Fees for the Unified Carrier Registration Plan and Agreement |
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Jim Mullen
Federal Motor Carrier Safety Administration
13 February 2020
[Federal Register Volume 85, Number 30 (Thursday, February 13, 2020)]
[Rules and Regulations]
[Pages 8192-8198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-01761]
[[Page 8192]]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 367
[Docket No. FMCSA-2019-0066]
RIN 2126-AC26
Fees for the Unified Carrier Registration Plan and Agreement
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Final rule.
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SUMMARY: This rule establishes reductions in the annual registration
fees the States collect from motor carriers, motor private carriers of
property, brokers, freight forwarders, and leasing companies for the
Unified Carrier Registration (UCR) Plan and Agreement for the
registration years beginning in 2020. For the 2020 registration year,
the fees will be reduced by 14.45 percent below the 2018 registration
fee level to ensure that fee revenues collected do not exceed the
statutory maximum, and to account for the excess funds held in the
depository. The fees will remain at the same level for 2021 and
subsequent years unless revised in the future. The reduction of the
current 2019 registration year fees (finalized on December 28, 2018)
range from approximately $3 to $2,712 per entity, depending on the
number of vehicles owned or operated by the affected entities.
DATES: This final rule is effective February 13, 2020.
Petitions for Reconsideration of this final rule must be submitted
to the FMCSA Administrator no later than March 16, 2020.
FOR FURTHER INFORMATION CONTACT: Mr. Gerald Folsom, Office of
Registration and Safety Information, Federal Motor Carrier Safety
Administration, 1200 New Jersey Avenue SE, Washington, DC 20590-0001,
(202) 385-2405.
SUPPLEMENTARY INFORMATION:
I. Rulemaking Documents
A. Availability of Rulemaking Documents
For access to docket FMCSA-2019-0066 to read background documents,
go to https://www.regulations.gov at any time, or to Docket Operations
at U.S. Department of Transportation, Room W12-140, 1200 New Jersey
Avenue SE, Washington, DC 20590, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays.
B. Privacy Act
In accordance with 5 U.S.C. 553(c), the U.S. Department of
Transportation (DOT) solicits comments from the public to better inform
its rulemaking process. DOT posts any comments, without edit, including
any personal information the commenter provides, to
www.regulations.gov, as described in the system of records notice (DOT/
ALL 14-FDMS), which can be reviewed at https://www.transportation.gov/privacy.
II. Abbreviations and Acronyms
The following is a list of abbreviations used in this document
CE Categorical Exclusion
DOT U.S. Department of Transportation
E.O. Executive Order
FMCSA Federal Motor Carrier Safety Administration
NPRM Notice of Proposed Rulemaking
OMB Office of Management and Budget
PRA Paperwork Reduction Act
RFA Regulatory Flexibility Act
SBREFA Small Business Regulatory Enforcement Fairness Act
SBTC Small Business in Transportation Coalition
SSRS Single State Registration System
UCR Unified Carrier Registration
UCR Agreement Unified Carrier Registration Agreement
UCR Board Unified Carrier Registration Board of Directors
UCR Plan Unified Carrier Registration Plan
III. Executive Summary
A. Purpose and Summary of the Major Provisions
The UCR Plan and the 41 States participating in the UCR Agreement
establish and collect fees from motor carriers, motor private carriers
of property, brokers, freight forwarders, and leasing companies. The
UCR Plan and Agreement are administered by a 15-member board of
directors (UCR Board); 14 appointed from the participating States and
the industry, plus the Deputy Administrator of FMCSA or another
Presidential appointee from the Department. Revenues collected are
allocated to the participating States and the UCR Plan. The maximum
amount that the UCR Plan may collect is established by statute. If
annual revenue collections will exceed the statutory maximum allowed,
then the UCR Plan must request adjustments to the fees (49 U.S.C.
14504a(f)(1)(E)). In addition, any excess funds held by the UCR Plan
after payments are made to the States and for administrative costs are
retained in the UCR depository, and fees subsequently charged must be
adjusted further to return the excess revenues held in the depository
as required by 49 U.S.C. 14504a(h)(4). Adjustments in the fees are
requested by the UCR Plan and approved by FMCSA. These two provisions
are the reasons for the two-stage adjustment adopted in this final
rule. The final rule provides for a reduction for registration years
beginning in 2020 to the annual registration fees established for the
UCR Agreement.
Beginning in the 2020 registration year, the fees will be reduced
by 14.45 percent below the 2018 registration fee level to ensure that
fee revenues do not exceed the statutory maximum and to account for the
excess funds held in the depository. The fees beginning with the 2021
registration year will remain at the same level as the fees for 2020,
unless there is a future adjustment. The reduction of the current 2019
registration year fees (finalized on December 28, 2018) ranges from
approximately $3 to $2,712 per entity, depending on the number of
vehicles owned or operated by the affected entities.
B. Benefits and Costs
The changes imposed by this final rule reduce the fees paid by
motor carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies to the participating States. While
each motor carrier will realize a reduced burden, fees are considered
by the Office of Management and Budget (OMB) Circular A-4, Regulatory
Analysis as transfer payments, not costs. Transfer payments are
payments from one group to another that do not affect total resources
available to society. Therefore, transfers are not considered in the
monetization of societal costs and benefits of rulemakings.
IV. Legal Basis for the Rulemaking
This rule adjusts the annual registration fees for the UCR
Agreement established by 49 U.S.C. 14504a. The requested fee
adjustments are required by 49 U.S.C. 14504a because, for the
registration year 2018, the total revenues collected were expected to
exceed the total revenue entitlements of $108 million distributed to
the 41 participating States plus the $5 million established for the
administrative costs associated with the UCR Plan and Agreement.\1\ The
requested adjustments
[[Page 8193]]
have been submitted by the UCR Plan in accordance with 49 U.S.C.
14504a(f)(1)(E)(ii), which requires the UCR Board to request an
adjustment by the Secretary of Transportation (Secretary) when the
annual revenues collected exceed the maximum allowed. In addition, 49
U.S.C. 14504a(h)(4) states that any excess funds held by the UCR Plan
in its depository, after payments to the States and for administrative
costs, shall be retained ``and the fees charged . . . shall be reduced
by the Secretary accordingly.''
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\1\ The UCR Plan is ``the organization . . . responsible for
developing, implementing, and administering the unified carrier
registration agreement.'' 49 U.S.C. 14504a(a)(9). The UCR Agreement
developed by the UCR Plan is the ``interstate agreement . . .
governing the collection and distribution of registration and
financial responsibility information provided and fees paid by motor
carriers, motor private carriers, brokers, freight forwarders, and
leasing companies. . . .'' 49 U.S.C. 14504a(a)(8).
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The UCR Plan also requested approval of a revised total revenue
target to be collected because of an adjustment in the amount for costs
of administering the UCR Agreement. No changes in the revenue
entitlements to the participating States were recommended by the UCR
Plan. The revised total revenue target must be approved in accordance
with 49 U.S.C. 14504a(d)(7) and (g)(4).
The Secretary also has broad rulemaking authority in 49 U.S.C.
13301(a) to carry out 49 U.S.C. 14504a, which is part of 49 U.S.C.
subtitle IV, part B. Authority to administer these statutory provisions
has been delegated to the FMCSA Administrator by 49 CFR 1.87(a)(2) and
(7).\2\
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\2\ For the purpose of this rulemaking, the term ``FMCSA'' will
frequently be used in place of ``Secretary'' due to the delegated
authority provided by the Secretary. The term ``Secretary'' will be
used in quoted material and as otherwise appropriate.
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The Administrative Procedure Act allows agencies to make rules
effective immediately with good cause, instead of requiring publication
30 days prior to the effective date. 5 U.S.C. 553(d)(3). FMCSA finds
there is good cause for this rule to be effective upon publication so
that the UCR Plan and the participating States may begin collection of
fees immediately for the registration year that will begin on January
1, 2020. The immediate commencement of fee collection will avoid
further delay in distributing revenues to the participating States.
V. Statutory Requirements for the UCR Fees
A. Legislative History
The legislative history of 49 U.S.C. 14504a indicates that the
purpose of the UCR Plan and Agreement is both to replace the Single
State Registration System (SSRS) for registration of interstate motor
carrier entities with the States and to ``ensure that States don't lose
current revenues derived from SSRS'' (Sen. Rep. 109-120, at 2 (2005)).
The statute provides for a 15-member board of directors for the UCR
Plan to be appointed by the Secretary. The statute specifies that the
UCR Board should consist of one director (either the FMCSA Deputy
Administrator or another Presidential appointee from the Department)
from DOT; four directors from among the chief administrative officers
of the State agencies responsible for administering the UCR Agreement
(one from each of the four FMCSA service areas); five directors from
among the professional staffs of State agencies responsible for
administering the UCR Agreement, to be nominated by the National
Conference of State Transportation Specialists; and five directors from
the motor carrier industry, of whom at least one must be from a
national trade association representing the general motor carrier of
property industry and one from a motor carrier that falls within the
smallest fleet fee bracket (49 U.S.C. 14504a(d)(1)(B)).
The UCR Plan and the participating States are authorized by 49
U.S.C. 14504a(f) to establish and collect fees from motor carriers,
motor private carriers of property, brokers, freight forwarders, and
leasing companies. The annual fees charged for registration year 2019
are set out in 49 CFR 367.50.
For carriers and freight forwarders, the fees vary according to the
size of the vehicle fleets, as required by 49 U.S.C. 14504a(f). The
fees collected are allocated to the States and the UCR Plan in
accordance with 49 U.S.C. 14504a(h). Participating States submit a plan
demonstrating that an amount equivalent to the revenues received are
used for motor carrier safety programs, enforcement, or the
administration of the UCR Plan and Agreement (49 U.S.C.
14504a(e)(1)(B)).
The UCR Plan and the participating States collect registration fees
for each registration year, which is the same period as the calendar
year. Usually, collection begins on October 1 of the previous year, and
continues until December 31 of the year following the registration
year. All of the revenues collected are distributed to the
participating States or to the UCR Plan for administration of the UCR
Agreement. No funds are distributed to the Federal Government.
B. Fee Requirements
The statute specifies that fees are to be based on the
recommendation of the UCR Board (49 U.S.C. 14504a(d)(7)(A)). In
recommending the level of fees to be assessed in any registration year,
and in setting the fee level, the statute states that both the UCR
Board and FMCSA ``shall consider'' the following factors:
Administrative costs associated with the UCR Plan and
Agreement;
Whether the revenues generated in the previous year and
any surplus or shortage from that or prior years enable the
participating States to achieve the revenue levels set by the UCR
Board; and
Provisions governing fees in 49 U.S.C. 14504a(f)(1).
FMCSA, if asked by the UCR Board, may also adjust the fees within a
reasonable range on an annual basis if the revenues collected from the
fees are either insufficient to provide the participating States with
the revenues they are entitled to receive or exceed those revenues (49
U.S.C. 14504a(f)(1)(E)).
Overall, the fees assessed under the UCR Agreement must produce the
level of revenue established by statute. Section 14504a(g) establishes
the revenue entitlements for States that choose to participate in the
UCR Plan. That section provides that a State, participating in SSRS in
the registration year prior to the enactment of the Unified Carrier
Registration Act of 2005, is entitled to receive revenues under the UCR
Agreement equivalent to the revenues it received in the year before
that enactment. Section 14504a(g) also requires that States that did
not participate in SSRS previously, but that choose to participate in
the UCR Plan, may receive revenues not to exceed $500,000 per year. The
UCR Board calculates the amount of revenue to which each participating
State is entitled under the UCR Agreement, which is then approved by
FMCSA.
FMCSA's interpretation of its responsibilities under 49 U.S.C.
14504a in setting fees for the UCR Plan and Agreement is guided by the
primacy the statute places on the need both to set and to adjust the
fees so they ``provide the revenues to which the States are entitled''
(49 U.S.C. 14504a(f)(1)(E)(i)). The statute links the requirement that
the fees be adjusted ``within a reasonable range'' by both the UCR Plan
and FMCSA to the provision of sufficient revenues to meet the
entitlements of the participating States (49 U.S.C. 14504a(f)(1)(E);
see also 49 U.S.C. 14504a(d)(7)(A)(ii)).
Section 14504a(h)(4) provides additional support for this
interpretation. The provision explicitly requires FMCSA to reduce the
fees for all motor carrier entities in the year following any year in
which the depository retains any funds in excess of the amount
necessary to satisfy the revenue entitlements of the participating
States and the UCR Plan's administrative costs.
[[Page 8194]]
VI. Recommendations From the UCR Plan
On December 13, 2018, the UCR Board voted unanimously to submit a
recommendation to the FMCSA to reduce the fees collected by the UCR
Plan for registration years 2020 and thereafter. The recommendation was
submitted to the FMCSA on February 25, 2019.\3\ The requested fee
adjustments are required by 49 U.S.C. 14504a because, for registration
year 2018, the total revenues collected were expected to exceed the
total revenue entitlements of $108 million distributed to the 41
participating States plus the $5 million established for ``the
administrative costs associated with the unified carrier registration
plan and agreement'' (49 U.S.C. 14504a(d)(7)(A)(i)). The maximum
revenue entitlements for each of the 41 participating States,
established in accordance with 49 U.S.C. 14504a(g), were set out in a
table attached to the February 25, 2019, recommendation.
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\3\ The February 25, 2019, recommendation from the UCR Plan and
all related tables are available in the docket.
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On August 27, 2019, FMCSA published a notice of proposed rulemaking
(NPRM) reflecting the February 25 recommendation from the UCR Board (84
FR 44826). The NPRM requested comments addressing both the proposed
adjustment in the fees and the separate new total revenue target
recommendation by September 6, 2019.
In comments submitted on September 6, 2019, following a vote of the
Plan's board of directors on September 5, the Plan updated its
recommendations for the fee adjustments and provided a revised analysis
supporting the recommendation. The principal components of the revised
analysis were: (1) An increase in the recommended amount for
administrative costs of the UCR Agreement from $3.2 million to $4
million; and (2) an update in the amount of actual and estimated
revenue collections for 2018. In the original analysis attached to the
February 25, 2019, recommendation letter, the UCR Plan estimated that,
by the end of 2019, total revenues would exceed the statutory maximum
by $9.38 million, or approximately 8.31 percent. The revised analysis
submitted with the comments indicates that total revenues will now
exceed the statutory maximum by $10.83 million, or approximately 9.61
percent. The excess revenues collected are being held in a depository
maintained by the UCR Plan as required by 49 U.S.C. 14504a(h)(4).
The UCR Plan's revised recommendation includes actual revenues
collected through the end of August 2019. The Plan will now terminate
collections for each registration year on September 30 of the following
year, instead of the previous termination date of December 31 of the
following year. For the only remaining month of collections for 2018
(September 2019), the UCR Plan estimated the minimum projection of
revenue collections for that month by summing the collections within
each of the registration years 2013 through 2015 \4\ and then comparing
across years to find the minimum total amount. This is the same
methodology used to project collections and estimate fees in the
previous fee adjustment rulemaking (83 FR 67124, 67126, December 28,
2018).
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\4\ Collections for registration year 2016 are not available for
use for this purpose because registration and fee collection for
that year was not finalized at the time of the UCR Plan
recommendation.
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Under 49 U.S.C. 14504a(d)(7), the costs incurred by the UCR Plan to
administer the UCR Agreement are eligible for inclusion in the total
revenue target, in addition to the revenue entitlements for the
participating States. The total revenue target for registration years
2010 to 2018, as approved in the 2010 final rule (75 FR 21993, April
27, 2010), was $112,777,060, including $5,000,000 for administrative
costs. The final rule establishing the fees for the 2019 registration
year was based on an allowance for administrative costs of $3,500,000
(83 FR 67126, 67128). The UCR Plan's original recommendation included a
reduction in the amount of the administrative costs to $3,225,000 for
the 2020 and 2021 registration years. The reduction of $275,000
recommended by the UCR Plan was based on estimates of future
administrative costs needed to operate the UCR Plan and Agreement. The
comments submitted on September 6 included an updated estimate of
future annual administrative costs of $4,000,000, primarily because of
an increase in legal expenses.
No changes in the State revenue entitlements were recommended, and
the entitlement figures for 2020 and 2021 for the 41 participating
States are the same as those previously approved for the years 2010
through 2019. Therefore, for registration years 2020 and thereafter,
the UCR Plan now recommends approval of a total revenue target of
$111,770,060.
VII. Discussion of the Comments
FMCSA received three comments in response to the NPRM.
Unified Carrier Registration Plan Board of Directors
As explained above, a comment was submitted by the UCR Plan Board
of Directors by its Acting Chairperson Elizabeth Leaman providing more
current financial data since several months had elapsed since the
Board's initial fee recommendation was submitted in February and
revenue collections were exceeding the previous estimates. This comment
also requested approval of an increased allowance for administrative
costs above what was originally requested in the February 25, 2019,
recommendation for both 2020 and 2021. The net effect was a slight
reduction in the fees recommended for 2020, as shown in the table
below:
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1-2 3-5 6-20 21-100 101-1000 1000 and above
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2020 Fee (Original)..................................... $60 $180 $357 $1,248 $5,946 $58,060
2020 Fee (Updated)...................................... 59 176 351 1,224 5,835 56,977
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The comment also included an analysis of the revenues already
received from the fees put into effect at the beginning of the 2019
registration year and accounted for the need to carry over the amount
of excess revenues from a previous year. It then determined that by the
end of the collection period for the 2019 registration year on
September 30, 2020, revenues would exceed the statutory maximum revenue
by approximately $7.7 million. The Plan therefore made a recommendation
that the fees for 2021 and after be set at the same level as the fees
for 2020.
FMCSA has conducted an analysis of the Plan's revised
recommendation. It accepts the adjustment in the 2020 fees that would
result in a slightly lower level of fees than proposed in the
[[Page 8195]]
NPRM. It also accepts the recommendation to keep the fees at the same
level after 2020, instead of the increase from 2020 to 2021 proposed in
the NPRM. This change from the proposal in the NPRM is necessary to
conform to the maximum revenue target established by statute. If future
circumstances warrant further adjustment in the fee levels for 2021 or
subsequent years, either to ensure that the participating States
receive the revenues to which they are entitled, or to ensure that the
statutory maximum is not exceeded, then the UCR Plan can request an
adjustment in accordance with 49 U.S.C. 14504a(d)(7) and/or (h)(4).
Small Business in Transportation Coalition
The comment from the Small Business in Transportation Coalition
(SBTC) asserts that since October 1, 2018, the UCR Plan has been
collecting fees from ``intrastate carriers'' under the new registration
system. SBTC claims that such collections from ``intrastate carriers''
are unlawful and could require refunds that might affect the revenues
available for distribution to the participating States and for the
costs of administering the UCR Agreement. These concerns were,
according to SBTC, also communicated directly to the UCR Plan without
any response.
FMCSA has considered the concerns expressed by SBTC, and has
concluded that they do not require any adjustment in the fees
established by this final rule. An intrastate motor carrier operating
in any one of 37 States must register with the Agency and receive a
USDOT number (see 49 U.S.C. 31134(a) and (e) and https://www.fmcsa.dot.gov/registration/do-i-need-usdot-number). It is the
responsibility of the carrier to indicate correctly when registering
with FMCSA whether it is an intrastate motor carrier. FMCSA does
provide information to the UCR Plan about motor carriers that are
issued USDOT numbers for the purpose of administering the UCR Agreement
(cf. 49 U.S.C. 13908). It is the responsibility of each motor carrier
to determine if it is required to register with the UCR Plan under the
UCR Agreement because it is an interstate carrier, including carriers
engaged in interstate transportation in a single state that involved a
prior or subsequent movement across a State line.
SBTC has not provided any data on the number of intrastate
carriers, if any, that have registered incorrectly or have been
registered incorrectly by a third-party service. It has also not
provided any estimate of the impact on the revenues of any incorrect
registrations by intrastate motor carriers. It appears from the
information submitted for the record by the UCR Plan in its comments
that, since 2019 registrations began, revenue collections by the Plan
and the participating States through August 2019 have already generated
almost $104 million towards the 2019 total revenue target of just over
$111 million. The UCR Plan anticipates receiving an additional amount
of over $4 million when 2019 registration closes in September 2020.
FMCSA considers it unlikely that incorrect registration of intrastate
motor carriers will have any significant impact on the revenues derived
from the fees.
Daniel Rodriguez
Mr. Rodriguez submitted a comment stating that lowering the fees
would be good for trucking companies. The continuing reduction in the
fees after 2020 would provide additional benefits to trucking companies
and other entities required to register with the UCR Plan.
VIII. Approval of Total Revenue Target
The comments from the UCR Plan, as indicated above, addressed the
adjustment proposed in the NPRM in the total revenue target to
$111,002,060, based on the original recommendation in February, which
reflected a reduction in the amount of the administrative costs from
$3,500,000 to $3,225,000. The UCR Plan is now recommending an
adjustment up to $4,000,000 for administrative costs, resulting in a
total revenue target of $111,777,060. The adjustment is based on an
analysis approved by the board of directors that indicated that legal
expenses for the administration of the UCR Agreement will be
significantly higher on an ongoing basis. Therefore, in accordance with
49 U.S.C. 14504a(d)(7) and (g)(4), FMCSA approves the following table
of State revenue entitlements, administrative costs, and the total
revenue target under the UCR Agreement, as proposed in the NPRM and
revised to reflect the updated recommendation. These State revenue
entitlements, the administrative costs, and the total revenue target
will remain in effect for 2020 and subsequent years unless and until
approval of a revision occurs.
State UCR Revenue Entitlements and Final 2020 Total Revenue Target
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Total 2020 UCR
State revenue
entitlements
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Alabama................................................ $2,939,964.00
Arkansas............................................... 1,817,360.00
California............................................. 2,131,710.00
Colorado............................................... 1,801,615.00
Connecticut............................................ 3,129,840.00
Georgia................................................ 2,660,060.00
Idaho.................................................. 547,696.68
Illinois............................................... 3,516,993.00
Indiana................................................ 2,364,879.00
Iowa................................................... 474,742.00
Kansas................................................. 4,344,290.00
Kentucky............................................... 5,365,980.00
Louisiana.............................................. 4,063,836.00
Maine.................................................. 1,555,672.00
Massachusetts.......................................... 2,282,887.00
Michigan............................................... 7,520,717.00
Minnesota.............................................. 1,137,132.30
Missouri............................................... 2,342,000.00
Mississippi............................................ 4,322,100.00
Montana................................................ 1,049,063.00
Nebraska............................................... 741,974.00
New Hampshire.......................................... 2,273,299.00
New Mexico............................................. 3,292,233.00
New York............................................... 4,414,538.00
North Carolina......................................... 372,007.00
North Dakota........................................... 2,010,434.00
Ohio................................................... 4,813,877.74
Oklahoma............................................... 2,457,796.00
Pennsylvania........................................... 4,945,527.00
Rhode Island........................................... 2,285,486.00
South Carolina......................................... 2,420,120.00
South Dakota........................................... 855,623.00
Tennessee.............................................. 4,759,329.00
Texas.................................................. 2,718,628.06
Utah................................................... 2,098,408.00
Virginia............................................... 4,852,865.00
Washington............................................. 2,467,971.00
West Virginia.......................................... 1,431,727.03
Wisconsin.............................................. 2,196,680.00
Sub-Total.............................................. 106,777,059.81
Alaska................................................. 500,000.00
Delaware............................................... 500,000.00
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Total State Revenue Entitlement.................... 107,777,060.00
----------------
Administrative Costs............................... 4,000,000.00
----------------
Total Revenue Target............................... 111,777,060.00
------------------------------------------------------------------------
IX. International Impacts
Motor carriers and other entities involved in interstate and
foreign transportation in the United States that do not have a
principal office in the United States are nonetheless subject to the
fees for the UCR Plan. They are required to designate a participating
State as a base State and pay the appropriate fees to that State. 49
U.S.C. 14504a(a)(2)(B)(ii) and (f)(4).
X. Section-by-Section Analysis
Under this final rule, provisions of 49 CFR 367.60 (which were
adopted in the December 28, 2018, final rule) are
[[Page 8196]]
revised to establish new reduced fees applicable beginning in
registration year 2020. These fees will remain in effect in subsequent
registration years unless and until revised, so the new 49 CFR 367.70
proposed in the NPRM is not necessary and will not be adopted.
XI. Regulatory Analyses
A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 (Improving
Regulation and Regulatory Review), and DOT Regulatory Policies and
Procedures
FMCSA determined that this final rule is not a significant
regulatory action under section 3(f) of E.O. 12866, 58 FR 51735
(October 4, 1993), Regulatory Planning and Review, as supplemented by
E.O. 13563, Improving Regulation and Regulatory Review (76 FR 3821,
January 21, 2011), and does not require an assessment of potential
costs and benefits under section 6(a)(3) of that Order. Accordingly,
OMB has not reviewed it under that Order. It is also not significant
within the meaning of DOT regulatory policies and procedures (DOT Order
2100.6 dated Dec. 20, 2018).
The changes imposed by this final rule adjust the registration fees
paid by motor carriers, motor private carriers of property, brokers,
freight forwarders, and leasing companies to the UCR Plan and the
participating States. Fees are considered by OMB Circular A-4,
Regulatory Analysis, as transfer payments, not costs. Transfer payments
are payments from one group to another that do not affect total
resources available to society. By definition, transfers are not
considered in the monetization of societal costs and benefits of
rulemakings.
This rule establishes reductions in the annual registration fees
for the UCR Plan and Agreement. The entities affected by this rule are
the participating States, motor carriers, motor private carriers of
property, brokers, freight forwarders, and leasing companies. Because
the State UCR revenue entitlements will remain unchanged, the
participating States will not be impacted by this rule. The primary
impact of this rule will be a reduction in fees paid by individual
motor carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies. The reduction of the current 2019
registration year fees (finalized on December 28, 2018) ranges from
approximately $3 to $2,712 per entity, depending on the number of
vehicles owned or operated by the affected entities.
B. E.O. 13771 Reducing Regulation and Controlling Regulatory Costs
This final rule is not an E.O. 13771 regulatory action because this
rule is not significant under E.O. 12866.\5\
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\5\ Executive Office of the President, Office of Management and
Budget. Guidance Implementing Executive Order 13771, Titled
``Reducing Regulation and Controlling Regulatory Costs.'' Memorandum
M-17-21. April 5, 2017.
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C. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.),
the Office of Information and Regulatory Affairs designated this rule
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).\6\
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\6\ A ``major rule'' means any rule that the Administrator of
Office of Information and Regulatory Affairs at the Office of
Management and Budget finds has resulted in or is likely to result
in (a) an annual effect on the economy of $100 million or more; (b)
a major increase in costs or prices for consumers, individual
industries, Federal agencies, State agencies, local government
agencies, or geographic regions; or (c) significant adverse effects
on competition, employment, investment, productivity, innovation, or
on the ability of United States-based enterprises to compete with
foreign-based enterprises in domestic and export markets (5 U.S.C.
804(2)).
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D. Regulatory Flexibility Act
The Regulatory Flexibility Act of 1980 (RFA) (5 U.S.C. 601 et
seq.), as amended by the Small Business Regulatory Enforcement Fairness
Act of 1996 (SBREFA) (Pub. L. 104-121, 110 Stat. 857), requires Federal
agencies to consider the impact of their regulatory proposals on small
entities, analyze effective alternatives that minimize small entity
impacts, and make their analyses available for public comment. The term
``small entities'' means small businesses and not-for-profit
organizations that are independently owned and operated and are not
dominant in their fields, and governmental jurisdictions with
populations under 50,000.\7\ Accordingly, DOT policy requires an
analysis of the impact of all regulations on small entities, and
mandates that agencies strive to lessen any adverse effects on these
entities. Section 605 of the RFA allows an agency to certify a rule, in
lieu of preparing an analysis, if the rulemaking is not expected to
have a significant economic impact on a substantial number of small
entities.
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\7\ Regulatory Flexibility Act (5 U.S.C. 601 et seq.).
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This rule will directly affect the participating States, motor
carriers, motor private carriers of property, brokers, freight
forwarders, and leasing companies. Under the standards of the RFA, as
amended by the SBREFA, the participating States are not considered
small entities because they do not meet the definition of a small
entity in section 601 of the RFA. Specifically, States are not
considered small governmental jurisdictions under section 601(5) of the
RFA, both because State government is not included among the various
levels of government listed in section 601(5), and because, even if
this were the case, no State nor the District of Columbia has a
population of less than 50,000, which is the criterion by which a
governmental jurisdiction is considered small under section 601(5) of
the RFA.
The Small Business Administration (SBA) size standard for a small
entity (13 CFR 121.201) differs by industry code. The entities affected
by this rule fall into many different industry codes. In order to
determine if this rule would have an impact on a significant number of
small entities, FMCSA examined the 2012 Economic Census \8\ data for
two different industries; truck transportation (Subsector 484) and
transit and ground transportation (Subsector 485). According to the
2012 Economic Census, approximately 99 percent of truck transportation
firms, and approximately 97 percent of transit and ground
transportation firms, had annual revenue less than the SBA revenue
threshold of $27.5 million and $15 million, respectively. Therefore,
FMCSA has determined that this rule will impact a substantial number of
small entities.
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\8\ U.S. Census Bureau, 2012 US Economic Census. Available at:
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ECN_2012_US_48SSSZ4&prodType=table (accessed
October 24, 2018).
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However, FMCSA has determined that this rule will not have a
significant impact on the affected entities. The effect of this rule
will be to reduce the registration fee motor carriers, motor private
carriers of property, brokers, freight forwarders, and leasing
companies are currently required to pay. The reduction will range from
approximately $3 to $2,712 per entity depending on the number of
vehicles owned and/or operated by the affected entities. FMCSA asserts
that the reduction in fees will not have a significant impact on the
affected small entities. Accordingly, I hereby certify that this rule
will not have a significant economic impact on a substantial number of
small entities.
E. Assistance for Small Entities
In accordance with section 213(a) of the SBREFA, FMCSA wants to
assist small entities in understanding this final rule so that they can
better evaluate its effects on themselves and participate in the
rulemaking initiative.
[[Page 8197]]
If the final rule would affect your small business, organization, or
governmental jurisdiction and you have questions concerning its
provisions or options for compliance, please consult the FMCSA point of
contact, Gerald Folsom, listed in the FOR FURTHER INFORMATION CONTACT
section of this final rule.
Small businesses may send comments on the actions of Federal
employees who enforce or otherwise determine compliance with Federal
regulations to the Small Business Administration's Small Business and
Agriculture Regulatory Enforcement Ombudsman and the Regional Small
Business Regulatory Fairness Boards. The Ombudsman evaluates these
actions annually and rates each agency's responsiveness to small
business. If you wish to comment on actions by employees of FMCSA, call
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights
of small entities to regulatory enforcement fairness and an explicit
policy against retaliation for exercising these rights.
F. Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or Tribal government, in
the aggregate, or by the private sector of $165 million (which is the
value equivalent of $100 million in 1995, adjusted for inflation to
2018 levels) or more in any one year. Though this final rule will not
result in any such expenditure, the Agency discusses the effects of
this rule elsewhere in this preamble.
G. Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et
seq.), Federal agencies must obtain approval from OMB for each
collection of information they conduct, sponsor, or require through
regulations. FMCSA determined that no information collection
requirements are associated with this final rule. Therefore, the PRA
does not apply to this final rule.
H. E.O. 13132 (Federalism)
A rule has implications for federalism under section 1(a) of E.O.
13132 if it has ``substantial direct effects on the States, on the
relationship between the national government and the States, or on the
distribution of power and responsibilities among the various levels of
government.'' FMCSA has determined that this rule would not have
substantial direct costs on or for States, nor would it limit the
policymaking discretion of States. Nothing in this document preempts
any State law or regulation, imposes substantial direct unreimbursed
compliance costs on any State, or diminishes the power of any State to
enforce its own laws. As detailed above, the UCR Board includes
substantial State representation. The States have already had
opportunity for input through their representatives. Accordingly, this
rulemaking does not have federalism implications warranting the
application of E.O. 13132.
I. E.O. 12988 (Civil Justice Reform)
This final rule meets applicable standards in sections 3(a) and
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation,
eliminates ambiguity, and reduce burden.
J. E.O. 13045 (Protection of Children)
E.O. 13045, Protection of Children from Environmental Health Risks
and Safety Risks, 62 FR 19885 (April 23, 1997), requires agencies
issuing ``economically significant'' rules, if the regulation also
concerns an environmental health or safety risk that an agency has
reason to believe may disproportionately affect children, to include an
evaluation of the regulation's environmental health and safety effects
on children. The Agency determined this final rule is not economically
significant. Therefore, no analysis of the impacts on children is
required. In any event, the Agency does not anticipate that this
regulatory action could in any respect present an environmental or
safety risk that could disproportionately affect children.
K. E.O. 12630 (Taking of Private Property)
FMCSA reviewed this final rule in accordance with E.O. 12630,
Governmental Actions and Interference with Constitutionally Protected
Property Rights, and has determined it will not effect a taking of
private property or otherwise have taking implications.
L. Privacy Impact Assessment
Section 522 of title I of division H of the Consolidated
Appropriations Act, 2005, enacted December 8, 2004 (Pub. L. 108-447,
118 Stat. 2809, 3268, 5 U.S.C. 552a note), requires the Agency to
conduct a privacy impact assessment of a regulation that will affect
the privacy of individuals. This rule does not require the collection
of personally identifiable information and will not affect the privacy
of individuals.
M. E.O. 12372 (Intergovernmental Review)
The regulations implementing E.O. 12372 regarding intergovernmental
consultation on Federal programs and activities do not apply to this
program.
N. E.O. 13211 (Energy Supply, Distribution, or Use)
FMCSA has analyzed this final rule under E.O. 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. The Agency has determined that this rule is not a
``significant energy action'' under that order because it is not a
``significant regulatory action'' likely to have a significant adverse
effect on the supply, distribution, or use of energy. Therefore, it
does not require a Statement of Energy Effects under E.O. 13211.
O. E.O. 13175 (Indian Tribal Governments)
This rule does not have Tribal implications under E.O. 13175,
Consultation and Coordination with Indian Tribal Governments, because
it does not have a substantial direct effect on one or more Indian
Tribes, on the relationship between the Federal Government and Indian
Tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian Tribes.
P. National Technology Transfer and Advancement Act (Technical
Standards)
The National Technology Transfer and Advancement Act (15 U.S.C. 272
note) directs agencies to use voluntary consensus standards in their
regulatory activities unless the agency provides Congress, through OMB,
with an explanation of why using these standards would be inconsistent
with applicable law or otherwise impractical. Voluntary consensus
standards (e.g., specifications of materials, performance, design, or
operation; test methods; sampling procedures; and related management
systems practices) are standards that are developed or adopted by
voluntary consensus standards bodies. This rule does not use technical
standards. Therefore, FMCSA did not consider the use of voluntary
consensus standards.
Q. National Environmental Policy Act
FMCSA analyzed this rule for the purpose of the National
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and
determined this action is categorically excluded from further analysis
and documentation in an environmental assessment or
[[Page 8198]]
environmental impact statement under FMCSA Order 5610.1, 69 FR 9680
(March 1, 2004), Appendix 2, paragraph 6.h. The Categorical Exclusion
(CE) in paragraph 6.h. covers regulations and actions taken pursuant to
the regulations implementing procedures to collect fees that will be
charged for motor carrier registrations. The content in this rule is
covered by this CE and the final action does not have any effect on the
quality of the environment. The CE determination is available in the
docket.
List of Subjects in 49 CFR Part 367
Insurance, Intergovernmental relations, Motor carriers, Surety
bonds.
For the reasons discussed in the preamble, FMCSA is amending title
49 CFR chapter III, part 367 as follows:
PART 367--STANDARDS FOR REGISTRATION WITH STATES
0
1. The authority citation for part 367 continues to read as follows:
Authority: 49 U.S.C. 13301, 14504a; and 49 CFR 1.87.
0
2. Revise Sec. 367.60 to read as follows:
Sec. 367.60 Fees under the Unified Carrier Registration Plan and
Agreement for registration years beginning in 2020.
Table 1 to Sec. 367.60--Fees Under the Unified Carrier Registration Plan and Agreement for Registration Year
2020 and Each Subsequent Registration Year Thereafter
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Number of commercial motor Fee per entity for
vehicles owned or operated by exempt or non-exempt Fee per entity for
Bracket exempt or non-exempt motor motor carrier, motor broker or leasing
carrier, motor private carrier, private carrier, or company
or freight forwarder freight forwarder
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B1........................... 0-2............................ $59 $59
B2........................... 3-5............................ 176
B3........................... 6-20........................... 351
B4........................... 21-100......................... 1,224
B5........................... 101-1,000...................... 5,835
B6........................... 1,001 and above................ 56,977
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Issued under authority delegated in 49 CFR 1.87 on:
Dated: January 24, 2020.
Jim Mullen,
Acting Administrator.
[FR Doc. 2020-01761 Filed 2-12-20; 8:45 am]
BILLING CODE 4910-EX-P