, (202) 927-5520. [TDD for the hearing impaired: (202)
927-5721.]
SUPPLEMENTARY INFORMATION: The Interstate Commerce Act requires that
motor carriers, brokers, and household goods freight forwarders must
maintain insurance or other security in order to operate in interstate
commerce. Under our current insurance and surety compliance program, as
soon as we learn that a regulated entity's insurance is about to lapse,
we initiate a license revocation proceeding. The revocation process,
however, is not completed until 120 days after the date when the
security is cancelled. We intend to shorten and simplify the revocation
process in order to better protect the public and to make better use of
scarce Commission resources without impinging on an authority holder's
rights under the statute.
Under the Commission's current revocation process, when the
Commission receives a 30-day advance notice of cancellation from an
insurer about to cancel a carrier's or a household goods freight
forwarder's insurance, or a broker's surety bond or trust fund
agreement, it immediately sends a letter to the carrier, forwarder or
broker. The letter advises the authority holder of the cancellation
date, and it indicates that any operations without insurance are
unlawful and that revocation proceedings will begin in the event of
failure to comply with insurance requirements. Unless the Commission
receives acceptable evidence demonstrating that the authority holder's
insurance or security has been renewed by the end of the 30-day advance
notification period, the agency institutes a revocation proceeding
(first decision). The first decision requires the holder either to show
cause why its authority should not be revoked or to achieve compliance
within 60 days. After 60 days, if the Commission has not received
notification of insurance or broker security renewal, a second decision
is issued, establishing a second 60-day compliance period (second
decision). If the Commission has not received evidence of an acceptable
insurance filing by the end of the second 60-day period, the authority
stands revoked. A final notice (third decision) is then issued formally
revoking the authority. If, however, compliance is achieved within
either of the 60-day periods, a notice of discontinuance of the
revocation proceeding is issued.
In our continuing efforts to ensure that our regulatory procedures
are performed efficiently and effectively, we have concluded that the
current procedure is too labor-intensive, and, because it is so time-
consuming, it has the potential for putting the public at unnecessary
risk. We do not have sufficient staff to issue 4 documents to complete
what ought to be a ministerial process. Moreover, a carrier, broker, or
household goods forwarder retains its license for 4 months after its
security has lapsed; during that period of time, the public is at risk
from uninsured carriers that may continue operating--albeit
unlawfully--under color of their license. Shortening our revocation
procedures will conserve scarce resources and better protect the
public.
Under the revised procedures, upon receipt of the 30-day advance
notice of cancellation filed by the insurer, the Commission will issue
an initial order to the carrier, broker, or forwarder instituting a
revocation proceeding. The order will note the cancellation date and
will indicate that any operations without insurance are unlawful. This
order will also direct the authority holder either to obtain
replacement coverage or to show good cause within 30 days of the
service date of the order why its authority should not be revoked. The
order will further provide that failure to respond or comply within 30
days of the service date of the order shall result in revocation of its
operating rights. In the event that acceptable evidence of insurance is
not filed within the 30-day period, or that the authority holder has
not shown cause why its authority should not be revoked, a final order
will be issued notifying the holder that its operating authority has
been revoked.
If the holder achieves compliance within the 30-day period, a
notice discontinuing the revocation proceeding will be issued. Pending
receipt of the notice, the authority holder will have various options
to verify its renewed compliance prior to notification of the
discontinuance. It could confirm that we have received acceptable
filings by contacting its own insurance company/agent or the
Commission's Regional offices, or by accessing the Commission's
Automated Response Capability system at (202) 927-7600. Copies of the
initial order, and the final revocation order or the notice
discontinuing the proceeding will continue to be placed in the
authority holder's public docket file.
These procedures--under which a four-step process concluding 120
days beyond an insurance lapse is replaced with a two-step process
concluding within a few days after an insurance lapse--will not alter
substantive rights and responsibilities. They simply provide for a more
effective and expeditious method of protecting the public from
operations by uninsured motor carriers, brokers and forwarders by
reducing the time period within which operating authorities will be
revoked for failure to comply with 49 U.S.C. 10927.1
\1\ Under section 10927, the holder's authority remains in
effect only so long as the holder is in compliance with the security
limits.
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We will provide a brief comment period to enable interested parties
to submit written statements or arguments regarding the revised
process. Notice of the procedural change will be published in the
Federal Register and the ICC Register, and interested parties will have
10 days to comment.
Environmental Statement
This action will not significantly affect either the quality of the
human environment or the conservation of energy resources.
Authority: 49 U.S.C. 10925 and 10927; 49 CFR 1043 and 1084.
Decided: September 25, 1995.
[[Page 50646]]
By the Commission, Chairman Morgan, Vice Chairman Owen, and
Commissioners Simmons and McDonald.
Vernon A. Williams,
Secretary.
[FR Doc. 95-24264 Filed 9-28-95; 8:45 am]
BILLING CODE 7035-01-P
