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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 DOT. Congress mandated that the Agency consider unifying the four current systems with a single, on-line Federal system. SAFETEA-LU [Pub. L. 109-159, 119 Stat. 2955, August 10, 2005] imposed new requirements for the Federal on-line replacement 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 which comprise 80% of motor carriers. For instance, we considered exempting existing carriers from certain new filing requirements (via a grandfather clause), with the view that it would minimize the compliance costs of this proposal. However, while reducing compliance costs (and thereby improving filing efficiency), it would also reduce, not enhance, 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 act 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 reduce the fairness of the registration process. Additionally, either option would reduce safety relative to the proposal discussed here. 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 is in the docket.

Risks: The proposed rule is intended to streamline the registration process and ensure that FMCSA can more efficiently track CMVs and ensure their safe operation. The Unified Registration System imposes no operational responsibilities on drivers. Therefore, the proposed regulation would not impair a driver's ability to operate vehicles safely; would not impact the physical condition of drivers; and would not have a deleterious effect on the physical condition of drivers, in accordance with the statutory mandate of 49 U.S.C. 31136 (a).