Amendments To Implement Certain Provisions of the Moving Ahead for Progress in the 21st Century Act (MAP-21), 60226-60234 [2013-23517]

Agencies

• Federal Motor Carrier Safety Administration
• DEPARTMENT OF TRANSPORTATION

[Federal Register Volume 78, Number 190 (Tuesday, October 1, 2013)]
[Rules and Regulations]
[Pages 60226-60234]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-23517]


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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 350, 381, 383, 384, 385, 386, 387, and 392

RIN 2126-AB60


Amendments To Implement Certain Provisions of the Moving Ahead 
for Progress in the 21st Century Act (MAP-21)

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

ACTION: Final rule.

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SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA) 
adopts, as final, certain regulations required by the Moving Ahead for 
Progress in the 21st Century surface transportation reauthorization 
legislation. The majority of these statutory changes went into effect 
on October 1, 2012, while others will go into effect on October 1, 
2013. It is necessary to make conforming changes to ensure that FMCSA's 
regulations are current and consistent with the applicable statutes. 
Adoption of the rules is a nondiscretionary ministerial action that can 
be taken without issuing a notice of proposed rulemaking and receiving 
public comment, in accordance with the good cause exception available 
to Federal agencies under the Administrative Procedure Act (APA).

DATES:  Effective Date: This final rule is effective Tuesday, October 
1, 2013. Petitions for Reconsideration must be received by the Agency 
no later than December 2, 2013.

FOR FURTHER INFORMATION CONTACT: Genevieve Sapir, Office of Chief 
Counsel, Regulatory Affairs Division (MC-CCR), Federal Motor Carrier 
Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 
20590; by telephone at (202) 366-7056, or by electronic mail at 
genevieve.sapir@dot.gov. If you have questions regarding the docket, 
call Ms. Barbara Hairston, Docket Operations, telephone 202-366-3024.

SUPPLEMENTARY INFORMATION: 

Executive Summary

Purpose and Summary of the Major Provisions

    This rule makes nondiscretionary ministerial changes to FMCSA 
regulations that are required by MAP-21.

Benefits and Costs

    The rule provisions considered both individually and in the 
aggregate do not rise to the level of economic significance. The only 
costs associated with this rule arise out of 49 U.S.C. 32918(a), which 
requires brokers and freight forwarders to provide evidence of minimum 
financial security in the amount of $75,000. The annual overall cost of 
this new requirement is approximately $15.9 million.

Legal Basis for the Rulemaking

    This rule is based on the MAP-21 Act (Pub. L. 112-141, 126 Stat. 
405, July 6, 2012). Certain provisions of MAP-21 made mandatory, non-
discretionary changes to FMCSA programs. The majority of these 
statutory changes went into effect on October 1, 2012, while others 
will go into effect on October 1, 2013. It is necessary to make 
conforming changes to ensure that FMCSA's regulations are current and 
consistent with the applicable statutes.
    The provisions implemented in this final rule in Title 49, United 
States Code (U.S.C.) are from the following sections of MAP-21:

1. Section 32102 Safety Fitness of New Operators
2. Section 32108 Increased Penalties for Operating Without 
Registration
3. Section 32110 Revocation of Registration and Other Penalties for 
Failure To Respond to Subpoena
4. Section 32111 Fleetwide Out of Service Order for Operating 
Without Required Registration
5. Section 32203 State Reporting of Foreign Commercial Driver 
Convictions
6. Section 32204 Authority To Disqualify Foreign Commercial Drivers
7. Section 32205 Revocation of Foreign Motor Carrier Operating 
Authority for Failure To Pay Civil Penalties
8. Section 32307 Employer Responsibilities
9. Section 32501 Inspection Demand and Display of Credentials
10. Section 32503 Penalties for Violation of Operation Out of 
Service Orders
11. Section 32505 Increased Penalties for Evasion of Regulations
12. Section 32506 Violations Relating to Commercial Motor Vehicle 
Safety Regulation and Operators
13. Section 32507 Emergency Disqualification for Imminent Hazard
14. Section 32601 Motor Carrier Safety Assistance Program
15. Section 32913 Waivers, Exemptions, and Pilot Programs
16. Section 32918 Financial Security of Brokers and Freight 
Forwarders
17. Section 33010 Civil Penalties

FMCSA is authorized to implement these statutory provisions by 
delegation from the Secretary of Transportation in 49 CFR 1.87.

    Generally, agencies may promulgate final rules only after issuing a 
notice of proposed rulemaking and providing an opportunity for public 
comment under procedures required by the APA, as provided in 5 U.S.C. 
553(b) and (c). The APA, in 5 U.S.C. 553(b)(3)(B), provides an 
exception from these requirements when notice and public comment 
procedures are ``impracticable, unnecessary, or contrary to the public 
interest.'' FMCSA finds that notice and comment is unnecessary prior to 
adoption of each provision in this final rule because the changes to 
regulations are statutorily mandated by Congress, and the Agency is 
performing a nondiscretionary, ministerial act. Therefore, the Agency 
may adopt this rule without issuing a notice of proposed rulemaking and 
receiving public comment, in accordance with the APA. For these same 
reasons, the rule will be effective on October 1, 2013, the day many of 
these statutory changes go into effect.

MAP-21 Provisions Implemented by the Final Rule

    The Federal Motor Carrier Safety Regulations amended by this final 
rule encompass diverse subject areas. Those amendments are explained 
below.

Section 32102--Safety Fitness of New Operators

    Previously, 49 U.S.C. 31144 required new entrant motor carriers to 
undergo a safety review within 18 months of beginning operations. 
Section 32102 of MAP-21 changed that time period to 12 months for 
property carriers and 120 days for passenger carriers. This final rule 
amends 49 CFR 385.3 and 49 CFR part 385, Appendix A(I)(a), to change 
references from an 18-month safety review to 12-month and 120-day 
safety reviews.

Section 32108--Increased Penalties for Operating Without Registration

    Previously, 49 U.S.C. 14901(a) set the civil penalty for violating 
the Agency's reporting, recordkeeping, and registration requirements at 
$500, except for violations of passenger carrier registration 
requirements, which were set at $2,000.\1\ MAP-21 Section 32108

[[Page 60227]]

increased the penalties to $1,000 for violating the reporting and 
recordkeeping requirements, $10,000 for non-passenger carrier 
registration violations, and $25,000 for passenger carrier registration 
violations. It also changed the penalty for transporting hazardous 
wastes without the appropriate registration from a maximum of $20,000 
\2\ to a minimum of $20,000 and maximum of $40,000. This final rule 
amends 49 CFR part 386, Appendix B (g)-(3) and (6), to reflect these 
new penalties.
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    \1\ The penalties referenced in this rule refer to statutorily 
enacted amounts. In 2007, the Agency amended 49 CFR part 386, 
Appendix B to increase the civil penalties to adjust for inflation, 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990, as amended by the Debt Collection Improvement Act of 1996 
(Pub. L. 104-131, title III, chapter 10, Sec. 31001, par. (s), 110 
Stat. 1321-373). 72 FR 55100 (Sept. 28, 2007). The Agency adjusted 
these penalty amounts to $650 and $2200.
    \2\ The Agency previously adjusted this amount to $22,000. See 
note 1, above.
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Section 32110--Revocation of Registration and Other Penalties for 
Failure To Respond to Subpoena

    Previously, 49 U.S.C. 525 provided for a fine of between $100 and 
$5,000 for motor carriers that failed to obey a subpoena or an Agency 
order to appear or testify issued under 49 U.S.C. chapter 5. Section 
32110 of MAP-21 amended the penalties in that section by raising the 
fine to between $1,000 and $10,000. This final rule implements those 
amendments by adding new Section II. to 49 CFR part 386 Appendix A.

Section 32111--Fleetwide Out of Service Order for Operating Without 
Required Registration

    Previously, 49 U.S.C. 13902(e)(1) provided that if a motor vehicle 
was used to provide transportation without or beyond the scope of 
registration, that motor vehicle could be put out of service (emphasis 
added). Section 32111 changed Sec.  13902(e)(1) to authorize FMCSA to 
place a motor carrier out of service for operating vehicles without or 
beyond the scope of registration. This final rule amends 49 CFR Sec.  
392.9a(b) to reflect this change.

Section 32203--State Reporting of Foreign Commercial Driver Convictions

    Section 32203(a) of MAP-21 amended 49 U.S.C. 31301 by adding a 
definition of ``foreign commercial driver.'' This final rule amends 49 
CFR 383.5 to add this definition.
    Section 32203(b) of MAP-21 amended 49 U.S.C. 31311(a) by adding a 
requirement that States report foreign commercial drivers' convictions 
related to the operation of both CMVs and non-CMVs to FMCSA's Federal 
Convictions and Withdrawal Database. Section 32203(b) also added the 
requirement that States report unlicensed or non-CDL foreign drivers' 
convictions related to the operation of a CMV to the Federal 
Convictions and Withdrawal Database. This final rule amends 49 CFR 
384.209 to add these requirements.

Section 32204--Authority To Disqualify Foreign Commercial Drivers

    Previously enacted 49 U.S.C. 31310 sets forth the criteria for 
disqualifying CMV operators. Section 32204 of MAP-21 amended that 
section by stating explicitly that the disqualification criteria also 
apply to foreign commercial drivers. This rule amends 49 CFR 383.51 to 
reflect this change.

Section 32205--Revocation of Foreign Motor Carrier Operating Authority 
for Failure To Pay Civil Penalties

    Section 32205 of MAP-21 amended 49 U.S.C. 13905(d)(2) to state 
explicitly that the Agency's authority to suspend, amend, and revoke 
motor carrier operating authority registration applies to foreign motor 
carriers. This final rule amends 49 CFR 386.84 to reflect this change. 
The final rule also makes a technical correction to Sec.  386.84. That 
section contains a reference to 49 CFR part 386 Appendix A (h) that was 
not updated after that paragraph was re-numbered. The correction 
references 49 CFR part 386 Appendix A (i).

Section 32307--Employer Responsibilities

    Previously, 49 U.S.C. 31304 prohibited employers from allowing 
employees to operate CMVs when the employer knew that the employee had 
lost the right to operate a CMV or was disqualified, or when the 
employee's driver's license was suspended, revoked, or canceled 
(emphasis added). Section 32307 of MAP-21 amended that section to 
prohibit employers from allowing employees to drive when the employer 
knows or should reasonably know that those circumstances exist. This 
final rule amends 49 CFR 383.37 to reflect this change.

Section 32501--Inspection Demand and Display of Credentials

    Section 32501 of MAP-21 amended 49 U.S.C. 504(c) to include 
employees of States that receive Motor Carrier Safety Assistance 
Program (MCSAP) grants as among those authorized to conduct inspections 
of certain equipment and records upon display of proper credentials. In 
addition, Section 32501 amended 49 U.S.C. 504(c) by specifying that the 
credentials of authorized individuals may be presented either in person 
or in writing. This final rule amends 49 CFR part 386 Appendix B (h) 
and 49 CFR Chapter III, Subchapter B, Appendix B, paragraph 2. to 
reflect these changes.

Section 32503--Penalties for Violation of Operation Out of Service 
Orders

    Section 32503 of MAP-21 amended 5 U.S.C. 521 to add a $25,000 
penalty for motor carriers operating CMVs in violation of an out-of-
service order issued following a determination that the carrier is 
unfit or an imminent hazard. This final rule amends 49 CFR part 386 
Appendices A (IV)(g.) and B (f) and to reflect this change.

Section 32505--Increased Penalties for Evasion of Regulations

    Previously, 49 U.S.C. 524 provided the following penalties for 
knowing and willful violations of 49 U.S.C. chapter 5: $200-$500 for a 
first violation and $250-$2,000 for a subsequent violation. Section 
32505 of MAP-21 amended this provision by removing the knowing and 
willful requirement; expanding the scope of applicable violations to 
include 49 U.S.C. chapter 51, subchapter III of chapter 311 (except 
Sec. Sec.  31138 and 31139), Sec. Sec.  31302, 31303, 31304, 31305(b), 
31310(g)(1)(A), and 31502, and any regulation issued under those 
provisions; and increasing the penalty for a first violation to $2,000-
$5,000 and subsequent violations to $2,500-$7,000. This final rule adds 
new paragraph (i) to 49 CFR part 386, Appendix B, to implement these 
amendments.

Section 32506--Violations Relating to CMV Safety Regulation and 
Operators

    Previously, 49 U.S.C. 521(b)(2)(D) directed the Agency to take into 
account the following factors when assessing a civil penalty: The 
nature, circumstances, extent, and gravity of the violation committed 
and, with respect to the violator, the degree of culpability, history 
of prior offenses, ability to pay, effect on ability to continue to do 
business, and such other matters as justice and public safety may 
require (emphasis added). Section 32506 of MAP-21 amended 49 U.S.C. 
521(b)(2)(D) by removing ``ability to pay'' from this list. This final 
rule amends 49 CFR 386.81, 387.17, and 387.41 to reflect this change.

Section 32507--Emergency Disqualification for Imminent Hazard

    Previously, 49 U.S.C. 31310(f) provided for the emergency 
disqualification of an individual from operating a CMV, if continued 
operation would constitute an imminent hazard, as defined at 49 U.S.C. 
5102. Section 32507 of MAP-21 amended Sec.  31310(f) by changing the 
meaning of ``imminent

[[Page 60228]]

hazard'' to include the definition at 49 U.S.C. 521. This final rule 
amends the definition of ``imminent hazard'' at 49 CFR 383.5 to reflect 
this change.

Section 32601--Motor Carrier Safety Assistance Program

    Section 32601(a)(3) of MAP-21 amended 49 U.S.C. 31102(b) by 
identifying local government agencies as MCSAP partners and 
establishing four program goals. This final rule amends 49 CFR 350.103 
to incorporate these new elements.
    Section 32601(a)(4) amended the requirements, codified at 49 U.S.C. 
31102(b), for State participation in the MCSAP grant program. This 
final rule amends 49 CFR 350.201 (n) and (s) and adds new Sec.  
350.201(z) and Sec.  350.211(22) to reflect these changes.
    Section 32601(a)(5) amended requirements, codified at 49 U.S.C. 
31102(b), for the States' maintenance of effort and average level of 
expenditure under the MCSAP grant plans. This final rule amends 49 CFR 
350.201(f), 350.211, and 350.301(a) and (c) to reflect these changes.

Section 32913--Waivers, Exemptions and Pilot Programs

    Section 32913(b) amended the requirements, codified at 49 U.S.C. 
31315(b), for a person to request an exemption from certain Agency 
requirements. The amendment requires the person's licensing State to 
inform roadside enforcement personnel of the exemption, after having 
received notice from FMCSA. New 49 CFR 350.201(z), discussed above, 
also implements this change.
    Previously, 49 U.S.C. 31315(c)(1) required FMCSA to publish notice 
of all pilot programs in the Federal Register. Section 32913(c) 
retained the requirement that the Agency publish notices of pilot 
programs, but removed the requirement that they be published in the 
Federal Register. This final rule amends 49 CFR 381.500(d) to reflect 
that change.

Section 32918--Financial Security of Brokers and Freight Forwarders

    Previously, 49 U.S.C. 13906 required brokers to maintain a bond to 
ensure that the transportation contracted for was actually provided, 
but left the amount of the bond to the Agency's discretion. Section 
32918 of MAP-21 amended that section to set a minimum of $75,000 and 
extended the bond requirement to freight forwarders as well. This final 
rule amends 49 CFR 387.307(a) and 387.405 and adds new Sec.  387.403(c) 
to implement this change.

Section 33010--Civil Penalties

    Previously, 49 U.S.C. 5123 provided for penalties of between $250 
and $50,000 for violations of regulations related to the transportation 
of hazardous materials. For violations that resulted in ``death, 
serious illness, or severe injury to any person or substantial 
destruction of property,'' it provided for penalties of up to 
$100,000.\3\ MAP-21 amended Sec.  5123 to provide for penalties of up 
to $75,000 for violations of regulations related to the transportation 
of hazardous materials and $175,000 in the event of death, serious 
illness, severe injury or substantial destruction of property. This 
final rule amends 49 CFR Appendix B (f)(2) to implement these changes.
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    \3\ The Agency previously adjusted this amount to $105,000. See 
note 1, above.
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Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review and DOT 
Regulatory Policies and Procedures as Supplemented by E.O. 13563)

    FMCSA has determined this final rule is not a significant 
regulatory action within the meaning of Executive Order (E.O.) 12866, 
as supplemented by E.O. 13563 (76 FR 3821, January 21, 2011), and is 
also not significant within the meaning of DOT regulatory policies and 
procedures (44 FR 11034, February 26, 1979). As explained above, this 
final rule is strictly ministerial in that it incorporates 
nondiscretionary statutory requirements and includes administrative 
revisions, technical corrections and civil penalty increases to a 
number of statutory provisions. The majority of these statutory changes 
went into effect on October 1, 2012, while others will go into effect 
on October 1, 2013. These changes are necessary to make FMCSA's 
regulations consistent with MAP-21 and will not exceed the $100 million 
annual threshold. Any costs associated with this action are 
attributable to the non-discretionary statutory provisions. This final 
rule is not expected to generate substantial congressional or public 
interest. Therefore, a full regulatory impact analysis has not been 
conducted nor has there been a review by the Office of Management and 
Budget (OMB).
    Although a full regulatory evaluation is unnecessary because of the 
low economic impact of this rulemaking, FMCSA analyzed the cost impact 
of the MAP-21 provisions implemented by this final rule. The provision 
in 49 U.S.C. 32918(a) requires all brokers and freight forwarders 
registered with FMCSA to provide a minimum financial security of 
$75,000 (surety bond or trust fund). Previously, the financial security 
requirement was $10,000 for general property brokers and $25,000 for 
household goods brokers. Freight forwarders did not have a comparable 
surety bond requirement. See 49 CFR part 387, subparts C and D.
    FMCSA has identified 2,212 \4\ registered interstate freight 
forwarders that will be subject to the new MAP-21 requirement. In 
addition, the Agency has 21,565 \5\ registered interstate property 
brokers, of which 776 \6\ are household goods brokers.\7\ The cost 
components associated with this rule are a $75,000 minimum surety bond/
trust fund consisting of the following: (1) One percent to secure the 
surety bond or trust fund; \8\ (2) $10 BMC-84/85 filing fee; and (3) 10 
minutes by an insurance clerk with a median $25.39 \9\ hourly wage to 
complete the BMC 84/85 form(s). The overall cost of the new

[[Page 60229]]

requirement is $1.69 million \10\ in the first year for freight 
forwarders and $14.21 million \11\ for brokers with an overall cost of 
approximately $15.9 million.
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    \4\ FMCSA's Licensing and Insurance (L&I) and Motor Carrier 
Management Information System (MCMIS) database snapshot as February 
22, 2013.
    \5\ Commercial Motor Vehicle (CMV) Facts Sheet March 2013. 
Available at https://www.fmcsa.dot.gov/documents/facts-research/CMV-Facts.pdf.
    \6\ Ibid., footnote 1.
    \7\ These numbers reflect the number of brokers currently 
subject to FMCSA registration requirements. As a result of MAP-21 
Sec.  32915, which is not the subject of this rule, some motor 
carriers might choose to obtain broker registration in addition to 
motor carrier registration. At this time, the Agency does not have 
information on how many motor carriers this will affect; some might 
choose to obtain broker registration, while others might choose to 
revise their business practices to avoid obtaining broker 
registration. OMB approval of the BMC-84 and BMC-85 forms expires in 
January 2014. As a part of the renewal process, FMCSA will consider 
whether MAP-21 has affected the total number of responding brokers.
    \8\ For the purpose of this analysis we will use 1% of the 
increased bond value ($65,000 = $650 for general property brokers, 
$50,000 = $500 for household goods, and $75,000 = $750 for freight 
forwarders). The cost is based on a percentage of the bond amount, 
which will vary by the applicant's personal credit and experience in 
the industry (Brokers of Household Goods Transportation by Motor 
Vehicle final rule Regulatory Evaluation, published November 29, 
2010--75 FR 72987), and volume of business. The typical surety bond 
usually costs between 1 and 3 percent of the bond's face value, 
dependent on credit score. The bond's cost will be higher and/or a 
down payment may be required if the principal's financial history 
report contains negative marks, as the surety will now take a 
greater risk when guaranteeing the principal's work. Available at 
https://www.jwsuretybonds.com/surety-bonds/commercial-bonds/freight_brokerbond.htm, www.suretybonds.com, Transportation Intermediaries 
Association (TIA) available at https://www.tianet.org/AM/Template.cfm?Section=About_TIA.
    \9\ U.S. Department of Labor, Bureau of Labor Statistics, 
Occupational Employment Wages Statistics, April 2013. Available at 
https://www.bls.gov/oes/current/oes439041.htm. Insurance and Policy 
Clerks have a median $16.93 hourly wage, plus a 50 percent markup 
for fringe benefits = $25.39.
    \10\ The freight forwarder (FF) calculation includes the 
following: (2,212 FF x $750 annual premium cost) = $1.66 million + 
(2,212 FF x $10 filing fee) = $22,120 + (2,212 FF x 10/60 minutes to 
fill out form x $25.39 wage) = $9,360.
    \11\ The property broker calculation includes the following: 
(20,789 x $650 general property broker annual premium cost) = $13.51 
million + (776 household good brokers x $500 annual premium cost) = 
$388,000 + (21,565 brokers x $10 filing fee) = $215,650 + (21,565 
brokers x 10/60 minutes to fill out form x $25.39 wage) = $91,255.
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Regulatory Flexibility Act

    Pursuant to the Regulatory Flexibility Act (RFA) of 1980 (5 U.S.C. 
601 et seq.), as amended by the Small Business Regulatory Enforcement 
Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857), FMCSA is not 
required to prepare a final regulatory flexibility analysis under 5 
U.S.C. 604(a) for this final rule because the agency has not issued a 
notice of proposed rulemaking prior to this action. FMCSA has 
determined that it has good cause to adopt the rule without notice and 
comment.

Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996, FMCSA wants to assist small entities 
in understanding this rule so that they can better evaluate its effects 
on themselves and participate in the rulemaking initiative. If the 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, Ms. 
Genevieve Sapir, listed in the FOR FURTHER INFORMATION CONTACT section 
of this rule.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the SBA'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 ensuring the rights of small entities to 
regulatory enforcement fairness and an explicit policy against 
retaliation for exercising these rights.

Unfunded Mandates Reform Act of 1995

    This final rule will not impose an unfunded Federal mandate, as 
defined by the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1532 et 
seq.), that will result in the expenditure by a State, local, or tribal 
governments, in the aggregate, or by the private sector of $143.1 
million (which is the value of $100 million in 2010 after adjusting for 
inflation) or more in any one year.

E.O. 13132 (Federalism)

    A rulemaking has implications for Federalism under Section 1(a) of 
E.O. 13132 if it has a substantial direct effect on State or local 
governments and would either preempt State law or impose a substantial 
direct cost of compliance on State or local governments. FMCSA analyzed 
this action in accordance with Executive Order 13132. This final rule 
does not preempt or modify any provision of State law, impose 
substantial direct unreimbursed compliance costs on any State, or 
diminish the power of any State to enforce its own laws. Accordingly, 
this rulemaking does not have Federalism implications warranting the 
application of Executive Order 13132.

E.O. 12988 (Civil Justice Reform)

    This final rule meets applicable standards in sections 3(a) and 
3(b)(2) of E.O. 12988 to minimize litigation, eliminate ambiguity, and 
reduce burden.

E.O. 13045 (Protection of Children)

    E.O. 13045, Protection of Children from Environmental Health Risks 
and Safety Risks (62 FR 19885, Apr. 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.

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 takings implications.

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 (PIA) of a regulation that will 
affect the privacy of individuals. This rule does not require the 
collection of personally identifiable information (PII).
    The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies 
and any non-Federal agency which receives records contained in a system 
of records from a Federal agency for use in a matching program.

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.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501, et 
seq.), Federal agencies must obtain approval from the OMB for each 
collection of information they conduct, sponsor, or require through 
regulations. For the currently approved OMB control number 2126-0017, 
Financial Responsibility, Trucking, and Freight Forwarding, this rule 
will produce a slight increase of 146 annual burden hours due to the 
increase of annual responses [Form BMC-84--2,750 annual responses x 10 
minutes/60 minutes = 458 hours-previous 405 hours = 53 hours; Form BMC-
85--4,380 annual responses x 10 minutes/60 minutes = 730 hours-previous 
637 hours = 93 hours]. There is no collection requirement or change in 
annual burden hours for the currently approved OMB control number 2126-
0016, Licensing Applications for Motor Carrier Operating Authority.
    The Agency estimates that the changes to the Forms BMC-84 and BMC-
85 result in a small modification in the number of respondents that 
will have no impact on the currently approved 10 minutes it takes a 
respondent to complete the form.

National Environmental Policy Act and Clean Air Act

    FMCSA analyzed this rule in accordance with the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321, et seq.) and 
FMCSA's NEPA Implementing Procedures and Policy for Considering 
Environmental Impacts, Order 5610.1

[[Page 60230]]

(FMCSA Order), March 1, 2004 (69 FR 9680). FMCSA's Order states that 
``[w]here FMCSA has no discretion to withhold or condition an action if 
the action is taken in accordance with specific statutory criteria and 
FMCSA lacks control and responsibility over the effects of an action, 
that action is not subject to this Order.'' Id. at chapter 1(D). 
Because Congress specifies the Agency's precise action here, thus 
leaving the Agency no discretion over such action, and since the Agency 
lacks jurisdiction and therefore control and responsibility over the 
effects of these action, this rulemaking falls under chapter 1(D). 
Therefore, no further analysis is considered.
    In addition to the NEPA requirements to examine impacts on air 
quality, the Clean Air Act (CAA) as amended (42 U.S.C. 7401, et seq.) 
also requires FMCSA to analyze the potential impact of its actions on 
air quality and to ensure that FMCSA actions conform to State and local 
air quality implementation plans. This non-discretionary action is 
expected to fall within the CAA de minimis standards and are not 
subject to the Environmental Protection Agency's General Conformity 
Rule (40 CFR parts 51 and 93).
    Additionally, FMCSA evaluated the effects of this final rule in 
accordance with Executive Order 12898 and determined that there are no 
environmental justice issues associated with its provisions nor any 
collective environmental impacts resulting from its promulgation. 
Environmental justice issues would be raised if there were 
``disproportionate'' and ``high and adverse impact'' on minority or 
low-income populations. This final rule is exempt from analysis under 
the National Environmental Policy Act. This final rule simply makes 
ministerial, mandatory changes and would not result in high and adverse 
environmental impacts.

E.O. 13211 (Energy Supply, Distribution, or Use)

    FMCSA analyzed this action under E.O. 13211, Actions Concerning 
Regulations That Significantly Affect Energy Supply, Distribution, or 
Use. FMCSA determined that it is not a ``significant energy action'' 
under that E.O. because it is not economically significant and is not 
likely to have an adverse effect on the supply, distribution, or use of 
energy.

E.O. 13175 (Indian Tribal Governments)

    This final 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.

National Technology Transfer and Advancement Act (Technical Standards)

    The National Technology Transfer and Advancement Act (NTTAA) (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 final rule does 
not use technical standards. Therefore, we did not consider the use of 
voluntary consensus standards.

List of Subjects

49 CFR Part 350

    Grant programs--transportation, Highway safety, Motor carriers, 
Motor vehicle safety, Reporting and recordkeeping requirements.

49 CFR Part 381

    Motor carriers.

49 CFR Part 383

    Administrative practice and procedure, Alcohol abuse, Drug abuse, 
Highway safety, Motor carriers.

49 CFR Part 384

    Administrative practice and procedure, Alcohol abuse, Drug abuse, 
Highway safety, Motor carriers.

49 CFR Part 385

    Administrative practice and procedure, Highway safety, Mexico, 
Motor carriers, Motor vehicle safety, Reporting and recordkeeping 
requirements.

49 CFR Part 386

    Administrative practice and procedure, Brokers, Freight forwarders, 
Hazardous materials transportation, Highway safety, Motor carriers, 
Motor vehicle safety, Penalties.

49 CFR Part 387

    Buses, Freight, Freight forwarders, Hazardous materials 
transportation, Highway safety, Insurance, Intergovernmental relations, 
Motor carriers, Motor vehicle safety, Moving of household goods, 
Penalties, Reporting and recordkeeping requirements, Surety bonds.

49 CFR Part 392

    Alcohol abuse, Drug abuse, Highway safety, Motor carriers.

    For the reasons stated in the preamble, the FMCSA amends 49 CFR 
chapter III, as set forth below:

PART 350--COMMERCIAL MOTOR CARRIER SAFETY ASSISTANCE PROGRAM

0
1. The authority citation for part 350 continues to read as follows:

    Authority:  49 U.S.C. 13902, 31101-31104, 31108, 31136, 31140-
31141, 31161, 31310-31311, 31502; and 49 CFR 1.87.


0
2. Revise Sec.  350.103 to read as follows:


Sec.  350.103  What is the purpose of this part?

    The purpose of this part is to ensure the Federal Motor Carrier 
Safety Administration (FMCSA), States, local government agencies and 
other political jurisdictions work in partnership to establish programs 
to improve motor carrier, CMV, and driver safety to support a safe and 
efficient transportation system by--
    (a) Making targeted investments to promote safe CMV transportation, 
including transportation of passengers and hazardous materials;
    (b) Investing in activities likely to generate maximum reductions 
in the number and severity of CMV crashes and fatalities resulting from 
such crashes;
    (c) Adopting and enforcing effective motor carrier, CMV, and driver 
safety regulations and practices consistent with Federal requirements; 
and
    (d) Assessing and improving State wide performance by setting 
program goals and meeting performance standards, measures and 
benchmarks.

0
3. In Sec.  350.201, revise paragraphs (f), (n), and (s) and add a new 
paragraph (z) to read as follows:


Sec.  350.201  What conditions must a State meet to qualify for Basic 
Program Funds?

* * * * *
    (f) Maintain the aggregate expenditure of funds by the State lead 
agency responsible for implementing the CVSP, exclusive of Federal 
funds and State matching amounts, for CMV safety programs eligible for 
funding under this

[[Page 60231]]

part, at a level at least equal to the average level of that 
expenditure for fiscal years 2004 and 2005. Upon the request of a 
State, the Secretary may allow the State to exclude State expenditures 
for Government-sponsored demonstration or pilot projects. Upon the 
request of a State, the Secretary may waive or modify the requirements 
of this subsection for one fiscal year, if the Secretary determines 
that a waiver is equitable due to exceptional or uncontrollable 
circumstances, such as a natural disaster or a serious decline in the 
financial resources of the MCSAP agency.
* * * * *
    (n) Ensure participation in appropriate FMCSA systems and other 
information systems by all appropriate jurisdictions receiving funding 
under this section.
* * * * *
    (s) Establish and dedicate sufficient resources to a program to 
ensure that accurate, complete, and timely motor carrier safety data 
are collected and reported, and ensure the State's participation in a 
national motor carrier safety data correction system prescribed by 
FMCSA.
* * * * *
    (z) Ensure transmittal to roadside inspectors the notice of each 
Federal exemption the State receives from FMCSA pursuant to 49 CFR part 
381 subpart C, including the name of the person granted the exemption 
and any terms and conditions that apply to the exemption.

0
4. In Sec.  350.211, revise paragraphs 8., 11., and add paragraph 22. 
to read as follows:


Sec.  350.211  What is the format of the certification required by 
Sec.  350.209?

* * * * *
    8. The State must maintain the average aggregate expenditure of the 
State lead agency responsible for implementing the CVSP, exclusive of 
Federal assistance and State matching funds, for CMV safety programs 
eligible for funding under the Basic program at a level at least equal 
to the average level of that expenditure for fiscal years 2004 and 
2005. These expenditures must cover at least the following four program 
areas, as applicable:
    a. Motor carrier safety programs in accordance with 49 CFR 350.109.
    b. Size and weight enforcement programs in accordance with 49 CFR 
350.309(c)(1).
    c. Drug interdiction enforcement programs in accordance with 49 CFR 
350.309(c)(2).
    d. Traffic safety programs in accordance with 49 CFR 350.309(d).
* * * * *
    11. The State will establish a program to provide FMCSA with 
accurate, complete, and timely reporting of motor carrier safety 
information that includes documenting the effects of the State's CMV 
safety programs; participate in a national motor carrier safety data 
correction program (DataQs); participate in appropriate FMCSA systems; 
and ensure information is exchanged in a timely manner with other 
States.
* * * * *
    22. The State will transmit to its roadside inspectors the notice 
of each Federal exemption granted pursuant to 49 U.S.C. 31315(b) as 
provided to the State by FMCSA, including the name of the person 
granted the exemption and any terms and conditions that apply to the 
exemption.
* * * * *

0
5. In Sec.  350.301, revise paragraphs (a) and (c) to read as follows:


Sec.  350.301  What level of effort must a State maintain to qualify 
for MCSAP funding?

    (a) The State must maintain the average aggregate expenditure of 
the State and its political subdivisions, exclusive of Federal funds 
and State matching funds, for CMV safety programs eligible for funding 
under this part at a level at least equal to the average level of 
expenditure for fiscal years 2004 and 2005.
* * * * *
    (c) The State must include costs associated with activities 
performed during the base period by the lead agency responsible for 
implementing the CVSP that receives funds under this part. It must 
include only those activities which meet the current requirements for 
funding eligibility under the grant program.

PART 381--WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS

0
6. The authority citation for part 381 continues to read as follows:

    Authority: 49 U.S.C. 31136(e) and 31315; and 49 CFR 1.87.


0
7. In Sec.  381.500, revise paragraph (d) to read as follows:


Sec.  381.500  What are the general requirements the agency must 
satisfy in conducting a pilot program?

* * * * *
    (d) The FMCSA will publish a detailed description of each pilot 
program, including the exemptions to be considered, and provide notice 
and an opportunity for public comment before the effective date of the 
pilot program.

PART 383--COMMERCIAL DRIVER'S LICENSE STANDARDS; REQUIREMENTS AND 
PENALTIES

0
8. The authority citation for part 383 continues to read as follows:

    Authority: 49 U.S.C. 521, 31136, 31301 et seq., and 31502; secs. 
214 and 215 of Pub. L. 106-159, 113 Stat. 1748, 1766, 1767; sec. 
1012(b) of Pub. L. 107-56, 115 Stat. 272, 397; sec. 4140 of Pub. L. 
109-59, 119 Stat. 1144, 1726; and 49 CFR 1.86.


0
9. In Sec.  383.5, add a new definition of ``foreign commercial 
driver'' to appear in alphabetical order and revise the definition of 
``imminent hazard'' to read as follows:


Sec.  383.5  Definitions.

* * * * *
    Foreign commercial driver means an individual licensed to operate a 
commercial motor vehicle by an authority outside the United States, or 
a citizen of a foreign country who operates a commercial motor vehicle 
in the United States.
* * * * *
    Imminent hazard means the existence of any condition of vehicle, 
employee, or commercial motor vehicle operations that substantially 
increases the likelihood of serious injury or death if not discontinued 
immediately; or a condition relating to hazardous material that 
presents a substantial likelihood that death, serious illness, severe 
personal injury, or a substantial endangerment to health, property, or 
the environment may occur before the reasonably foreseeable completion 
date of a formal proceeding begun to lessen the risk of that death, 
illness, injury or endangerment.
* * * * *

0
10. Revise the introductory paragraph of Sec.  383.37 to read as 
follows:


Sec.  383.37  Employer responsibilities.

    No employer may allow, require, permit, or authorize a driver to 
operate a CMV in the United States if he or she knows or should 
reasonably know that any of the following circumstances exist:
* * * * *
0
11. In Sec.  383.51, add paragraph (a)(7) to read as follows:


Sec.  383.51  Disqualification of drivers.

    (a) * * *
    (7) A foreign commercial driver is subject to disqualification 
under this subpart.
* * * * *

[[Page 60232]]

PART 384--STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM

0
12. The authority citation for part 384 continues to read as follows:

    Authority:  49 U.S.C. 31136, 31301, et seq., and 31502; secs. 
103 and 215 of Pub. L. 106-59, 113 Stat. 1753, 1767; and 49 CFR 
1.87.


0
13. Revise Sec.  384.209 to read as follows:


Sec.  384.209  Notification of traffic violations.

    (a) Required notification with respect to CLP or CDL holders. (1) 
Whenever a person who holds a CLP or CDL from another State is 
convicted of a violation of any State or local law relating to motor 
vehicle traffic control (other than parking, vehicle weight or vehicle 
defect violations), in any type of vehicle, the licensing entity of the 
State in which the conviction occurs must notify the licensing entity 
in the State where the driver is licensed of this conviction within the 
time period established in paragraph (c) of this section.
    (2) Whenever a person who holds a foreign commercial driver's 
license is convicted of a violation of any State or local law relating 
to motor vehicle traffic control (other than parking, vehicle weight or 
vehicle defect violations), in any type of vehicle, the licensing 
entity of the State in which the conviction occurs must report that 
conviction to the Federal Convictions and Withdrawal Database.
    (b) Required notification with respect to non-CDL holders. (1) 
Whenever a person who does not hold a CDL, but who is licensed to drive 
by another State, is convicted of a violation in a CMV of any State or 
local law relating to motor vehicle traffic control (other than a 
parking violation), the licensing entity of the State in which the 
conviction occurs must notify the licensing entity in the State where 
the driver is licensed of this conviction within the time period 
established in paragraph (c) of this section.
    (2) Whenever a person who is unlicensed or holds a foreign non-
commercial driver's license is convicted of a violation in a CMV of any 
State or local law relating to motor vehicle traffic control (other 
than a parking violation), the licensing entity of the State in which 
the conviction occurs must report that conviction to the Federal 
Convictions and Withdrawal Database.
* * * * *

PART 385--SAFETY FITNESS PROCEDURES

0
14. The authority citation for part 385 continues to read as follows:

    Authority:  49 U.S.C. 113, 504, 521(b), 5105(e), 5109, 13901-
13905, 31133, 31135, 31136, 31137(a), 31144, 31148, and 31502; Sec. 
113(a), Pub. L. 103-311; Sec. 408, Pub. L. 104-88; Sec. 350 of Pub. 
L. 107-87; and 49 CFR 1.87.


0
15. In Sec.  385.3, revise the definition of ``new entrant 
registration'' to read as follows:


Sec.  385.3  Definitions and acronyms.

* * * * *
    New entrant registration is the registration (US DOT number) 
granted a new entrant before it can begin interstate operations in an 
18-month monitoring period. A safety audit must be performed on a new 
entrant's operations within 12 months after receipt of its US DOT 
number for motor carriers of property and 120 days for motor carriers 
of passengers, and it must be found to have adequate basic safety 
management controls to continue operating in interstate commerce at the 
end of the 18-month period.
* * * * *

0
16. In Appendix A to part 385, revise paragraph (I)(a) to read as 
follows:

Appendix A to Part 385--Explanation of Safety Audit Evaluation Criteria

I. General

    (a) Section 210 of the Motor Carrier Safety Improvement Act (49 
U.S.C. 31144) directed the Secretary to establish a procedure 
whereby each owner and each operator granted new authority must 
undergo a safety review within 12 months after receipt of its US DOT 
number for motor carriers of property and 120 days for motor 
carriers of passengers. The Secretary was also required to establish 
the elements of this safety review, including basic safety 
management controls. The Secretary, in turn, delegated this to the 
FMCSA.
* * * * *

PART 386--RULES OF PRACTICE FOR MOTOR CARRIER, INTERMODAL EQUIPMENT 
PROVIDER, BROKER, FREIGHT FORWARDER, AND HAZARDOUS MATERIALS 
PROCEEDINGS

0
17. The authority citation for part 386 continues to read as follows:

    Authority:  49 U.S.C. 113, chapters 5, 51, 59, 131-141, 145-149, 
311, 313, and 315; Sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 
U.S.C. 701 note); Sec. 217, Pub. L. 105-159, 113 Stat. 1748, 1767; 
Sec. 206, Pub. L. 106-159, 113 Stat. 1763; subtitle B, title IV of 
Pub. L. 109-59; and 49 CFR 1.81 and 1.87.


Sec.  386.81  [Amended]

0
18. In Sec.  386.81, amend paragraph (a) by removing the phrase 
``ability to pay,''.

0
19. In Sec.  386.84, revise paragraphs (a), (b)(1), (c), and the 
introductory text to (d) to read as follows:


Sec.  386.84  Sanction for failure to pay civil penalties or abide by 
payment plan; suspension or revocation of registration.

    (a)(1) General rule. The registration of a broker, freight 
forwarder, for-hire motor carrier, foreign motor carrier or foreign 
motor private carrier that fails to pay a civil penalty in full within 
90 days after the date specified for payment by the FMCSA's final 
agency order, will be suspended starting on the next (i.e., the 91st) 
day. The suspension continues until the FMCSA has received full payment 
of the penalty.
    (2) Civil penalties paid in installments. The FMCSA Service Center 
may allow a respondent broker, freight forwarder, for-hire motor 
carrier, foreign motor carrier or foreign motor private carrier to pay 
a civil penalty in installments. If the respondent fails to make an 
installment payment on schedule, the payment plan is void and the 
entire debt is payable immediately. The registration of a respondent 
that fails to pay the remainder of its civil penalty in full within 90 
days after the date of the missed installment payment is suspended on 
the next (i.e., the 91st) day. The suspension continues until the FMCSA 
has received full payment of the entire penalty.
    (3) Appeals to Federal Court. If the respondent broker, freight 
forwarder, for-hire motor carrier, foreign motor carrier or foreign 
motor private carrier appeals the final agency order to a Federal 
Circuit Court of Appeals, the terms and payment due date of the final 
agency order are not stayed unless the Court so directs.
    (b) Show Cause Proceeding. (1) The FMCSA will notify a broker, 
freight forwarder, for-hire motor carrier, foreign motor carrier or 
foreign motor private carrier in writing if it has not received payment 
within 45 days after the date specified for payment by the final agency 
order or the date of a missed installment payment. The notice will 
include a warning that failure to pay the entire penalty within 90 days 
after payment was due will result in the suspension of the respondent's 
registration.
* * * * *
    (c) The registration of a broker, freight forwarder, for-hire motor 
carrier, foreign motor carrier or foreign motor private carrier that 
continues to operate in

[[Page 60233]]

interstate commerce in violation of this section after its registration 
has been suspended may be revoked after an additional notice and 
opportunity for a proceeding in accordance with 49 U.S.C. 13905(c). 
Additional sanctions may be imposed under paragraph IV(i) of Appendix A 
to part 386.
    (d) This section does not apply to any person who is unable to pay 
a civil penalty because the person is a debtor in a case under chapter 
11, title 11, United States Code. Brokers, freight forwarders, for-hire 
motor carriers, foreign motor carriers or foreign motor private 
carriers in bankruptcy proceedings under chapter 11 must provide the 
following information in their response to the FMCSA:
* * * * *

0
20. In Appendix A to part 386, add paragraph II. and revise paragraph 
IV.g. to read as follows:

Appendix A to Part 386--Penalty Schedule; Violations of Notices and 
Orders

* * * * *

II. Subpoena

    Violation--Failure to respond to Agency subpoena to appear and 
testify or produce records.
    Penalty--minimum of $1,000 but not more than $10,000 per 
violation.
* * * * *

IV. Out-of-Service Order

* * * * *
    g. Violation--Operating in violation of an order issued under 
Sec.  386.72(b) to cease all or part of the employer's commercial 
motor vehicle operations or to cease all or part of an intermodal 
equipment provider's operations, i.e., failure to cease operations 
as ordered.
    Penalty--Up to $25,000 per day the operation continues after the 
effective date and time of the order to cease.
* * * * *
0
21. In Appendix B to Part 386, revise paragraphs (f); (g)(1) through 
(3) and (6); and (h) and add new paragraph (i) to read as follows:

Appendix B to Part 386--Penalty Schedule; Violations and Monetary 
Penalties

* * * * *
    (f) Operating after being declared unfit by assignment of a 
final ``unsatisfactory'' safety rating. (1) A motor carrier 
operating a commercial motor vehicle in interstate commerce (except 
owners or operators of commercial motor vehicles designed or used to 
transport hazardous materials for which placarding of a motor 
vehicle is required under regulations prescribed under 49 U.S.C. 
chapter 51) is subject, after being placed out of service because of 
receiving a final ``unsatisfactory'' safety rating, to a civil 
penalty of not more than $25,000 (49 CFR 385.13). Each day the 
transportation continues in violation of a final ``unsatisfactory'' 
safety rating constitutes a separate offense.
    (2) A motor carrier operating a commercial motor vehicle 
designed or used to transport hazardous materials for which 
placarding of a motor vehicle is required under regulations 
prescribed under 49 U.S.C. chapter 51 is subject, after being placed 
out of service because of receiving a final ``unsatisfactory'' 
safety rating, to a civil penalty of not more than $75,000 for each 
offense. If the violation results in death, serious illness, or 
severe injury to any person or in substantial destruction of 
property, the civil penalty may be increased to not more than 
$175,000 for each offense. Each day the transportation continues in 
violation of a final ``unsatisfactory'' safety rating constitutes a 
separate offense.
* * * * *
    (g) * * *
    (1) A person who fails to make a report, to specifically, 
completely, and truthfully answer a question, or to make, prepare, 
or preserve a record in the form and manner prescribed is liable for 
a minimum penalty of $1,000 per violation.
    (2) A person who operates as a carrier or broker for the 
transportation of property in violation of the registration 
requirements of 49 U.S.C. 13901 is liable for a minimum penalty of 
$10,000 per violation.
    (3) A person who operates as a motor carrier of passengers in 
violation of the registration requirements of 49 U.S.C. 13901 is 
liable for a minimum penalty of $25,000 per violation.
* * * * *
    (6) A person who operates as a motor carrier or broker for the 
transportation of hazardous wastes in violation of the registration 
provisions of 49 U.S.C. 13901 is liable for a minimum penalty of 
$20,000 and a maximum penalty of $40,000 per violation.
* * * * *
    (h) Copying of records and access to equipment, lands, and 
buildings. A person subject to 49 U.S.C. chapter 51 or a motor 
carrier, broker, freight forwarder, or owner or operator of a 
commercial motor vehicle subject to part B of subtitle VI of title 
49 U.S.C. who fails to allow promptly, upon demand in person or in 
writing, the Federal Motor Carrier Safety Administration, an 
employee designated by the Federal Motor Carrier Safety 
Administration, or an employee of a MCSAP grant recipient to inspect 
and copy any record or inspect and examine equipment, lands, 
buildings, and other property, in accordance with 49 U.S.C. 504(c), 
5121(c), and 14122(b), is subject to a civil penalty of not more 
than $1,000 for each offense. Each day of a continuing violation 
constitutes a separate offense, except that the total of all civil 
penalties against any violator for all offenses related to a single 
violation shall not exceed $10,000.
    (i) A person, or an officer, employee, or agent of that person, 
that by any means tries to evade regulation of motor carriers under 
Title 49, United States Code chapter 5, chapter 51, subchapter III 
of chapter 311 (except sections 31138 and 31139) or section 31302, 
31303, 31304, 31305(b), 31310(g)(1)(A), or 31502, or a regulation 
issued under any of those provisions, shall be fined at least $2,000 
but not more than $5,000 for the first violation and at least $2,500 
but not more than $7,500 for a subsequent violation.

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR 
CARRIERS

0
22. The authority citation for part 387 continues to read as follows:

    Authority:  49 U.S.C. 13101, 13301, 13906, 14701, 31138, 31139, 
and 31144; and 49 CFR 1.87.


Sec.  387.17  [Amended]

0
23. Amend Sec.  387.17 by removing the phrase ``ability to pay,''.


Sec.  387.41  [Amended]

0
24. Amend Sec.  387.41 by removing the phrase ``ability to pay,''.

0
25. In Sec.  387.307, revise paragraph (a) to read as follows:


Sec.  387.307  Broker surety bond or trust fund.

    (a) Security. A broker must have a surety bond or trust fund in 
effect for $75,000. The FMCSA will not issue a broker license until a 
surety bond or trust fund for the full limits of liability prescribed 
herein is in effect. The broker license shall remain valid or effective 
only as long as a surety bond or trust fund remains in effect and shall 
ensure the financial responsibility of the broker.
* * * * *

0
26. In Sec.  387.403, add paragraph (c) to read as follows:


Sec.  387.403  General requirements.

* * * * *
    (c) Surety bond or trust fund. A freight forwarder must have a 
surety bond or trust fund in effect. The FMCSA will not issue a freight 
forwarder license until a surety bond or trust fund for the full limit 
of liability prescribed in Sec.  387.405 is in effect. The freight 
forwarder license shall remain valid or effective only as long as a 
surety bond or trust fund remains in effect and shall ensure the 
financial responsibility of the freight forwarder. The requirements 
applicable to property broker surety bonds and trust funds in Sec.  
387.307 shall apply to the surety bond or trust fund required by this 
paragraph.

0
27. Revise Sec.  387.405 to read as follows:


Sec.  387.405  Limits of liability.

    The minimum amounts for cargo and public liability security are 
identical to

[[Page 60234]]

those prescribed for motor carriers at 49 CFR 387.303. The minimum 
amount for the surety bond or trust fund is identical to that 
prescribed for brokers at 49 CFR 387.307.

PART 392--DRIVING OF COMMERCIAL MOTOR VEHICLES

0
28. The authority citation for part 392 continues to read as follows:

    Authority:  49 U.S.C. 504, 13902, 31136, 31151, 31502; and 49 
CFR 1.87.


0
29. In Sec.  392.9a, revise paragraph (b) to read as follows:


Sec.  392.9a  Operating authority.

* * * * *
    (b) Penalties. Every motor carrier providing transportation 
requiring operating authority shall be ordered out of service if it is 
determined that the motor carrier is operating a vehicle in violation 
of paragraph (a) of this section. In addition, the motor carrier may be 
subject to penalties in accordance with 49 U.S.C. 14901.
* * * * *

SUBCHAPTER B--FEDERAL MOTOR CARRIER SAFETY REGULATIONS

0
30. In Appendix B to Subchapter B of Chapter III, revise paragraph 2. 
to read as follows:

Appendix B to Subchapter B of Chapter III--Special Agent

* * * * *
    2. Compliance. Motor carriers and other persons subject to these 
Acts shall submit their accounts, books, records, memoranda, 
correspondence, and other documents for inspection and copying, and 
they shall submit their lands, buildings, and equipment for 
examination and inspection, to any special agent of the 
Administration upon demand and display of an Administration 
credential, either in person or in writing, identifying him/her as a 
special agent.
* * * * *

    Issued under the authority of delegation in 49 CFR 1.87: 
September 19, 2013.
Anne S. Ferro,
Administrator.
[FR Doc. 2013-23517 Filed 9-30-13; 8:45 am]
BILLING CODE 4910-EX-P