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Statement of Need: As a result of the ICC Termination Act of 1995 [Public Law 104-88, December 29, 1995, 109 Stat. 888] (ICCTA), Congress terminated the Interstate Commerce Commission and transferred its functions concerning licensing and financial responsibility requirements to the DOT. Congress mandated that the agency consider unifying the four current systems with a single, on-line Federal system.

Summary of the Legal Basis: The 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 DOT 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."

Alternatives: FMCSA considered several alternatives to the proposal discussed here, in an effort to minimize the potential new filing burden on small entities. For instance, we considered exempting existing carriers from certain new filing requirements (via a grandfather clause), with the idea that it would minimize the compliance costs of this proposal. However, while reducing compliance costs (and thereby improving filing efficiency), it would also have reduced, not enhanced, the fairness of the motor carrier registration process relative to the status quo by placing higher burdens on new entrants than existing carriers. As such, it would have acted as a barrier to entry to small new entrants to the benefit of existing carriers. Conversely, we also considered exempting 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. Exempting new entrants from various requirements would not have assisted small entities over larger ones, given that the composition of the new entrant carrier universe 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.

Anticipated Costs and Benefits: The regulatory evaluation for the NPRM will be placed in the docket.

Risks: FMCSA will decide if a risk assessment is necessary.