NPRM, Unified Registartion System

Thursday,
May 19, 2005

Part II

Department of
Transportation
Federal Motor Carrier Safety
Administration
49 CFR Parts 360, 365 et al.
Unified Registration System; Proposed
Rule

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules

DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
49 CFR Parts 360, 365, 366, 368, 387
and 390
[Docket No. FMCSA–97–2349]
RIN 2126–AA22

Unified Registration System
Federal Motor Carrier Safety
Administration (FMCSA), Department
of Transportation (DOT).
ACTION: Notice of proposed rulemaking
(NPRM); request for comments.
AGENCY:

SUMMARY: FMCSA proposes a revised
registration system. The Unified
Registration System would apply to
every motor carrier, freight forwarder
and broker required to register with
DOT under 49 CFR 390.19 or 49 U.S.C.
13901, except Mexico-domiciled motor
carriers registering to operate between
Mexico and points in the United States
beyond border commercial zones along
the U.S.-Mexico international border.
The entities covered by this system
would be required to register with
FMCSA and periodically update
registration information provided on a
newly proposed registration form. This
proposal applies to entities that are
already subject to FMCSA Commercial
Regulations, the Federal Motor Carrier
Safety Regulations (FMCSRs), or the
Hazardous Material Regulations
(HMRs).
This action is being taken in response
to section 103 of the ICC Termination
Act of 1995 (ICCTA), which, among
other things, requires the Secretary of
Transportation (Secretary) to propose
regulations to replace four current
identification and registration systems
with a single, on-line, Federal system.
The purpose of this proposal is to
consolidate and simplify current
Federal registration processes and to
increase public accessibility to data
about interstate motor carriers, property
brokers, and freight forwarders. FMCSA
proposes to charge registration fees that
will enable FMCSA to recoup costs
associated with processing registration
applications and administrative filings
and maintaining this system.
DATES: You must submit comments on
or before August 17, 2005.
ADDRESSES: You may submit comments,
identified by DOT DMS Docket Number
FMCSA–97–2349, by any of the
following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.

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• Agency Web Site: http://
dms.dot.gov. Follow the instructions for
submitting comments on the DOT
electronic docket site.
• Fax: 1–202–493–2251.
• Mail: Docket Management Facility;
U.S. Department of Transportation, 400
Seventh Street, SW., Nassif Building,
Room PL–401, Washington, DC 20590–
0001.
• Hand Delivery: Room PL–401 on
the plaza level of the Nassif Building,
400 Seventh Street, SW., Washington,
DC, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
Instructions: All submissions received
must include the agency name and
docket number or Regulatory
Identification Number (RIN) for this
rule. All comments received will be
posted without change to http://
dms.dot.gov, including any personal
information provided. For detailed
instructions on submitting comments
and additional information on the
rulemaking process, see the ‘‘Public
Participation’’ heading of the
SUPPLEMENTARY INFORMATION section of
this document. For a summary of DOT’s
Privacy Act Statement or information on
how to obtain a complete copy of DOT’s
Privacy Act Statement please see the
‘‘Privacy Act’’ heading under
Rulemaking Analyses and Notices.
Docket: For access to the docket to
read background documents or
comments received, go to http://
dms.dot.gov at any time or to Room PL–
401 on the plaza level of the Nassif
Building, 400 Seventh Street, SW.,
Washington, DC, between 9 a.m. and 5
p.m., Monday through Friday, except
Federal holidays.
FOR FURTHER INFORMATION CONTACT: Mr.
Robert F. Schultz, Jr., Office of Bus and
Truck Standards and Operations, (202)
366–4001, Federal Motor Carrier Safety
Administration, Department of
Transportation, 400 Seventh Street,
SW., Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
Public Participation: The DMS is
available 24 hours each day, 365 days
each year. You can get electronic
submission and retrieval help and
guidelines under the ‘‘help’’ section of
the DMS Web site. If you want us to
notify you that we received your
comments, please include a selfaddressed, stamped envelope or
postcard or print the acknowledgement
page that appears after submitting
comments on-line.
Comments received after the comment
closing date will be included in the
docket, and we will consider late
comments to the extent practicable.
FMCSA may, however, issue a final rule

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at any time after the close of the
comment period.
Preamble Table of Contents
The following is an outline of the
preamble.
I. Legal Basis
II. Introduction
III. Pre-ICCTA Background
IV. Summary of the Advance Notice of
Proposed Rulemaking
V. Congressionally Mandated Policy Issues
A. Funding for State Enforcement of Motor
Carrier Safety Regulations
B. Single State Registration System
C. Public Safety; Efficient Delivery of
Transportation Services
D. Registration of Private Motor Carriers
and Exempt For-hire Motor Carriers
VI. The Proposed Replacement System
A. Registration
B. USDOT Numbers
C. Transfer of Operating Authority
D. Biennial Update Requirement
E. Proposed User Fees for the New System
F. Registration Fees
G. General Fee Policy Changes and Revised
Fees
H. Financial Responsibility
1. Bodily Injury and Property Damage
Insurance (BI&PD) Requirement
2. Cargo Insurance Requirement
3. Insurance Filings by Insurers, Surety
Companies and Financial Institutions
4. Self-Insurance
I. Designation of Process Agents
J. Administrative Filings
K. Cancellation and Reinstatement of
USDOT Numbers
L. The New Application Form
M. Multi-Phase Application Process
VII. Special Transit Operation Provisions
VIII. Systems Under Consideration for Merger
with the New Unified Registration
System
A. Registration for Certain MexicoDomiciled Motor Carriers
B. Hazardous Materials Safety Permit
Application Process
C. Hazardous Materials Cargo Tank
Registration Process
IX. Performance and Registration Information
Systems Management Program (PRISM)
X. Regulatory Evaluation of the Unified
Registration System NPRM Summary of
Benefits and Costs
A. Background and Summary
B. Costs
1. New Registration Fees for Private and
Exempt For-Hire Carriers
2. New Process Agent Filings Required by
FMCSA
3. New Requirement and Fee for Insurance
Representatives of Exempt For-Hire
Carriers and Private Carriers of
Hazardous Materials to File Proof of
Liability Insurance
4. New Requirement and Fee for Requiring
Private Hazmat and Exempt For-Hire
Carriers to File Reinstatement Requests
5. Eliminating Transfers of Operating
Authority
6. Revising Other FMCSA Fees
7. Total Costs of URS NPRM
C. Benefits
1. Cost Savings from Streamlined New
Entrant Registration Process

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2. Safety Benefits from Process Agent
Designation Filing Requirement
3. Cost Savings from Eliminating Cargo
Insurance Filing Requirement
4. Total Benefits
5. Net Benefits from URS NPRM
XI. Appendix to the Preamble—Proposed
Form MCSA–1 and Instructions
XII. Rulemaking Analyses and Notices
List of Subjects

I. Legal Basis for the Rule
The ICC Termination Act of 1995
[Pub. L. 104–88, December 29, 1995, 109
Stat. 888] (ICCTA) created a new 49
U.S.C. 13908 directing ‘‘[t]he Secretary,
in cooperation with the States, and after
notice and opportunity for public
comment,’’ * * * to ‘‘issue regulations
to replace the current Department of
Transportation identification number
system, the single State registration
system under section 14504, the
registration system contained in this
chapter, and the financial responsibility
information system under section 13906
with a single, on-line, Federal system.
The new system shall serve as a
clearinghouse and depository of
information on and identification of all
foreign and domestic motor carriers,
brokers, and freight forwarders, and
others required to register with the
Department as well as information on
safety fitness and compliance with
required levels of financial
responsibility. In issuing the
regulations, the Secretary shall consider
whether or not to integrate the
requirements of section 13304 into the
new system and may integrate such
requirements into the new system.’’
Title 49 U.S.C. 13908(c) also authorized
the Secretary to ‘‘establish, under
section 9701 of title 31, a fee system for
registration and filing evidence of
financial responsibility under the new
system under subsection (a). Fees
collected under the fee system shall
cover the costs of operating and
upgrading the registration, including all
personnel costs associated with the
system.’’ Congress specified the rule
must address:
• Funding for State enforcement of
motor carrier safety regulations
• A determination of whether the
existing Single State Registration
System (SSRS) is duplicative and
burdensome;
• The justification and need for
collecting the statutory SSRS fee under
49 U.S.C. 14504(c)(2)(B)(iv);
• The public safety;
• The efficient delivery of
transportation services; and
• How and under what conditions to
extend the registration system to private
motor carriers and exempt for-hire
motor carriers.

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This NPRM proposes a unified
registration system and as such is well
within the authority of the 1996 Act.
The policy issues are addressed in the
preamble under section V—
Congressionally Mandated Policy
Issues.
Today’s NPRM is concerned with
§ 13908, the registration of motor
carriers, brokers and freight forwarders.
FMCSA proposes a new Federal on-line
registration system for every motor
carrier, freight forwarder and broker
required to register with DOT under 49
CFR 390.19 or 49 U.S.C. 13901, except
Mexico-domiciled motor carriers
registering to operate between Mexico
and points in the United States beyond
border commercial zones along the U.S.Mexico international border. Title 49
CFR 390.19 concerns the safety
registration of all for-hire and private
motor carriers, while 49 U.S.C. 13901
covers non-exempt for-hire motor
carriers, freight forwarders and brokers.
The registration systems for Mexicodomiciled carriers requesting to operate
between Mexico and points in the
United States beyond border
commercial zones along the U.S.Mexico international border, as well as
Hazardous Materials Safety Permits and
Hazardous Materials Cargo Tanks, are
discussed in greater detail under section
VIII—Systems under Consideration for
Merger with the New Unified
Registration System.
FMCSA would integrate three of the
four systems stipulated under 49 U.S.C.
13908(a) into a new unified system.
Also as directed by that statutory
provision, we have considered
integration of the fourth system, the
Single State Registration System (SSRS)
under section 14504. We find that
registration and financial responsibility
compliance information currently
generated by the SSRS is fully
duplicated by the information collected
under the proposed Unified Registration
System and we preliminarily endorse
the concept of integrating this fourth
system under this rule. We have not
proposed elimination of the SSRS at this
time, however, because we require
additional information to determine
whether we can meet the conditions
prescribed by Congress for merger and
elimination of SSRS under section
13908(d). That provision directs that
before we can propose elimination of
the SSRS, we must ensure that: (1) Fees
collected and distributed to the States
under the new Unified Registration
System will be sufficient to provide
each SSRS-participating State with at
least a level of revenue commensurate
with what the State received from SSRS
fees in fiscal year 1995; and (2) all States

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would receive a minimum
apportionment from the distribution of
fees collected under the proposed
Unified Registration System. As
amplified in the subsequent ‘‘Single
State Registration System’’ discussion,
we specifically seek public comment on
fee structures or alternative measures
that would permit full integration of the
SSRS into the Unified Registration
System and, in turn, would allow
elimination of the SSRS program, while
preserving the reimbursement and
apportionment levels mandated by 49
U.S.C. 13908(d). We also seek public
comment on the advisability of
recommending legislative change in a
report to Congress under 49 U.S.C.
13908(e)(3) in order to create greater
latitude for incorporating the SSRS
program into the Unified Registration
System proposed here.
The new system would incorporate
the section 13304 requirement for a
motor carrier, freight forwarder, or
broker to designate an agent(s) for
service of process for each State in
which it intends to operate. Under the
existing system, only non-exempt forhire carriers must make such filings.
The NPRM would extend the
requirement to all registrants, including
exempt for-hire and private carriers.
Title 49 U.S.C. 503 grants authority to
extend the process agent filing
requirement to private carriers. When
FMCSA (then FHWA) solicited
comment on whether to compel private
carriers to make such filings, the public
responded that exempt for-hire and
private carriers should be subject to the
same process agent filing requirement as
non-exempt for-hire motor carriers,
brokers, and freight forwarders (see the
advance notice of proposed rulemaking
(ANPRM) titled Motor Carrier
Replacement Information/Replacement
System published August 26, 1996 at 61
FR 43816). FMCSA believes extending
the requirement to exempt for-hire and
private carriers would ensure the agency
and the public are able to contact a
carrier when necessary.
Title 31 U.S.C. 9701 establishes
general authority for agencies to ‘‘charge
for a service or thing of value provided
by the agency.’’ Accordingly, FMCSA
proposes to charge registration fees that
will enable the agency to recoup costs
associated with processing registration
applications and administrative filings.
All applicants, except certain FTA
grantees and State sub-grantees, would
pay a $200 registration fee and pay for
certain administrative filings.
The Motor Carrier Safety Act of 1984
requires the Secretary to prescribe
regulations on commercial motor
vehicle safety. The regulations shall

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prescribe minimum safety standards for
commercial motor vehicles (CMVs). At
a minimum, the regulations shall ensure
that (1) CMVs are maintained, equipped,
loaded, and operated safely; (2) the
responsibilities imposed on operators of
CMVs do not impair their ability to
operate the vehicles safely; (3) the
physical condition of operators of CMVs
is adequate to enable them to operate
the vehicles safely; and (4) the operation
of CMVs does not have a deleterious
effect on the physical condition of the
operators (49 U.S.C. 31136(a)).
This NPRM is intended to streamline
the registration process and ensure that
FMCSA can more efficiently track CMVs
and ensure their safe operation. As
such, it implements the section
31136(a)(1) mandate that FMCSA’s
regulations ensure that CMVs are
maintained and operated safely. The
Unified Registration System imposes no
operational responsibilities on drivers.
Therefore, this proposed regulation
would not impair a driver’s ability to
operate vehicles safely (section
31136(a)(2)), would not impact the
physical condition of drivers (section
31136(a)(3)), and would not have a
deleterious effect on the physical
condition of drivers (section
31136(a)(4)). Accordingly, FMCSA has
addressed the statutory mandate of
section 31136(a) and finds that the
proposed regulation is fully responsive
to this mandate.
II. Introduction
As noted, FMCSA proposes a unified
registration system, as required by
section 103 of ICCTA. Section 103,
codified as 49 U.S.C. 13908, directs the
Secretary of Transportation to issue a
rule to replace the following four
systems with a ‘‘single, on-line, Federal
system:’’
(1) The current Department of
Transportation identification number
system (49 CFR part 390);
(2) The Single State Registration
System (SSRS) under 49 U.S.C. 14504
(49 CFR part 367);
(3) The registration system under 49
U.S.C. 13901–13905 (49 CFR part 365);
and
(4) The financial responsibility
information system under 49 U.S.C.
13906 (49 CFR part 387).
A detailed discussion of these systems
appears in the 1996 ANPRM. The
ANPRM is also available in the docket
for this rule; access to the docket is
explained above in ADDRESSES.
The proposed replacement system
would identify and house information
about all interstate motor carriers,
brokers and freight forwarders, and
others that must register with the

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Department of Transportation. It would
also be a depository for information on
safety fitness and compliance with
financial responsibility requirements.
III. Pre-ICCTA Background
The Motor Carrier Act of 1935 [Pub.
L. 74–255, 47 Stat. 543] placed
regulatory authority over the motor
carrier industry with the Interstate
Commerce Commission (ICC). ICC was
responsible for issuing operating
authority and permits and administering
matters related to insurance, safety, and
enforcement as they applied to nonexempt for-hire common and contract
motor carriers.1 ICC exercised safety
oversight over all for-hire and private
motor carriers, but its economic
oversight encompassed only nonexempt for-hire motor carriers.
In 1967, the Department of
Transportation (DOT) was created and
responsibility for motor carrier safety
activities was transferred from ICC to
the Bureau of Motor Carrier Safety
within FHWA. The Bureau of Motor
Carrier Safety subsequently became the
Office of Motor Carriers. FHWA
required all interstate motor carriers
engaged in interstate or foreign
commerce to obtain a USDOT
identification number from the agency
for safety oversight purposes (53 FR
18042, May 19, 1988). Affected parties
included for-hire motor carriers subject
to ICC economic oversight, as well as
motor carriers exempt from ICC
jurisdiction (such as private carriers and
exempt for-hire motor carriers).
ICC continued to regulate non-exempt
for-hire interstate and foreign motor
carriers of property and passengers,
issuing certificates of public
convenience and necessity (for common
carriers), permits (for contract carriers
and freight forwarders 2), or licenses (for
property brokers). These entities were
assigned an MC or MX number as
evidence of ICC authority/licensure,
except freight forwarders who received
FF numbers. Motor carriers, property
brokers and freight forwarders were
subject to financial responsibility filing
1 The Motor Carrier Act and subsequent
legislation created numerous exemptions to ICC
jurisdiction based upon the commodity transported
(e.g., fresh produce and other agricultural products)
or circumstances underlying the transportation
(e.g., property or passengers having a prior or
subsequent movement by air carrier). These
exemptions were retained in chapter 139 of ICCTA.
For purposes of this document, the term ‘‘nonexempt’’ or ‘‘exempt’’ for-hire carrier refers to
whether the carrier is subject to the chapter 139
registration requirements.
2 Following deregulation of the freight forwarding
industry in 1986, only freight forwarders of
household goods had to be licensed by the ICC.
ICCTA subsequently reinstated the registration
requirement for all freight forwarders.

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requirements as a condition for receipt
and retention of operating authority. ICC
maintained an up-to-date, automated
insurance monitoring system to validate
compliance with the financial
responsibility requirements.
ICCTA eliminated ICC, and
transferred certain ICC regulatory
responsibilities to the DOT. The savings
provision in section 204 of ICCTA
preserved all effective ICC regulations,
rules and decisions until the Secretary
finds modification of these documents
is warranted, thereby preserving the
status quo. FHWA gave public notice of
the effectiveness of these ICC
documents in 61 FR 14372, April 1,
1996.
IV. Summary of the Advance Notice of
Proposed Rulemaking
On August 26, 1996, FMCSA (then
FHWA) published an ANPRM (61 FR
43816) announcing plans to create a
single, on-line Federal registration
system. The ANPRM provided an
historical overview to support why a
replacement system is necessary,
included a description of the four
systems to be replaced, and posed
specific questions for comment.
FMCSA received 104 comments to the
docket that may be viewed on the
Internet by visiting http://dms.dot.gov/
search and typing the last four digits of
the docket number in the heading of this
document. FMCSA has analyzed the
comments to the ANPRM and taken
them into consideration in the
formulation of this notice.
Most of the commenters supported
the proposal of a single, on-line system
with the following features:
1. Fees assessed on all applicants and
based solely upon the actual costs to
operate the system;
2. A requirement to register with a
single governmental entity;
3. Elimination of the SSRS and a
reimbursement of lost revenue for fees
to impacted States;
4. A requirement that all registrants
file proof of financial responsibility; and
5. A requirement that all registrants
file a designation of persons upon
whom court process may be served
(designation of agents for service of
process).
Several commenters suggested that
FMCSA achieve complete regulatory
uniformity for all entities under its
jurisdiction by either eliminating
requirements or broadening their
applicability to all entities. Some
responded that all carriers should be
required to provide similar information
in the new registration system. For
example, some recommended that
FMCSA should require all motor

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carriers to file evidence of insurance
while others wanted FMCSA to remove
the existing insurance filing
requirement.
Although FMCSA has considered
these suggestions, we cannot propose or
implement them in a rulemaking
proceeding without first obtaining legal
authority through statutory change.
Section 13908(e)(3) directs the Secretary
to transmit to Congress a report on any
findings of this rule and the changes the
DOT decides to implement, together
with recommendations for any proposed
legislative changes. FMCSA plans in
that report to address policies it wishes
to adopt in response to the 1996
ANPRM comments which require
statutory change.
FMCSA has incorporated several of
the ANPRM responses in formulating
today’s proposal. In response to public
comment, the USDOT Number would
replace the MC, MX, and FF numbers,
and all motor carriers under FMCSA
jurisdiction would be required to file a
process agent designation with FMCSA.
V. Congressionally Mandated Policy
Issues
Congress directed the Secretary to
address the following policy issues in
this rule:
(1) Funding for State enforcement of
motor carrier safety regulations;
(2) A determination of whether the
existing SSRS is duplicative and
burdensome;
(3) The justification and need for
collecting the statutory SSRS fee under
49 U.S.C. 14504(c)(2)(B)(iv);
(4) The public safety;
(5) The efficient delivery of
transportation services; and
(6) How and under what conditions to
extend the registration system to private
motor carriers and exempt for-hire
motor carriers.
A. Funding for State Enforcement of
Motor Carrier Safety Regulations
FMCSA believes that funds provided
by the Motor Carrier Safety
Improvement Act of 1999 [Pub. L. 106–
159, December 9, 1999, 113 Stat. 1764]
(MCSIA) and the Transportation Equity
Act for the 21st Century [Pub. L. 105–
178, June 9, 1998, 112 Stat. 418] (TEA–
21) adequately satisfied congressional
concerns regarding funding for State
enforcement of motor carrier safety
regulations. Total funding for State
enforcement activities through the
FMCSA Motor Carrier Safety Assistance
Program (MCSAP) has increased
substantially since 1995 and is
summarized below.

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Amount in
millions

Fiscal year
1995
1996
1997
1998
1999
2000
2001
2002
2003

............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................
............................................

$74
77
78
79
90
90
155
160
165

Although Congress has not yet passed
a new surface transportation
reauthorization bill for years beyond
2003, FMCSA anticipates Congress will
do so and that the legislation will
adequately address funding for the State
enforcement of Federal Motor Carrier
Safety Regulations.
B. Single State Registration System
Under the Single State Registration
System (SSRS), currently conducted by
38 States in accord with the
requirements of 49 U.S.C. 14504,
interstate, for-hire motor carriers are
required to register annually with one
State and provide evidence to the State
of Federal registration under 49 U.S.C.
chapter 139. In addition to filing and
maintaining evidence of Federal
registration, motor carriers are required
annually to: (1) File satisfactory proof of
required insurance or qualification as a
self-insurer; (2) pay required fees
directly to the SSRS base State; and (3)
file the name of a local agent for service
of process. Congress designated the
SSRS among those programs that we
should consider for inclusion in the
Unified Registration System under
13908(a), but further provided in 49
U.S.C. 13908(d) that before we can
propose elimination of the SSRS, we
must be able to ensure that: (1)
Registration fees collected under the
proposed Unified Registration System
and distributed to the States each fiscal
year would be sufficient to provide each
SSRS-participating State with at least as
much revenue as it received from SSRS
fees in fiscal 1995 [49 U.S.C.
13908(d)(1)]; and (2) all States would
receive a minimum apportionment from
the distribution of fees collected under
the proposed Unified Registration
System.
Comments received in response to the
ANPRM suggest strongly that the
existing SSRS is both duplicative and
burdensome when assessed against
current Federal registration and
licensing requirements and particularly
when evaluated under the proposed
Unified Registration System. The
essential information collected through
SSRS (evidence of registration by
interstate, for-hire carriers and proof of

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their compliance with financial
responsibility requirements) already is
available to all States through the
FMCSA Licensing and Insurance
database and will remain so under the
Unified Registration System proposed
here. In fact, SSRS participating States
currently tap into the Licensing and
Insurance database to download
verifications of carriers’ financial
responsibility.
It appears that the only information
collected by the SSRS that is not
currently available to FMCSA and
would not be collected through Form
MCSA–1 filings is the operational
distribution of vehicles among States
where registered carriers perform their
interstate service. Because operational
distribution data is collected solely for
the purpose of apportioning SSRS
registration fees among participating
States, it is essentially an informational
by-product of the SSRS fee collection
system, and clearly provides neither
safety nor compliance information to
State users.
The proposed Unified Registration
System would generate the same
registration and financial responsibility
information captured by the SSRS and,
thus, integrates the operational and
compliance features of the SSRS.
Continuation of the SSRS in tandem
with the Unified Registration System
proposed here would therefore appear
to be duplicative. In view of the relative
ease and universality with which the
registration and financial responsibility
compliance information can be accessed
by the States through the FMCSA
databases, the SSRS requirement that
carriers maintain copies of their SSRS
registration receipts in each vehicle also
would appear to be unnecessarily
burdensome. Although some
participating SSRS States may support
safety or transportation efficiency
initiatives with revenues generated by
the SSRS fee system prescribed under
49 U.S.C. 14504(c)(2)(B)(iv), there is no
requirement that they do so. Indeed,
comments in response to the ANPRM
suggest that SSRS revenues are as likely
as not to find their way into States’
general funds where they may be
applied to any programmatic purpose.
Accordingly, when assessed in light
of relevant factors prescribed at 49
U.S.C. 13908(b), the SSRS appears to be
a viable candidate for integration with
the other three systems proposed for
unification. Moreover, the SSRS could
for all practical purposes be considered
already fully integrated under this
proposal, inasmuch as all information
critical to the SSRS would be captured
under Form MCSA–1 and available to

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States through the on-line databases
maintained by the FMCSA.
Despite these considerations, we
cannot at this time propose elimination
of the SSRS. To be consistent with the
49 U.S.C. 13908(d) criteria for
eliminating the SSRS program, the
FMCSA would need to reimburse from
Unified Registration System fees an
annual amount totaling approximately
$96 million to the 38 States currently
participating in the SSRS and would
further need to ensure availability of
additional funds for distribution as a
minimum apportionment among all
States. Financing the required levels of
State reimbursement would result in
fees approximating $2300 per carrier, an
expense that we believe would be
unreasonably burdensome.
The FMCSA specifically seeks public
comment on the implications of this feebased reimbursement to States as a
means of preserving their SSRSgenerated revenues and allowing for the
required minimum apportionment, were
the SSRS program to be eliminated. In
addition, we seek public comment on
alternative means by which we might
ensure the required annual
reimbursement and minimum
apportionment levels under a fee
assessment schedule different from that
proposed here. Comments to the
ANPRM, for example, mentioned, but
did not necessarily endorse, the concept
of imposing additional fees on insurers
or assessing unified registration fees on
other than a flat rate per carrier basis—
such as per vehicle fees, a graduated
rate based on fleet size, or a total carrier
revenue basis. We would welcome
comments on the viability of these and
other alternatives as a means of fully
integrating SSRS into the Unified
Registration System, eliminating the
SSRS program as presently observed by
participating States, and still preserving
the reimbursement and apportionment
obligations imposed by 49 U.S.C.
13908(d).
Upon evaluation of the comments
received in response to this issue, we
will consider whether to recommend in
a report to Congress under 49 U.S.C.
13908(e)(3) legislative changes to
eliminate (1) the SSRS program as
prescribed under 49 U.S.C. 14504; and/
or (2) the reimbursement and
apportionment requirements of 49
U.S.C. 13908(d). It is our preliminary
conclusion, based on comments
submitted in response to the ANPRM
and upon our assessment of a viable fee
structure for the Unified Registration
System, that all informational benefits
of the existing SSRS program are fully
captured by the rule proposed here and
that reasonable registration fees

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associated with the proposed system
could not sustain the reimbursement
and apportionment requirements of the
present statute. We encourage
commentors to address specifically the
policy and legislative implications of
this preliminary conclusion.
C. Public Safety; Efficient Delivery of
Transportation Services
FMCSA believes the proposals in this
rule address public safety and the
efficient delivery of transportation
services as intended by Congress.
FMCSA has established a requirement
under 49 CFR 390.19 for interstate
carriers operating in the U.S. to update
their information biennially and
proposes to continue that requirement
in this rule. The effectiveness and
usefulness of FMCSA safety-related
initiatives such as the Motor Carrier
Safety Status Measurement System
(SafeStat) and the Performance and
Registration Information Systems
Management Program (PRISM) are
directly linked to the accurate and
efficient collection and reporting of
motor carrier safety data. Timely and
accurate safety information has multiple
benefits—it enables FMCSA to: (1)
Track safety performance trends; (2)
develop more effective driver and
vehicle safety programs; (3) monitor the
safety status of individual carriers; (4)
ensure carrier compliance with
FMCSRs; and (5) track any changes in
the motor carrier industry that may
affect carrier safety.
D. Registration of Private Motor Carriers
and Exempt For-Hire Motor Carriers
FMCSA has carefully considered the
extent to which the registration process
should include private motor carriers
and exempt for-hire motor carriers. This
rule proposes to extend the public
liability insurance filing requirements to
private carriers of hazardous materials
and exempt for-hire motor carriers.
FMCSA does not propose to extend the
insurance filing requirement to private
carriers of non-hazardous commodities
because there is currently no statutory
authority to do so. Additionally,
FMCSA proposes to require all motor
carriers to file a process agent
designation with FMCSA as a condition
for registration. FMCSA believes there is
an inherent crash risk in all interstate
commercial motor vehicle operations
due to the vehicle miles traveled and
exposure to other vehicles on the
highway. Accordingly, this rule
proposes that most carriers, except
private carriers of non-hazardous
materials, be required to provide proof
of financial responsibility and that all
carriers be equally accessible for service

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of legal process. Expanding these filing
requirements would result in greater
safety benefits to the general public and
enhance the ability to easily obtain
motor carrier information when
necessary.
Motor carriers conducting operations
in interstate commerce have been
required to file the MCS–150 prior to
commencing operations since July 2000,
pursuant to ICCTA and 49 CFR 390.19.
Shortly after receipt of a completed
MCS–150, FMCSA assigns a USDOT
Number to the motor carrier and notifies
it of the number assigned. All safety
performance data on each motor carrier
are linked to the USDOT Number. This
includes roadside inspection data, crash
data, and safety and compliance review
information. The USDOT Number is
used to link data together to produce
summaries or reports on specific motor
carriers.
VI. The Proposed Replacement System
A. Registration
FMCSA intends to create a unified
registration process consistent with
ICCTA requirements. All private or forhire motor carriers transporting property
or passengers in interstate commerce in
the U.S. would be required to register
with FMCSA except Mexico-domiciled
motor carriers registering to operate
between Mexico and points in the
United States beyond border
commercial zones along the U.S.Mexico international border. Requiring
these entities to register allows FMCSA
to have a more complete census of
motor carriers under its jurisdiction.
This information could then be shared
with other Federal and State regulatory
agencies, as well as the general public,
which would aid in promoting safety.
The majority of comments to the
ANPRM in this docket support the
creation of a more simplified
registration system that includes the
universe of motor carriers subject to
FMCSA jurisdiction.
FMCSA also proposes that property
brokers and freight forwarders be
included in the unified system because
ICCTA requires us to register them and
ensure that they maintain the necessary
evidence of financial responsibility.
The proposed registration system
would simplify the registration process
for motor carriers in that motor carriers
would only be required to complete one
form, proposed Form MCSA–1—
FMCSA Registration Form (USDOT
Number Application). Under the current
system, there are six forms, with most
carriers being required to file at least
two of the six. Motor carriers will no
longer have to decide which form(s) to

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complete, hoping to complete the
correct form(s) on the initial
application.
This proposal encourages continued
use of electronic filing because it
significantly reduces processing time for
registration applications and related
documents. Currently, motor carriers
and other applicants have the option of
using the Safety and Fitness Electronic
Records System (SAFER) on-line site to
apply for operating authority, obtain a
USDOT Number and make safety
certifications. Applicants pay
registration fees and civil forfeiture fines
by credit card using an electronic link
from SAFER to the U.S. Department of
Treasury’s on-line financial
management service (Pay.Gov).
Electronic filing reduces current paperbased processing time by between 2 to
4 weeks (based on the additional time
required for applications to reach
FMCSA by mail and to manually
process them.)
If this notice is promulgated as a final
rule, the new integrated on-line
application process would replace the
existing electronic options for filing
applications for operating authority, a
USDOT Number and related documents.
FMCSA believes the proposed on-line
registration system would significantly
reduce application-processing time. An
applicant would not need to determine
the appropriate application to file, and
the on-line replacement system would
feature a built-in error-checking feature
to alert the applicant when incorrect
information has been entered,
prompting for valid information. This
quality control feature would decrease
time spent by agency employees
contacting applicants to correct the
application. Incomplete applications
would automatically be rejected by the
system. As a result, application
processing would be more efficient for
both customers and FMCSA.
FMCSA proposes an on-line
application process because: (1) More
than 70 percent of motor carriers in the
United States now have Internet access,
with the trend clearly increasing; (2)
there is widespread public access to
computers and the Internet in public
libraries, Internet cafes, or other
commercial establishments; (3)
automated error-checking would result
in more accurate information about the
applicant; (4) on-line filing would allow
USDOT Numbers to be issued in a more
timely manner, and (5) electronic filing
is more cost-effective for FMCSA
compared to manually processing
applications.
Although FMCSA would not mandate
electronic filing of registration
applications and related documents at

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this time, we invite comments and
suggestions regarding the following
issues:
(1) What would be the impact
(benefits or hardships) on applicants of
a mandatory on-line filing requirement?
(2) Should FMCSA immediately
require on-line filing or should there be
a phase-in period for mandatory on-line
filing? If so, how long should the phasein period be?
Current registration procedures in 49
U.S.C. 13902 allow anyone to oppose a
request for permanent operating
authority by non-exempt for-hire motor
carriers, property brokers, and freight
forwarders, provided the protest is
based upon the applicant’s failure to
comply with: (1) The registration
procedures; (2) applicable DOT
regulations, including the FMCSRs and
the HMRs; (3) the safety fitness
standards; and/or (4) financial
responsibility requirements. This
proposed Unified Registration System
would continue to allow protests for
applications covered under section
13902, but would not extend the right
of protest to applications for registration
filed by private motor carriers or exempt
for-hire motor carriers. Information on
opposing a registration is under
proposed 49 CFR part 360, subpart B of
this proposal.
B. USDOT Numbers
The current registration systems
administered by FMCSA use four
identification numbers: the USDOT
Number, which most motor carriers
subject to FMCSA jurisdiction are
required to obtain, the Motor Carrier
(MC) number, which is assigned to nonexempt for-hire motor carriers and
brokers registering under chapter 139;
the FF number which is assigned to
freight forwarders; and the MX number,
which is assigned to Mexico-domiciled
carriers operating in the U.S. border
commercial zones.
FMCSA proposes to discontinue
issuance of MC, MX and FF numbers
and to phase out the use of current MC,
MX and FF numbers within 2 years of
the effective date of a final rule. The
USDOT Number would become the sole
identification number for all entities
registered by DOT. This approach is
prudent and simple because all
registered motor carriers have a USDOT
Number and because 16 States have
elected to use the USDOT numbering
system for registering intrastate motor
carriers and their vehicles. Pursuant to
49 CFR 390.21, motor carriers would not
need to remove the obsolete numbers
from their vehicles.
FMCSA would issue a USDOT
Number with a distinctive suffix to any

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28995

Mexico-domiciled carrier granted
registration. This unique USDOT
Number would display on the side of
the vehicle pursuant to the CMV
marking requirement under 49 CFR
390.21, and would meet DOT’s
obligation under section 350(a)(4) of the
2002 Department of Transportation
Appropriations Act [Pub. L. 107–87,
Title III, section 350, Dec. 18, 2001, 115
Stat. 864] by allowing FMCSA to
distinguish Mexico-domiciled motor
carriers authorized to conduct
operations beyond the border
commercial zones from those authorized
for only within-zone operations.
C. Transfer of Operating Authority
As stated above, FMCSA now assigns
a unique USDOT Number to each
corporation, partnership or individual
proprietorship that is responsible for the
safety of interstate motor carrier
operations. FMCSA also assigns unique
USDOT Numbers to subsidiary
corporations. Generally speaking,
USDOT Numbers are assigned to one
carrier and remain assigned to that
carrier. Motor carriers that obtain a
USDOT Number under 49 CFR 390.19,
but are not required to register with
FMCSA under 49 U.S.C. Chapter 139,
are encouraged but not required to
notify the agency when changes in
ownership occur. Motor carriers that
register under section 13901 are
however subject to notification
requirements.
Current part 365, subpart D permits
for-hire motor carriers, brokers and
freight forwarders that register under
chapter 139 to merge, transfer or lease
their operating authority (identified by
MC or FF numbers), and establishes
procedures for agency approval of these
transactions. These entities are required
to file transfer applications with FMCSA
and pay a $300 fee.
ICCTA removed the provisions
governing transfers of operating
authority by repealing former 49 U.S.C.
10926. As a result, FMCSA (then
FHWA) proposed removing the transfer
regulations in a February 13, 1998,
NPRM (63 FR 7362). In response to this
proposal, the Distribution & LTL
Carriers Association (DLTL), the
Transportation Lawyers Association
(TLA), Landstar System, Inc., the
American Bus Association (ABA), and
Federal Express Corporation argued that
disallowing transfer of registration
would subject motor carriers to a more
expensive registration process when
ownership changes occur—a cost
without a corresponding safety benefit.
Most of these additional costs would
result from having to change MC
numbers on vehicles. DLTL contended

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that continuing to allow transfers would
‘‘assist * * * in keeping track of the
existing applicant universe and
calculating new entrants.’’ TLA,
Landstar, and ABA commented about
the costs and burdens resulting from
elimination of transfer approval, but did
not provide specific figures.
On May 16, 2001, FMCSA published
a notice in the Federal Register (66 FR
27059) announcing the withdrawal of
the February 1998 NPRM with the
intention of addressing the transfer
issue in today’s rulemaking action.
FMCSA proposes to remove
regulations in 49 CFR part 365, subpart
D that govern the transfer of operating
authority. As a result of this action, MC
numbers would no longer be subject to
transfer. Although commenters to the
February 1998 NPRM were concerned
about the cost of re-marking vehicles
with new MC numbers if transfers were
not allowed, FMCSA has discontinued
use of the MC number to identify
vehicles and now requires all FMCSA
regulated motor carriers to mark their
commercial motor vehicles with their
USDOT Number and the legal or ‘‘doing
business as’’ name of the business entity
that owns the motor carrier. See the
final rule entitled Federal Motor Carrier
Safety Regulations, General;
Commercial Motor Vehicle Marking,
published in the June 2, 2000, Federal
Register at 65 FR 352387. Furthermore,
as discussed above, FMCSA proposes to
issue only a USDOT Number and
discontinue use of MC, MX and FF
numbers.
Unlike chapter 139 certificates and
permits, which have traditionally been
considered transferable motor carrier
assets, a USDOT Number is a unique
identifier used to monitor a carrier’s
safety performance. As such, the
USDOT Number never has been subject
to transfer. In order to preserve the
sanctity of the number as an identifier
of each entity’s operational profile and
safety history, the proposed rule
preserves the prohibition on transfers.
The proposed rule would continue to
permit retention of the existing USDOT
Number in instances where there is a
change in legal name, form of business,
or address, provided that there is no
change in the ownership, management,
or control of the involved entity.
Circumstances in which retention of the
USDOT Number would be permissible
include: (1) A change in the legal name
of a sole proprietorship, corporation, or
partnership: (2) a change in the trade
name or assumed name of an entity; and
(3) a change in the form of a business,
such as the incorporation of a
partnership or sole proprietorship. We
specifically invite commenting parties

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to identify additional instances in
which FMCSA might permit retention of
a USDOT Number following structural,
practical, or ministerial changes to a
registered entity.
To ensure the continuing relevance
and viability of the USDOT Number as
a unique identifier and repository for
safety data associated with a particular
entity, the proposed rule would require
all entities requesting a change in legal
name, form of business, or address to:
(1) File a revised From MCSA–1 within
20 days of the precipitating change; and
(2) submit a certification accompanying
the revised Form MCSA–1 confirming
that there has been no change in the
ownership, management, or control of
the entity holding the involved USDOT
Number. This prescribed process would
allow FMCSA to monitor more closely
and in a timely manner informational
changes affecting all entities holding
USDOT Numbers. The proposed 20-day
notification period would impose a time
limit for submitting changes in key
information for the first time on most
registrants and would abbreviate the 45day notification period currently
applicable to Mexico-domiciled carriers
operating in border commercial zones
under 49 CFR 368.4. The 20-day
notification period would apply to all
carriers, including Mexico-domiciled
carriers operating in border commercial
zones.
D. Biennial Update Requirement
Under current § 390.19, carriers are
required to file Form MCS–150, Motor
Carrier Identification Report biennially,
as provided by section 217 of MCSIA.
Carriers now file Form MCS–150 online, by mail or by fax without a fee. The
registration updates provide valuable
information about carriers and their
fleets, and provide useful data for
assessing safety performance. This rule
proposes to replace Form MCS–150
with the MCSA–1, which contains a
section specifically developed for the
biennial update. The requirement to
update identification information would
be removed from § 390.19, re-designated
as § 360.25 and made applicable to all
entities under FMCSA jurisdiction,
including passenger and property
carriers, freight forwarders, and
property brokers, except Mexicodomiciled motor carriers registering to
operate between Mexico and points in
the United States beyond border
commercial zones along the U.S.Mexico international border. This rule
also proposes at § 360.25 that notice of
changes to key identifying information,
such as changes in the legal name, form
of business, or address be filed with
FMCSA within 20 days of the change.

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This requirement is also a critical
component of the goal of obtaining and
maintaining accurate, current and
timely information, as required by
section 217 of MCSIA.
States participating in the joint
Federal-State PRISM program check
motor carriers’ MCS–150 ‘‘date of last
update’’ in FMCSA information systems
as part of their annual International
Registration Plan (IRP) license plate
renewal processes. If the motor carrier’s
MCS–150 data will exceed 24 months
old before the end of the license plate
registration period, the State requires
them to update their MCS–150 data as
a condition for receiving their IRP
license plate. This approach ensures
that motor carriers who obtain IRP
license plates in PRISM states cannot let
their MCS–150 data expire. FMSCA has
determined that motor carriers who
update their MCS–150 data in this
manner already meet the periodic filing
requirement of the current 49 CFR
390.19 and would require no additional
filing with FMCSA. Such carriers would
need to continue to comply with the
§ 360.25 requirement to file accurate
information. The PRISM process is
discussed in more detail later in this
document.
E. Proposed User Fees for the New
System
This rule proposes revised and new
fees to maintain the information systems
necessary to accurately identify motor
carriers, brokers, and freight forwarders
operating in interstate commerce. Until
this rule, FMCSA had not proposed a
fee schedule for recouping costs
associated with its increased
responsibilities for maintaining
complete and accurate information on
entities it regulates.
Title 49 U.S.C. 13908 specifically
directs the Secretary to create and
implement a unified on-line registration
system that captures information about
the identification, safety fitness, and
financial responsibility of registered
entities. Section 13908(c) grants the
Secretary discretion to establish a fee
system that covers the costs of this
registration system.
In accordance with section 13908(c),
FMCSA proposes separate fees to cover
a number of distinct, but related,
activities associated with registration.
(The full breakout of proposed fees is
discussed in the section entitled
‘‘Regulatory Evaluation of the Unified
Registration System (URS) NPRM:
Summary of Benefits and Costs’’ and in
the full Regulatory Evaluation that has
been placed in the public docket.) The
principle underlying the assignment of

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the proposed user fees is that the users
would pay only for costs that they incur.
F. Registration Fees
Currently, non-exempt for-hire motor
carriers, freight forwarders and brokers
initially seeking operating authority
under 49 U.S.C. chapter 139 pay a $300
filing fee. However, private carriers and
exempt for-hire carriers are not subject
to a filing fee when requesting a USDOT
Number under 49 CFR part 390. As
proposed in this NPRM, all entities
under FMCSA jurisdiction would pay a
$200 registration fee at the time the
application is filed.
G. General Fee Policy Changes and
Revised Fees
In addition to the $200 initial
registration fees, FMCSA is proposing
changes to a number of other licensing
and insurance fees. The section in this
notice entitled ‘‘Regulatory Evaluation
of the Unified Registration System
(URS) NPRM: Summary of Benefits and
Costs’’ includes a detailed explanation
and complete list of the proposed
licensing and insurance filing fee
changes.
FMCSA has changed the fee scale in
various ways in an effort to administer
system costs more equitably among
users. Certain fees would be entirely
eliminated. Currently, for example,
carriers that are subject to chapter 139
registration requirements must pay a
$14 fee for name change requests. Yet
private and exempt for-hire carriers that
are not subject to chapter 139
registration requirements are not
charged for making name changes.
Under this proposal, the name change
fee would be eliminated for all
registrants.
Other fees would change and be made
applicable to a broader scope of carriers.
Currently, only those carriers that are
subject to the chapter 139 registration
requirements must pay an $80 fee to
reinstate operating authority that has
been revoked (voluntarily or
involuntarily). FMCSA proposes to
increase to $100 the reinstatement fee
for chapter 139 registrants.
Additionally, a reinstatement fee would
be made applicable to private and
exempt for-hire motor carriers. If a
private or exempt for-hire motor carrier
failed to comply with financial
responsibility or process agent filing
requirements, FMCSA would deactivate its USDOT Number and charge
a $100 reinstatement fee to reactivate
the USDOT Number. The $100 fee
would compensate the agency for
expenses related to processing
reinstatement requests.

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Based on our experience in reinstating
chapter 139 operating authority, the
reinstatement process often involves
substantial FMCSA staff time. Usually,
the carriers have to be contacted several
times before the appropriate information
is obtained to conclude the
reinstatement process. We believe the
same would be true for private and
exempt for-hire carriers seeking
reinstatement.
H. Financial Responsibility
1. Bodily Injury and Property Damage
Insurance (BI&PD) Requirement
The Motor Carrier Act of 1980 [Pub.
L. 96–296, 94 Stat. 820] prescribed for
safety reasons minimum levels of
financial responsibility for certain motor
carrier classifications. The motor carrier
classifications include: For-hire
interstate motor carriers of property in
vehicles with a gross vehicle weight
rating (GVWR) in excess of 10,000 lbs.
(including ICC-exempt); private and forhire interstate motor carriers of certain
hazardous materials; and interstate and
intrastate carriers of hazardous materials
in bulk. In 1982, the Bus Regulatory
Reform Act of 1982 [Pub. L. 97–261, 96
Stat. 1120] granted FMCSA (then
FHWA) authority to regulate the levels
of financial responsibility covering forhire motor carriers of passengers
operating in interstate commerce. These
carriers are not currently required to
provide proof of insurance or other
financial responsibility as a condition
for receiving a USDOT Number. Instead,
FMCSA verifies financial responsibility
as a part of its compliance review
process. The actual review of financial
responsibility requires that an
enforcement official ensure that there is
at the motor carrier’s place of business
a valid endorsement (Form MCS–90 or
Form MCS–82), or valid authorization to
self-insure that indicates that the carrier
possesses the required financial
responsibility coverage meeting the
minimum prescribed limits.
For-hire motor carriers, brokers and
freight forwarders that are subject to the
chapter 139 registration requirements
must file evidence of BI&PD insurance
with FMCSA on prescribed forms as a
precondition to receiving and holding
authorities and permits. Their financial
responsibility requirements take the
form of certificates of insurance, surety
bonds, proof of qualifications as a selfinsurer, endorsements, or trust
agreements.
FMCSA proposes at § 360.9 to
continue the filing requirement for these
carriers and extend its applicability to
exempt for-hire motor carriers,
including passenger carriers, and

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private interstate motor carriers
transporting hazardous materials. These
carriers are already required by statute
(49 U.S.C. 31138 and 31139) and
regulations (49 CFR part 387) to obtain
and maintain BI&PD insurance. This
rule would merely require the filing of
evidence of financial responsibility with
FMCSA.
Motor carriers transporting hazardous
materials in intrastate commerce are
similarly required by statute and
regulations to obtain and maintain
BI&PD insurance. The requirement to
file evidence of financial responsibility
with FMCSA would not extend to them.
They would continue to maintain proof
of the required financial responsibility
at the motor carrier’s principal place of
business as required under 49 CFR
387.7(d)(1).
The proposed filing requirement
would provide the public with
assurances that all for-hire motor
carriers, and private carriers
transporting hazardous materials in
interstate commerce, have the financial
means to compensate members of the
public for injuries or damages caused by
their negligence. These filings would
also increase public accessibility to
insurance information and would
enable FMCSA to more effectively track
insurance cancellations. Under the
current system, FMCSA receives a
notice of cancellation only if the carrier
is registered under chapter 139. A
carrier not subject to the chapter 139
requirements could lose its insurance
coverage, but FMCSA would generally
not be made aware unless the fact was
discovered during a compliance review
of the carrier. The proposed extension of
the BI&PD insurance filing to all carriers
subject to the Motor Carrier Act of 1980
and Bus Regulatory Reform Act of 1982
insurance requirements would,
therefore, better enable FMCSA to
identify and bring into compliance
uninsured motor carriers or remove
them from the public highways.
2. Cargo Insurance Requirement
Title 49 U.S.C. 13906(a)(3) authorizes
the Secretary to require motor carriers to
file evidence of cargo insurance to cover
loss or damage to property transported
by them. Under current 49 CFR
387.303(c), non-exempt for-hire
common carriers of property and freight
forwarders are required to maintain
cargo insurance of $5,000 per vehicle,
and $10,000 per occurrence, and file
evidence of this insurance with FMCSA.
Under the proposed revised
§ 387.303(c), FMCSA would require
only motor carriers and freight
forwarders engaged in transportation of
household goods to maintain and file

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evidence of cargo insurance with the
agency. Penalties for failure to comply
would remain the same.
There does not appear to be a need to
require non-exempt for-hire motor
carriers of property to maintain cargo
insurance since these carriers typically
have cargo insurance well above
FMCSA limits because their shipper
clients generally require it as a
condition of doing business. Where
motor carriers of property and freight
forwarders deal directly with individual
members of the public, such as in the
transportation of household goods, the
agency believes it is in the public
interest to continue to require cargo
insurance. FMCSA has found that
shippers of household goods tend to be
less knowledgeable about the
regulations than most shippers of other
types of property, and therefore need
the protection afforded by the current
regulatory scheme. Therefore, FMCSA
proposes to retain the requirement that
household goods carriers and freight
forwarders of household goods obtain
and file minimum levels of cargo
insurance, as provided by part 387.
FMCSA requests comments about its
proposal to eliminate the cargo
insurance requirement for non-exempt
for-hire carriers of property and freight
forwarders.
3. Insurance Filings by Insurers, Surety
Companies and Financial Institutions
FMCSA proposes to require all
insurers, surety companies, and
financial institutions to file evidence of
insurance using the web-based (HTML)
format. FMCSA currently accepts
insurance filings in three formats: paper
filings, electronic (ASCII) filings, and
web-based (HTML) filings. The current
paper-based insurance system is very
labor intensive.
On August 15, 2001, FMCSA began
allowing Internet filings. FMCSA also
allows the public to access carrier
licensing and insurance information
through the Internet by selecting
keyword ‘‘L&I System’’ at http://
www.fmcsa.dot.gov.
With the implementation of the
registration and financial responsibility
filing requirements of 49 U.S.C. 13906
and 13908, FMCSA will have the
capability and financial resources to
improve the accuracy and timeliness of
insurance application processing.
Accordingly, FMCSA proposes to
require all carriers, property brokers,
and freight forwarders subject to 49 CFR
part 387 to have their insurers use
Internet filings to file the necessary
evidence of surety bonds, trust fund
agreements, bodily injury and property
damage insurance, household goods

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cargo insurance, and notices of
cancellations. We believe web-based
filings will promote efficiencies for
FMCSA, insurers, sureties, financial
institutions, and the public. FMCSA
seeks comment on whether the
proposed mandatory web-based filing
would be a significant burden on small
insurers, surety companies, and
financial institutions. FMCSA also
invites comments, ideas and suggestions
regarding a potential phase-in approach
as opposed to immediate mandatory online filing. FMCSA invites comments on
any anticipated hardships that
mandatory on-line filing may cause.
4. Self-Insurance
Existing regulations provide a motor
carrier with the option to meet its
financial responsibility obligations
through self-insurance, but only with
FMCSA approval following review of
the carrier’s financial health and safety
rating. Risks for which a carrier may
self-insure include bodily injury and
property damage liability (BI&PD), as
well as cargo liability. The selfinsurance program is specifically
authorized by statute (49 U.S.C. 13906,
31138, and 31139), and is also
apparently beneficial to the industry.
Comments filed in response to FMCSA’s
(then FHWA) August 26, 1996 Unified
Registration System ANPRM strongly
favored retaining the self-insurance
program.
On May 5, 1999, FMCSA separately
proposed procedural changes to the selfinsurance process for for-hire motor
carriers (see Qualifications of Motor
Carriers to Self-Insure Their Operations
and Fees to Support the Approval and
Compliance Process at 66 FR 24123).
Specifically, FMCSA would have
reevaluated the security and collateral
requirements of any self-insured carrier
that fails to generate from operations,
after payment of all expenses except
annual self-insurance claims expenses,
twice the level of cash needed to pay the
self-insurance claims. An additional
application fee of $2,500 would be
assessed to cover carrier requests for any
modifications and alterations to selfinsurance authorizations that required a
reevaluation of the carrier’s financial
condition. FMCSA had also proposed to
reduce the fee for processing the initial
application for authority to self-insure
from $4,200 to $3,000 for an economic
cost savings of $1,200. The NPRM
proposed implementing additional
procedures necessary for motor carriers
to establish billing accounts to pay all
insurance-related fees required by the
agency. Finally, a carrier would be
charged a fee to cover FMCSA’s cost for
analyzing quarterly and annual reports

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to monitor the carrier’s ongoing
financial health and claims history. A
carrier would be charged a single annual
fee of $2,600 to file four quarterly
reports and its annual report.
FMCSA received a total of 12
comments in response to the 1999
NPRM. None of the commenters agreed
with the proposed self-insurance fees.
They believed the proposed fees were
unreasonable and that the agency had
not provided adequate information to
justify the proposed fees. Some made
the point that most participants in the
self-insurance program are part of
carrier groups and that assessing fees
based on individual carriers would be
burdensome. Commenters also stated it
would be unfair to impose additional
reporting requirements for all selfinsured carriers. Some recommended
that the additional reporting
requirements should apply only to those
self-insured motor carriers that the
agency identified as having specific
financial problems.
Because the issue of self-insurance
falls within the scope of financial
responsibility, and the financial
responsibility information system is one
of the four systems being merged into
the proposed new Unified Registration
System, FMCSA believes it is prudent to
consider revisions to the self-insurance
regulations within the context of the
Unified Registration System. Therefore,
the agency will withdraw the 1999 selfinsurance NPRM in a separate
withdrawal notice. The self-insurance
issues set forth in the 1999 NPRM and
public comments regarding that action
are being addressed in today’s proposed
action.
Today’s action would rescind the
1999 proposal that FMCSA use only the
criteria that self-insured carriers must
generate, after certain expenses, twice
the level of cash needed to pay selfinsurance claims when determining
whether a carrier would become subject
to adjustments in collateral or security
requirements. The proposal was in
response to agency concerns that the
public be adequately protected against
uncompensated losses.
The process of demonstrating whether
a carrier has established and will
maintain an insurance program that will
protect the public as effectively as
commercial coverage is complex. It is
based upon a wide range of variables
that do not conform to a one-size-fits-all
standard. The 1999 proposed standard
did not in itself take into account other
aspects of a carrier’s financial condition
that are traditionally used to determine
a company’s financial strength. FMCSA
now believes it should continue its
current practice of adjusting collateral

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and security requirements on a case-bycase basis.
Likewise, the agency would not
impose a fee for a request to modify
one’s self-insurance authorization if the
request resulted in the need to
reevaluate the carrier’s financial
condition. FMCSA now recognizes such
requests are rare (less than two requests
per year).
FMCSA currently approves
individual, and not group (also known
as ‘‘self-insurance pools’’) self-insurance
requests. That policy would remain
unchanged under this proposal.
Current procedures require all motor
carriers approved to self-insure against
BI&PD and cargo liability to file four
quarterly reports and one annual report
per year. (Under this proposal, only
motor carriers and freight forwarders of
household goods would retain the cargo
insurance filing requirement. FMCSA
seeks comment on whether to continue
the option of self-insuring for cargo
insurance.) FMCSA uses these quarterly
and annual reports to monitor the
financial health of self-insured carriers
and ensure that each motor carrier
continues to meet the financial
requirements of the program. The
quarterly reports are due within 60 days
of the end of the quarter and generally
must cover the periods defined in Table
1:

TABLE 1
Quarter
1
2
3
4

Period covered

.........................
.........................
.........................
.........................

January 1–March 31.
April 1–June 30.
July 1–September 30.
October 1–December 31.

The annual report is a summary of
information included in the four
preceding quarterly reports, and is due
not later than 90 days after the end of
each annual reporting year (December
31) or the end of March.
FMCSA proposes changes to selfinsurance quarterly and annual report
filing fees, as authorized under 49
U.S.C. 13908(c). Self-insured carriers
would be assessed $500 for each
quarterly report filing. There would be
no fee for filing the annual report. The
annual cost for these filings would total
$2,000, a $600 reduction from the 1999
NPRM proposal of $2,600.
In developing the new fees for
quarterly filings, the agency consulted
the private contractor that reviews the
quarterly reports on behalf of the
agency, The Meridian Group. Data
submitted by The Meridian Group
indicates that the contractor incurs an
average of $520 in costs to review each

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simple quarterly report filing.
(Rounding to the nearest $50 in
accordance with existing § 360.5,
FMCSA adjusted the cost to $500) The
proposed $500 fee would assist in
recouping labor costs associated with
reviewing the quarterly filings. The
agency proposes no fees for annual
report filings.
Currently, the self-insurance program
is not self-supporting but is subsidized
by other licensing fees. The proposal to
retain the $4,200 initial application fee
and to assess a new quarterly filing fee
would bring the program closer to the
goal of being entirely self-supporting.
The Regulatory Evaluation for this rule
provides a more detailed explanation to
support fees regarding self-insurance.
FMCSA seeks comment regarding these
proposed self-insurance fees.
Finally, the 1999 proposal to require
additional procedures for motor carriers
to establish billing accounts to pay all
insurance-related fees required by
FMCSA would be superceded by
procedures under subpart E to 49 CFR
part 360 in this proposal.
I. Designation of Process Agents
Today’s action proposes to include
private and exempt for-hire motor
carriers among those that must file
process agent information with FMCSA.
Current regulations require only those
entities that must register under chapter
139 to designate a process agent by
filing Form BOC–3—Designation of
Agents—Motor Carriers, Brokers and
Freight Forwarders with FMCSA.
Chapter 139 registrants generally
include non-exempt for-hire motor
carriers, property brokers and freight
forwarders. A motor carrier (including a
private carrier) that operates in the
United States in the course of
transportation between points in a
foreign country must also file the BOC–
3. Motor carriers, property brokers and
freight forwarders may only change the
designation of process agent by filing a
new designation with FMCSA. This
requirement ensures a valid, up-to-date
designation is on file at all times during
which an entity is subject to, in whole
or in part, the designation requirement
under § 360.605.
A carrier may use a commercial or
blanket service of process agent
company or it may designate an
individual employee or relative who
resides in the State(s) in which the
carrier operates to serve as its process
agent. The process agent must be U.S.domiciled. If a State official is
designated, evidence of the official’s
willingness to serve as process agent
must be provided to FMCSA.

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28999

Today’s action retains the
requirement for the fiduciary of a motor
carrier, property broker or freight
forwarder to designate a process agent
as of the moment of succession. Title 49
CFR 387.319(a) defines a fiduciary as
‘‘any person authorized by law to collect
and preserve property of incapacitated,
financially disabled, bankrupt, or
deceased holders of operating rights and
assignees of such holders.’’
FMCSA provides public access to
process agent information on the
Internet and by telephone. The public
uses the information when seeking
compensation for losses resulting from a
crash involving a commercial motor
vehicle. The information enables them
to serve lawsuits on the correct party in
any State in which the motor carrier,
broker or freight forwarder operates.
FMCSA uses the information to serve
notices for enforcement actions such as
out-of-service orders and other
administrative proceedings.
Pursuant to 49 U.S.C. 503, FMCSA is
empowered to also require private
carriers to designate process agents and
to file those designations with the
Secretary of Transportation. It was not
until the publication of the August 26,
1996 ANPRM that the agency asked
whether all private carriers should be
compelled to make such filings.
Commenters urged that private and
exempt for-hire motor carriers be subject
to the same process agent filing
requirements as non-exempt for-hire
motor carriers, brokers and freight
forwarders.
Based upon those comments, FMCSA
proposes to maintain the current
requirements in effect for designation of
process agents and to extend them to
private and exempt for-hire motor
carriers.
J. Administrative Filings
FMCSA further proposes to increase
to 90 days the maximum time allowed
an applicant to submit proof of
insurance and process agents before its
application is dismissed. Under existing
procedures, an applicant is allotted 20
days from the application date to
complete the filings. If the filings are not
made within 20 days, the agency may
grant one 60-day grace period before
taking action. As a result, applicants
may be given up to 80 days to satisfy
insurance and process agent filing
requirements.
FMCSA believes that a 90-day filing
period for these administrative filings
more realistically reflects the actual
time necessary to arrange insurance and
process agent coverage. Therefore, this
NPRM would require the administrative
filings within 90 days after submission

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of the Form MCSA–1, with no further
grace periods. If either the insurance or
process agent filings were not
completed within this 90-day period,
the agency would dismiss the
registration request. FMCSA requests
comments on the proposed 90-day time
frame for making administrative filings.
In addition, FMCSA proposes that any
registered entities that are not presently
required to file evidence of insurance or
designation of process agent be allowed
180 days from the date the final rule
takes effect to make the required filings.
For example, exempt for-hire carriers
and private interstate motor carriers
transporting hazardous materials are
already required to maintain minimum
levels of financial responsibility, but
they have not been required to file
evidence of that coverage with FMCSA.
Many registered carriers have never
been required to file a designation of
agent for service of process. This
proposal would provide these entities
180 days after the rule becomes final to
make the filings. If registered entities
failed to make the required filings
timely, their registration would be
revoked.
The extended insurance filing period
for existing motor carriers would have
no bearing on revocation procedures for
lapses in insurance coverage. Insurance
companies only report lapses in
coverage for motor carriers for which
they have already made insurance
filings. Carriers impacted by the 180-day
extension would have never had
evidence of financial responsibility filed
on their behalf.
FMCSA believes this extended grace
period would enable the agency to
efficiently process the anticipated
300,000+ filings in this category as well
as provide registrants with adequate
time to comply with the new filing
requirements.
K. Cancellation and Reinstatement of
USDOT Numbers
Under existing procedures, if a motor
carrier whose operations are authorized
under chapter 139 wishes to voluntarily
cancel its operating authority, it must
submit a notarized Form OCE–46—
Voluntary Revocation Request or
electronically file its request. Although
not required, many of these carriers use
the Form OCE–46 to notify the agency
that they are ceasing operations. FMCSA
proposes to replace the voluntary
revocation request procedure with the
simpler procedure now used by motor
carriers requesting to discontinue use of
a USDOT Number. Carriers would be
required to mail or electronically submit
to FMCSA a cancellation request and
certification statement under § 360.701.

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Use of the Form OCE–46 and its
associated complex processing
requirements would be discontinued.
Proposed § 360.705 clarifies that
FMCSA would deactivate a carrier’s
USDOT Number if it fails to comply
with the financial responsibility and
process agent filing requirements. A
carrier may not operate in interstate
commerce without an active USDOT
Number. Under proposed § 360.707,
carriers may reactivate their USDOT
Numbers within 2 years of being marked
inactive by making the necessary filings,
paying a reactivation fee, and recompleting the requirements of the New
Entrant Safety Assurance Program
(unless they have previously completed
the new entrant requirements). FMCSA
believes carriers that have been inactive
for more than 2 years are functionally
equivalent to new entrants and should
be required to demonstrate that they
have the necessary basic safety
management controls in place before
being allowed to resume interstate
operations. Therefore, we propose
requiring such carriers to file Form
MCSA–1 to reactivate the previouslyissued USDOT Number and complete
the new entrant safety assurance
program in part 385. We invite
comments on whether the 2-year
threshold for re-completing the New
Entrant Safety Assurance Program is
appropriate or if it should be lowered.
L. The New Application Form
FMCSA proposes to combine the data
elements now captured on several
different licensing, registration and
certification forms into a single, new
application form called the Form
MCSA–1—FMCSA Registration Form
(USDOT Number Application). The
Form MCSA–1 would replace the forms
and certifications listed below:
1. Motor Carrier Identification Report
(Application for USDOT Number), Form
MCS–150;
2. Application for Motor Property
Carrier and Broker Authority, Form OP–
1;
3. Application for Motor Passenger
Carrier Authority, Form OP–1(P);
4. Application for Freight Forwarder
Authority, Form OP–1(FF);
5. Safety Certification for
Applications for USDOT Number,
Form MCS–150A; and
6. Application for Mexican Certificate
of Registration for Foreign Motor
Carriers and Foreign Motor Private
Carriers Under 49 U.S.C. 13902, Form
OP–2.
Proposed Form MCSA–1 is included
as an appendix to this preamble for
public review and comment. The
proposed form would capture all of the

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information and certifications required
under relevant statutes, including
ICCTA and MCSIA. The agency believes
that use of one comprehensive form
would streamline the application
process and reduce the paperwork
burden for all affected entities. Every
motor carrier, freight forwarder or
broker required to register with DOT
under 49 CFR 390.19 or 49 U.S.C.
13901, except Mexico-domiciled motor
carriers registering to operate between
Mexico and points in the United States
beyond border commercial zones along
the U.S.-Mexico international border,
would use the same proposed form to
register with FMCSA.
The proposed form has eliminated
fields that captured duplicative
information common to the applications
for operating authority and the motor
carrier identification report. This would
reduce the preparation time for those
entities that were required to complete
both forms. Additionally, FMCSA has
attempted to group similar information
requests and categories within the same
sections on the proposed form. Further,
the form is designed to have applicants
complete only those areas of the form
that are relevant to the type of operation
for which they would register. For
example, certain applicants are
instructed to skip safety-related
questions and other sections that do not
apply to them.
Comments submitted to the ANPRM
suggested that FMCSA, when
considering any new registration
system, collect only information
necessary to ensure public safety.
FMCSA believes that it is necessary to
include on the proposed Form MCSA–
1 fields regarding the identification of
carrier and cargo classification type.
Capturing this information would
continue to benefit Federal and State
regulatory agencies, as well as other
interested parties, and allow tracking of
trends among various transportation
categories and cargo classification types.
Tracking industry trends and practices
would continue to aid in the design of
better driver and vehicle safety-related
programs. Therefore, this proposal
retains motor carrier designation and
cargo type categories that are currently
included on the OP–1, OP–2, and MCS–
150 forms.
The MCSA–1 would solicit certain
revenue data about applicants. FMCSA
and the Bureau of Transportation
Statistics (BTS) have discussed the
benefits of collecting revenue data from
registrants. Each believes that collecting
gross annual operating revenue on the
same form as safety and equipment data
would allow analyses of safety/financial
inter-relationships and improve

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compliance rates for requirements of
both agencies. For example, MCSA–1
revenue data would provide the first
public sector financial data on new
carriers that are not yet subject to
FMCSA financial reporting regulations
(formerly BTS) (49 CFR part 1420).
Broad revenue data would help FMCSA
gain a better understanding of
distribution of the motor carrier
industry by revenue size, particularly
the number of small entities within the
industry. Such information would help
the agency to more effectively evaluate
the impacts of its regulations on small
carriers, and provide the basis for
studying the relationship between
financial performance and safety
performance within the industry.
In view of congressional and agency
concerns regarding transportation of
household goods, FMCSA has also
proposed including on the new MCSA–
1 information under the Household
Goods Arbitration section of the current
OP–1 form. That form requires
household goods applicants to provide
information regarding their program for
arbitrating loss and damage claims and
to certify that their tariffs are available
for review upon request. The agency
believes that this would continue to
provide important information for
assisting consumers with household
goods movement complaints.
Under this proposal, FMCSA plans to
design, integrate and implement
information systems and technology
that would allow real time processing of
registration applications. FMCSA and
its predecessor agencies have routinely
made motor carrier safety-related
information available to the general
public, as well as other regulatory
agencies. FMCSA collects and maintains
information on interstate motor carriers,
vehicles and drivers. Four basic types of
information are collected: Census
information that identifies and describes
each motor carrier operation; safety
inspection records conducted on carrier
vehicles and drivers; crash reports; and
records of administrative and judicial
enforcement actions. These data are
maintained by FMCSA on the following
systems:
• Motor Carrier Management
Information System (MCMIS). MCMIS is
FMCSA’s central repository for safety
data on motor carriers, vehicles, and
drivers.
• Licensing and Insurance System
(L&I). The L&I system is FMCSA’s
system for issuing carrier operating
authority, recording insurance coverage,
and maintaining process agents.
• Motor Carrier Safety Status
Measurement System (SafeStat).
SafeStat, a FMCSA safety-performance

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indexing algorithm, uses data from
MCMIS records to score and rank motor
carriers by their safety performance as a
pointer system for enforcement.
• Safety and Fitness Electronic
Records System (SAFER). SAFER is
FMCSA’s safety data exchange system.
It provides snapshots of a motor
carrier’s safety performance,
registration, and permit status, and
provides a platform for the exchange of
these data between Federal and State
agencies.
FMCSA plans to continue working
closely with its Federal, State and local
partners to ensure that all carrier
registration and safety information
databases and systems are integrated to
the greatest extent possible. FMCSA
intends to design a system that utilizes
one web portal with links to other
FMCSA databases, as suggested by
many of the comments to the ANPRM.
The agency believes this would reduce
the aggregate cost of operating these
systems, increase their value in saving
lives and reducing injuries, and
facilitate access by interested parties.
M. Multi-Phase Application Process
Under the proposed new
requirements, an applicant would
request an application package by
accessing the FMCSA website, http://
www.fmcsa.dot.gov, or by contacting
FMCSA headquarters or Division offices
located in each State by mail, fax or
telephone. FMCSA strongly
recommends that applicants use the
electronic on-line application procedure
since it has built-in edit checks and
quick lists for easy, accurate
completion. The proposed application
package would include the following:
1. Educational and technical
assistance material regarding the safety
and operational requirements of the
FMCSRs and the HMRs, if applicable.
2. Application form MCSA–1, along
with instructions.
The educational and technical
assistance package would consist of
material designed to assist the applicant
in complying with the FMCSRs and
HMRs, if applicable, and in establishing
good safety management practices. It
would include information on driver
qualifications; controlled substances
and alcohol use testing; commercial
driver licenses; minimum levels of
financial responsibility; crash reports;
requirements applicable to the driving
of motor vehicles; vehicle inspection,
repair and maintenance; hours of
service and records of duty status of
drivers; and requirements applicable to
the transportation of hazardous
materials.

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29001

After FMCSA receives an MCSA–1
application, it would process the
application in multiple phases. Step one
would involve initial screening of the
application. FMCSA would assign a
temporary number to track the
application through the registration
process. The applicant’s insurer, surety
company, or financial institution would
use the tracking number to file evidence
of financial responsibility that must
accompany the application. An
applicant’s process service agent would
use the number to make Form BOC–3
(designation of process agent) filings.
FMCSA would review the application
for completeness and accuracy; ensure
that financial responsibility and process
agent filings are received in a timely
manner; and make necessary nonmaterial corrections. If the application is
rejected during this stage, the
registration filing fees would not be
refunded. The agency would not refund
registration fees under any
circumstances.
If a motor carrier’s application passed
the initial screening, it would enter step
two—provisional registration. FMCSA
would issue provisional registration and
assign a USDOT Number. A motor
carrier applicant would not be allowed
to begin operations until FMCSA had
granted provisional registration.
Under the proposed process,
registration for non-Mexico-domiciled
carriers would only become permanent
if the applicant satisfactorily completes
the new entrant safety assurance process
set forth in 49 CFR part 385. The agency
announced the new entrant safety
assurance process in an Interim final
rule (IFR) on May 13, 2002 (at 67 FR
31978, titled New Entrant Safety
Assurance Process. The new entrant
safety assurance process implements
section 210 of MCSIA by requiring new
entrants to successfully complete a
safety review within 18 months after
receiving their USDOT Numbers.
Registrations for Mexico-domiciled
motor carriers operating exclusively
within the border commercial zones are
not subject to the new entrant safety
assurance process but must
satisfactorily complete the safety
monitoring system codified at 49 CFR
385.101 et seq.
The special procedures under step
two(a) of the multi-phase application
process would delay the issuance of a
provisional registration to motor carriers
that are subject to the protest provisions
under U.S.C. 13902. Section 13902
requires FMCSA to allow a time period
for persons to oppose an application for
registration. FMCSA would publish
notification of the registration
application in the on-line FMCSA

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Register. Anyone may protest the
application for registration, provided
the protest is based upon the applicant’s
failure to comply with: (1) The
registration procedures; (2) applicable
DOT regulations, including the FMCSRs
and the HMRs; (3) the safety fitness
standards; and/or (4) financial
responsibility requirements.
Freight forwarders and brokers are not
issued provisional registration. If their
registration application is not
successfully opposed, their registration
is permanent when FMCSA issues it at
the conclusion of the publication and
protest process.
Section 13902 does not authorize
anyone to protest the registration
application of a Mexico-domiciled
motor carrier seeking to operate only
within the border commercial zones,
exempt for-hire motor carriers, or
private motor carriers. For this reason,
step two(a) would not apply to these
carrier types. FMCSA would not
entertain protests against their
registration applications or publish
notification of them in the FMCSA
Register.
In step three, FMCSA would issue
permanent registration if the motor
carrier had successfully completed the
applicable monitoring program and the
registration application was not
successfully opposed.
FMCSA seeks comment regarding the
proposed form and registration process
discussed in this NPRM.
VII. Special Transit Operation
Provisions
ICCTA amended the financial
responsibility provisions of 49 U.S.C.
31138(e) by adding a new subsection
(4). This provision applies to passenger
service provided within a transit service
area under an agreement with a Federal,
State, or local government, funded, in
whole or in part, with a grant under 49
U.S.C. 5307, 5310, or 5311. Where the
transit service area is located in more
than one State, in lieu of the minimum
Federal levels of financial responsibility
required of motor passenger carrier
registrants generally, such transit
operators (hereinafter identified as
‘‘Federal Transit Administration (FTA)
grantees’’ or ‘‘transit service providers’’)
are permitted to maintain as their
minimum financial responsibility
obligation the highest level of insurance
required by any of the States in which
they operate.
FTA grantees operating in interstate
transit service areas that exceed
commercial zone limits generally
provide service of a nature that does not
conform with any of the statutory
exemptions that might otherwise

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remove carriers from FMCSA
jurisdiction and, thus, relieve them of
registration obligations—such as the
commercial zone exemption of 49
U.S.C. 13506(b)(1), the ‘‘casual,
occasional, or reciprocal’’ transportation
exemption of 49 U.S.C. 13506(b)(2), or
the taxicab exemption of 49 U.S.C.
13506(a)(2). In addition, FTA grantees
are advised that there are no exemptions
from registration requirements related to
vehicle capacity, frequency of interstate
operations, or the non-profit status of a
transportation operation.
Further, FMCSA believes that no
meaningful relief from statutory
registration requirements can be made
available to FTA grantees under the
general exemption authority of 49
U.S.C. 13541. The statute expressly
constrains the Secretary from exercising
that exemption authority to relieve a
person from the application of, and
compliance with, any law or regulation
pertaining to specified matters
including insurance and safety fitness—
matters integral to the registration
process.
ICCTA amendment to 49 U.S.C.
31138(e) only adjusted the minimum
financial responsibility levels FTA
grantees are required to observe. It did
not relieve FTA grantees with interstate
transit service areas of their obligation
to register with FMCSA as required of
all interstate for-hire carriers under 49
U.S.C. 13902. Similarly, ICCTA
amendment did not relieve FTA
grantees of their obligation under 49
U.S.C. 13906 to file with FMCSA
evidence of insurance under 49 CFR
part 387 as a condition of registration.
However, this proposal would waive the
otherwise applicable $200 registration
and $10 financial responsibility filing
fees for such applicants. These
applicants would also be eligible to
apply to self-insure their operations,
and the fees for such applications would
be waived as well.
Accordingly, FTA grantees that
provide interstate service within areas
that exceed commercial zone limits are
required to register their operations with
FMCSA and, as part of that process, to
file evidence that they maintain the
minimum levels of financial
responsibility coverage required under
49 U.S.C. 31138(e). This notice proposes
to amend the 49 CFR part 387
regulations governing minimum levels
of financial responsibility for motor
carriers to reflect the revised
compliance option made available by
ICCTA to transit service providers.

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VIII. Systems Under Consideration for
Merger With the New Unified
Registration System
A. Registration for Certain MexicoDomiciled Motor Carriers
Today’s notice requests comment on
whether the proposed unified
registration system should include the
registration process for Mexicodomiciled motor carriers seeking to
operate between Mexico and points in
the United States beyond the border
commercial zones along the United
States-Mexico international border. The
agency announced the registration
process for this group of motor carriers
in a March 19, 2002, interim final rule
(IFR) (see Application by Certain
Mexico-Domiciled Motor Carriers to
Operate Beyond United States
Municipalities and Commercial Zones
on the United States-Mexico Border at
67 FR 12702). Regulations governing the
registration process for this group of
motor carriers are published in Subpart
E of 49 CFR part 365. The process
includes requirements applicable only
to Mexico-domiciled carriers seeking
authority to operate between Mexico
and points in the United States beyond
the border commercial zones along the
United States-Mexico international
border. FMCSA seeks comment on
whether the unique conditions related
to these carriers warrant retaining a
separate registration procedure and
application form for them.
The unique registration requirements
arise from Section 350 of the 2002 DOT
Appropriations Act (the Act), Public
Law 107–87. In effect, Section 350
prohibits the Secretary of
Transportation from obligating or
expending funds for reviewing or
processing applications of Mexicodomiciled motor carriers to transport
property or passengers in interstate
commerce between Mexico and points
in the United States beyond the
municipalities and commercial zones
along the United States-Mexico
international border until the DOT
satisfies conditions imposed by Section
350. FMCSA satisfied part of Section
350 by incorporating registration
requirements prescribed by the section
into its regulations published in the
2002 IFR and companion rules
published concurrently with the 2002
IFR. Among other things, these carriers:
• Are uniquely required to
successfully complete a
preauthorization safety audit (PASA)
encompassing the nine areas of inquiry
required by section 350(a)(1)(B) prior to
being granted operating authority;

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• Must be assigned a distinctive U.S.
DOT Number in accordance with
section 350(a)(4); and
• Must provide proof of valid
insurance issued by an insurance
company licensed in the United States
before being granted authority to operate
beyond the border commercial zones, in
accordance with 350(a)(8)
Additional conditions apply to
Mexico-domiciled carriers that have had
operating authority for less than three
consecutive years. In accordance with
section 350(a)(5), each of their
commercial motor vehicles that do not
display a valid Commercial Vehicle
Safety Alliance (CVSA) inspection decal
issued by a CVSA-certified inspector
must successfully pass a Level 1
inspection. Each vehicle must display a
valid CVSA decal as evidence of having
met the inspection criteria, and the
vehicles must be re-inspected every
three months by a CVSA-certified
inspector.
The agency is exploring the
possibility of bringing this group of
Mexico-domiciled motor carriers under
the Unified Registration System and
requests public comment on whether to
proceed.
Several changes would result from
merging their registration system under
the Unified Registration System. The
MCSA–1 would replace the OP–1(MX)
as the registration application form.
These carriers would provide additional
identifying information and
certifications. The proposed Form
MCSA–1 captures approximately 22
additional new or modified items of
information relating to the operation
type, form of business, revenue, contact
information, and certifications that are
not on the Form OP–1(MX): FMCSA
estimates these fields would increase
the paperwork burden for these carriers.
Any changes in the paperwork burden
or costs and benefits would be reflected
in the final rule’s supporting
documentation. For a detailed
discussion of the information collection
burdens associated with the OP–1(MX),
see the May 19, 2002 IFR.
Additional impacts to these carriers
would include a modified application
process. They would be subject to the
proposed multi-phase application
process which involves the assignment
of a temporary tracking number in lieu
of a USDOT Number until certain
conditions are met. Unlike other
applicants, a Mexico-domiciled carrier
seeking to operate in the United States
beyond the border commercial zones
would additionally need to successfully
complete a PASA before receiving a
USDOT Number. FMCSA would need to
incorporate consideration of the PASA

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results as well as its associated due
process procedures into the Unified
Registration System.
Under the Unified Registration
System the initial registration fee would
decrease from $300 to $200. Form OP–
1(MX) filers now have multiple options
for payment of fees, including checks
and money orders. The only approved
payment methods for the initial
registration and administrative filing
fees under the Unified Registration
System would be approved credit cards,
electronic funds transfers, and charge
cards.
FMCSA specifically invites comment
on these and other potential impacts,
whether FMCSA should incorporate the
OP–1(MX) registration with the Unified
Registration System and, if so, how the
agency can most effectively integrate the
two systems.
B. Hazardous Materials Safety Permit
Application Process
On June 30, 2004, FMCSA published
a final rule requiring any carrier that
desires to haul certain high-hazard
materials in interstate or intrastate
commerce to obtain a hazardous
materials safety permit (HM Safety
Permit). (See Federal Motor Carrier
Safety Regulations: Hazardous Materials
Safety Permits, published at 69 FR
39350.) Applicants must complete the
Form MCS–150B when initially
applying for or renewing the HM Safety
Permit under the biennial renewal
process. For these carriers, the MCS–
150B is submitted in lieu of the MCS–
150 as the application for the USDOT
Number.
Today’s NPRM does not merge the
HM Permitting Process under the
Unified Registration System for two
reasons: (1) Congress did not, under sec.
103 of the ICC Termination Act, specify
the HM Safety Permitting Process as one
of the systems for inclusion in the new
on-line unified registration system; and
(2) the final rule announcing the HM
Safety Permitting Process was published
after the URS NPRM was in the final
stages of development. The agency is
exploring the possibility of integrating
the HM Safety Permitting Process with
the Unified Registration System,
however, and requests public comment
on whether we should proceed.
The primary impact of merging the
HM Safety Permitting Process under the
Unified Registration System would be
the modification of Form MCSA–1 to
capture the data on the MCS–150B—
which is identical to the MCS–150 with
an additional six fields related to the
permit program requirements. We
believe incorporating the MCS–150B
into the MCSA–1 would result in a

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29003

small net efficiency in time and money.
FMCSA estimates these fields would
increase the paperwork burden for
completing the MCSA–1 by six minutes.
Any changes in the paperwork burden
or costs and benefits would be reflected
in the final rule’s supporting
documentation. For a detailed
discussion of the information collection
burdens associated with the MCS–150B,
see the June 30, 2004 final rule.
Additional HM Safety Permitting
Process components being considered
for integration with the Unified
Registration System include the HM
permit suspension and revocation
procedures; appeals process; and permit
evidence requirements for the vehicle/
shipping paper.
One particular challenge presented by
integrating the HM Safety Permitting
Process would involve the treatment of
certain intrastate carriers. Intrastate
carriers are not normally required to
obtain a USDOT Number, and most of
the FMCSRs do not apply to intrastate
carriers. However, the HM Safety
Permitting Process regulations were
promulgated under hazardous materials
statutes (49 U.S.C. 5105(e), 5109, and
5113) and apply to both interstate and
intrastate haulers of high-hazard
materials. The June 30 final rule
specifies a carrier must have a
‘‘Satisfactory’’ safety rating to qualify for
the HM Safety Permit. This means that,
in order to procure an HM Safety
Permit, intrastate carriers must now
obtain a USDOT Number and submit to
a compliance review. The USDOT
Number ensures that such carriers are
targeted for a compliance review. The
compliance review is solely for the
purpose of obtaining a safety rating to
qualify for an HM Safety Permit and is
based upon the HMRs and FMCSRcompatible State regulations.
Other than the requirement to obtain
a USDOT Number and pass a
compliance review, the additional
proposed provisions under the URS
NPRM that do not already apply to
intrastate carriers would continue to not
apply if HM Safety Permitting and the
Unified Registration System were to be
integrated. Examples of URS NPRM
provisions that would not apply to
intrastate carriers include the
requirement to file evidence of financial
responsibility with FMCSA or to
designate a process agent.
FMCSA specifically invites comments
on whether it should incorporate the
HM Safety Permitting Process with the
Unified Registration System and, if so,
how the agency can most effectively
integrate the two systems.

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C. Hazardous Materials Cargo Tank
Registration Process
On April 18, 2003, the Research and
Special Programs Administration
(RSPA) published a final rule titled,
Hazardous Materials: Requirements for
Cargo Tanks at 68 FR 19258. Among
other things, RSPA’s rule transferred to
FMCSA responsibility for administering
the Cargo Tank Registration Program for
all persons who are engaged in the
manufacture, assembly, inspection and
testing, certification, or repair of a cargo
tank or a cargo tank motor vehicle
manufactured in accordance with a DOT
specification under 49 CFR parts 100 to
185 or under terms of an exemption
issued under 49 CFR part 107 (see 49
CFR 107.502(d)). Facility applicants
applying for a new Cargo Tank (CT)
number must complete the registration
statement when initially registering
with the Department. For facilities
currently registered with the
Department, this process is used to add
facility locations or to update
registration statements as required by 49
CFR 107.504(c). Facility applicants
submit the MCS–150 to obtain a USDOT
Number which is used only for tracking
purposes in MCMIS.
Today’s NPRM does not merge the
Cargo Tank Registration Program with
the Unified Registration System for two
reasons: (1) Congress did not, under sec.
103 of the ICC Termination Act, specify
the Cargo Tank Registration Process as
one of the systems for inclusion in the
new on-line unified registration system;
and (2) the final rule transferring the
Cargo Tank Registration program from
RSPA to FMCSA was published after
the URS NPRM was in the final stages
of development. The agency is
nonetheless exploring the possibility of
integrating the Cargo Tank Registration
Process with the Unified Registration
System and requests public comment on
whether, and if so how, we should
proceed.
Except for the requirement to obtain
a USDOT Number, the URS NPRM is
not expected to increase the regulatory
requirements already applicable to cargo
tank facilities. Examples of URS NPRM
provisions that would not apply to cargo
tank facilities include the requirement
to file evidence of financial
responsibility with FMCSA or (for U.S.
residents) to designate a process agent.
Persons who are not residents of the
United States are still required in
accordance with 49 CFR 107.107 to
designate a permanent resident of the
United States as their agent for service
of process.
FMCSA specifically invites comments
on incorporating the Cargo Tank

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Registration Process into the Unified
Registration System and on the best
method of integrating the two systems.
IX. Performance and Registration
Information Systems Management
Program (PRISM)
The PRISM program is a priority
FMCSA initiative comprised of two
major processes: (1) The Motor Carrier
Safety Improvement Process (MCSIP)
and (2) the Commercial Vehicle
Registration Process. These processes
work in parallel to identify motor
carriers and hold them responsible for
the safety of their operation. The
performance of unsafe carriers is
improved through a comprehensive
system of identification, education,
awareness, safety monitoring and
treatment.
FMCSA provides grants to approved
States. As of September 2004, 37 States
have entered into grant agreements with
FMCSA to implement PRISM. At least
19 of these States are currently
collecting MCS–150 Forms and issuing
USDOT Numbers to interstate motor
carriers.
The PRISM program uses MCSIP to
hold motor carriers responsible for the
safety of their operations. The MCSIP is
designed to improve the safety
performance of motor carriers with
demonstrated poor safety performance
through accurate identification,
performance monitoring, and
interventions such as on-site
compliance reviews at a motor carrier’s
principal place of business. MCSIP
carriers that do not improve their safety
performance face progressively more
stringent penalties that may result in a
Federal Operations Out-of-Service Order
and possible concurrent suspension or
denial of vehicle registration privileges
by the State.
A State’s International Registration
Plan commercial vehicle registration
process provides the framework for the
PRISM program and serves two vital
functions. First, it establishes a system
of accountability by ensuring that no
vehicle receives license plates without
the identification of the carrier
responsible for the safety of the vehicle
during the registration year. Second, the
use of registration sanctions serves as a
powerful incentive for unsafe carriers to
improve their safety performance.
The commercial vehicle registration
process of PRISM creates a new FederalState partnership that improves safety
and strengthens Congressionallymandated enforcement policies such as
those related to the consequences of
unsatisfactory safety ratings (Section
4009 of TEA–21), failure to pay civil
penalties (Section 206 of the MCSIA of

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1999) and biennial data update
requirements (Section 217 of the MCSIA
of 1999). One of the fundamental tenets
of the PRISM program is that State
vehicle registration agencies will:
• Suspend a motor carrier’s
International Registration Plan (IRP)
license plates in conjunction with an
FMCSA order to cease interstate
operation; and/or
• Deny renewal of IRP license plates
to any motor carrier that is prohibited
from operating in interstate commerce
by FMCSA.
Additionally the commercial vehicle
registration process of PRISM allows
participating States to check motor
carriers’ MCS–150 ‘‘date of last update’’
in FMCSA information systems as part
of their annual IRP license plate renewal
processes. If the motor carrier’s MCS–
150 data (census data) is more than 24
months old before the end of the license
plate registration period, the State
requires them to update this data as a
condition for receiving their IRP license
plate. This approach ensures that motor
carriers who obtain IRP license plates in
PRISM states cannot let their census
data expire. The FMSCA has
determined that motor carriers who
update their census data in this manner
already meet the periodic filing
requirement of the current 49 CFR
390.19 and would require no additional
filing with FMCSA. However, they
would be subject to the penalties for
filing false or misleading information
(see proposed § 360.25(a)(4)). For
clarification purposes, the data
contained on the MCS–150 would now
be incorporated into the new MCSA–1.
States participating in the PRISM
program also routinely issue USDOT
Numbers to interstate motor carriers
who do not have them as part of their
commercial vehicle registration
processes. This, in essence, has allowed
participating States to serve as a onestop shop where motor carriers could
receive a USDOT Number, apply for or
renew IRP license plates, and meet the
biennial data updating requirements.
Under this proposed rule, carriers are
required to file an MCSA–1 prior to
receiving a U.S. DOT number. FMCSA
cannot delegate to PRISM States its
responsibility to ensure that the MCSA–
1 Form is correct and complete, and
otherwise consistent with our safety
fitness policy. States will, however, be
able to issue USDOT Numbers to
‘‘registrants’’ (such as leasing
companies) and intrastate carriers.
Therefore, we are particularly interested
in comments from States now
participating in the PRISM program
regarding the impact of the inability to
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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules
interstate motor carriers concurrently
with the commercial vehicle registration
process.
FMCSA invites comments and
questions on anticipated impacts of this
rule.
X. Regulatory Evaluation of the Unified
Registration System (URS) NPRM:
Summary of Benefits and Costs
A. Background and Summary
FMCSA has determined that this
NPRM constitutes a significant
regulatory action as defined under
section 3(f)(3) of Executive Order 12866
and under Department of Transportation
policies and procedures. While the costs
of this NPRM do not exceed the $100
million annual threshold as defined in
Executive Order 12866, it is expected to
generate extensive public interest.
Section 103 of ICCTA, as codified at
49 U.S.C. 13908, directs the Secretary of
Transportation to issue a rule to replace
four systems with a ‘‘single, on-line,
Federal system.’’ Title 49 U.S.C.
13908(c) provides the Secretary the
option of establishing a fee system for
registration and filing of evidence of
financial responsibility, and states that,
‘‘Fees collected under the fee system
shall cover the costs of operating and
upgrading the registration system,

including all personnel costs associated
with the system.’’ Several fee changes
are identified in the discussion below
and are proposed with the goal of
ensuring that the ‘‘single, on-line,
Federal (registration) system’’ will be
self-sustaining. Additionally, since 49
U.S.C. 13908 directs the Secretary to
create a single unified system, we
propose several changes to the
registration requirements for certain
segments of the motor carrier
population (such as exempt for-hire
carriers) in an attempt to harmonize the
registration process for all types of
motor carriers.
The major proposed URS NPRM
provisions for which direct costs have
been estimated include:
• Requiring private and exempt forhire motor carriers to pay the same
FMCSA registration fee as that paid by
non-exempt for-hire carriers;
• Requiring private and exempt forhire motor carriers to file proof of
process agent designation with FMCSA;
• Requiring insurance representatives
of exempt for-hire carriers and insurers
of private interstate carriers of
hazardous materials to file proof of
liability insurance with FMCSA;
• Requiring private and exempt forhire carriers to file reinstatement
requests with FMCSA;

• Eliminating the ability of motor
carriers to transfer operating authority;
and
• Cost to industry from revising other
motor carrier filing fees. Direct benefits
of this NPRM include:
• Time savings to industry and
FMCSA personnel resulting from
streamlining the motor carrier
registration process;
• Time savings to FMCSA in locating
and serving private and exempt for-hire
motor carriers for compliance and other
reviews as a result of the process agent
designation filing;
• Additional crashes avoided as a
result of FMCSA being able to conduct
additional compliance reviews annually
due to time saved in searching for,
locating, and serving private and
exempt for-hire motor carriers for
reviews; and
• Time savings to the industry’s
insurance representatives from
eliminating cargo insurance filing
requirements for common carriers and
freight forwarders of non-household
goods.
A summary of the costs and benefits
associated with this NPRM are
presented in Table 2.

TABLE 2.—SUMMARY OF 10-YEAR COSTS AND BENEFITS OF THE URS NPRM
[In millions of discounted dollars]

Total .........................................................................................................................................................

Total discounted costs of this
proposed rule equal $75.4 million over
the 10-year analysis period. Total
discounted benefits of this proposed
rule equal $91.4 million over 10 years,

resulting in net discounted benefits of
$16 million. The detailed costs and
benefits associated with this NPRM are
discussed in the next two sections,
respectively.

Costs

Benefits

Net direct
benefit
(benefits—
costs)

$75.4

$91.4

$16

B. Costs
The categories of costs are
summarized in Table 3.

TABLE 3.—COSTS OF URS NPRM BY MAJOR PROVISION
[Millions of discounted dollars]

First-year
costs

URS provision or proposed change

Total 10year discounted
costs

New Registration Fees ....................................................................................................................................................
Filing Proof of Process Agent Designation .....................................................................................................................
Filing Proof of Liability Insurance ....................................................................................................................................
Filing Reinstatement Requests ........................................................................................................................................
Eliminating Transfers of Operating Authority ..................................................................................................................
Revising Other FMCSA Fees ..........................................................................................................................................

$1.5
20.5
1.5
0.4
0.7
0.08

$11.6
47.1
4.5
4.4
6.9
0.9

Total Discounted Costs ............................................................................................................................................

24.7

75.4

Note: Subtotals may not add exactly to totals due to rounding.

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The present value of total costs
resulting from this NPRM is estimated
to be $75.4 million for the 10-year
analysis period. All dollar figures were
discounted using a discount rate of 7
percent, based on Office of Management
and Budget guidelines. The following
discussion represents a summary of
calculations performed for the benefitcost analysis. A full discussion of the
data used, assumptions made, and
calculations performed can be found in
the stand-alone regulatory evaluation
(Preliminary Regulatory Evaluation:
Unified Registration System (URS)
Notice of Proposed Rulemaking
(NPRM)) contained in the public docket
for this rule.
1. New Registration Fees for Private and
Exempt For-Hire Carriers
Under the current registration system,
a carrier’s operating status, such as non-

exempt for-hire, exempt for-hire, or
private, determines what specific forms
that carrier must file with FMCSA and
what specific fees, if any, are paid. For
example, new entrants registering as
non-exempt for-hire motor carriers must
now file an OP series form (Application
for Motor Carrier and Broker Authority),
an MCS–150 form (Motor Carrier
Identification Report), and an MCS–
150A form (Safety Certification) and pay
a $300 registration fee. Conversely,
private and exempt for-hire carriers file
only the MCS–150 and MCS–150A
forms and pay no fee.
Under the new registration system, all
new entrants, including all non-exempt
for-hire, exempt for-hire, and private
motor carriers, as well as brokers and
freight forwarders, would be required to
file the new MCSA–1 form (which
combines most elements of the OP

series, MCS–150, and MCS–150A
forms), and all would be assessed a $200
registration fee. This revised fee would
reduce by $100 the registration costs of
non-exempt for-hire motor carriers,
brokers and freight forwarders. At the
same time, it would increase by $200
the registration costs of private, exempt
for-hire, and other new entrant carriers,
such as private passenger (non-business)
carriers, private carriers of migrant
workers by motor vehicle, and various
government entities.
Data from FMCSA Office of
Information Management indicate that
the number of new entrants applying for
operating authority or a USDOT Number
with FMCSA averaged 47,535 annually
between the years 1995 and 2002.
Further details on the breakdown of
these numbers appear in Table 4.

TABLE 4.—AVERAGE ANNUAL NUMBER OF NEW ENTRANTS BY OPERATION CLASSIFICATION, 1995–2002
Number (average per year)

Operation classification

Percent of
total

Non-exempt For-Hire ...............................................................................................................................................
Exempt For-Hire ......................................................................................................................................................
Private (Property & Passengers (business)) ...........................................................................................................
Other (includes private passenger carriers (non-business) and various government entities) ..............................
Mexico-domiciled (commercial zone & long-haul) 1 ................................................................................................
Brokers, Freight Forwarders ....................................................................................................................................

23,440
3,758
16,551
664
1,200
1,922

49
8
35
1
3
4

Total ..................................................................................................................................................................

47,535

100

Source: Motor Carrier Management Information System (MCMIS) and Licensing and Insurance System (L&I), 1995–2002 data.
projected estimate of number of Mexico-domiciled new entrant applicants based on 2003 data.

1 Represents

Examining the numbers in Table 4, a
total of 20,973 new entrants (Exempt
For-Hire + Private + Other) would each
see their registration fee increase from
no fee to $200. Conversely, 26,562 new
entrants (non-exempt for-hire carriers,
Mexico-domiciled carriers, and brokers/
freight forwarders) would each see their
registration fee reduced from $300 to
$200. Combining these two offsetting
effects, the net regulatory cost of
revising the new entrant registration fee
would be $1.5 million annually. Over
the 10-year analysis period, the total
discounted cost of this provision would
be $11.6 million, using a seven percent
annual discount rate and assuming an
average annual growth rate of seven
percent for the industry.
A special note is required here
regarding how we arrived at the
proposed $200 registration fee for all
new entrants. Projected fiscal year 2005
(FY05) personnel and support costs
(including labor, and direct/indirect
operations support) to implement and
manage the new licensing and
registration system proposed here were
estimated at $9.7 million. This total

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represents the projected FMCSA
personnel and related costs to handle,
review, and process new entrant
applications, as well as to initiate
follow-up phone calls with new entrants
in those cases where additional
information is needed to process the
application. Dividing this number ($9.7
million) by our estimate of the average
annual number of new entrants (47,535)
results in an average registration cost
per applicant of $204 per filing.
Rounding to the nearest $50, in
accordance with proposed § 360.5
regulations addressing the rounding of
FMCSA fees, we arrive at a registration
fee of $200 per new entrant. It should
be noted here that these costs were not
included in the FY05 FMCSA
information systems budget request
developed by the FMCSA Information
Management and Budget Offices, since
the agency intends to cover these
personnel costs through the revenues it
collects from new entrant registration
fees.
As discussed earlier in this
evaluation, guidance regarding fee
levels for the new registration system is

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provided by 49 U.S.C. 13908, which
indicates that the Secretary may assess
a fee to cover all costs associated with
upgrading and operating the registration
system. Additionally, guidance
provided by the Office of Management
and Budget Circular A–25, ‘‘User
Charges,’’ is consistent in this regard,
since it states that ‘‘each service, sale or
use of Government goods or resources
provided by an agency to specific
recipients be self-sustaining.’’
2. New Process Agent Filings Required
by FMCSA
Currently, non-exempt for-hire
carriers are required to verify that they
have designated a process agent for
those States in which they intend to
operate. There is currently no charge to
file this form (known as a ‘‘BOC–3’’
form) with FMCSA. This NPRM
proposes to extend this filing
requirement to private and exempt forhire carriers, and proposes to begin
charging a fee of $10 per filing. In 2005,
this provision would affect
approximately 20,000 exempt for-hire
and private new entrants and 319,000

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existing carriers. Since no existing
exempt for-hire or private carrier has
been required in the past to file proof of
process agent designation with FMCSA,
we assume all would file such proof in
the first year of the rule’s
implementation period. Although the
process agent designation form is
generally a one-time filing, we would
expect some existing carriers to re-file
this form with FMCSA in any given year
because of changes in their operations
(i.e., changing process agents, business
address, etc.). And current regulations
(49 CFR parts 365 and 368) require
motor carriers to notify FMCSA within
45 days of a change or correction in
their process agent designation filing.
As such, in future years we estimate that
this provision would affect
approximately 20,000 new entrants and
10 percent of the carriers who initially
filed in calendar year (CY) 2005. In CY
2006, 10 percent of this motor carrier
population would equal 34,100, if we
assume an average annual industry
growth rate of seven percent (i.e., 31,900
* 1.07 = 34,100).
Compliance costs associated with this
provision include: (1) The opportunity
(time) cost for a private or exempt forhire motor carrier to contact and secure
the services of a process agent (we
assumed that none has yet secured such
services and that it would take 30
minutes per carrier to do so, at an
average wage rate of $19.32/hour), (2)
the $40 service fee charged to these
carriers by the process agents, and (3)
the $10 fee assessed by FMCSA to file
a process agent designation form. If we
multiply the above three cost elements
by the number of new entrant and
existing motor carriers affected by this
provision in each year and sum the
results, it yields total first-year
compliance costs of $20.5 million. Total
discounted costs over the 2005–2014
analysis period equal $47.1 million.
3. New Requirement and Fee for
Insurance Representatives of Exempt
For-Hire Carriers and Private Carriers of
Hazardous Materials To File Proof of
Liability Insurance
This provision would require
insurance representatives of exempt forhire and private motor carriers of
hazardous materials (hazmat) to file
proof of liability insurance with
FMCSA. These carriers are currently
required by statute (49 U.S.C. 31138 and
31139) to hold such insurance, but
FMCSA has not required their insurance
representatives to file proof of that
insurance with the agency. In 2005, this
provision would affect almost 5,400
new entrants and 106,000 existing
exempt for-hire and private hazmat

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carriers (and/or their insurance
representatives), since we assume all
affected existing carriers would comply
with the new requirement in the first
year. In later years, this provision
continues to affect almost 5,400 new
entrants. However, it also affects 20
percent of the existing carriers (or
22,700 carriers in CY2006 when we
assume an average annual industry
growth rate of seven percent), since we
anticipate that the new insurance
representatives for this percentage of
existing carriers would re-file the
carriers’ liability insurance each year
based on changes in insurance coverage
such as a change in insurance carriers.
Compliance costs include: (1) The cost
of the $10 filing fee to insurance
representatives for exempt for-hire and
private hazmat carriers who would now
be required to file proof of liability
insurance with FMCSA, (2) the
opportunity (time) costs of 10 minutes
per filing to each insurance
representative of the carrier to file proof
of liability insurance with FMCSA (at an
average hourly wage rate of $19.32), and
(3) the time and filing costs (10 minutes
and $10 per filing, respectively) to
insurance representatives of those
existing motor carriers which change
insurance companies in a given year
and must re-file.
If we multiply the above three cost
elements by the number of new entrant
and existing motor carriers affected by
this provision in each year and sum the
results, it yields a total first-year cost of
$1.5 million (after rounding). Total
discounted costs over the entire 2005–
2014 analysis period amount to $4.5
million.
4. New Requirement and Fee for Private
Hazmat and Exempt For-Hire Carriers
To File Reinstatement Requests
When a new entrant for-hire motor
carrier or other applicant initially
registers with FMCSA, the applicant or
its insurance company must also file
proof of liability insurance with the
agency. Upon completion of the initial
registration and insurance filing
requirements, the carrier obtains an
‘‘active’’ status with FMCSA. In order to
remain ‘‘active’’ in the agency’s
database, the carrier or its insurance
company must file updates with
FMCSA when elements of the insurance
coverage change, such as when a motor
carrier changes insurance companies for
cost or other reason. If the carrier or its
insurance company does not file these
updates with FMCSA within the
allowable time period, the carrier’s
status changes from ‘‘active’’ to
‘‘inactive’’ and it must apply for
reinstatement with FMCSA. The

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reinstatement fee is currently $80,
although FMCSA proposes to increase it
to $100 with implementation of this
rule. All revenue derived from
insurance filing fees would be dedicated
to supporting the operations of the
system, thereby allowing it to operate in
a self-sufficient manner. The projected
fiscal year 2005 operating expenses for
the Enforcement Compliance Division
that would be covered via fee revenues
are estimated at $3.5 million (including
labor, and direct/indirect operations
support).
In 2002, three percent of non-exempt
for-hire motor carriers (or almost 6,500
of 215,000) filed reinstatement requests
with FMCSA. With implementation of
this proposal, the agency expects this
number to increase because exempt forhire and private hazmat carriers would
be required to file proof of liability
insurance with FMCSA. Assuming the
same percentage of exempt for-hire and
private hazmat carriers would file for
reinstatement in a typical year as nonexempt for-hire carriers currently do (3
percent), FMCSA could expect an
additional 2,900 reinstatement requests
annually in 2005 (3 percent of 98,000
such carriers expected to be operating in
2005).
Each of these carriers could be
expected to spend an average of 10
minutes filing a reinstatement request
with FMCSA. At $19.32/hour and 2,900
applicable carriers, the filing time costs
would total less than $10,000 in 2005.
Additionally, each of these carriers
would be required to pay a $100 filing
fee, which given 2,900 carriers in 2005,
would equal $290,000 in 2005.
Regarding non-exempt for-hire
carriers, who are currently required to
file reinstatement requests with FMCSA
at $80 per filing, the agency projects that
there would be more than 7,000
reinstatement requests filed in 2005
(assuming an average annual growth
rate of seven percent in the existing
non-exempt for-hire carrier population).
With a $20 increase in their
reinstatement filing fee, costs would
total $140,000 in 2005. Totaling the
three aforementioned sets of costs (the
exempt for-hire, private hazmat, and
non-exempt for-hire carriers) yields
approximately $440,000 in first-year
costs for this provision. Over the entire
10-year analysis period, where FMCSA
assumes the carrier population increases
at an average of seven percent annually,
total discounted costs of this provision
would be $4.4 million.
5. Eliminating Transfers of Operating
Authority
Under this proposed rule, motor
carrier requests for transfers of operating

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authority would no longer be permitted.
As such, the motor carrier to whom the
operating authority is to be transferred
would be considered a new entrant from
the perspective of FMCSA, requiring
that carrier to obtain a new USDOT
Number. Also, more importantly, the
owner of this new USDOT Number is
considered a new entrant, and thereby
subject to a new entrant safety audit.
The primary costs associated with this
proposed change in FMCSA policy
include: (1) The time and fee associated
with filing an MCSA–1 form with
FMCSA; and (2) the costs associated
with conducting and participating in an
FMCSA new entrant safety audit. These
costs are discussed below.
According to the FMCSA Licensing
Team, there were 621 requests for
transfers of operating authority filed
with FMCSA in 2002. Each of the
carriers to whom operating authority
was transferred paid a $300 fee to
FMCSA. Given that such transfers
would no longer be permitted under this
proposal, these carriers would have to
file with FMCSA as new entrants
(including filing an MCSA–1 form).
Therefore, each carrier would save $100
in filing fees under this proposed rule
(or the difference between the current
$300 fee to file transfers of operating
authority and the proposed $200 new
entrant filing fee discussed earlier in
this rule). However, as estimated earlier,
filing an MCSA–1 form with FMCSA
also requires approximately 2 hours of
labor time for each carrier (or their staff)
to actually fill out the form. Using a
fully-loaded wage rate of $19.20 per
hour (as used earlier is this evaluation),
each carrier would incur $38.40 in filing
costs for the new MCSA–1 form. As
such, the net savings in fees and filing
costs to each carrier as a result of this
proposal is $61.60 (or $300 minus
$238.40). Multiplying this estimate
($61.60 of cost savings per carrier) by
the number of carriers who requested
such transfers in 2002 (621 carriers)
yields a first-year cost savings of almost
$40,000.
However, the above cost savings
would be offset (and then some) by the
requirements associated with being
designated a new entrant, namely the
costs of a new entrant safety audit. The
regulatory impact analysis prepared for
the New Entrant Safety Assurance
Process final Rule (New Entrant Safety
Assurance Process Interim Final Rule,
Docket No. FMCSA–2001–11061, May
13, 2002) contained an estimate of the
total agency cost to conduct each new
entrant safety audit. The average cost
was estimated to be $1,100, and
represented the costs to the agency (i.e.,
FMCSA or state) to conduct the audit,

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including 12 hours of labor time
preparing for, conducting, and
reviewing the results of the audit as well
as average travel costs per audit. Using
an average hourly wage of $19.20 (as
discussed earlier) and assuming each
carrier spends an average of four hours
at an audit, total costs for a motor carrier
to participate in an audit equal $76.80
(or $19.20 * 4 hours). Adding up these
costs yields an average total cost per
new entrant safety audit of $1,176.80.
Multiplying this estimate by the number
of requests for transfers of operating
authority (621) yields a total first-year
cost of $730,793 to conduct the
additional new entrant safety audits
resulting from this proposed policy
change. Deducting the cost savings
associated with the differences in filing
fees and other costs discussed earlier
(equal to almost $40,000 in the first
year), the total first-year cost is equal to
$0.7 million (after rounding). Total
discounted costs associated with this
proposal over the 10-year analysis
period are equal to $6.9 million, using
a seven-percent discount rate as
prescribed by OMB and assuming an
average annual growth rate in the
industry of seven percent.
6. Revising Other FMCSA Fees
In addition to those fee changes
discussed earlier in this analysis,
FMCSA proposes to revise three of the
fees it currently charges to motor
carriers for individual services or filing
requirements. These revisions include
(1) instituting a fee of $500 to review/
approve each quarterly report filed by
participants of the FMCSA Liability
Self-Insurance Program, and (2)
eliminating the $14 fee assessed to nonexempt for-hire motor carriers and
others that change their business names.
Only the fees that FMCSA currently
assesses for these services would change
under this proposal. No other changes
regarding these services, such as which
entities are required to file, are being
proposed.
Adding up the new costs for self
insurance quarterly report filing and the
net cost savings associated with the fee
reduction for name changes yields a net
cost savings of less than $0.1 million
(undiscounted) in the first year of this
proposal. Full details regarding the
offsetting effects of these fee changes are
contained in the stand-alone regulatory
evaluation contained in the docket.
Total net discounted cost savings
associated with these proposed fee
changes discussed above would equal
$0.9 million over the entire 10-year
analysis period.

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7. Total Costs of URS NPRM
Adding up all of the costs from the
four URS provisions discussed above
yields a total discounted cost of $75.4
million over the 10-year analysis period.
Sixty-two percent of these costs (or
$47.1 million) are due to the proposed
provision that requires exempt for-hire
and private motor carriers to secure and
file a designation of process agent form
with FMCSA. The other proposed
provisions would raise the total
discounted cost only by an additional
$28.3 million combined.
As noted earlier in this document,
FMCSA considered merging the
registration-related elements of the
Application Process for Certain MexicoDomiciled Carriers rule, HM Permitting
rule and the HM Cargo Tank
Registration rule into this notice (For
details on those rules, see Application
by Certain Mexico-Domiciled Motor
Carriers to Operate Beyond United
States Municipalities and Commercial
Zones on the United States-Mexico
Border published at 67 FR 12702;
Federal Motor Carrier Safety
Regulations: Hazardous Materials Safety
Permits, published at 69 FR 39350, and
Hazardous Materials: Requirements for
Cargo Tanks, published at 68 FR 19258).
As part of that consideration, FMCSA
analysts reviewed the regulatory impact
analyses developed for each of those
final rules. And while the agency is
soliciting public comments on this
integration, we made the determination
that the costs associated with those
three rules should not be included in
this regulatory evaluation. This decision
was based on two factors. First, detailed
regulatory impact analyses were
developed independently for each of
those rules, and the compliance costs
associated with each were fully
documented and published. To include
those costs as part of this regulatory
impact analysis would constitute
‘‘double counting’’ the costs associated
with those rules. Secondly, as noted
earlier in this document, FMCSA
analysts anticipate that the integration
of the registration processes associated
with those three rules into the system
envisioned under the Unified
Registration System would result in
costs savings by way of economies of
scale. However, the anticipated cost
savings were deemed to be relatively
modest, based on the relatively small
number of entities affected by each of
those rules. As such, while we recognize
potential cost savings from a full
integration, the results are not
quantified here, since their anticipated
impact to this rule’s total costs and
benefits was deemed to be relatively

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insignificant and the option still
remains to be evaluated, based upon
public comment to this notice.

The next section discusses the
societal benefits expected from
implementation of this proposal.

C. Benefits
The major categories of estimated
benefits resulting from this NPRM are
summarized in Table 5.

TABLE 5.—BENEFITS OF THE URS NPRM
[Millions of discounted dollars]
First-year
benefits

Provision/proposed change

Total
discounted
10-year
benefits

Streamlining the Registration Process 1 ..........................................................................................................................
Filing Proof of Process Agent Designation 2 ...................................................................................................................
Eliminating Cargo Insurance Filings 3 ..............................................................................................................................

$0.7
8.3
0.4

$5.2
82.6
3.6

Total Discounted Benefits: .......................................................................................................................................

9.3

91.4

Note: Subtotals may not add exactly to totals due to rounding.
1 Time savings incurred by new entrants.
2 Safety benefits in the form of large truck crashes avoided.
3 Time savings incurred by new entrants and existing carriers who otherwise may have re-filed these forms periodically.

Total first-year benefits of this
proposal would be $9.3 million
(discounted), while total discounted
benefits are estimated at $91.4 million
over the 10-year analysis period.
Benefits from this proposed rule include
crash-related benefits from avoided
crashes as well as time/cost savings, the
latter being associated with a reduced
filing burden and/or reduced FMCSA
fees paid by motor carriers.
1. Cost Savings From Streamlined New
Entrant Registration Process
With this NPRM, FMCSA registration
process would be streamlined by
merging the OP series form with the
MCS–150, and MCS–150A forms,
yielding the single MCSA–1 application
form. With the new, combined form,
less information would be required of
most applicants, since previously
redundant information would be
eliminated following the merger of the
forms. Additionally, more detailed
instructions would be provided to steer
applicants through the form more
efficiently. FMCSA estimates the
average time saved per filer would be 30
minutes.
Using an average hourly wage rate of
$19.32 for a motor carrier, an estimate
of 47,535 new entrants in 2005, and
average time savings of 30 minutes per
applicant, the first year cost savings
associated with this provision would be
a little less than $0.5 million.
Additionally, the time saved by FMCSA
employees to process the filings would
be expected to average 10 minutes per
filing. Using a fully-loaded average
hourly wage rate of $29.05 for FMCSA
staff and an estimated 47,535 new
entrants filing annually, the first-year
cost savings to FMCSA would be
approximately $0.2 million.

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Total first-year cost savings would
equal $0.7 million, while total
discounted cost savings over the 10-year
analysis period would equal $5.2
million.
2. Safety Benefits From Process Agent
Designation Filing Requirement
Currently, non-exempt for-hire motor
carriers are required to verify with
FMCSA that they have designated a
process agent in each State in which
they intend to operate and to identify
those process agents via a filing with
FMCSA (known as a ‘‘BOC–3’’ form).
Under this NPRM, private and exempt
for-hire carriers would be required to
file the same form with FMCSA. Such
a filing improves the transparency of
these carriers’ operations to the driving
public, should they seek to obtain
redress from the carrier in the event of
a crash involving a commercial motor
vehicle. (Currently, the public has online access to such information for nonexempt for-hire motor carriers.)
Additionally, such a filing would allow
FMCSA to more efficiently locate motor
carriers upon whom they wish to
conduct compliance reviews or take
other enforcement actions. Specifically,
under this proposed rule, FMCSA safety
investigators will be able to work
through the process agent if necessary to
locate or serve the motor carrier in
question. FMCSA division
administrators have long expressed
frustration with their inability to
efficiently locate particular small and
medium-sized private and exempt forhire motor carriers for enforcement
action. Several FMCSA division
administrators have indicated that their
staff can spend twenty or more hours on
occasion attempting to track down a
private or exempt for-hire motor carrier

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for enforcement action, including
repeated telephone calls, Internet
searches, and multiple visits to the
place of business, only to find out the
carrier has moved, or no one is home
(these businesses are frequently
operated out of private homes). In some
cases, FMCSA field staff eventually
locates the motor carrier and conducts
the review. In others, field staff is forced
to move on to other cases, where the
probability of a quick and successful
resolution is much higher (currently,
there are more opportunities to conduct
reviews than there are FMCSA staff
resources to initiate them).
With the new process agent
designation filing requirement for
private and exempt motor carriers,
FMCSA division administrators expect
to save a significant number of hours in
staff search costs to locate carriers for
compliance and other types of reviews.
FMCSA expects this provision to result
in efficiency and safety benefits.
FMCSA division administrators have
indicated that this requirement would
reduce the average amount of search
time spent on each compliance review,
thereby resulting in extra time within
each calendar year to conduct
additional compliance reviews. As a
result, the agency anticipates a direct
safety benefit to accrue from
implementation of this provision.
In discussions with several FMCSA
division administrators, the number of
cases where the field staff had trouble
locating a motor carrier against whom
they wished to take enforcement action
ranged from 10 to 100 cases per division
in 2003, with the majority indicating
less than 25 cases per year. For this
analysis, we assumed that each division
office would eliminate excessive carrier
search costs in 20 enforcement cases per

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year, or slightly less than 10 percent of
the average 216 reviews conducted by
each FMCSA division office in calendar
year 2002. Given that private and
exempt for-hire carriers represent 43
percent of new entrants to the industry,
and 54 percent of the existing motor
carrier industry, we felt that this
assumption was reasonable.
Also, discussions with FMCSA
division administrators indicated that
field staff spend an average of 10 to 20
hours per case in search costs trying to
track down these ‘‘hard to find’’ carriers.
For this analysis, we took the midpoint
and assumed that FMCSA field staff
would save an average of 15 hours in
staff search costs per case where the
carrier was difficult to locate.
Multiplying the average hours per case
(15) with the average number of ‘‘hard
to find’’ cases per division per year (20),
yields a total of 300 hours of staff time
saved per year per division. With an
FMCSA division office located within
each of the 50 states, we estimated that
total time saved by all FMCSA division
staff for these ‘‘hard to find’’ carriers at
roughly 15,000 hours per year (we did
not include the District of Columbia and
Puerto Rico due to the relatively limited
number of reviews they conduct each
year). Given that FMCSA division staff
spend an average of 21 hours to prepare
for, conduct, and complete each
compliance review (according to
unpublished FMCSA research on the
Federal compliance review process), we
anticipate that this proposed rule would
generate enough time savings to conduct
an additional 714 compliance reviews
annually, or roughly 6.5 percent of the
total 10,802 reviews conducted by the
50 State-based FMCSA division offices
in fiscal year 2002.
To estimate the impact of the
Compliance Review (CR) Program on
motor carrier safety, FMCSA completed
a CR program assessment in 2003 with
the John A. Volpe National
Transportation Systems Center.3 In
2002, 1,600 truck-related crashes were
avoided as a result of the 8,924 CRs
conducted in 2001. In 2001, 2,200 truckrelated crashes were avoided as a result
of the 11,340 CRs conducted in 2000.
Summing the number of CRs conducted
between 1998 and 2001, and dividing by
the summation of crashes avoided in
each year yields an average of 0.1847
truck-related crashes avoided per CR
conducted between 1998 and 2001. It
should be noted that the above estimate
represents just the direct crash-

reduction benefit associated with a CR,
not the deterrent effect (such as the
‘‘threat’’ of receiving a CR). As such, this
crash-reduction benefit estimate of a CR
can be considered conservative, in the
sense that we believe the benefit is
higher but were not able to quantify the
indirect, or deterrent effect of CRs (even
though such an effect has been
documented in research studying the
effects of increased penalties and public
awareness campaigns on the incidence
of drunk driving). If we multiply our
crash reduction estimate per CR (0.1847)
by the number of new compliance
reviews we estimate the agency would
be able to conduct each year because of
the time savings benefits of this
provision (714), we find that this
proposal has the potential to reduce
truck-related crashes by 132 each year.
At an average cost per truck-related
crash of $62,613 in 2003 dollars4, this
provision yields crash-reduction
benefits of $8.3 million annually
(undiscounted). Total discounted crashreduction benefits of this provision
equal $82.6 million over the 10-year
analysis period, when an average 7percent industry growth rate is assumed
(as was assumed for all other provisions
analyzed in this regulatory evaluation).
It must be noted here that the average
annual industry growth rate assumed for
this analysis (7 percent) is based on the
average number of new entrant
applications filed with FMCSA over an
8-year period (1995–2002). To estimate
the safety benefits of the process agent
designation filing requirement
discussed above, we assumed a
corresponding 7-percent annual
increase in the number of carriers
deemed high risk (or those targeted for
an on-site (i.e., compliance) review of
the carrier’s operations), and by
implication, a comparable increase in
the percentage of hard-to-locate carriers.
As such, a 7-percent annual increase in
industry participants, and particularly
high-risk carriers, is assumed to result
in a comparable increase in truckrelated crashes, absent the beneficial
effects of implementing the process
agent designation filing requirement.

3 ‘‘FMCSA Safety Program Effectiveness
Assessment: Compliance Review Program CR
Impact Assessment Model, Results for 2001 and
2002 * * *’’, May 2003.

4 Average large truck crash costs were obtained
from, ‘‘Revised Costs of Large Truck- and Businvolved Crashes’’ by Zalonshja, Miller, and Spicer
(2004 unpublished research for FMCSA).

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3. Cost Savings From Eliminating Cargo
Insurance Filing Requirement
All non-exempt for-hire common
carriers and freight forwarders are
currently required to hold cargo
insurance up to a limit of $5,000 per
vehicle and $10,000 per occurrence.
Under this proposed rule, these groups,

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excluding those associated with
household goods transportation, would
not be required to hold or file proof of
cargo insurance with FMCSA through
their insurance representatives.
Practically speaking though, all these
carriers would continue to hold cargo
insurance since virtually all of their
clients require such insurance as a
prerequisite for doing business with a
carrier.
In 2005, this provision affects
approximately 9,600 new entrant nonexempt for-hire common carriers and
freight forwarders, and 20,000 such
existing entities, since the agency would
expect that they would direct their
insurance representative to re-file their
cargo insurance with FMCSA in 2005.
In future years, it would affect 9,600
new entrants, and 20 percent of existing
carriers (or 21,700 in CY2006 assuming
an average annual growth rate of seven
percent), for whom FMCSA anticipates
the new insurance representative would
otherwise have to re-file their cargo
insurance in each of the future years of
this analysis. Cost savings would
include: (1) Elimination of the $10 filing
fee paid by the insurance representative
for these new entrant carriers when
filing proof of cargo insurance with
FMCSA, (2) elimination of the filing
time (10 minutes per form) that would
otherwise have been required of these
carriers insurance representatives (at an
average hourly wage rate of $19.32), and
(3) elimination of re-filings made by
insurance representatives of existing forhire common carriers which change
insurance companies in a given year.
Multiplying the above three cost
elements by the number of carriers
affected and summing the result yields
a total first-year cost savings of $0.4
million. Total discounted costs over the
entire 10-year analysis period would be
$3.6 million.
4. Total Benefits
Total first-year benefits of this
proposal would be $9.3 million
discounted dollars, while total
discounted benefits would equal $91.4
million over the 10-year analysis period.
All dollar figures were discounted using
a discount rate of 7 percent in
accordance with Office of Management
and Budget guidelines.
6. Net Benefits From URS NPRM
Total discounted costs of this
proposal were estimated to be $75.4
million over the 10-year analysis period.
Total discounted benefits were
estimated to be $91.4 million over this
same period. The net discounted
benefits associated with implementation
are $16 million over the 10-year analysis

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period. FMCSA invites comments to the
docket regarding these cost and benefit

estimates and assumptions associated
with them.
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XI. Appendix to the Preamble—
Proposed Form MCSA–1 and
Instructions

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XII. Rulemaking Analyses and Notices
Executive Order 12866 (Regulatory
Planning and Review) and DOT
Regulatory Policies and Procedures
FMCSA has determined that this
action is a significant regulatory action
within the meaning of Executive Order
12866, and is significant within the
meaning of Department of
Transportation regulatory policies and
procedures (DOT Order 2100.5 dated
May 22, 1980; 44 FR 11034, February
26, 1979) because it is expected to
generate significant public interest.
However, it is anticipated that the
economic impact of the revisions in this
rule would not exceed the annual $100
million threshold for economic
significance. The Office of Management
and Budget has reviewed this proposed
rule.
Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
as amended by the Small Business
Regulatory Enforcement and Fairness
Act (SBREFA), requires Federal agencies
to analyze the impact of rulemakings on
small entities, unless the agency
certifies that the rule will not have a
significant economic impact on a
substantial number of small entities.
The agency believes these proposals
meet the threshold values for requiring
an initial regulatory flexibility analysis
(IRFA), since the proposed fees may
have a significant impact on a
substantial number of small entities.
Therefore, FMCSA has prepared this
IRFA.
The following sections contain
FMCSA’s IRFA analysis.
(1) A description of the reasons why
action by the agency is being
considered. This rule is required by the
ICC Termination Act of 1995. ICCTA
created a new 49 U.S.C. 13908, which
directs the Secretary of Transportation
to create a single, on-line Federal system
to replace the multiple systems
currently used by FMCSA to register
interstate motor carriers.
One goal of the proposed rule is to
streamline the current registration
system, and thereby improve the
efficiency of the process by which new
entrant motor carriers receive USDOT
Numbers and operating authority.
Another goal is to enhance the fairness
of the FMCSA registration process and
equalize the filing burden among
various groups of motor carriers
(authorized for hire, exempt for hire,
and private carriers, for instance).
Given these goals, FMCSA has
proposed changes in the process by
which new entrants register with
FMCSA, including the forms that new

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entrant motor carriers and other
applicants file, and the fees assessed for
such filings.
(2) A succinct statement of the
objectives of, and the legal basis for, the
proposed rule. The primary objective of
this proposal is to streamline the current
motor carrier licensing, registration, and
insurance filing processes by creating a
single, on-line filing system managed by
FMCSA. Under this proposal, motor
carriers interested in operating in
interstate commerce could file all
licensing, registration, and insurance
compliance documents with FMCSA
on-line via the Internet or by mail.
Another primary objective is to create
uniformity in FMCSA filing
requirements for motor carriers.
Specifically, the goal is to treat all motor
carriers the same, where possible, by
eliminating filing distinctions among
several types of motor carriers such as
for-hire vs. private, and for-hire
common vs. for-hire contract, so that
where possible each motor carrier
essentially files the same forms with
FMCSA. As such, the agency proposes
that some current FMCSA filing
requirements be eliminated, while
others be expanded to cover a broader
pool of new and existing motor carriers.
As previously noted, this proposed
action is responsive to the 49 U.S.C.
13908 directive to develop a single, online Federal system for identifying and
registering entities within our
jurisdiction. The Motor Carrier Safety
Act of 1984 requires the Secretary to
prescribe regulations on commercial
motor vehicle safety. The regulations
shall prescribe minimum safety
standards for commercial motor
vehicles (CMVs). At a minimum, the
regulations shall ensure that: (1) CMVs
are maintained, equipped, loaded, and
operated safely; (2) the responsibilities
imposed on operators of CMVs do not
impair their ability to operate the
vehicles safely; (3) the physical
condition of operators of CMVs is
adequate to enable them to operate the
vehicles safely; and (4) the operation of
CMVs does not have a deleterious effect
on the physical condition of the
operators (49 U.S.C. 31136(a)).
This NPRM is intended to streamline
the registration process and ensure that
FMCSA can more efficiently track CMVs
and ensure their safe operation. As
such, it imposes no operational
responsibilities on drivers, and,
consequently, implements the
§ 31136(a)(1) mandate that our
regulations ensure that CMVs are
maintained and operated safely.
(3) A description of, and where
feasible, an estimate of the number of
small entities to which the proposed

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rule would apply. The URS NPRM is
fairly comprehensive in its scope. The
majority of the individual proposals in
URS apply to both new entrant and
existing motor carriers. Regarding new
entrants, FMCSA estimated in the
regulatory evaluation accompanying
this proposal that 47,535 motor carriers
entered the industry each year between
1995–2002 seeking interstate authority.
Roughly 23,400 of these new entrants
are estimated to be non-exempt for-hire
carriers, 20,300 are estimated to be
exempt for-hire and private carriers, and
the remaining 3,800 are other types of
new registrants (including 1,922
brokers/freight forwarders, 1,200
Mexico-domiciled carriers, and 664
Other carriers). These estimates were
derived from data contained in the
MCMIS. The Regulatory Flexibility Act
requires Federal agencies to analyze the
impact of proposed and final rules on
small entities. Small Business
Administration (SBA) regulations (13
CFR part 121) define a ‘‘small entity’’ in
the motor carrier industry by average
annual receipts, which is currently set
at $21.5 million per firm. FMCSA has
developed a model that uses data from
the 1997 Economic Census (U.S. Census
Bureau), North American Industrial
Classification System (NAICS) Code 484
‘‘Truck Transportation’’ segments, to
assist us in determining the number of
small trucking entities potentially
affected by our proposed rules.
Examining all property carriers within
NAICS Code 484, there are 100,048 forhire trucking firms. Of these, 75,491, or
roughly 75 percent, had annual receipts
of less than $21.5 million. Because
FMCSA does not have annual sales data
on private carriers, the agency assumed
the revenue and operations
characteristics of the private new
entrant firms would be similar to those
of new entrant for-hire carriers. Using
these assumptions, the agency estimates
that almost 35,651 of the total 47,535
new entrants (or 75 percent) are
considered small entities. This
assumption is generally consistent with
an alternative, industry-based approach
used to estimate the number of small
trucking firms, where size is defined by
the number of power units (i.e., tractors
or single-unit trucks) owned or leased
by motor carriers. MCMIS data indicate
that 80 percent of new entrant motor
carriers within the industry owned or
leased six or fewer power units.
Regarding existing motor carriers (to
which some of the URS insurance
compliance filings apply), there were
674,771 motor carriers registered with
FMCSA as of July 2004, according to the
agency’s Motor Carrier Management

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Information System (MCMIS). However,
only 494,126 of these are identified by
a specific operations classification (i.e.,
authorized for hire, private, exempt for
hire, etc.), which is one approach
FMCSA uses to identify those motor
carriers currently operating in interstate
commerce. The 180,645 motor carriers
omitted here (or the difference between
674,771 and 494,126) are considered
‘‘inactive’’ for the purposes of this
analysis. Most of these carriers are
classified in MCMIS as authorized for
hire, but the agency could not match
their MCMIS records with those
maintained in FMCSA’s Licensing and
Insurance (L&I) database, where all
interstate, for hire carriers are required
to maintain various licensing and
insurance information in order to be
considered ‘‘active’’ by the agency. This
issue requires further study, but for this
analysis, we assume the total, active
population of existing motor carriers is
currently 494,126. For this analysis, the
agency will also assume that 75 percent
of existing motor carriers are defined as
small entities, since the 1997 Economic
Census data indicates as much.
Therefore, of the 494,126 current, active
motor carriers, almost 371,000 are
considered small entities.
As discussed in the regulatory
evaluation accompanying this proposal,

FMCSA estimated the economic impacts
of the proposal separately for each major
provision and estimated the impacts to
new entrants and existing carriers
separately. Since the costs associated
with this proposed rule are generally
one-time costs, we examined the firstyear costs for this analysis. Looking at
the first-year costs (and cost savings) of
each provision to new entrants, the
agency arrived at the following in Table
6:

year, 2004, would be $2.3 million (after
rounding). Note that some of the figures
in Table 6 represent cost savings from
reduced filing burdens, which partially
offset new compliance costs associated
with this rule. As stated earlier, it is
appropriate to examine only 1 year of
costs (the first year in this instance),
since these costs are, for the most part,
one-time costs to new entrants during
their first year of operation. Dividing the
$2.3 million figure by 47,535 new
entrants in 2004 yields an average
TABLE 6
compliance cost of $48 per new entrant
carrier.
In millions
of dollars
Data from the 1997 Economic Census,
NAICS 484, the ‘‘Truck Transportation’’
Cost, Revising New Entrant
Registration Fees ..................
1.5 segments, divides trucking firms into 11
revenue categories, beginning with
Cost Savings, Streamlining the
Registration Process .............
¥0.7 those firms generating less than
Cost, Requiring Process Agent
$100,000 in annual gross revenues and
Designation ...........................
1.5 ending with those generating $100
Cost Savings, Eliminating Proof
million or more. The term small
of Cargo Insurance ...............
¥0.1
trucking firms is defined here as those
Cost, Requiring Proof of Liability Insurance ..........................
0.07 that generate less than $21.5 million in
annual revenues, of which there are
Cost, Revising Other FMCSA
1 N/A
Fees ......................................
eight specific revenue categories
according to the 1997 Economic Census
1 The category ‘‘Revising Other FMCSA
Fees’’ involves fees assessed to existing data. The annual revenue categories, the
motor carriers, and therefore not applicable to number of firms in each, and the
new entrants.
average annual revenues of firms in
each category are listed below in Table
The net costs of these provisions for
new entrant motor carriers in a single
7.

TABLE 7.—AVERAGE ANNUAL REVENUES OF SMALL TRUCKING FIRMS (NAICS 484, TRUCK TRANSPORTATION) BY
REVENUE CATEGORY
Revenue category
($1,000s)

Number of
firms

Average revenues per firm
($1,000s)

Average
pre-tax profits
per firm
($1,000s)

Compliance
costs per firms
($48) as % of
profits

< $100 ..............................................................................................................
100–249.9 ........................................................................................................
250–499.9 ........................................................................................................
500–999.9 ........................................................................................................
1,000–2,499.9 ..................................................................................................
2,500–4,999.9 ..................................................................................................
5,000–9,999.9 ..................................................................................................
10,000–21,500 .................................................................................................

11,865
20,959
14,492
11,193
9,730
4,218
2,190
844

53
162
356
705
1,558
3,461
6,869
15,667

3
8
17
35
48
105
165
455

1.6
0.6
0.3
0.1
0.1
0.05
<0.05
<0.05

Total ..........................................................................................................

(100%) 75,491

........................

........................

........................

Source: 1997 Economic Census (Sales Size of Firms) published by the U.S. Census Bureau.

As seen in the above table, the average
cost of the URS provisions per new
entrant ($48) represents 1.6 percent of
average pre-tax profits of the smallest
firms (those with annual gross revenues
less than $100,000). Note that this cost
applies only during the first year of
operation, since these costs are
generally not annual or recurring. For
the second smallest revenue group
(those with annual gross revenues
between $100,000 and $249,999),
compliance costs represent 0.6 percent

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of average pre-tax profits in the first
year.
Thus, for the two smallest revenue
groups, which represent 43 percent of
small carriers (for instance,
(11,865+20,959)/75,491), pre-tax profits
are reduced by far less than 1 percent on
average in any given year within the
analysis period. Extrapolating these
results to the 35,651 small new entrants
anticipated each year, there could be
15,330 carriers which have first-year
pre-tax profits reduced by less than 1

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percent as a result of this proposal. As
stated earlier, this monetary impact
would be a single-year reduction in
profits generally speaking, since for the
majority of new entrant carriers, the
URS costs are not recurring. The
remaining 57 percent of small new
entrants could expect a reduction in
pre-tax profits of less than 0.1 percent
(or less than 1/10 of 1 percent) on
average.
Regarding the impact on existing
carriers, the costs of this proposed rule

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have some basic level of industry
knowledge prior to filing their FMCSA
registration form, namely the
commodities they anticipate they will
TABLE 8
be hauling, the equipment they will be
In millions
using, and the number and types of
of dollars
drivers they will employ. However, new
entrants will still have the option of
Cost, Process Agent Designafiling paper forms with FMCSA, so no
tion ......................................
19
knowledge of personal computers or the
Cost savings, Eliminating
Internet is required to register with
Cargo Insurance Filing ........
¥0.3
FMCSA under this proposal.
Cost, Proof of Liability Insur(5) An identification, to the extent
ance ....................................
1.4
Cost, Reinstatement Fee Inpracticable, of all relevant Federal rules
crease .................................
0.4
which may duplicate, overlap or conflict
Cost, Revising Other FMCSA
with the proposed rule. The agency is
Fees ....................................
0.08 not aware of any Federal rules that
duplicate, overlap, or conflict with the
The net cost of the URS proposal to
proposed rule.
existing motor carriers in a single year,
With regard to the agency’s current
2004, would be $20.6 million. Dividing
authority to assess user fees for the
this figure by the 494,126 existing
services it provides, guidance regarding
carriers we estimated earlier are active
fee levels for the new registration
in 2004 yields an average total of $42 in system is provided by 49 U.S.C. 13908,
compliance costs per existing motor
which indicates that the Secretary may
carrier.
assess a fee to cover all costs associated
(4) A description of the proposed
with upgrading and operating the
reporting, recordkeeping and other
registration system. Additionally,
compliance requirements of the
guidance provided by the Office of
proposed rule, including an estimate of
Management and Budget in Circular A–
the classes of small entities which
25, ‘‘User Charges,’’ is consistent, since
would be subject to the requirement and it states that ‘‘each service, sale or use
the type of professional skills necessary
of Government goods or resources
for preparation of the report or record.
provided by an agency to specific
Under the URS proposal, all new
recipients be self-sustaining.’’
entrant motor carriers, regardless of size,
(6) Description of significant
that are interested in operating in
alternatives that accomplish the stated
interstate commerce would file a single
objectives and minimize the impact on
registration form with FMCSA known as small entities. In proposing the changes
the MCSA–1. Currently, roughly 55
discussed in this NPRM, FMCSA
percent of new entrant motor carriers
attempted to comply with the Title 49
(predominantly, non-exempt for-hire
U.S.C. 13908 mandate that the agency
carriers) file three registration forms
implement a single, on-line Federal
with FMCSA, the MCS–150, the MCS–
registration system, while also achieving
150A, and the OP series form. FMCSA
its own goals: namely to streamline the
has estimated that combining the three
overall motor carrier registration
forms into a single form would reduce
process, to enhance its fairness in terms
the filing time of new entrant motor
of equalizing the filing burden among
carriers by an average of 30 minutes per various groups of motor carriers, and
registration application. Most of the
most importantly, to improve industry
savings accrue to those currently
safety.
required to fill out three forms. In
With these (sometimes competing)
addition, FMCSA is proposing to
objectives in mind, FMCSA considered
provide an on-line filing option for all
several alternatives to the proposal
of its registration and insurance
discussed here, in an effort to minimize
compliance filings. The exact time
the potential new filing burden on small
savings is not yet known, because the
entities. For instance, FMCSA did
newly-envisioned system has not yet
consider exempting existing carriers
been implemented. However, the agency from certain new filing requirements
is confident that additional time savings (via a grandfather clause), with the idea
would accrue to those applicants that
that it would minimize the compliance
file their FMCSA registration and
costs of this proposal. However, while
insurance compliance forms on-line. No reducing compliance costs (and thereby
special skills or training are required to
improving filing efficiency), it would
file a new entrant registration form or
also have reduced, not enhanced, the
the accompanying documents with
fairness of the motor carrier registration
FMCSA, at least relative to those
process relative to the status quo by
currently required. Specifically, new
placing higher burdens on new entrants
entrant motor carriers are expected to
than existing carriers. As such, it would
would be lower. First-year costs are as
follows in Table 8:

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have acted as a barrier to entry to small
new entrants to the benefit of existing
carriers. Conversely, the agency also
considered a proposal to exempt new
entrants from these requirements, but
dismissed this on the grounds that it too
would have reduced the fairness of the
registration process. Additionally, either
option would have reduced safety
relative to the proposal discussed here.
And exempting new entrants from
various requirements would not have
assisted small entities over larger ones,
given that the composition of the new
entrant carriers is similar to that of the
overall existing population (namely, 80
percent have six or fewer power units).
The agency also considered removing
the process agent designation filing
requirement on the grounds that it was
the most costly of the initiatives in this
proposal. However, the agency
dismissed this option because FMCSA
division administrators felt that this
particular filing requirement had the
best potential to increase industry safety
by improving the productivity of the
agency’s safety investigators (thereby
allowing them to initiate additional
compliance reviews). Additionally, the
process agent designation filing
requirement also enhances the fairness
of the agency’s registration process.
Lastly, in examining the overall
burden of this proposal to small entities,
the agency has countered some of its
new (cost inducing) proposals with
several actions that would reduce the
filing burden of new entrant and
existing motor carriers. The cost savings
associated with these provisions would
partially offset the compliance costs of
this proposal, resulting in average total
compliance costs of $48 per new entrant
and $42 per existing carrier in any
single year of the 10-year analysis
period. Since such costs are expected to
reduce pre-tax profits of small entities
by less than 1 percent in a given year,
the agency believes the impact on small
entities has effectively been minimized
with the current proposal, while trying
to meet its stated goals and Congress’
mandate.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act
of 1995 [Pub. L. 104–4; 2 U.S.C. 1532)
requires each agency to assess the
effects of its regulatory actions on State,
local, and tribal governments and the
private sector. Any agency promulgating
a rule likely to result in a Federal
mandate requiring expenditures by a
State, local, or tribal government or by
the private sector of $120.7 million or
more in any one year must prepare a
written statement incorporating various
assessments, estimates, and descriptions

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules
that are delineated in the Act. FMCSA
has determined that the changes
proposed in this rule would not have an
impact of $120.7 million or more in any
one year.
National Environmental Policy Act
The agency analyzed this final rule for
the purpose of the National
Environmental Policy Act of 1969
(NEPA) (42 U.S.C. 4321 et seq.) and
determined under our environmental
procedures Order 5610.1, issued March
1, 2004 (69 FR 9680), that this action is
categorically excluded (CE) under
Appendix 2, paragraphs 6.e and 6.h of
the Order from further environmental
documentation. The CE under
Appendix 2, paragraph 6.e. relates to
establishing regulations and actions
taken pursuant to the regulations
concerning applications for operating
authority and certificates of registration.
The CE under Appendix 2, paragraph 6h
relates to establishing regulations and
actions taken pursuant to the
regulations implementing procedures to
collect fees that will be charged for
motor carrier registrations and
insurance for the following activities: (1)
Application filings; (2) Records
searches; (3) Reviewing, copying,
certifying, and related services. In
addition, the agency believes that this
action includes no extraordinary
circumstances that would have any
effect on the quality of the environment.
Thus, the action does not require an
environmental assessment or an
environmental impact statement.
We have also analyzed this rule under
the Clean Air Act, as amended (CAA),
section 176(c) (42 U.S.C. 7401 et seq.),
and implementing regulations
promulgated by the Environmental
Protection Agency. Approval of this
action is exempt from the CAA’s
General conformity requirement since it
involves policy development and civil
enforcement activities, such as,
investigations, inspections,
examinations, and the training of law
enforcement personnel. See 40 CFR
93.153(c)(2). It will not result in any
emissions increase nor will it have any
potential to result in emissions that are
above the general conformity rule’s de
minimis emission threshold levels.
Moreover, it is reasonably foreseeable
that the rule change will not increase
total CMV mileage, change the routing
of CMVs, how CMVs operate or the
CMV fleet-mix of motor carriers. This
notice of proposed rulemaking was

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mandated under section 103 of ICCTA.
It would consolidate and simplify the
Federal registration processes and
increase public accessibility to data
about interstate and foreign motor
carriers, property brokers, and freight
forwarders.
Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (PRA) (44 U.S.C. 3501–3520), a
Federal agency must obtain approval
from the Office of Management and
Budget (OMB) for each collection of
information it conducts, sponsors, or
requires through regulations. FMCSA
analyzed this proposal and determined
its implementation would streamline
the information collection burden on
motor carriers, relative to the baseline,
or current paperwork collection process.
This includes making the FMCSA
registration and insurance filing
processes more efficient, implementing
on-line filing of FMCSA requirements,
where practical, as well as eliminating
some outdated filing requirements.
These benefits would be partially offset
by the proposal to extend certain
existing filing requirements to
additional groups of carriers within the
industry.
Streamlined registration process.
FMCSA exercises both economic and
safety oversight of for-hire non-exempt
carriers. Currently, they must apply for
operating authority (economic
registration) and obtain a USDOT
Number (safety registration) using
separate paper forms. Under URS, the
process would be streamlined so that a
single application form would
accomplish both economic and safety
registration. Questions from various
economic registration forms would be
transferred to the MCSA–1, redundant
questions removed, and most economic
registration forms eliminated. For hire,
non-exempt carriers no longer would
need to determine which form to use.
Private and for-hire exempt carriers,
because they are subject only to FMCSA
safety oversight, would use the MCSA–
1 form and disregard questions
concerning economic registration.
Elimination of economic registration
forms would have no impact on this
group of carriers.
Increases due to extending filing
requirements to private and for-hire
exempt carriers. Because private and
exempt for-hire carriers are not
currently required to designate a process
agent, the agency assumes all of them

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29049

would file proof of process agent
designation in the first year after the
NPRM becomes a final rule. Extending
process agent filing requirements to
existing private and for-hire exempt
carriers would account for 319,000 of
the proposed 339,305 hour burden
increase. In subsequent years, the
burden would substantially decrease.
Similarly, most existing private and
for-hire exempt carriers would need to
file proof of financial responsibility
with the agency in the first year the rule
becomes final. Current regulations
require them to maintain this proof at
their principal place of business for
inspection during a compliance review,
but there is no requirement to file with
the agency. The requirement to file with
the agency would increase the proposed
burden hours by 18,560 hours in the
first year. This increase is offset by a
4,927 burden hour reduction attributed
to eliminating the cargo insurance filing
requirement for a net increase of 13,633
hours.
Nonetheless, the agency believes the
overall net result would be a more
streamlined process for FMCSA
registration for all motor carrier
applicants.
This proposal would create a new
information collection to cover the
requirements in proposed FMCSA Form
MCSA–1. There are also six currentlyapproved information collections that
would be affected by this NPRM: OMB
Control No. 2126–0013, titled ‘‘Motor
Carrier Identification Report,’’ OMB
Control No. 2126–0015, titled
‘‘Designation of Agents, Motor Carriers,
Brokers and Freight Forwarders,’’ OMB
Control No. 2126–0016, titled ‘‘Revision
of Licensing Application Forms,
Application Procedures, and
Corresponding Regulations,’’ OMB
Control No. 2126–0017, titled
‘‘Financial Responsibility, Trucking,
and Freight Forwarding,’’ OMB Control
No. 2126–0018, titled ‘‘Request for
Revocation of Authority Granted,’’ and
OMB Control No. 2126–0019, titled
‘‘Application for Certificate of
Registration for Foreign Motor Carriers
and Foreign Motor Private Carriers.’’
The total burden hours for the six
currently approved information
collections noted above are 208,190.
Table 9 captures the current and
proposed burden hours associated with
the six currently approved information
collections.

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules
TABLE 9.—CURRENT AND PROPOSED INFORMATION COLLECTION BURDENS
Burden
hours
currently
approved

OMB approval No.

2126–NEW
2126–0013
2126–0015
2126–0016
2126–0017
2126–0018
2126–0019

Burden
hours
proposed 1

Change

...................................................................................................................................
...................................................................................................................................
...................................................................................................................................
...................................................................................................................................
...................................................................................................................................
...................................................................................................................................
...................................................................................................................................

0
74,896
5,000
59,001
45,225
250
23,818

176,743
2,457
344,305
2,043
58,858
0
0

176,743
(72,439)
339,305
(56,958)
13,633
(250)
(23,818)

Total ......................................................................................................................................

208,190

584,406

376,216

1 The

estimates in this column reflect first year burdens. Many of these information collections would significantly decrease in later years.

Following is an explanation of how
each of the seven information
collections shown above would be
impacted by this proposal.
OMB Control No. 2126–NEW. The
estimated paperwork burden for the
proposed MCSA–1 would be 176,743
burden hours [102,993 hours for new
entrants (47,535 new entrants × 2 hours,
10 minutes per form, divided by 60
minutes) + 73,750 hours for biennial
updates (295,000 carriers required to file
in year 1 × 15 minutes per form, divided
by 60 minutes)].
OMB Control No. 2126–0013. In this
proposal, all requirements under this
information collection, except those
related to Form MCS–150B and
applications by certain Mexicodomiciled carriers, would be folded into
OMB Control No. 2126–NEW (see
above). The Form MCS–150B is used to
apply for a Hazardous Materials Safety
Permit and is not being incorporated
under the Unified Registration System
in this proposal. Of the 74,896 hours,
646 are attributed to the Form MCS–
150B and 1,811 hours are attributed to
the Form MCS–150 filed by Mexicodomiciled motor carriers registering to
operate between Mexico and points in
the United States beyond border
commercial zones along the U.S.Mexico international border. As a result,
this information collection would result
in a net decrease of 72,439 burden
hours.
OMB Control No. 2126–0015. This
information collection would increase
by 339,309 burden hours (20,309 new
entrant carriers × 1 hour) + (319,000
existing carriers × 1 hour). This is due
to FMCSA’s proposal to extend the
service of process agent filing
requirement to include private carriers
and exempt for-hire carriers. Although
process agents are not currently
required for these carriers, it is common
practice for them to designate a process
agent. This estimate includes 20,309
new entrant carriers expected to file

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annually, and 319,000 existing carriers
who must file process agent
designations within year one of the rule.
FMCSA conservatively assumes that no
existing private and exempt for-hire
motor carriers currently has a process
agent and that all will file proof with
FMCSA as a result of this NPRM.
Later year burdens would decrease to
include approximately 20,309 new
entrant carriers and 10% of existing
carriers who make changes to the BOC–
3 form annually.
OMB Control No. 2126–0016. Under
this proposal, all requirements included
in this information collection, except
those relating to form OP–1(MX), would
be folded into OMB Control No. 2126–
NEW (see above). This information
collection is currently approved at
59,001 burden hours. The 59,001 hours
includes 2,043 burden hours associated
with Mexico-domiciled carriers
completing the form OP–1(MX) to
operate between Mexico and points in
the United States beyond border
commercial zones along the U.S.Mexico international border. Although
currently approved by OMB, this
portion of the burden is not currently
being performed at this time and is not
proposed to be incorporated under the
Unified Registration System at this time.
Thus, the information collection would
result in a net decrease of 56,958.
OMB Control No. 2126–0017. Changes
would be required to this information
collection due to FMCSA’s proposal to
(1) require exempt for-hire motor
carriers and private interstate motor
carriers of hazardous materials to file
proof of liability insurance with
FMCSA, and to (2) eliminate ‘‘cargo
insurance filings’’ and ‘‘cancellation of
cargo insurance filings.’’ The proposal
to require exempt for-hire motor carriers
and private interstate motor carriers of
hazardous materials to file proof of
liability insurance with FMCSA would
increase the annual burden hours by
18,560 [893 for new entrants (5,356 new

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entrant carriers × 10 minutes per carrier,
divided by 60 minutes) + 17,667 for
existing carriers filing in year one
(106,000 existing carriers × 10 minutes
per carrier filing, divided by 60
minutes)]. In later years, the burden
estimate would decrease to include
5,356 new entrant carriers annually and
20% of existing carriers who annually
change their insurance information.
The proposal to eliminate ‘‘cargo
insurance filings’’ would decrease the
annual burden hours by 4,927 [1,594 for
new entrants (the elimination of 9,566
new entrant carriers × 10 minutes per
form, divided by 60 minutes) + 3,333 for
existing carriers making cargo insurance
re-filings in year one (the elimination of
20,000 existing carriers × 10 minutes per
form, divided by 60 minutes). This
results in a net increase of 13,633
burden hours for this information
collection (+18,560¥4,927 = 13,633).
OMB Control No. 2126–0018. Under
this proposal, the requirements
included in this information collection
would be folded into OMB Control No.
2126–NEW (see above), resulting in a
net decrease of 250 burden hours.
OMB Control No. 2126–0019. Under
this proposal, the requirements
included in this information collection
would be folded into OMB Control No.
2126–NEW (see above), resulting in a
net decrease of 23,818 burden hours.
The proposals contained in this
NPRM, affecting six currently-approved
information collections and one new
information collection, would result in
a net increase of 376,216 burden hours
in the agency’s information collection
budget.
FMCSA requests comments on
whether the collection of information is
necessary for the agency to meet its goal
of reducing truck crashes, including: (1)
Whether the information is useful to
this goal; (2) the accuracy of the
estimated information collection
burden; (3) ways to enhance the quality,
utility, and clarity of the information

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules
collected; and (4) ways to minimize the
information collection burden on
respondents, including the use of
automated collection techniques or
other forms of information technology.
You may submit to the Office of
Management and Budget (OMB)
comments on the information collection
burden addressed by this NPRM. The
OMB must receive your comments by
August 17, 2005. You must mail or hand
deliver your comments to: Attention:
Desk Officer for the Department of
Transportation, Docket Library, Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Room 10102, 725 17th Street, NW.,
Washington, DC 20503.
Executive Order 12630 (Taking of
Private Property)
This proposed rule would not effect a
taking of private property or otherwise
have taking implications under
Executive Order 12630, Governmental
Actions and Interference with
Constitutionally Protected Property
Rights.
Executive Order 12988 (Civil Justice
Reform)
This proposed rule meets applicable
standards in sections 3(a) and 3(b)(2) of
Executive Order 12988, Civil Justice
Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden.
Executive Order 13045 (Protection of
Children)
Executive Order 13045, ‘‘Protection of
Children from Environmental Health
Risks and Safety Risks’’ (April 23, 1997,
62 FR 19885), requires that agencies
issuing economically significant rules,
which also concern an environmental
health or safety risk that an agency has
reason to believe may
disproportionately affect children, must
include an evaluation of the
environmental health and safety effects
of the regulation on children. Section 5
of Executive Order 13045 directs an
agency to submit for a covered
regulatory action an evaluation of its
environmental health or safety effects
on children.
The agency has determined that this
proposed rule is not a covered
regulatory action as defined under
Executive Order 13045. This
determination is based upon the fact
that this proposed rule is not
economically significant under
Executive Order 12866, because the
changes proposed in this rule would not
have an impact of $100 million or more
in any one year. This proposal would
not concern an environmental health

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risk or safety risk that would
disproportionately affect children.
Executive Order 13132 (Federalism)
This proposed rule has been analyzed
in accordance with the principles and
criteria in Executive Order 13132, dated
August 4, 1999 (64 FR 43255, August
10, 1999). FMCSA has determined that
this proposal would not have significant
Federalism implications or limit the
policymaking discretion of the States.
Executive Order 12372
(Intergovernmental Review)
The regulations implementing
Executive Order 12372 regarding
intergovernmental consultation on
Federal programs and activities do not
apply to this program.
Executive Order 13211 (Energy Supply,
Distribution, or Use)
FMCSA has analyzed this proposed
rule under Executive Order 13211,
Actions Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use. This proposal is
not a significant energy action within
the meaning of section 4(b) of the
Executive Order. This proposal is a
procedural action, is not economically
significant, and will not have a
significant adverse effect on the supply,
distribution, or use of energy.
Privacy Act
Anyone is able to search the
electronic form of all comments
received into any of our dockets by the
name of the individual submitting the
comment (or signing the comment, if
submitted on behalf of an association,
business, labor union, etc.). You may
review DOT’s complete Privacy Act
Statement in the Federal Register
published on April 11, 2000 (Volume
65, Number 70; Pages 19477–78) or you
may visit http://dms.dot.gov.
List of Subjects
49 CFR Parts 360
Administrative practice and
procedure, Brokers, Buses, Freight
forwarders, Hazardous materials
transportation, Highway safety,
Insurance, Motor carriers, Motor vehicle
safety, Moving of household goods,
Penalties, Reporting and recordkeeping
requirements, Surety bonds.
49 CFR Part 365
Administrative practice and
procedure, Brokers, Buses, Freight
forwarders, Motor carriers, Moving of
household goods.
49 CFR Part 366
Brokers, Motor carriers.

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29051

49 CFR Part 368
Administrative practice and
procedure, Insurance, Motor carriers.
49 CFR Part 387
Buses, Freight, Freight forwarders,
Hazardous materials transportation,
Highway safety, Insurance,
Intergovernmental relations, Motor
carriers, Motor vehicle safety, Moving of
household goods, Penalties, Reporting
and recordkeeping requirements, Surety
bonds.
For the reasons stated in the
preamble, the Federal Motor Carrier
Safety Administration proposes to
amend title 49, Code of Federal
Regulations, chapter III, subchapter B as
set forth below:
1. Amend Chapter III by revising part
360 to read as follows:
PART 360—REGISTRATION
Subpart A—Registration Procedures
Sec.
360.1 What are the definitions of terms
used in this part?
360.3 Who must register?
360.5 When must I register?
360.7 Where must I register?
360.9 What is involved in registering for a
USDOT Number?
360.11 What general certifications must I
make in my registration application?
360.13 How will FMCSA process my
application?
360.15 For what reasons may FMCSA deny
my application?
360.17 Can I appeal the denial of my
application?
360.19 May I withdraw my application
before processing has been completed?
360.21 If FMCSA rejects, denies or
dismisses my application or revokes my
registration for any reason, how do I start
the process again?
360.23 When does my registration become
permanent?
360.25 When must I update my
registration?
360.27 What penalties may FMCSA impose
if I fail to register or update my
information or if I furnish misleading
information?
360.29 What happens to my Motor Carrier
(MC), Mexico-Domiciled Carrier (MX), or
Freight Forwarder (FF) number after [24
months after the effective date of the
final rule]?
Subpart B—How To Oppose a Request For
Permanent USDOT Registration by a Motor
Carrier, Broker or Freight Forwarder That Is
Subject to 49 U.S.C. Chapter 139
360.101 Who may oppose a request for
permanent USDOT registration by a
motor carrier, broker or freight forwarder
that is subject to 49 U.S.C. chapter 139?
360.103 When must a protest be filed?
360.105 What must be included in the
protest?
360.107 How will FMCSA process the
protest?

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules
How do I withdraw my protest?

Subpart C—[Reserved]
Subpart D—Operations by Mexicodomiciled Motor Carriers in the Border
Commercial Zones
360.301 Must I register?
360.302 What is involved in registering for
a USDOT Number under subpart D of
this part?
360.303 [Reserved]
360.305 How will FMCSA process my
application?
360.307 What registration-related
documents must I carry in my vehicle?
Subpart E—Fees for Registration and
Related Services
360.401 What fees must I pay for
registration and registration-related
services?
360.403 What methods of payment will
FMCSA accept for registration and
registration-related services?
360.405 What is FMCSA policy regarding a
dishonored charge card or credit card or
electronic funds transfer (EFT)?
360.407 How do I request a reduced or
waived fee?
360.409 What information must be
included in my waiver request?
360.411 How will FMCSA process my
waiver request?
360.413 May I obtain a refund of the filing
fee or other related fees?
360.415 How do I make my insurance filing
and what are the fees associated with the
filing?
360.417 Must my insurer, surety company,
or financial institution establish an
account that will allow it to make
insurance filings with FMCSA?
360.419 What are the fees for record
searching, reviewing, copying, certifying,
and related services?
360.421 How will FMCSA update user fees?
Subpart F—Special Requirements for
Transportation of Household Goods
360.501 Must I offer arbitration to
individual shippers if I register to
provide household goods transportation
services?
360.503 If I transport household goods,
must I certify that I have a tariff in effect?
Subpart G—How To Designate Agents for
Service of Process
360.601 Who must designate service of
process agents?
360.603 How do I designate agents for
service of process with FMCSA?
360.605 For which jurisdictions must I
designate service of process agents?
360.607 What are the requirements for my
designees?
360.609 May I make blanket designations?
360.611 How must I change or cancel a
designation?
Subpart H—Cancellation, Reinstatement
and Deactivation of USDOT Registration
360.701 What procedures must I follow to
cancel my USDOT registration?
360.703 How will FMCSA process a request
to cancel a USDOT registration?

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360.705 For what other reasons will
FMCSA deactivate my USDOT
registration?
360.707 040 Can I reinstate an inactive
USDOT registration?
Authority: 5 U.S.C. 553 and 559; 31 U.S.C.
9701; 49 U.S.C. 502, 503, 504, 13101, 13301,
13303, 13304, 13901–13908, 14504, 14708,
31136, 31138, 31139, 31142, 31144, 31145,
31301 et seq., and 31501 et seq., and 49 CFR
1.73.

Subpart A—Registration Procedures
§ 360.1 What are the definitions of terms
used in this part?

The definitions for many terms used
in this part are found in § 390.5 of this
subchapter. Other terms used in this
part are defined as follows:
(a) Border commercial zones means
municipalities in the United States on
the U.S.-Mexico international border or
the commercial zones of such
municipalities, as defined in 49 CFR
part 372, and Dona Ana and Luna
Counties in New Mexico.
(b)(1) Freight forwarder means an
individual or entity engaged in
interstate commerce that holds itself out
to the general public (other than as a
pipeline, rail, motor or water carrier) to
provide transportation of property for
compensation and in the ordinary
course of its business:
(i) Assembles and consolidates, or
provides for assembling and
consolidating, shipments and performs
or provides for break-bulk and
distribution operations of the
shipments;
(ii) Assumes responsibility for the
transportation from the place of receipt
to the place of destination; and
(iii) Uses for any part of the
transportation a carrier subject to
jurisdiction under 49 U.S.C. 10101 et
seq.
(2) The term does not include a
person using transportation of an air
carrier subject to part A of 49 U.S.C.
40101 et seq.
(c) FTA grantee means a motor carrier
of passengers that receives grants from
the Federal Transit Administration
either directly or through a third-party
contract to provide passenger
transportation in a transit service area
under an agreement with a State or local
government.
(d) Interstate transportation means
transportation described at 49 U.S.C.
13501, and transportation in the United
States otherwise exempt from the
Secretary’s jurisdiction under 49 U.S.C.
13506(b)(1).
(e) Mexico-domiciled motor carrier
means a motor carrier of property or
passengers whose principal place of
business is located in Mexico.

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(f) Process agent means a person who
will accept legal and administrative
filings and notices on behalf of the
applicant.
(g) Property broker means an
individual or entity engaged in
interstate commerce that, for
compensation, arranges or offers to
arrange the transportation of property by
a for-hire motor carrier that must
register under 49 U.S.C. chapter 139.
Motor carriers, or persons that are
employees or bona fide agents of
carriers, are not brokers within the
meaning of this section when they
arrange or offer to arrange the
transportation of shipments which they
are authorized to transport and which
they have accepted and legally bound
themselves to transport.
(h) Protest means a filing by a person
wishing to oppose an application for
registration filed under the provisions of
49 U.S.C. chapter 139.
(i) Protestant means a person filing a
valid protest pursuant to subpart B of
this part.
§ 360.3

Who must register?

(a) You must register with the Federal
Motor Carrier Safety Administration and
obtain a USDOT Number if you are:
(1) An interstate for-hire motor carrier
of property or passengers;
(2) A private carrier of property or
passengers operating in interstate
commerce;
(3) A Mexico-domiciled motor carrier
of property or passengers that wants to
operate within the border commercial
zones;
(4) A property broker engaged in
interstate commerce; or
(5) A freight forwarder engaged in
interstate commerce.
(b) If you perform operations as more
than one type of entity, such as a carrier
and a broker, you must register each
entity with FMCSA and pay a filing fee
for each registration.
(c) A motor carrier that is required to
obtain a USDOT Number under 49
U.S.C. 13901 but fails to register its
operations as required, or operates
beyond the scope of its registration, is
subject to applicable civil and/or
criminal penalties and out-of-service
orders.
§ 360.5

When must I register?

You must register and obtain your
assigned USDOT registration number
before you begin operations in interstate
commerce.
§ 360.7

Where must I register?

(a) You must register either on the
FMCSA Web site or by mail.
(b) You may file on-line, obtain the
registration form and instructions from

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any FMCSA field office, download them
from the FMCSA Web site, or you may
request the registration form by calling
1–800–832–5660 (or 001–800–832–5660
from Mexico).
(c) Assistance in completing the
application is available from all FMCSA
Service Centers and Division offices
nationwide, or by calling 1–800–832–
5660 (or 001–800–832–5660 from
Mexico).
§ 360.9 What is involved in registering for
a USDOT Number?

In order to be issued a USDOT
Number, you must:
(a) Submit a complete and accurate
Form MCSA–1—FMCSA Registration
Form (USDOT Number Application)
that is prepared in English and
accompanied by fees. If you file a hardcopy application, it must have all
required signatures.
(b) Ensure that your insurance
company or other financial
responsibility provider files with
FMCSA the appropriate form(s) as
prescribed under part 387 of this
subchapter, if you are:
(1) An interstate for-hire motor
carrier;
(2) A private carrier transporting
hazardous materials in interstate
commerce;
(3) A property broker; or
(4) A freight forwarder.
(c) File, or have a process service
agent file on your behalf, a Form BOC–
3—Designation of Agents—Motor
Carriers, Brokers, and Freight
Forwarders with FMCSA. You must
either submit Form BOC–3 with your
application or indicate on the Form
MCSA–1 that you will use a process
agent service that will submit the form
electronically.
(d) Make the certification required
under § 360.11.
(e) Meet applicable household goods
requirements described under subpart F
of this part.
(f) Have tariffs in effect to the extent
applicable before beginning operations.
(g) Comply with subpart D of this part
if you are a Mexico-domiciled motor
carrier seeking authority to operate
within the border commercial zones.
§ 360.11 What general certifications must I
make in my registration application?

(a) If you operate a commercial motor
vehicle, as defined in § 390.5 of this
title, you must certify that you:
(1) Have a system in place to ensure
compliance with all applicable
requirements of the Federal Motor
Carrier Safety Regulations and the
Hazardous Materials Regulations,
including driver qualifications, hours of

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service, alcohol and controlled
substances testing, vehicle condition
and maintenance, crash monitoring, and
hazardous materials transportation;
(2) Are willing and able to provide the
proposed service; and
(3) Will comply with all pertinent
statutory and regulatory requirements;
and
(4) Are not currently disqualified from
operating a commercial motor vehicle in
any State or the United States under the
provisions of the Motor Carrier Safety
Improvement Act of 1999.
(b) If you fail to make the necessary
certifications, FMCSA will reject your
application.
§ 360.13 How will FMCSA process my
application?

The application process for motor
carriers that are required to register
under § 360.3 is comprised of three
steps.
(a) Step One—Initial Screening.
During the initial screening, FMCSA
will:
(1) Issue a tracking number. This is a
temporary number used only to track
the application until a USDOT Number
has been assigned. The tracking number
must be used to make initial financial
responsibility filings under part 387 of
this title. The tracking number is also
used when filing the Form BOC–3—
Designation of Agents—Motor Carriers,
Brokers and Freight Forwarders to
designate an agent for service of process
as required under subpart G of this part.
(2) Review your application for
correctness, completeness, and
adequacy of evidence;
(3) Correct minor errors without
notifying you;
(4) Review your application for
consistency with the agency safety
fitness policy set forth in part 385 of this
title;
(5) Validate the accuracy of
information and certifications provided
in the application.
(6) Reject your application for any of
the following reasons:
(i) The application is not completed
in English;
(ii) The application does not include
the appropriate fees, as set forth in
§ 360.401;
(iii) The application is not complete
as described under § 360.9;
(iv) You have an ‘‘Unsatisfactory’’
safety fitness rating when the
application is filed;
(v) You own or control a company
that is currently subject to an out-ofservice order or has a current
Unsatisfactory safety rating;
(vi) You previously owned or
controlled a company that is currently

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29053

subject to an out-of-service order or has
a current Unsatisfactory rating that was
imposed during your ownership or
control.
(6) If you have not filed Form BOC–
3 with your application because you
will be using a process agent service,
that service must file a list of agents for
service of legal process in each State in
which you intend to operate. The
service must file this information with
FMCSA within 90 days of the date that
the application is submitted. If the
required filing is not made within the
90-day period, FMCSA will dismiss
your application, and the registration
fee will not be refunded.
(7) If you are a for-hire motor carrier,
a private carrier of hazardous materials,
a broker or a freight forwarder, you must
obtain the appropriate insurance, surety
bond or trust fund as required in part
387 of this title. Your insurer, surety
company or financial institution must
electronically file evidence of coverage
with FMCSA pursuant to § 360.415
within 90 days of the date that the
application is submitted. If the required
filing is not made within the 90-day
period, FMCSA will dismiss your
application, and the registration fee will
not be refunded.
(8) If you are a Mexico-domiciled
motor carrier that operates exclusively
within the border commercial zones,
you are not required to file evidence of
financial responsibility with FMCSA.
However, you must carry appropriate
evidence of insurance in all vehicles
operated in the United States as
required under § 387.7(b)(3) of this title.
(b) Step Two—Issuance of provisional
registration. (1) If your application
meets all applicable requirements under
step one of the application process
described in paragraph (a) of this
section, the agency will issue you a
USDOT Number and provisional
registration. You may begin operations
under provisional registration if you are
not subject to registration under 49
U.S.C. chapter 139. Provisional
registration will be revoked if you do
not successfully complete the other
registration requirements.
(2) Freight forwarders and brokers are
not issued provisional registration. If
your registration application is not
successfully opposed, registration is
permanent when FMCSA issues it at the
conclusion of the protest process
prescribed under subpart B of this part.
(3) Registrations under 49 U.S.C.
chapter 139, except Mexico-domiciled
motor carriers operating exclusively
within the border commercial zones, are
subject to additional procedures under
paragraph (c) of this section before
provisional registration may be granted.

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(4) After you are issued a provisional
registration, you must successfully
complete the New Entrant Safety
Assurance Program under subpart D of
part 385 of this title, which includes an
18-month monitoring program and a
safety audit. Mexico-domiciled carriers
operating exclusively within the border
commercial zones are required to
successfully complete a safety
monitoring system under subpart B of
part 385 of this title, instead of the New
Entrant Safety Assurance Program.
(c) Step Two(a)—Special procedure
for certain 49 U.S.C. chapter 139
registrations. (1) If you are subject to
registration under 49 U.S.C. chapter 139
and your application passes the initial
screening, FMCSA will publish a notice
of your request for registration in the
FMCSA Register to provide the public
an opportunity to oppose pursuant to
subpart B of this part. After publication,
interested persons may request a copy of
the application by contacting FMCSA.
(2) Applications by Mexico-domiciled
motor carriers seeking to operate only
within the border commercial zones
may not be opposed, and notice of such
applications for registration will not be
published in the FMCSA Register.
Private and exempt for-hire carriers are
not subject to 49 U.S.C. chapter 139 and
their applications for registration
likewise may not be opposed, and
notice of such applications for
registration will not be published in the
FMCSA Register.
(3) Once the application is filed, you
may supplement evidence only with
FMCSA approval. Amendments to the
application generally are not permitted,
but in appropriate instances may be
entertained at the discretion of FMCSA.
(4) Serving copies of pleadings. An
applicant must serve all pleadings and
letters on FMCSA and all known
participants in the proceeding, except
that a reply to a motion need only be
served on the moving party. A
protestant need serve only FMCSA and
applicant with pleadings or letters.
(5) Replies to motions. Replies to
motions filed under this part are due
within 5 days of the date the motion is
filed at FMCSA.
(6) Modified proceedings. FMCSA
will handle applications under
paragraph (b)(2)(i) of this section using
the modified procedures, if possible.
The applicant and protestants send
statements made under oath (verified
statements) to each other and to
FMCSA. There are no personal
appearances or formal hearings.
(d) Step Three—Issuance of
permanent registration. A motor carrier
will be issued permanent registration

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only after complying with paragraph
(b)(4) of this section.
§ 360.15 For what reasons may FMCSA
deny my application?

After your application passes the
initial screening described under
§ 360.13(a), FMCSA may deny the
application if it determines, based on a
valid protest filed under subpart B of
this part or other evidence, that:
(a) You do not have a system in place
to ensure compliance with all
applicable requirements of the Federal
Motor Carrier Safety Regulations and
the Hazardous Materials Regulations, as
applicable; or
(b) You are not willing and able to
provide the proposed service and
comply with all pertinent statutory and
regulatory requirements.
§ 360.17 Can I appeal the denial of my
application?

You have the right to appeal denial of
your application. The appeal must
specify in detail why FMCSA’s decision
to deny the application was wrong. The
appeal must be a written request to the
Director, Office of Information
Management, and sent by mail, fax or
electronically within 20 days of the date
of the letter denying the application.
The decision of the Director will be the
final agency order.
§ 360.19 May I withdraw my application
before processing has been completed?

You may withdraw your application
before processing has been completed
by notifying FMCSA in writing. Your
registration fee will not be refunded.
§ 360.21 If FMCSA rejects, denies or
dismisses my application or revokes my
registration for any reason, how do I start
the process again?

(a) To restart the registration process
after rejection, denial or dismissal of
your application or revocation of your
registration, follow the application
procedures in § 360.9 and pay the
applicable registration fee under
§ 360.401.
(b) To restart the registration process
after your registration has been revoked,
you must wait until 30 days after the
effective date of the revocation before
reapplying for registration.
(c) If your registration has been
cancelled or made inactive, see
§ 360.707 for the process to reinstate or
reactivate your registration.
§ 360.23 When does my registration
become permanent?

(a) Your motor carrier registration
becomes permanent after you
satisfactorily complete the new entrant
safety assurance process in part 385,

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subpart D of this title, if you are subject
to those requirements.
(b) Brokers and freight forwarders are
not issued provisional registration.
Their registration is permanent when
FMCSA issues it at the conclusion of the
publication and protest process
described in subpart B of this part.
§ 360.25 When must I update my
registration?

(a)(1) Biennial update. You must
update your registration every 24
months as prescribed in this section by
filing an updated Form MCSA–1 and
completing only the data indicated in
the form instructions.
(2) You must file the biennial
registration update in the month
indicated in the table to this section
based upon the last digit of your USDOT
Number.

TABLE TO § 360.25

1
2
3
4
5
6
7
8
9
0

USDOT number with the last
digit of

Must file by
last day of

................................................
................................................
................................................
................................................
................................................
................................................
................................................
................................................
................................................
................................................

January.
February.
March.
April.
May.
June.
July.
August.
September.
October.

(3) You must file the biennial
registration update in the year based
upon the next-to-last digit of the USDOT
Number. If the next-to-last digit of your
USDOT Number is odd-numbered (1, 3,
5, 7, or 9), you must file your update in
every odd-numbered calendar year. If
the next-to-last digit of the USDOT
Number is even-numbered (0, 2, 4, 6, or
8), you must file your update in every
even-numbered calendar year.
(4) If you fail to file the biennial
registration update, furnish misleading
information, or make a false statement
on your biennial registration update,
you are subject to the civil penalties
prescribed in 49 U.S.C. 521(b)(2)(B) and
49 U.S.C. 14901(a).
(5) If you register in a State that
participates in the PRISM program, you
are not required to file biennial updates
with FMCSA provided you file all the
required information with the
appropriate State office. You are also
subject to the penalties under paragraph
(a)(4) of this section for filing false or
misleading information and are required
to make the filings under paragraph (b)
of this section.
(b) Change in legal name, form of
business, or address of registered

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entities. Changes are permitted in the
legal name, form of business, or address
of a registered entity, provided that
there is no change in the ownership,
management, or control. Within 20 days
of any change in legal name, form of
business, or address, you must file:
(1) A revised Form MCSA–1 reflecting
the change(s); and
(2) A certification confirming that
there has been no change in the
ownership, management, or control of
the registered entity.
(c) Failure to make the certification
required in paragraph (b)(2) of this
section, or making a false certification,
will result in revocation of the USDOT
Number 30 days after FMCSA notifies
you that the certification is either
missing or false, unless acceptable
correction follows.
(d) If you receive notification as
provided under paragraph (c) of this
section that your USDOT Number will
be revoked, you have the right to appeal.
The appeal must specify in detail why
FMCSA’s decision to revoke your
USDOT Number was in error. The
appeal must be submitted in writing to
the Director, Office of Information
Management, and sent by mail, or FAX,
or electronically, within 30 days of the
date of the letter advising that your
USDOT Number will be revoked. The
decision of the Director will be the final
agency order.
§ 360.27 What penalties may FMCSA
impose if I fail to register or update my
information or if I furnish misleading
information?

§ 360.29 What happens to my Motor
Carrier (MC), Mexico-Domiciled Carrier
(MX), or Freight Forwarder (FF) number
after [24 months after the effective date of
the final rule]?

(a) The Motor Carrier (MC), Mexicodomiciled Carrier (MX) and Freight
Forwarder (FF) numbers will be
cancelled [insert date twenty-four
months after the effective date of this
rule]. You will no longer be allowed to
use them for identification purposes but

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Subpart B—How To Oppose a Request
for USDOT Registration by a Motor
Carrier, Broker or Freight Forwarder
That Is Subject to 49 U.S.C. Chapter
139
§ 360.101 Who may oppose a request for
USDOT registration by a motor carrier,
broker or freight forwarder that is subject to
49 U.S.C. chapter 139?

(a) Anyone may oppose an
application of a for-hire motor carrier,
broker or freight forwarder subject to 49
U.S.C. chapter 139 by filing a protest. A
protest may not be filed against the
application of a Mexico-domiciled
motor carrier requesting to operate
exclusively within the border
commercial zones.
(b) A protest filed pursuant to
paragraph (a) of this section must be
based upon the grounds that the
applicant does not meet safety fitness or
other applicable FMCSA regulatory
requirements.
§ 360.103

You may be subject to civil and/or
criminal penalties under 49 U.S.C. 521
and 49 U.S.C. chapter 149 for:
(a) Operating in interstate commerce
before you have registered with FMCSA
and have obtained a USDOT Number;
(b) Failing to update your registration
biennially or every time you change
your form of business; legal name, or
address, as set forth in § 360.25 of this
part;
(c) Continuing to operate in interstate
commerce after cancellation or
revocation of your registration; or
(d) Furnishing false or misleading
information.

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will not be required to remove these
markings from your commercial motor
vehicle.
(b) Before [24 months after the
effective date of the final rule], FMCSA
will issue a USDOT Number to those
entities that only have an MC, MX, or
FF number. These entities include
brokers, freight forwarders, and motor
carriers exclusively operating vehicles
below the thresholds of a ‘‘commercial
motor vehicle’’ as defined in § 390.5 of
this subchapter.

When must a protest be filed?

(a) The protest must be filed within 10
days after notice of the application
appears in the on-line FMCSA Register,
which is accessible from the FMCSA
web site. The protest will be placed in
the FMCSA docket and made available
for public inspection. Failure to file a
timely protest waives further
participation in this aspect of the
registration process.
(b) The Protestant must provide the
applicant with a copy of the protest at
the same time it is filed with FMCSA.
§ 360.105
protest?

What must be included in the

(a) The protest must include evidence,
information or documentation to
substantiate the allegations providing
the basis for the protest.
(b) The protest must be verified, as
follows:
(1) If executed outside the United
States:
‘‘I declare (or certify, verify, or state) under
penalty of perjury under the laws of the
United States of America that the foregoing
is true and correct.
Executed on (date).

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29055

(Signature)’’.

(2) If executed within the United
States, its territories, possessions, or
commonwealths:
‘‘I declare (or certify, verify, or state) under
penalty of perjury that the foregoing is true
and correct. Executed on (date).
(Signature)

(c) FMCSA may reject the protest if it
does not substantially comply with
applicable statutory or regulatory
standards.
(d) Protests regarding registration will
be accepted only when based on an
allegation that the applicant fails or will
fail to comply with the:
(1) Registration requirements;
(2) Federal Motor Carrier Safety
Regulations;
(3) Hazardous Materials Regulations;
(4) Commercial Regulations;
(5) Safety fitness requirements; or
(6) Financial responsibility
requirements.
§ 360.107
protest?

How will FMCSA process the

(a) If a timely protest is filed, FMCSA
will review any evidence and arguments
made by the Protestant under §§ 360.103
and 360.105 of this part and provide the
motor carrier with an opportunity to
respond.
(b) The applicant’s reply statement to
the protest must be filed within 10 days
of the service date of the protest with
the Director, Office of Information
Management. The decision of the
Director will be the final agency order.
(c) The reply statement must not
contain new evidence. It must only
rebut or further explain matters
previously raised.
(d) The reply statement need not be
notarized or verified. You should
understand that the oath in the
application form applies to all evidence
submitted in the application. Separate
legal arguments by counsel need not be
notarized or verified.
§ 360.109

How do I withdraw my protest?

To withdraw a protest, you must
submit a written request to FMCSA by
mail, fax or electronically.
Subpart C—[Reserved]
Subpart D—Operations by Mexicodomiciled Motor Carriers in the Border
Commercial Zones
§ 360.301

Must I register?

(a) A Mexico-domiciled motor carrier
must register with FMCSA to provide
interstate transportation in the border
commercial zones as defined in 49
U.S.C. 13902(c)(4)(A).
(b) Registration under this subpart
permits only interstate transportation in

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the border commercial zones. A carrier
registered under this subpart who
operates a vehicle beyond this area is
subject to applicable penalties and outof-service orders.
(c) Registration may be done either on
the FMCSA web site or by mail. You
may file on-line, obtain the registration
form and instructions from any FMCSA
field office, download them from the
FMCSA web site, or you may call 1–
800–832–5660 (or 001–800–832–5660
from Mexico). Assistance from Englishspeaking FMCSA personnel in
completing the application is available
from all FMCSA Service Centers and
Division offices nationwide, or by
calling 1–800–832–5660 (or 001–800–
832–5660 from Mexico). Assistance
from Spanish-speaking FMCSA
personnel in completing the application
is available only by calling 1–800–832–
5660 (or 001–800–832–5660 from
Mexico) and connecting to our
Transborder office in Otay Mesa,
California.
§ 360.302 What is involved in registering
for a USDOT Number under subpart D of
this part?

In order to be issued a USDOT
Number, you must:
(a) Submit a complete and accurate
Form MCSA–1—FMCSA Registration
Form (USDOT Number Application)
that is prepared in English and
accompanied by fees;
(b) Meet the financial responsibility
requirements under § 387.7(b)(3) of this
title;
(c) File, or have a process service
agent file on your behalf, a Form BOC–
3—Designation of Agents—Motor
Carriers, Brokers, and Freight
Forwarders with FMCSA. You must
either submit Form BOC–3 with your
application or indicate on your
application that you will use a process
agent service that will submit the form
electronically;
(d) Make the certifications under
§ 360.11;
(e) Meet household goods
requirements described under subpart F
of this part if applicable to your
operations; and
(f) Have tariffs in effect to the extent
applicable before beginning operations.
§ 360.303

[Reserved]

§ 360.305 How will FMCSA process my
application?

The application process for Mexicodomiciled motor carriers of property
that are required to register under
§ 360.301 is comprised of three steps.
(a) Step One—Initial Screening.
During the initial screening, FMCSA
will:

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(1) Issue a tracking number. This is a
temporary number used only to track
the application until a USDOT Number
has been assigned. The tracking number
must be used when filing the Form
BOC–3—Designation of Agents—Motor
Carriers, Brokers and Freight
Forwarders to designate an agent for
service of process as required under
subpart G of this part.
(2) Review the application for
correctness, completeness, and
adequacy of information. Non-material
errors will be corrected without notice
to the applicant.
(3) Validate the accuracy of
information and certifications provided
in the application against data
maintained in databases of the
governments of Mexico and the United
States.
(4) Reject your application for any of
the following reasons:
(i) The application is not completed
in English;
(ii) The application did not include
the appropriate fees, as set forth in
§ 360.401;
(iii) The application did not include
all the required supporting documents
and applicable certifications set forth in
the instructions to the Form MCSA–1 or
other information appropriate for your
proposed operations.
(iv) You have an ‘‘Unsatisfactory’’
safety fitness rating when the
application is filed;
(v) You own or control a company
that is currently subject to an out-ofservice order or has a current
unsatisfactory safety rating;
(vi) You previously owned or
controlled a company that is currently
subject to an out-of-service order or has
a current unsatisfactory rating that was
imposed during your ownership or
control.
(5) FMCSA will confirm that required
Form BOC–3 filings have been made. If
you have not filed Form BOC–3 with
your application because you will be
using a process agent service, that
service must file a list of agents for
service of legal process in each State in
which you intend to operate. The
service must file this information with
FMCSA within 90 days of the date that
the application is submitted.
(6) Require you to obtain the financial
responsibility set forth in § 387.7(b)(3)
of this title. You are not required to file
evidence of financial responsibility with
FMCSA, but must carry appropriate
evidence of insurance in all vehicles
operated in the United States.
(b) Step Two—Issuance of provisional
registration. (1) You must successfully
complete applicable requirements under
Step One above.

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(2) If your application and
certifications demonstrate that your
operations would be consistent with
FMCSA safety fitness standards, you
will be issued provisional registration.
You will also be assigned a distinctive
USDOT Number that authorizes you to
provide interstate transportation
between the United States and Mexico
in the border commercial zones.
(3) After you are issued a provisional
registration, you must successfully
complete the safety monitoring system
under subpart B of part 385 of this title.
(d) Step Three—Issuance of
permanent registration. A motor carrier
will be issued permanent registration
only after complying with paragraph
(b)(3) of this section.
§ 360.307 What registration-related
documents must I carry in my vehicle?

A motor carrier of property registered
to operate in the border commercial
zones must maintain a copy of its
registration and proof of financial
responsibility as required under 49 CFR
387.7(b)(3) in any vehicle providing
transportation service within the scope
of the registration, and make such
information available upon request to
any Federal, State or local authorized
inspector or enforcement officer.
Subpart E—Fees for Registration and
Related Services
§ 360.401 What fees must I pay for
registration and registration-related
services?

When requesting registration or
registration-related services, you are
subject to the applicable fees listed in
the table to this section. FTA grantees
are not subject to the application and
evidence of financial responsibility
filing fees.

TABLE TO § 360.401—UNIFIED
REGISTRATION SCHEDULE OF FEES
You must
pay
FMCSA
REGISTRATION
If you:.
(a) Are subject to the registration
requirements under § 360.3 of
this part and are requesting a
new application to operate in
interstate commerce..

$200

OTHER SERVICES
If you file a:.
(b) Biennial update of registration.
(c) Request for change of name,
address, or form of business.

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No cost.
No cost.

Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules

with FMCSA by [180 days after the
effective date of the final rule.

(a) Demonstrate that the waiver or
TABLE TO § 360.401—UNIFIED REGISTRATION SCHEDULE OF FEES— reduction of the fee is in the best
interest of the public;
Continued
You must
pay
FMCSA
(d) Request for cancellation of
registration.
(e) Request for registration reinstatement.
(f) Designation of process agent

No cost.

(b) Describe the impacts you could
experience if we do not grant the waiver
or reduction; and
(c) Include documentation supporting
the basis for your request.

§ 360.411 How will FMCSA process my
waiver request?

100
10

§ 360.403 What methods of payment will
FMCSA accept for registration and
registration-related services?

(a) FMCSA will only accept a charge
card (e.g., American ExpressTM), credit
card (e.g., VISATM, MASTERCARDTM, or
DISCOVERTM) or electronic funds
transfer for payment of registration and
registration-related services.
(b) If you or your agent fails to file the
appropriate filing fee, your application
will be rejected.

FMCSA will review your request and
notify you whether it is granted after the
agency accepts your application for
processing.
§ 360.413 May I obtain a refund of the filing
fee or other related fees?

No. Once your application is received
by FMCSA, the agency will not refund
filing or other service fees. This policy
applies whether or not the agency
grants, approves, denies, rejects before
docketing, dismisses, or receives an
applicant’s request to withdraw its
application.

§ 360.405 What is FMCSA policy regarding
a dishonored charge card or credit card or
electronic funds transfer (EFT)?

§ 360.415 How do I make my insurance
filing and what are the fees associated with
the filing?

If a bank or financial institution does
not honor your charge card or credit
card or EFT in payment of an FMCSA
filing or service fee, FMCSA will notify
you that:
(a) The agency has suspended further
processing on the application until
payment in full of FMCSA filing or
service fees, and applicable FMCSA
penalties for dishonored payments; and
(b) If you do not pay within 90 days,
FMCSA will reject your application and
filing.

(a) Insurance filings must be made by
your insurer, surety company, or
financial institution as provided by part
387 of this subchapter.
(b) The fees for insurance filings are
included in the table to this paragraph:

§ 360.407 How do I request a reduced or
waived fee?

(a) You may request a waiver or
reduction of the fee prescribed in
§ 360.401 at the time you submit your
application.
(b) FMCSA’s general policy is not to
waive or reduce filing fees.
(c) On request, FMCSA will waive
filing fees for applications filed by a
Federal government agency, or a State or
local government entity. For purposes of
this paragraph, the terms ‘‘Federal
government agency’’ and ‘‘government
entity’’ do not include a quasigovernmental corporation or
government subsidized transportation
company.
(d) FMCSA will consider other
requests for waivers or fee reductions
only in extraordinary situations.
§ 360.409 What information must be
included in my waiver request?

The information provided in your
request must:

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TABLE TO 360.415(B).—INSURANCE
FILING FEES
(1) Financial Responsibility
Service Provider filing evidence of minimum level of insurance, surety bond, or trust
fund agreement .....................
(2) Qualification as a self-insurer for bodily injury, property damage, or environmental restoration .................
(3) Qualification as a self-insurer for cargo insurance ......
(3) Quarterly self-insurance
monitoring filing .....................
(4) Annual self-insurance monitoring filing .............................
1 No

$10

4,200
420
500
(1)

cost.

(c) Currently registered exempt forhire motor carriers and private motor
carriers transporting hazardous
materials in interstate commerce. If you
are a private motor carrier that
transports hazardous materials in
interstate commerce or an exempt forhire motor carrier, subject to the
financial responsibility requirements
under part 387 of this title; and you had
registered with FMCSA and been issued
a valid USDOT Number before effective
date of the final rule., your evidence of
financial responsibility must be filed

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29057

§ 360.417 Must my insurer, surety
company, or financial institution establish
an account that will allow it to make
insurance filings with FMCSA?

Insurers, surety companies, and
financial institutions must obtain
authorization to file insurance, surety,
or trust fund information by registering
with the FMCSA Enforcement
Compliance Division.
§ 360.419 What are the fees for record
searching, reviewing, copying, certifying,
and related services?

Certifications and copies of public
records and documents on file with the
Federal Motor Carrier Safety
Administration will be furnished on the
following basis, pursuant to USDOT
Freedom of Information Act regulations
at 49 CFR part 7:
(a) Certificate of the Director, Office of
Information Management, as to the
authenticity of documents, $12.00;
(b) Service involved in locating
records to be certified and determining
their authenticity, including clerical and
administrative work incidental thereto,
at the rate of $21.00 per hour;
(c) Copies of the public documents, at
the rate of $.80 per letter size or legal
size exposure. A minimum charge of
$5.00 will be made for this service; and
(d) Search and copying services
requiring automated data processing
(ADP), as follows:
(1) A fee of $50.00 per hour for
professional staff time will be charged
when it is required to fulfill a request
for ADP data.
(2) The fee for computer searches will
be set at the current rate for computer
service. Information on those charges
can be obtained from the Office of
Information Management (MC-RIS).
(3) Printing shall be charged at the
rate of $.10 per page of computergenerated output with a minimum
charge of $1.00. There will also be a
charge for the media provided (e.g., CD
ROMs) based on the agency’s costs for
such media.
§ 360.421
fees?

How will FMCSA update user

(a) Each fee established in this subpart
may be updated, as deemed necessary
by FMCSA.
(b) Publication and effective dates.
Notice of updated fees will be published
in the Federal Register and will become
effective 30 days after publication.
(c) Payment of fees. You must pay the
fee applicable on the date you file or
request services.

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules

Subpart F—Special Requirements for
Transportation of Household Goods
§ 360.501 Must I offer arbitration to
individual shippers if I register to provide
household goods transportation services?

(a) You must offer arbitration to
individual shippers as a means of
settling loss and damage claims against
you if you register to provide household
goods transportation services as a motor
carrier or freight forwarder.
(b) You must affirm on your
application that you will offer
arbitration to individual shippers, in
accordance with 49 U.S.C. 14708.
(c) You must provide the name and
address of the entity that will
administer your arbitration program.
(d) You must comply with part 375 of
this subchapter if you transport
household goods for individual
shippers, as defined in § 375.1 of this
subchapter.

(b) New applicants for registration. If
you apply for USDOT Number
registration after [effective date of the
final rule.], you must file a Form BOC–
3—Designation of Agents—Motor
Carriers, Brokers and Freight
Forwarders with the MCSA–1
application or indicate on the Form
MCSA–1 that you will use a process
agent service to submit the Form BOC–
3 electronically. If you elect to use a
process agent service to submit the
Form BOC–3, the service must submit
the form within 90 days of the date that
the MCSA–1 application is filed with
FMCSA.
(c) Only one completed current form
may be on file with FMCSA. You must
retain a copy of this designation at your
principal place of business.
§ 360.605 For which jurisdictions must I
designate service of process agents?

§ 360.609 May I make blanket
designations?

(a) You are permitted to make blanket
designations. Where an association or
corporation has filed with the FMCSA a
list of process agents for each State, you
may make the required designations by
using the following statement:
Those persons named in the list of process
agents on file with the Federal Motor Carrier
Safety Administration by__ (Name of
association or corporation) and any
subsequently filed revisions thereof, for the
States in which this carrier will operate in or
through, except those States in which we
have made individual designations.

(b) You must retain a copy of the
blanket designation at your principal
place of business.
§ 360.611 How must I change or cancel a
designation?

(a) A designation may be canceled or
changed only by a new designation
except that, where a motor carrier,
broker or freight forwarder ceases to be
subject to § 360.605 in whole or in part
for 1 year, designation is no longer
required and may be canceled without
making another designation.
(b) You must file the change using a
new Form BOC–3—Designation of
Agents—Motor Carriers, Brokers and
Freight Forwarders. You may file the
Form BOC–3 on-line at the FMCSA web
site or by mail.
(c) A valid, up-to-date designation
must be on file with FMCSA as long as
you are subject to, in whole or in part,
§ 360.605. Changes in designation must
be filed with FMCSA in such a manner
that no lapses in designation occur.
(d) You must retain a copy of this
change or cancellation at your principal
place of business.
(e) A cancellation request will become
effective 30 days after receipt of your
Form BOC–3.
(f) You may not operate in any State
for which you cancel your designation
until you designate a new service agent
for that State.

You must designate a service of
process agent (a person upon whom
court process may be served) following
the rules in this subpart if you meet any
of the following conditions:
(a) You are a motor carrier, property
broker or freight forwarder engaged in
interstate commerce.
(b) You are a motor carrier that
operates in the United States in the
course of transportation between points
in a foreign country.
(c) You are a fiduciary of a motor
carrier, property broker or freight
forwarder. A fiduciary, as defined at
§ 387.319(a) of this title, must designate
a service of process agent as of the
moment of succession.

(a) Motor carriers. You must designate
a service of process agent for each State
in which you are authorized to operate
and for each State through which you
travel when operating as a motor carrier.
You must retain a copy of these
designations at your principal place of
business.
(b) Brokers. When you operate as a
property broker, you must designate a
process agent for each State in which
your offices are located, in which you
write contracts, or in which you are
authorized to write contracts.
(c) Freight Forwarders. When you
operate as a freight forwarder, you must
make a designation for each State in
which you:
(1) Maintain offices;
(2) Write contracts;
(3) Assemble, consolidate, or provide
for assembling and consolidating
shipments;
(4) Perform or provide for break-bulk
and distribution operations of the
shipments;
(5) Assume responsibility for the
transportation from the place of receipt
to the place of destination; or
(6) Use any rail, water, pipeline, or
motor carrier for any part of the
transportation.

§ 360.603 How do I designate agents for
service of process with FMCSA?

§ 360.607 What are the requirements for
my designees?

§ 360.701 What procedures must I follow
to cancel my USDOT registration?

(a) Currently registered entities. If you
have registered with FMCSA and have
been issued a valid USDOT Number
before [effective date of the final rule.]
but do not already have a Form BOC–
3—Designation of Agents—Motor
Carriers, Brokers, and Freight
Forwarders on file with FMCSA, you
must file your designation of agent for
service of process by [180 days after the
effective date of the final rule].

(a) You must only designate persons
(as defined at 49 U.S.C. 13102(16)) who:
(1) Reside in the State for which you
designate them; or
(2) Maintain an office in the State for
which you designate them; and
(3) Will accept service of process.
(b) If a State official is designated,
evidence of his/her willingness to
accept service of process must be
furnished to FMCSA.

(a) You must submit a request to
cancel a USDOT Number by one of the
following methods:
(1) Electronically on the FMCSA Web
site at: http://www.fmcsa.dot.gov, or
(2) By mail.
(b) A USDOT Number cancellation
request must include the following
applicable certification statement:
(1) If executed outside the United
States:

§ 360.503 If I transport household goods,
must I certify that I have a tariff in effect?

Yes. If you will be transporting
household goods as a motor carrier or
freight forwarder, you must certify that
you have a tariff in effect and available
for review upon request, in accordance
with 49 U.S.C. 13702.
Subpart G—How To Designate Agents
for Service of Process
§ 360.601 Who must designate service of
process agents?

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Subpart H—Cancellation,
Reinstatement and Deactivation of
USDOT Registration

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Federal Register / Vol. 70, No. 96 / Thursday, May 19, 2005 / Proposed Rules
‘‘I declare (or certify, verify, or state) under
penalty of perjury under the laws of the
United States of America that I have the
authority to seek the requested cancellation
of this USDOT Number.
Executed on (date).
(Signature)’’.
or

(2) If executed within the United
States, its territories, possessions, or
commonwealths:
‘‘I declare (or certify, verify, or state) under
penalty of perjury that I have the authority
to seek the requested cancellation of this
USDOT Number.
Executed on (date).
(Signature)’’.

have previously completed the new
entrant program requirements.
(b) If your registration has been
marked inactive for more than 2 years
and you wish to resume operations in
interstate commerce:
(1) You must reapply to activate your
previously-issued USDOT Number
under the procedures in subpart A of
this part.
(2) If you are a motor carrier, you will
be considered a new entrant subject to
the requirements of the New Entrant
Safety Assurance Program in part 385,
subpart D of this subchapter.
PART 365—[AMENDED]

§ 360.703 How will FMCSA process a
request to cancel a USDOT registration?

2. The authority citation for part 365
continues to read as follows:

(a) Upon receipt of the USDOT
registration cancellation request,
FMCSA will mark your registration as
inactive and you will no longer be
authorized to operate interstate
commerce.
(b) If you operate in interstate
commerce after canceling your USDOT
registration, you will be subject to civil
and/or criminal penalties under 49
U.S.C. 5 and 49 U.S.C. chapter 149.

Authority: 5 U.S.C. 553 and 559; 16 U.S.C.
1456; 49 U.S.C. 13101, 13301, 13901–13906,
14708, 31138, and 31144; 49 CFR 1.73.

Subparts A Through D [Removed and
Reserved]
3. Remove and reserve subparts A
through D of part 365.
PART 366—[REMOVED AND
RESERVED]

§ 360.705 For what other reasons will
FMCSA deactivate my USDOT registration?

(a) FMCSA will mark your registration
as inactive and revoke your registration
to operate in interstate commerce if:
(1) You fail to have on file with
FMCSA evidence of the necessary
financial responsibility, as required by
part 387 of this subchapter; or
(2) You fail to have on file with
FMCSA your agents for service of
process, as required by subpart G of this
part.
(b) If you operate in interstate
commerce after FMCSA marks your
registration inactive, you will be subject
to civil and/or criminal penalties under
49 U.S.C. Chapters 5 and 149.
§ 360.707 Can I reinstate an inactive
USDOT registration?

(a) You may reinstate registration
marked inactive under this subpart
under the following conditions:
(1) You request reinstatement within
2 years of the date your registration is
marked inactive;
(2) You file, or cause to be filed with
FMCSA, the necessary evidence of
financial responsibility and designation
of agents for service of process;
(3) You pay the reinstatement fee
prescribed in § 360.401; and
(4) If you are a motor carrier, you will
be considered a new entrant subject to
the requirements of the New Entrant
Safety Assurance Program in part 385,
subpart D of this subchapter, unless you

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4. Remove and reserve part 366.
PART 368—[REMOVED AND
RESERVED]
5. Remove and reserve part 368.
PART 387—MINIMUM LEVELS OF
FINANCIAL RESPONSIBILITY FOR
MOTOR CARRIERS
6. The authority citation for part 387
continues to read as follows:
Authority: 49 U.S.C. 13101, 13301, 13906,
14701, 31138, and 31139; and 49 CFR 1.73.

7. Amend § 387.33 by redesignating
the unnumbered paragraph as paragraph
(a), by adding the subheading ‘‘General
limits’’ at the beginning of paragraph (a),
and by adding paragraph (b) to read as
follows:
§ 387.33
levels.

Financial responsibility, minimum

(a) General limits. * * *
(b) Limits applicable to transit service
providers. Notwithstanding the
provisions of 49 CFR 387.33(a), the
minimum level of financial
responsibility for a motor vehicle used
to provide transportation services
within a transit service area located in
more than one State under an agreement
with a Federal, State, or local
government funded, in whole or in part,
with a grant under 49 U.S.C. 5307, 5310,
or 5311, including transportation
designed and carried out to meet the

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29059

special needs of elderly individuals and
individuals with disabilities, will be the
highest level required for any of the
States in which it operates. Transit
service providers conducting such
operations must register as for-hire
passenger carriers under part 365 of this
subchapter, identify the States in which
they operate under the applicable
grants, and certify on their registration
documents that they have in effect
financial responsibility levels in an
amount equal to or greater than the
highest level required by any of the
States in which they are operating under
a qualifying grant.
8. Amend § 387.301 by revising
paragraphs (a)(1) and (b) to read as
follows:
§ 387.301 Surety bond, certificate of
insurance, or other securities.

(a) Public liability. (1) No for-hire
motor carrier of property and
passengers, and no private motor carrier
of hazardous materials, shall engage in
interstate commerce unless and until
there shall have been filed with and
accepted by FMCSA a certificate of
insurance, surety bond, proof of
qualification as self-insurer, or other
securities or agreements in the amounts
set forth in § 387.303, conditioned to
pay any final judgment recovered
against such motor carrier for bodily
injuries to or the death of any person
resulting from the negligent operation,
maintenance or use of motor vehicles in
transportation, or, in the case of motor
carriers of property operating freight
vehicles described in § 387.303(b)(2), for
environmental restoration. No
registration issued to a motor carrier
transporting property or passengers by
motor vehicle subject to Subtitle IV, part
B, chapter 135 of title 49 of the U.S.
Code shall remain in force unless the
necessary evidence of public liability
insurance coverage is continuously on
file with FMCSA.
*
*
*
*
*
(b) Household goods. No motor carrier
subject to Subtitle IV, part B, chapter
135 of title 49 of the U.S. Code that
provides transportation of household
goods, as defined in § 375.1(b) of this
subchapter, shall engage in interstate
commerce, nor shall any registration be
issued to such a carrier or remain in
force unless and until there shall have
been filed with and accepted by
FMCSA, a surety bond, certificate of
insurance, proof of qualifications as a
self-insurer, or other securities or
agreements in the amounts prescribed in
§ 387.303, conditioned upon such
carrier making compensation to
shippers or consignees and coming into
the possession of such carrier in

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§ 387.303 Security for the protection of the
public: Minimum limits

connection with its transportation
services.
9. Amend § 387.303 by revising
paragraphs (b)(2) and (c) to read as
follows:

(a) * * *
(b)(1) * * *

(2) Motor carriers subject to
§ 387.301(a)(2) are required to have
security for the required minimum
limits as follows:

Kind of equipment

Commodity transported

(a) Freight vehicles of 10,000 pounds
(4,536 kilograms) or more GVWR.
(b) Freight vehicles of 10,000 (4,536
kilograms) pounds or more GVWR.

Property (non-hazardous) ........................................................................................

$750,000

Hazardous substances, as defined in § 171.8 of this title, transported in cargo
tanks, portable tanks, or hopper-type vehicles with capacities in excess of
3,500 water gallons, or in bulk Class A or B explosives, poison gas, (Poison
A), liquefied compressed gas or compressed gas, or highway route controlled
quantity or radioactive materials as defined in § 173.455 of this title.
Oil listed in § 172.101 of this title; hazardous waste, hazardous materials and
hazardous substances defined in § 171.8 of this title and listed in § 172.101 of
this title, but not mentioned in (b) above or (d) below.
Any quantity of class A or B explosives; any quantity of poison gas (Poison A);
or highway route controlled quantity radioactive materials as defined in
§ 173.455 of this title.

5,000,000

(c) Freight vehicles of 10,000 pounds
(4,536 kilograms) or more GVWR.
(d) Freight vehicles under 10,000
pounds (4,536 kilograms) GVWR.

*

*
*
*
*
(c) Cargo liability. Motor carriers and
freight forwarders of household goods
are required to obtain and maintain
insurance in the amount of $5,000 for
loss of or damage to property carried on
any one vehicle and $10,000 for loss of
or damage to or aggregate losses or
damages occurring at any one time or
place.
10. Amend § 387.403 by revising
paragraph (a) to read as follows:

filed with FMCSA an appropriate surety
bond, certificate of insurance,
qualifications as a self-insurer, or other
securities or agreements, in the amounts
prescribed in § 387.405, for loss of or
damage to property.
*
*
*
*
*

§ 387.403

11. The authority for part 390
continues to read as follows:

General requirements.

(a) Cargo. A household goods freight
forwarder may not operate until it has

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PART 390—FEDERAL MOTOR
CARRIER SAFETY REGULATIONS;
GENERAL

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Amount

1,000,000
5,000,000

Authority: 49 U.S.C. 508, 13301, 13902,
31133, 31136, 31502, 31504, and sec. 204,
Pub. L. 104–88, 109 Stat. 803, 941 (49 U.S.C.
701 note); sec. 114, Pub. L. 103–311, 108 Stat.
1673, 1677; sec. 217, Pub. L. 106–159, 113
Stat. 1748, 1767; and 49 CFR 1.73.
§ 390.19

[Removed and Reserved]

12. Remove and reserve § 390.19.
Issued on: May 11, 2005.
Annette M. Sandberg,
Administrator.
[FR Doc. 05–9692 Filed 5–11–05; 3:55 pm]
BILLING CODE 4910–EX–P

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