Notice of Transportation Services' Transition From Paper to Electronic Fare Media Comments, Response to Public Comments, and Final Notification, 47692-47693 [2012-19584]
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Federal Register / Vol. 77, No. 154 / Thursday, August 9, 2012 / Notices
any member of the European Common
Aviation Area, and (iii) other charters.
Barbara J. Hairston,
Supervisory Dockets Officer, Docket
Operations, Alternate Federal Register
Liaison.
[FR Doc. 2012–19586 Filed 8–8–12; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of
Transportation
[Docket No. DOT–OST–2012–0124]
Notice of Transportation Services’
Transition From Paper to Electronic
Fare Media Comments, Response to
Public Comments, and Final
Notification
Office of the Secretary, DOT.
Notice.
AGENCY:
ACTION:
On March 29, 2011, and
April 2, 2012, U.S. Department of
Transportation’s Office of
Transportation Services (TRANServe),
located within the Office of the
Assistant Secretary for Administration,
published for public comment Notices
of the adoption of a new program
distribution methodology for transit
benefits. To date, TRANServe has
implemented its plan in three of the
eight TRANServe Services Areas and
continues to implement electronic fare
media across the United States, ensuring
that the implementation in the
remaining five TRANServe Service
Areas is consistent with applicable
statutes and regulations. TRANServe’s
plan is a two-year initiative designed to
be responsive to industry changes and
technological advances. Over time,
many State and local transit authorities
are transitioning, or have already
transitioned, to electronic fare media,
compelling the shift from a paper based
system (vouchers) to an electronic fare
media structure. Now that the Federal
Register notification process is final,
TRANServe will continue to engage all
appropriate stakeholders through
outreach and communication for
assistance and advice.
FOR FURTHER INFORMATION CONTACT: Ms.
Denise P. Wright, Business Office
Manager, 1200 New Jersey Avenue SE.,
Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
tkelley on DSK3SPTVN1PROD with NOTICES
SUMMARY:
I. Background
On March 29, 2011, and April 2, 2012,
TRANServe published for public
comment Notices of its intent to adopt
a new program distribution
VerDate Mar<15>2010
16:38 Aug 08, 2012
Jkt 226001
methodology for transit benefits.
TRANServe provides service to over
250,000 transit benefit participants
employed by over 100 federal
organizations nationwide. Since the
program’s inception, TRANServe has
distributed the qualified transportation
fringe benefit to participating Federal
employees via a paper voucher process.
In addition to a growing number of
participants, many State and local
transit authorities are transitioning, or
have already transitioned, to electronic
fare media, compelling the shift from a
paper based system (vouchers) to an
electronic fare media structure.
TRANServe has also experienced rising
program costs related to inventory,
travel, and infrastructure support,
requiring that TRANServe adopt a new
distribution method from paper to
electronic fare media. As a result,
TRANServe is implementing an efficient
and effective electronic fare media
transition to its participating transit
benefit agencies, consistent with
statutory requirements in 49 U.S.C. 327,
Administrative Working Capital Fund;
26 U.S.C. 132(f), Qualified
Transportation Fringe; 31 U.S.C. 3302,
Custodians of Money; Federal
Employees Clean Air Incentives Act
(Pub. L. 103–172); and Executive Order
13150, Federal Workforce
Transportation. To date, for instance,
TRANServe has shifted to electronic
fare media in the following three of the
eight TRANServe Service Areas:
Service Area 1—Washington, DC,
Maryland, and Virginia.
Service Area 2 (Southeast)—
Tennessee, North Carolina, South
Carolina, Georgia, Florida, Alabama,
and Louisiana.
Service Area 3 (Upper Midwest)—
Minnesota, Wisconsin, Michigan,
Illinois, Indiana, Ohio, West Virginia,
Kentucky, Virgin Islands, and Puerto
Rico.
TRANServe intends to continue the
implementation of electronic fare media
across the United States within the five
remaining areas, ensuring that such
implementation is consistent with
applicable statutes and regulations.
II. Discussion of Public Comments
Received on TRANServe’s Adoption of
a New Program Distribution
Methodology for Transit Benefits
This section presents a summary of
the significant comments submitted
regarding the Federal Register Notices
published on March 29, 2011, and
April 2, 2012 on TRANServe’s adoption
of a new program distribution
methodology for transit benefits and
TRANServe’s responses to those
comments. TRANServe had received
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
comments from interested individuals
prior to this opportunity to comment.
To provide a level playing field,
TRANServe addresses all stakeholders’
comments, if applicable, via these
overarching responses.
Comment: TRANServe should
develop a method to allow federal
employees to add funds to their benefit
cards, possibly through a credit or debit
card transaction, so the TRANServe
benefit card could be used to pay for
monthly passes that cost over $125.
Response: The U.S. Department of
Treasury is the Administrator of the US
Debit Card (USDC) Program, under
which TRANServe has established the
TRANServe Debit Card. Currently, the
Treasury USDC Program does not offer
a card product that delivers federal
payments via a card with the capability
of adding personal funds.
Comment: Suggest that TRANServe
advise transit agencies of any changes or
additions to their Bank Identification
Number (BIN).
Response: TRANServe does not
anticipate changes to the BIN number.
But if there are any changes,
TRANServe will continue to work with
transit agencies for a smooth transition.
Comment: Commenters remarked that
they would be willing to assist
TRANServe in the adoption of an
electronic distribution system through
consultation and outreach.
Response: This Federal Register
Notice comment period has provided an
opportunity for stakeholders to assist
and advise TRANServe as it transitions
to electronic fare media for its
participating agencies. However,
TRANServe notes that there is no
overarching Federal Agency responsible
for Policy regarding the Transit Benefit
Program.
Comment: Define Electronic Fare
Media.
Response: TRANServe intends that
the term ‘‘Electronic Fare Media’’ means
electronic media that are excluded from
gross income Section 132(a)(5) and
132(f) of the Internal Revenue Code and
may encompass smartcards, debit or
credit cards, or other electronic media
that meet the applicable requirements.’’
Comment: Does TRANServe intend to
load smart cards for any transit agencies
other than WMATA? If so, which ones?
Response: At this time, TRANServe
does not plan to load smart cards for
any transit agency other than WMATA.
However, TRANServe will take
whatever steps are necessary to ensure
that its new program distribution
methodology for transit benefits is
consistent with applicable legal
requirements.
E:\FR\FM\09AUN1.SGM
09AUN1
tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 154 / Thursday, August 9, 2012 / Notices
Comment: Commenters inquired
whether the TRANServe debit card is
compliant with IRS Revenue Ruling
2006–57, as modified, which requires
the cards to be restricted to sales
terminals selling fare media only?
Response: The TRANServe debit card
continues to be compliant with Internal
Revenue Code Section 132(f) and the
applicable regulations, and is consistent
with how those requirements are
applied in IRS Revenue Ruling 2006–57
to certain factual situations.
Comment: Commenters asked about
transaction monitoring, the restriction
process developed for monitoring
compliance, and how the TRANServe
card would be protected to reduce
fraudulent use.
Response: The restriction process was
developed through comprehensive
analysis of IRS Revenue Ruling 2006–
57, which provides guidance on the use
of smartcards, debit or credit cards, or
other electronic media under various
situations to provide qualified
transportation fringes, as well as
analysis of other governing statutes,
regulations, and policies. Consistent
with the Office of Management and
Budget Circular A–123, Management’s
Responsibility for Internal Control,
TRANServe and participating agencies
have the responsibility for monitoring
compliance. Additionally, transaction
monitoring takes place through various
means, to include but not limited to,
system activity monitoring, data mining,
anomaly reporting, etc. In order to
reduce or mitigate fraudulent activity,
the TRANServe debit card is issued
with the participant’s name, is restricted
to use with transit providers, returns
unused funds to the Federal government
at the end of each period, and provides
detailed reporting of anomalies to
permit follow-up action and system
adjustments.
Comment: Will nationwide rollout of
this card, and corresponding monthly
sweeping, create additional
administrative issues at a time when
DOT is seeking to reduce admin costs?
Response: No. There are different
administrative tasks with the
introduction and use of the TRANServe
debit card; however, TRANServe
anticipates a decrease in administrative
costs and better efficiencies in the long
run.
Comment: How will TRANServe
administer its bicycle benefit program
using ‘‘Electronic Fare Media?
Response: TRANServe does not
administer its bicycle benefit program
using electronic fare media.
Comment: Please indicate how 49
U.S.C. 327, Administrative Working
Capital Fund; 26 U.S.C. 132(f), Qualified
VerDate Mar<15>2010
16:38 Aug 08, 2012
Jkt 226001
Transportation Fringe; 31 U.S.C. 3302,
Custodians of Money; Federal
Employees Clean Air Incentives Act
(Pub. L. 103–172); and Executive Order
13150, Federal Workforce
Transportation require DOT to switch to
‘‘Electronic Fare Media’’?
Response: The statutes and
regulations mentioned do not require
DOT to switch to Electronic Fare Media.
In order to better serve its customers,
TRANServe is responding to transit
authority changes and technological
advances, which are expected to reduce
administrative costs and aid in the
monitoring of the appropriate use of
transit benefits.
Comment: How will employees using
vanpools, buses, etc. be able to access
their transit benefits?
Response: A growing number of State
and local transit authorities are
transitioning to electronic methods of
payment. As explained above, the
TRANServe Debit Card is now being
used to distribute the transit benefit to
federal employees in several geographic
service areas. TRANServe recognizes
that some transit providers have not yet
implemented technologies that permit
electronic payments. In each instance,
TRANServe will continue to provide a
limited paper voucher process while
working with the transit provider
towards acceptance of electronic
payments, when appropriate.
Comment: Commenters asked about
the cost to administer the TRANServe
program; how it compares with, or
whether it is duplicate of, similar
programs in the private sector; and
whether TRANServe has investigated
contracting its transit benefit program to
a third party vendor to reduce its
administrative costs and overhead.
Response: The TRANServe Program is
a fee-for service organization, which
operates on a breakeven basis.
TRANServe along with other Federal
government agencies operate under
specific statutory restrictions and
authorities that only reside with and
apply to the Federal government. Thus,
TRANServe does not duplicate private
sector services. When it is cost effective
and programmatically feasible,
TRANServe contracts out services that
are not inherently governmental. In
terms of the transition to electronic fare
media, TRANServe is taking advantage
of technological advances in the
industry that are expected to reduce
administrative costs, while assisting in
the monitoring of the appropriate use of
transit benefits.
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
47693
Issue date August 6, 2012.
Marie Petrosino-Woolverton,
Director, Office of Financial Management &
Transit Benefit Programs.
[FR Doc. 2012–19584 Filed 8–8–12; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
[Docket No FMCSA–2011–0097]
Pilot Program on NAFTA Trucking
Provisions
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
ACTION: Notice; request for public
comment.
AGENCY:
FMCSA announces and
requests public comment on data and
information concerning the PreAuthorization Safety Audit (PASA) for
GCC Transportes SA de CV (GCC) which
applied to participate in the Agency’s
long-haul pilot program to test and
demonstrate the ability of Mexicodomiciled motor carriers to operate
safely in the United States beyond the
municipalities on the international
border or the commercial zones of such
municipalities. This action is required
by the ‘‘U.S. Troop Readiness, Veterans’
Care, Katrina Recovery, and Iraq
Accountability Appropriations Act,
2007’’ and all subsequent
appropriations.
DATES: Comments must be received on
or before August 20, 2012.
ADDRESSES: You may submit comments
identified by Federal Docket
Management System Number FMCSA–
2011–0097 by any one of the following
methods: Federal eRulemaking Portal:
Go to https://www.regulations.gov.
Follow the online instructions for
submitting comments.
• Fax: 1–202–493–2251.
• Mail: Docket Management Facility,
(M–30), U.S. Department of
Transportation (DOT), 1200 New Jersey
Avenue SE., West Building, Ground
Floor, Room 12–140, Washington, DC
20590–0001.
• Hand Delivery: Same as mail
address above, between 9 a.m. and 5
p.m., ET, Monday through Friday,
except Federal holidays. The telephone
number is 202–366–9329.
To avoid duplication, please use only
one of these four methods. All
submissions must include the Agency
name and docket number for this notice.
See the ‘‘Public Participation’’ heading
below for instructions on submitting
comments and additional information.
SUMMARY:
E:\FR\FM\09AUN1.SGM
09AUN1
]]>Agencies
[Federal Register Volume 77, Number 154 (Thursday, August 9, 2012)]
[Notices]
[Pages 47692-47693]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19584]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Office of the Secretary of Transportation
[Docket No. DOT-OST-2012-0124]
Notice of Transportation Services' Transition From Paper to
Electronic Fare Media Comments, Response to Public Comments, and Final
Notification
AGENCY: Office of the Secretary, DOT.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: On March 29, 2011, and April 2, 2012, U.S. Department of
Transportation's Office of Transportation Services (TRANServe), located
within the Office of the Assistant Secretary for Administration,
published for public comment Notices of the adoption of a new program
distribution methodology for transit benefits. To date, TRANServe has
implemented its plan in three of the eight TRANServe Services Areas and
continues to implement electronic fare media across the United States,
ensuring that the implementation in the remaining five TRANServe
Service Areas is consistent with applicable statutes and regulations.
TRANServe's plan is a two-year initiative designed to be responsive to
industry changes and technological advances. Over time, many State and
local transit authorities are transitioning, or have already
transitioned, to electronic fare media, compelling the shift from a
paper based system (vouchers) to an electronic fare media structure.
Now that the Federal Register notification process is final, TRANServe
will continue to engage all appropriate stakeholders through outreach
and communication for assistance and advice.
FOR FURTHER INFORMATION CONTACT: Ms. Denise P. Wright, Business Office
Manager, 1200 New Jersey Avenue SE., Washington, DC 20590.
SUPPLEMENTARY INFORMATION:
I. Background
On March 29, 2011, and April 2, 2012, TRANServe published for
public comment Notices of its intent to adopt a new program
distribution methodology for transit benefits. TRANServe provides
service to over 250,000 transit benefit participants employed by over
100 federal organizations nationwide. Since the program's inception,
TRANServe has distributed the qualified transportation fringe benefit
to participating Federal employees via a paper voucher process. In
addition to a growing number of participants, many State and local
transit authorities are transitioning, or have already transitioned, to
electronic fare media, compelling the shift from a paper based system
(vouchers) to an electronic fare media structure. TRANServe has also
experienced rising program costs related to inventory, travel, and
infrastructure support, requiring that TRANServe adopt a new
distribution method from paper to electronic fare media. As a result,
TRANServe is implementing an efficient and effective electronic fare
media transition to its participating transit benefit agencies,
consistent with statutory requirements in 49 U.S.C. 327, Administrative
Working Capital Fund; 26 U.S.C. 132(f), Qualified Transportation
Fringe; 31 U.S.C. 3302, Custodians of Money; Federal Employees Clean
Air Incentives Act (Pub. L. 103-172); and Executive Order 13150,
Federal Workforce Transportation. To date, for instance, TRANServe has
shifted to electronic fare media in the following three of the eight
TRANServe Service Areas:
Service Area 1--Washington, DC, Maryland, and Virginia.
Service Area 2 (Southeast)--Tennessee, North Carolina, South
Carolina, Georgia, Florida, Alabama, and Louisiana.
Service Area 3 (Upper Midwest)--Minnesota, Wisconsin, Michigan,
Illinois, Indiana, Ohio, West Virginia, Kentucky, Virgin Islands, and
Puerto Rico.
TRANServe intends to continue the implementation of electronic fare
media across the United States within the five remaining areas,
ensuring that such implementation is consistent with applicable
statutes and regulations.
II. Discussion of Public Comments Received on TRANServe's Adoption of a
New Program Distribution Methodology for Transit Benefits
This section presents a summary of the significant comments
submitted regarding the Federal Register Notices published on March 29,
2011, and April 2, 2012 on TRANServe's adoption of a new program
distribution methodology for transit benefits and TRANServe's responses
to those comments. TRANServe had received comments from interested
individuals prior to this opportunity to comment. To provide a level
playing field, TRANServe addresses all stakeholders' comments, if
applicable, via these overarching responses.
Comment: TRANServe should develop a method to allow federal
employees to add funds to their benefit cards, possibly through a
credit or debit card transaction, so the TRANServe benefit card could
be used to pay for monthly passes that cost over $125.
Response: The U.S. Department of Treasury is the Administrator of
the US Debit Card (USDC) Program, under which TRANServe has established
the TRANServe Debit Card. Currently, the Treasury USDC Program does not
offer a card product that delivers federal payments via a card with the
capability of adding personal funds.
Comment: Suggest that TRANServe advise transit agencies of any
changes or additions to their Bank Identification Number (BIN).
Response: TRANServe does not anticipate changes to the BIN number.
But if there are any changes, TRANServe will continue to work with
transit agencies for a smooth transition.
Comment: Commenters remarked that they would be willing to assist
TRANServe in the adoption of an electronic distribution system through
consultation and outreach.
Response: This Federal Register Notice comment period has provided
an opportunity for stakeholders to assist and advise TRANServe as it
transitions to electronic fare media for its participating agencies.
However, TRANServe notes that there is no overarching Federal Agency
responsible for Policy regarding the Transit Benefit Program.
Comment: Define Electronic Fare Media.
Response: TRANServe intends that the term ``Electronic Fare Media''
means electronic media that are excluded from gross income Section
132(a)(5) and 132(f) of the Internal Revenue Code and may encompass
smartcards, debit or credit cards, or other electronic media that meet
the applicable requirements.''
Comment: Does TRANServe intend to load smart cards for any transit
agencies other than WMATA? If so, which ones?
Response: At this time, TRANServe does not plan to load smart cards
for any transit agency other than WMATA. However, TRANServe will take
whatever steps are necessary to ensure that its new program
distribution methodology for transit benefits is consistent with
applicable legal requirements.
[[Page 47693]]
Comment: Commenters inquired whether the TRANServe debit card is
compliant with IRS Revenue Ruling 2006-57, as modified, which requires
the cards to be restricted to sales terminals selling fare media only?
Response: The TRANServe debit card continues to be compliant with
Internal Revenue Code Section 132(f) and the applicable regulations,
and is consistent with how those requirements are applied in IRS
Revenue Ruling 2006-57 to certain factual situations.
Comment: Commenters asked about transaction monitoring, the
restriction process developed for monitoring compliance, and how the
TRANServe card would be protected to reduce fraudulent use.
Response: The restriction process was developed through
comprehensive analysis of IRS Revenue Ruling 2006-57, which provides
guidance on the use of smartcards, debit or credit cards, or other
electronic media under various situations to provide qualified
transportation fringes, as well as analysis of other governing
statutes, regulations, and policies. Consistent with the Office of
Management and Budget Circular A-123, Management's Responsibility for
Internal Control, TRANServe and participating agencies have the
responsibility for monitoring compliance. Additionally, transaction
monitoring takes place through various means, to include but not
limited to, system activity monitoring, data mining, anomaly reporting,
etc. In order to reduce or mitigate fraudulent activity, the TRANServe
debit card is issued with the participant's name, is restricted to use
with transit providers, returns unused funds to the Federal government
at the end of each period, and provides detailed reporting of anomalies
to permit follow-up action and system adjustments.
Comment: Will nationwide rollout of this card, and corresponding
monthly sweeping, create additional administrative issues at a time
when DOT is seeking to reduce admin costs?
Response: No. There are different administrative tasks with the
introduction and use of the TRANServe debit card; however, TRANServe
anticipates a decrease in administrative costs and better efficiencies
in the long run.
Comment: How will TRANServe administer its bicycle benefit program
using ``Electronic Fare Media?
Response: TRANServe does not administer its bicycle benefit program
using electronic fare media.
Comment: Please indicate how 49 U.S.C. 327, Administrative Working
Capital Fund; 26 U.S.C. 132(f), Qualified Transportation Fringe; 31
U.S.C. 3302, Custodians of Money; Federal Employees Clean Air
Incentives Act (Pub. L. 103-172); and Executive Order 13150, Federal
Workforce Transportation require DOT to switch to ``Electronic Fare
Media''?
Response: The statutes and regulations mentioned do not require DOT
to switch to Electronic Fare Media. In order to better serve its
customers, TRANServe is responding to transit authority changes and
technological advances, which are expected to reduce administrative
costs and aid in the monitoring of the appropriate use of transit
benefits.
Comment: How will employees using vanpools, buses, etc. be able to
access their transit benefits?
Response: A growing number of State and local transit authorities
are transitioning to electronic methods of payment. As explained above,
the TRANServe Debit Card is now being used to distribute the transit
benefit to federal employees in several geographic service areas.
TRANServe recognizes that some transit providers have not yet
implemented technologies that permit electronic payments. In each
instance, TRANServe will continue to provide a limited paper voucher
process while working with the transit provider towards acceptance of
electronic payments, when appropriate.
Comment: Commenters asked about the cost to administer the
TRANServe program; how it compares with, or whether it is duplicate of,
similar programs in the private sector; and whether TRANServe has
investigated contracting its transit benefit program to a third party
vendor to reduce its administrative costs and overhead.
Response: The TRANServe Program is a fee-for service organization,
which operates on a breakeven basis. TRANServe along with other Federal
government agencies operate under specific statutory restrictions and
authorities that only reside with and apply to the Federal government.
Thus, TRANServe does not duplicate private sector services. When it is
cost effective and programmatically feasible, TRANServe contracts out
services that are not inherently governmental. In terms of the
transition to electronic fare media, TRANServe is taking advantage of
technological advances in the industry that are expected to reduce
administrative costs, while assisting in the monitoring of the
appropriate use of transit benefits.
Issue date August 6, 2012.
Marie Petrosino-Woolverton,
Director, Office of Financial Management & Transit Benefit Programs.
[FR Doc. 2012-19584 Filed 8-8-12; 8:45 am]
BILLING CODE 4910-9X-P
