Commercial Driver's License Standards: Application for Exemption; State of Idaho, Idaho Transportation Department (ITD)

Larry W. Minor
Federal Motor Carrier Safety Administration
28 September 2016

[Federal Register Volume 81, Number 188 (Wednesday, September 28, 2016)]
[Notices]
[Page 66730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-23369]


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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2015-0489]


Commercial Driver's License Standards: Application for Exemption; 
State of Idaho, Idaho Transportation Department (ITD)

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of final disposition; denial of application for 
exemption.

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SUMMARY: FMCSA announces that it has denied an application for 
exemption from the requirement that third-party commercial driver's 
license (CDL) testers maintain a bond in an amount determined by the 
State that employs them. The bond is intended to be sufficient to pay 
for re-testing drivers in the event that the third party or its 
examiners is involved in fraudulent activities related to CDL skills 
testing. The Division of Motor Vehicles, Idaho Transportation 
Department (ITD) submitted the application for exemption. FMCSA 
published ITD's application, reviewed the public comments received, and 
denied the application because available information did not allow the 
Agency to conclude that the proposed exemption would achieve a level of 
safety that is equivalent to, or greater than, the level of safety that 
would be obtained absent the exemption.

DATES: FMCSA denied the application for exemption by letter dated 
August 8, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Thomas Yager, Chief, FMCSA Driver 
and Carrier Operations Division; Office of Carrier, Driver and Vehicle 
Safety Standards, FMCSA; Telephone: 614-942-6477. Email: MCPSD@dot.gov.

SUPPLEMENTARY INFORMATION: 

Background

    FMCSA has authority under 49 U.S.C. 31136(e) and 31315 to grant 
exemptions from certain parts of the Federal Motor Carrier Safety 
Regulations. FMCSA must publish a notice of each exemption request in 
the Federal Register (49 CFR 381.315(a)). The Agency must provide the 
public an opportunity to inspect the information relevant to the 
application, including any safety analyses that have been conducted. 
The Agency must also provide an opportunity for public comment on the 
request.
    The Agency reviews safety analyses and public comments submitted, 
and determines whether granting the exemption would likely achieve a 
level of safety equivalent to, or greater than, the level that would be 
achieved by the current regulation (49 CFR 381.305). The decision of 
the Agency must be published in the Federal Register (49 CFR 
381.315(b)) with the reasons for denying or granting the application 
and, if granted, the name of the person or class of persons receiving 
the exemption, and the regulatory provision from which the exemption is 
granted. The notice must also specify the effective period and explain 
the terms and conditions of the exemption. The exemption may be renewed 
(49 CFR 381.300(b)).

ITD Application for Exemption

    The Idaho Transportation Department (ITD) is responsible for State 
transportation infrastructure and oversees the disbursement of Federal, 
State, and grant funding for Idaho transportation programs.
    The ITD applied for an exemption from the regulations in 49 CFR 
383.75(a)(8)(v) that require third party testers to initiate and 
maintain a bond in an amount determined by the State to be sufficient 
to pay for re-testing drivers in the event that the third party or one 
or more of its examiners is involved in fraudulent activities related 
to conducting skills testing of CDL applicants. The ITD requested the 
exemption because the regulation creates a financial hardship for 
testing examiners who must be bonded but conduct only a few tests 
monthly. ITD said that the State has had no instances of fraud in its 
third-party testing organizations.

Public Comments

    On March 9, 2016, FMCSA published in the Federal Register notice of 
the ITD application and requested public comment (81 FR 12443). The 
Agency received three comments, all of which opposed the exemption. One 
commenter objected to all exemptions in general. The Commercial Vehicle 
Training Association stated that exempting Idaho from the bond 
requirement is unnecessary because the State has the authority to 
determine what the amount of these bonds should be. Therefore, if Idaho 
determines that the current bond requirement is too high, it can simply 
reduce the requisite amount. The Surety and Fidelity Association of 
America listed various reasons why a surety bond has value to the State 
and is in the public interest.
    No commenters supported the ITD exemption request.

FMCSA Decision

    The Agency's decision is based upon the information provided by the 
applicants, and its review of comments received in response to the 
Federal Register notice. The Agency concluded that the ITD application 
failed to demonstrate how by eliminating the requirement for third 
party testers to initiate and maintain a bond would achieve a level of 
safety equivalent to, or greater than, the level that would be achieved 
by the current regulation. The Agency believes the regulation provides 
the proper balance, protecting the public interest while imposing only 
minimal costs on small third-party testers. The bond requirement is a 
business standard that not only provides a higher degree of assurance 
that the CDL tests performed meet FMCSA and State requirements, but 
that the tests are also performed by qualified individuals as agents of 
the State. ITD did not provide any data, studies or research supporting 
its request, or explain why a reduced bond amount would not achieve the 
same result as an exemption. Therefore, the Agency cannot determine 
that ITD's proposed exemption would meet the statutory requirement to 
maintain the required levels of safety. Accordingly, FMCSA denied ITD's 
application for exemption by letter dated August 8, 2016.

    Issued on: September 14, 2016.
Larry W. Minor,
 Associate Administrator for Policy.
[FR Doc. 2016-23369 Filed 9-27-16; 8:45 am]
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