97-18682. Exemption of Notice Filing Requirements for Agricultural Cooperative Associations Which Conduct Compensated Transportation Operations for Nonmembers  

  • [Federal Register Volume 62, Number 136 (Wednesday, July 16, 1997)]
    [Rules and Regulations]
    [Pages 38035-38036]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 97-18682]
    
    
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    DEPARTMENT OF TRANSPORTATION
    
    Federal Highway Administration
    
    49 CFR Part 372
    
    [FHWA Docket No. MC-96-38 and No. FHWA-97-2280]
    RIN 2125-AE03
    
    
    Exemption of Notice Filing Requirements for Agricultural 
    Cooperative Associations Which Conduct Compensated Transportation 
    Operations for Nonmembers
    
    AGENCY: Federal Highway Administration (FHWA), DOT.
    
    ACTION: Final rule.
    
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    SUMMARY: This document removes the regulation specifying the notice 
    filing requirements for agricultural cooperative associations which 
    conduct compensated transportation operations for nonmembers. These 
    operations are exempt from regulation if certain statutory limitations 
    on their scope are observed. Section 103 of the ICC Termination Act of 
    1995 (ICCTA), Pub. L. 104-88, 109 Stat. 803, removed the requirement 
    that a notice be filed before initiation of operations under the 
    exemption.
    
    EFFECTIVE DATE: August 15, 1997.
    
    FOR FURTHER INFORMATION CONTACT: Mr. Thomas T. Vining or Ms. Patricia 
    A. Burke, Office of Motor Carrier Information Analysis, HIA-30, (202) 
    358-7028, or Ms. Grace Reidy, Office of the Chief Counsel, (202) 366-
    0834, Federal Highway Administration, 400 Seventh St., SW., Washington, 
    DC 20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday 
    through Friday, except Federal holidays.
    
    SUPPLEMENTARY INFORMATION: On October 21, 1996, the FHWA published a 
    proposed rule and a request for comments in the Federal Register (61 FR 
    54712) on the removal of the regulation specifying the notice filing 
    requirement for agricultural cooperative associations which conduct 
    compensated transportation operations for nonmembers. The former 
    Interstate Commerce Act contained an exemption from ICC regulation at 
    49 U.S.C. 13506(a)(5) (formerly 49 U.S.C. 10526(a)(5)) for 
    transportation provided by an agricultural cooperative association for 
    nonmembers. To qualify for the exemption, the transportation services 
    for nonmembers were required to be incidental to the cooperative's 
    primary transportation operations, could not exceed annually 25 percent 
    of the cooperative's total transportation between any two involved 
    points, and, as a whole, could not exceed the transportation provided 
    for the cooperative association and its members. The cooperative was 
    also required to file a notice with the ICC of its intent to provide 
    transportation for nonmembers.
        The ICCTA reenacted the substantive exemption for nonmember 
    transportation services by agricultural cooperatives, but removed the 
    notice filing requirement. 49 U.S.C. 13506(a)(5). Although the ICCTA 
    does not prohibit imposition of a notice requirement by the FHWA, which 
    has assumed responsibility for this regulation pursuant to the ICCTA, 
    the notice of proposed rulemaking questioned the continuing need for 
    any required notice.
        The public comment period for the proposed rule closed on December 
    20, 1996. No comments were submitted, and the proposed rule is adopted.
        The Secretary is granted authority at 49 U.S.C. 13508 to require 
    agricultural cooperatives to maintain records of transportation 
    provided for members and nonmembers. Section 13508 makes these records 
    subject to inspection and imposes specific penalties for reporting and 
    recordkeeping violations. Regulations at 49 CFR 372.111 delineate the 
    scope of the required records. The information contained in these 
    records can be inspected by the FHWA if it ever appears that a 
    cooperative is performing transportation services for nonmembers which 
    exceed the scope of the exemption. Moreover, it is unlikely that a 
    cooperative would have any incentive to conduct unlawful transportation 
    operations. Under the ICCTA, licensing requirements are now essentially 
    limited to compliance with safety and insurance standards. A 
    cooperative could easily obtain operating authority for legitimate 
    operations.
        In these circumstances, the notice requirement at 49 CFR 372.113 no 
    longer serves any legitimate purpose. Removal of this regulation, and 
    the adoption of conforming amendments to 49 CFR 372.111, will eliminate 
    unnecessary regulatory requirements.
    
    Executive Order 12866 (Regulatory Planning and Review and DOT 
    Regulatory Policies and Procedures)
    
        The FHWA has determined that this action is not a significant 
    regulatory action within the meaning of Executive Order 12866 or 
    significant within the meaning of Department of Transportation 
    regulatory policies and procedures. The economic impact of this 
    rulemaking is minimal; therefore, a full regulatory evaluation is not 
    required. The rulemaking merely
    
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    eliminates a notice filing requirement which applies to a small number 
    of transportation entities. Neither the individual nor cumulative 
    impact of this action is significant.
    
    Regulatory Flexibility Act
    
        In compliance with the Regulatory Flexibility Act (Pub. L. 96-354, 
    5 U.S.C. 601-612), the FHWA has evaluated the effects of this rule on 
    small entities. Based on the evaluation, the FHWA hereby certifies that 
    this action will not have a significant economic impact on a 
    substantial number of small entities. The filing requirement currently 
    only involves the preparation of a relatively simple notice by a 
    limited number of transportation entities. Its elimination, while 
    beneficial, will not have a significant economic impact.
    
    Executive Order 12612 (Federalism Assessment)
    
        This action was analyzed in accordance with the principles and 
    criteria contained in Executive Order 12612, and it was determined that 
    this action does not have sufficient federalism implications to warrant 
    the preparation of a federalism assessment.
    
    Executive Order 12372 (Intergovernmental Review)
    
        Catalog of Federal Domestic Assistance Program Number 20.217, Motor 
    Carrier Safety. The regulations implementing Executive Order 12372 
    regarding intergovernmental consultation on Federal programs and 
    activities do not apply to this program.
    
    Paperwork Reduction Act
    
        This action does not contain a collection of information 
    requirement for purposes of the Paperwork Reduction Act of 1995, 44 
    U.S.C. 3501 et seq. On the contrary, it eliminates the requirement that 
    parties taking advantage of the exemption at 49 U.S.C. 13506(a)(5) file 
    Form OCP-102 (Office of Management and Budget #3120-0005, 
     11-30-
    95).  
     
      
    
      
     
      
     
    
     
    
     .
    
    National Environmental Policy Act
    
        The agency has analyzed this action for the purpose of the National 
    Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has 
    determined that this action would not have any effect on the quality of 
    the environment.
    
    Regulation Identification Number
    
        A regulation identification 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 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 372
    
        Agricultural commodities, Buses, Commercial zones, Freight 
    forwarders, Highways and roads, Motor carriers of property, Reporting 
    and recordkeeping requirements.
    
        In consideration of the foregoing and under the authority of 
    section 103 of the ICC Termination Act of 1995, Pub. L. 104-88, 109 
    Stat 803, and 49 CFR 1.48, the FHWA amends title 49, CFR, Chapter III, 
    Part 372 as set forth below:
    
    PART 372--EXEMPTIONS, COMMERCIAL ZONES, AND TERMINAL AREAS
    
        1. The authority citation for Part 372 continues to read as 
    follows:
    
        Authority: 49 U.S.C. 13504 and 13506; 49 CFR 1.48.
    
        2. Section 372.111 is amended in paragraph (a) by removing the 
    words ``which is required to give notice to the Commission under 
    Sec. 1047.23'', and in paragraph (b) by removing the words ``and 
    required to give notice to this Commission under Sec. 1047.23''.
    
    
    Sec. 372.113  [Removed and reserved]
    
        3. Section 372.113 is removed and reserved.
    
        Issued on: July 7, 1997.
    Jane F. Garvey,
    Acting Administrator for the Federal Highway Administration.
    [FR Doc. 97-18682 Filed 7-15-97; 8:45 am]
    BILLING CODE 4910-22-P
    
    
    

Document Information

Effective Date:
8/15/1997
Published:
07/16/1997
Department:
Federal Highway Administration
Entry Type:
Rule
Action:
Final rule.
Document Number:
97-18682
Dates:
August 15, 1997.
Pages:
38035-38036 (2 pages)
Docket Numbers:
FHWA Docket No. MC-96-38 and No. FHWA-97-2280
RINs:
2125-AE03: Exemption From Notice Filing Requirements for Agricultural Cooperative Associations
RIN Links:
https://www.federalregister.gov/regulations/2125-AE03/exemption-from-notice-filing-requirements-for-agricultural-cooperative-associations
PDF File:
97-18682.pdf
CFR: (2)
49 CFR 1047.23''
49 CFR 372.113