Prisoner Transportation Services, LLC-Control-U.S. Corrections, LLC D/B/A U.S.C., 41368-41370 [2016-15009]

Download as PDF 41368 Federal Register / Vol. 81, No. 122 / Friday, June 24, 2016 / Notices proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for Web site viewing and printing in the Commission’s Public Reference Room, 100 F Street NE., Washington, DC 20549 on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change; the Commission does not edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR– NYSEMKT–2016–59 and should be submitted on or before July 15, 2016. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.36 Robert W. Errett, Deputy Secretary. [FR Doc. 2016–14933 Filed 6–23–16; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION Dated: June 20, 2016. Robert W. Errett, Deputy Secretary. [SEC File No. 270–116, OMB Control No. 3235–0109] [FR Doc. 2016–14931 Filed 6–23–16; 8:45 am] BILLING CODE 8011–01–P Submission for OMB Review; Comment Request Upon Written Request Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 20549–2736. sradovich on DSK3GDR082PROD with NOTICES Extensions: Rule 12d1–3. Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) has submitted to the Office of Management and Budget this request for extension of the previously approved collection of information discussed below. Exchange Act Rule 12d1–3 (17 CFR 240.12d1–3) requires a certification that a security has been approved by an exchange for listing and registration pursuant to Section 12(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78l(d)) to be filed with the Commission. The information required under Rule 12d1–3 must be filed with the Commission and is publicly available. We estimate that it takes 36 17 CFR 200.30–3(a)(12). VerDate Sep<11>2014 18:31 Jun 23, 2016 Jkt 238001 approximately one-half hour to provide the information required under Rule 12d1–3 and that the information is filed by approximately 688 respondents annually for a total annual reporting burden of 344 burden hours (0.5 hours per response × 688 responses). An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. The public may view the background documentation for this information collection at the following Web site, www.reginfo.gov. Comments should be directed to: (i) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief Information Officer, Securities and Exchange Commission, c/o Remi PavlikSimon, 100 F Street NE., Washington, DC 20549 or send an email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days of this notice. SMALL BUSINESS ADMINISTRATION [Disaster Declaration #14746 and #14747] Notice is hereby given that as a result of the Administrator’s disaster declaration, applications for disaster loans may be filed at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties: San Patricio. Contiguous Counties: Texas: Aransas, Bee, Jim Wells, Live Oak, Nueces, Refugio. SUPPLEMENTARY INFORMATION: The Interest Rates are: Percent For Physical Damage: Homeowners With Credit Available Elsewhere ...................... Homeowners Without Credit Available Elsewhere .............. Businesses With Credit Available Elsewhere ...................... Businesses Without Credit Available Elsewhere .............. Non-Profit Organizations With Credit Available Elsewhere ... Non-Profit Organizations Without Credit Available Elsewhere ..................................... For Economic Injury: Businesses & Small Agricultural Cooperatives Without Credit Available Elsewhere .............. Non-Profit Organizations Without Credit Available Elsewhere ..................................... 3.250 1.625 6.250 4.000 2.625 2.625 4.000 2.625 The number assigned to this disaster for physical damage is 14746 6 and for economic injury is 14747 0. The State which received an EIDL Declaration # is Texas. Texas Disaster #TX–00471 (Catalog of Federal Domestic Assistance Number 59008) U.S. Small Business Administration. ACTION: Notice. Maria Contreras-Sweet, Administrator. AGENCY: [FR Doc. 2016–14990 Filed 6–23–16; 8:45 am] This is a notice of an Administrative declaration of a disaster for the State of Texas dated 06/16/2016. Incident: Severe Storms and Flooding. Incident Period: 05/16/2016. Effective Date: 06/16/2016. Physical Loan Application Deadline Date: 08/15/2016. Economic Injury (EIDL) Loan Application Deadline Date: 03/16/2017. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW., Suite 6050, Washington, DC 20416. SUMMARY: PO 00000 Frm 00082 Fmt 4703 Sfmt 4703 BILLING CODE 8025–01–P SURFACE TRANSPORTATION BOARD [Docket No. MCF 21067] Prisoner Transportation Services, LLC—Control—U.S. Corrections, LLC D/B/A U.S.C. Surface Transportation Board. Notice tentatively approving and authorizing finance transaction. AGENCY: ACTION: On May 26, 2016, Prisoner Transportation Services, LLC (Applicant) filed an application under 49 U.S.C. 14303 so that it can acquire common control of U.S. Corrections, LLC (U.S.C.). The Board is tentatively SUMMARY: E:\FR\FM\24JNN1.SGM 24JNN1 sradovich on DSK3GDR082PROD with NOTICES Federal Register / Vol. 81, No. 122 / Friday, June 24, 2016 / Notices approving and authorizing the transaction, and, if no opposing comments are timely filed, this notice will be the final Board action. Persons wishing to oppose the application must follow the rules at 49 CFR 1182.5 and 1182.8. DATES: Comments must be filed by August 8, 2016. Applicant may file a reply by August 23, 2016. If no comments are filed by August 8, 2016, this notice shall be effective on August 9, 2016. ADDRESSES: Send an original and 10 copies of any comments referring to Docket No. MCF 21067 to: Surface Transportation Board, 395 E Street SW., Washington, DC 20423–0001. In addition, send one copy of comments to Applicant’s representative: Henry E. Seaton, Esq., Law Office of Seaton & Husk, L.P., 2240 Gallows Road, Vienna, VA 22182. FOR FURTHER INFORMATION CONTACT: Amy Ziehm (202) 245–0391. Federal Information Relay Service (FIRS) for the hearing impaired: 1–800–877–8339. SUPPLEMENTARY INFORMATION: Applicant states that it is a limited liability company under the laws of Tennessee and that it owns and operates two interstate motor carriers: PTS of America, LLC (PTS) (MC–689407) and Brevard Extraditions, Inc. d/b/a/US Prisoner Transport (USPT) (MC– 643115). Prisoner Transp. Servs., LLC— Control—PTS of Am., LLC, MCF 21064 (STB served Nov. 27, 2015) (granting Applicant’s request to acquire common control of PTS and USPT). Applicant states that it provides a specialized type of for-hire interstate passenger carriage service through its affiliates, which transport incarcerated prisoners, including convicts, parole jumpers, and individuals under criminal indictment who have escaped to foreign jurisdictions, for state and local prisons, correctional facilities, and sheriff’s departments. Applicant states that, under its affiliates, it currently operates 33 vehicles, including three passenger buses; four specially designed transporters suitable for the transportation of as many as 25 inmates and four guards; and 26 vans suitable for the transportation of up to 12 inmates and up to two drivers or guards. Applicant states that four individuals currently have controlling interest: Alan Sielbeck (38.5%), Kent Wood (31.5%), Robert Downs (24%), and Lisa Kyle (6%). Applicant states that U.S.C. is a limited liability company established under the laws of North Carolina and holds authority from the Federal Motor Carrier Safety Administration (FMCSA) VerDate Sep<11>2014 17:43 Jun 23, 2016 Jkt 238001 as a motor carrier of passengers (MC– 872586). According to Applicant, U.S.C. is engaged in the same specialized type of interstate transportation of passengers by motor carrier as Applicant, operating specially equipped van and bus equipment suitable for the transportation of prisoners and complies with the Interstate Transportation of Dangerous Criminals Act. Applicant states that U.S.C. operates 12 vans that can hold up to 14 passengers. Applicant states that U.S.C. is currently owned by Steve Jacques (50%), Ashley Jacques (25%), and Dustin Baldwin (25%). According to Applicant, if Board approval is granted, U.S.C. would join it in providing specialized transportation focused on the recovery and extradition of prisoners from jails and detention facilities in one state and delivery to points of incarceration in interstate commerce under guard, using both airex and passenger motor carrier service based upon attractive contract rates. Applicant explains that under the proposed transaction, the owners of U.S.C. would transfer their complete interest in U.S.C. to Applicant and receive a shareholder’s interest in Applicant in return. Applicant states that its combined member and membership interest of would be as follows once the transfer is complete: Alan Sielbeck (32.7%), Kent Wood (26.8%), Robert Downs (20.4%), Lisa Kyle (5.1%), Steve Jacques (7.5%), Dustin Baldwin (3.75%), and Ashley Jacques (3.75%). Applicant would acquire all the interest in U.S.C., and U.S.C. would join Applicant as one of its affiliate carriers. The current owners of U.S.C. would retain indirect control of U.S.C. and acquire indirect control of the affiliate carriers already under Applicant. Applicant would acquire indirect control of U.S.C. and retain indirect control of its affiliated entities. Under 49 U.S.C. 14303(b), the Board must approve and authorize a transaction that it finds consistent with the public interest, taking into consideration at least: (1) The effect of the proposed transaction on the adequacy of transportation to the public; (2) the total fixed charges that result; and (3) the interest of affected carrier employees. Applicant submitted information, as required by 49 CFR 1182.2, including information to demonstrate that the proposed transaction is consistent with the public interest under 49 U.S.C. 14303(b), and a statement that the aggregate gross operating revenues of Applicant and U.S.C. exceeded $2 million for the PO 00000 Frm 00083 Fmt 4703 Sfmt 4703 41369 preceding 12-month period, see 49 U.S.C. 14303(g).1 Applicant submits that the proposed transaction would have no significant impact on the adequacy of transportation services to the public. Rather, Applicant anticipates that common control of the carriers would result in more efficient and timely transportation. By combining the pickup and delivery schedules of both companies, Applicant states, detainees scheduled for pickup could be booked more expeditiously on the nearest available bus or transporter, regardless of whether the vehicle is operated by one of its existing affiliates or U.S.C.. Applicant notes that U.S.C. brings with it a higher degree of operational skill and experience in a unique and specialized marketplace. Applicant says that U.S.C.’s leadership team will become high-ranking members of its leadership team. According to Applicant, U.S.C. has developed custom-designed, specialized software that Applicant intends to use across its affiliates that will significantly increase the organization’s efficiency and effectiveness. Applicant also notes that consolidation would permit vehicle sharing arrangements, coordinated driver training, and safety management and load sharing arrangements. Applicant claims that it is time intensive and expensive to increase the size of a fleet due to the necessary aftermarket customization of the vehicles, and this transaction would improve its fleet and provide it with more flexibility. It further claims that consolidation would allow for the centralization of various management support functions such as vehicle licensing, legal affairs, accounting, human resources, purchasing, and environmental compliance. Applicant claims that the proposed transaction would not have any adverse competitive effect on any portion of the passenger transportation industry. Applicant states that the vast majority of prisoners and detainees are transported by U.S. Marshals, state law enforcement officers, sheriffs, deputies, or local police officers. Furthermore, Applicant states, other for-hire carriers are also in the national marketplace. In total, after consummation, Applicant asserts that the combined operation would constitute less than five percent of the population being transported. According to Applicant, competitors would not be adversely affected by the 1 Applicants with gross operating revenues exceeding $2 million are required to meet the requirements of 49 CFR 1182. E:\FR\FM\24JNN1.SGM 24JNN1 sradovich on DSK3GDR082PROD with NOTICES 41370 Federal Register / Vol. 81, No. 122 / Friday, June 24, 2016 / Notices transaction, because prisoner extradition services are provided based upon open competition among qualified service providers. Applicant also states that there is nothing to preclude existing carriers from expanding their routes, rates and services, and nothing to keep well capitalized new entrants from entering the market at any time. With respect to fixed charges, Applicant believes that assuming control of U.S.C. would generate greater economies of scale, which would reduce the variety of unit costs now being incurred to operate these carriers under separate ownership. Additionally, Applicant states that the combined carriers should be able to enhance their volume purchasing power, thereby reducing insurance premiums and achieving deeper discounts for equipment and fuel. Applicant also claims that affected employees would benefit from the transaction. It says that employees would maintain job security, would retain or expand the volume of available work, and would have an increased opportunity to schedule shorter tours of duty, resulting in less time away from their home base. On the basis of the application, the Board finds that the proposed acquisition is consistent with the public interest and should be tentatively approved and authorized. If any opposing comments are timely filed, these findings will be deemed vacated, and, unless a final decision can be made on the record as developed, a procedural schedule will be adopted to reconsider the application. See 49 CFR 1182.6(c). If no opposing comments are filed by the expiration of the comment period, this notice will take effect automatically and will be the final Board action. Board decisions and notices are available on our Web site at ‘‘WWW.STB.DOT.GOV’’. It is ordered: 1. The proposed transaction is approved and authorized, subject to the filing of opposing comments. 2. If opposing comments are timely filed, the findings made in this notice will be deemed vacated. 3. This notice will be effective August 9, 2016, unless opposing comments are filed by August 8, 2016. 4. A copy of this notice will be served on: (1) The U.S. Department of Transportation, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW., Washington, DC 20530; and (3) the U.S. Department of VerDate Sep<11>2014 17:43 Jun 23, 2016 Jkt 238001 Transportation, Office of the General Counsel, 1200 New Jersey Avenue SE., Washington, DC 20590. Decided: June 20, 2016. By the Board, Chairman Elliott, Vice Chairman Miller, and Commissioner Begeman. Tia Delano, Clearance Clerk. [FR Doc. 2016–15009 Filed 6–23–16; 8:45 am] BILLING CODE 4915–01–P DEPARTMENT OF TRANSPORTATION National Highway Traffic Safety Administration [Docket No. NHTSA–2016–0004; Notice 2] Aston Martin Lagonda Limited; Denial of Petition for Decision of Inconsequential Noncompliance National Highway Traffic Safety Administration (NHTSA), Department of Transportation (DOT). ACTION: Denial of petition. AGENCY: Aston Martin Lagonda Limited (AML), has determined that certain model year (MY) 2009–2015 Aston Martin DB9 two-door and fourdoor passenger cars do not fully comply with paragraph S4.3 of Federal Motor Vehicle Safety Standard (FMVSS) No. 206, Door locks and door retention components. Aston Martin Lagonda of North America, Inc., filed a report dated December 16, 2015, pursuant to 49 CFR part 573, Defect and Noncompliance Responsibility and Reports for AML. AML then petitioned NHTSA under 49 CFR part 556 requesting a decision that the subject noncompliance is inconsequential to motor vehicle safety. ADDRESSES: For further information on this decision contact Luis Figueroa, Office of Vehicle Safety Compliance, the National Highway Traffic Safety Administration (NHTSA), telephone (202) 366–5298, facsimile (202) 366– 5930. SUPPLEMENTARY INFORMATION: I. Overview: Pursuant to 49 U.S.C. 30118(d) and 30120(h) (see implementing rule at 49 CFR part 556), AML submitted a petition for an exemption from the notification and remedy requirements of 49 U.S.C. Chapter 301 on the basis that this noncompliance is inconsequential to motor vehicle safety. Notice of receipt of the petition was published, with a 30-day public comment period, on February 17, 2016, in the Federal Register (81 FR 8125). No comments were received. To view the petition and all supporting documents SUMMARY: PO 00000 Frm 00084 Fmt 4703 Sfmt 4703 log onto the Federal Docket Management System (FDMS) Web site at: http://www.regulations.gov/. Then follow the online search instructions to locate docket number ‘‘NHTSA–2016– 0004.’’ II. Vehicles Involved: Affected are approximately 5,516 MY 2009–2015 Aston Martin DB9 two-door and fourdoor passenger cars that were manufactured between September 1, 2009 and December 9, 2015. III. Noncompliance: AML explains that the noncompliance occurs when the door locking system in the subject vehicles is double-locked causing the interior operating means for unlocking the door locking mechanism to become disengaged and therefore does not meet the requirements as specified in paragraph S4.3 of FMVSS No. 206. IV. Rule Text: Paragraph S4.3 of FMVSS No. 206 requires: S4.3 Door Locks. Each door shall be equipped with at least one locking device which, when engaged, shall prevent operation of the exterior door handle or other exterior latch release control and which has an operating means and a lock release/ engagement device located within the interior of the vehicle. S4.3.1 Rear side doors. Each rear side door shall be equipped with at least one locking device which has a lock release/engagement mechanism located within the interior of the vehicle and readily accessible to the driver of the vehicle or an occupant seated adjacent to the door, and which, when engaged, prevents operation of the interior door handle or other interior latch release control and requires separate actions to unlock the door and operate the interior door handle or other interior latch release control. S4.3.2 Back doors. Each back door equipped with an interior door handle or other interior latch release control, shall be equipped with at least one locking device that meets the requirements of S4.3.1. . . . V. Summary of AML’s Petition: AML described the subject noncompliance and stated its belief that the noncompliance is inconsequential to motor vehicle safety for the following reasons: (a) AML stated that the subject vehicles can only be double-locked by using the key fob (which also serves as the ignition key) and that if the vehicle is double-locked from the inside, the driver and or passenger will be able to disengage the double-lock by using the key fob. AML believes that as a result, the double-locking mechanism could not cause a situation in which a vehicle is double-locked from the inside by the driver and a crash disables the driver, leaving the passenger(s) locked inside. (b) AML stated that the risks of children being locked in the vehicle by means of the double-locking E:\FR\FM\24JNN1.SGM 24JNN1

Agencies

[Federal Register Volume 81, Number 122 (Friday, June 24, 2016)]
[Notices]
[Pages 41368-41370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15009]


=======================================================================
-----------------------------------------------------------------------

SURFACE TRANSPORTATION BOARD

[Docket No. MCF 21067]


Prisoner Transportation Services, LLC--Control--U.S. Corrections, 
LLC D/B/A U.S.C.

AGENCY: Surface Transportation Board.

ACTION: Notice tentatively approving and authorizing finance 
transaction.

-----------------------------------------------------------------------

SUMMARY: On May 26, 2016, Prisoner Transportation Services, LLC 
(Applicant) filed an application under 49 U.S.C. 14303 so that it can 
acquire common control of U.S. Corrections, LLC (U.S.C.). The Board is 
tentatively

[[Page 41369]]

approving and authorizing the transaction, and, if no opposing comments 
are timely filed, this notice will be the final Board action. Persons 
wishing to oppose the application must follow the rules at 49 CFR 
1182.5 and 1182.8.

DATES: Comments must be filed by August 8, 2016. Applicant may file a 
reply by August 23, 2016. If no comments are filed by August 8, 2016, 
this notice shall be effective on August 9, 2016.

ADDRESSES: Send an original and 10 copies of any comments referring to 
Docket No. MCF 21067 to: Surface Transportation Board, 395 E Street 
SW., Washington, DC 20423-0001. In addition, send one copy of comments 
to Applicant's representative: Henry E. Seaton, Esq., Law Office of 
Seaton & Husk, L.P., 2240 Gallows Road, Vienna, VA 22182.

FOR FURTHER INFORMATION CONTACT: Amy Ziehm (202) 245-0391. Federal 
Information Relay Service (FIRS) for the hearing impaired: 1-800-877-
8339.

SUPPLEMENTARY INFORMATION: Applicant states that it is a limited 
liability company under the laws of Tennessee and that it owns and 
operates two interstate motor carriers: PTS of America, LLC (PTS) (MC-
689407) and Brevard Extraditions, Inc. d/b/a/US Prisoner Transport 
(USPT) (MC-643115). Prisoner Transp. Servs., LLC--Control--PTS of Am., 
LLC, MCF 21064 (STB served Nov. 27, 2015) (granting Applicant's request 
to acquire common control of PTS and USPT). Applicant states that it 
provides a specialized type of for-hire interstate passenger carriage 
service through its affiliates, which transport incarcerated prisoners, 
including convicts, parole jumpers, and individuals under criminal 
indictment who have escaped to foreign jurisdictions, for state and 
local prisons, correctional facilities, and sheriff's departments. 
Applicant states that, under its affiliates, it currently operates 33 
vehicles, including three passenger buses; four specially designed 
transporters suitable for the transportation of as many as 25 inmates 
and four guards; and 26 vans suitable for the transportation of up to 
12 inmates and up to two drivers or guards. Applicant states that four 
individuals currently have controlling interest: Alan Sielbeck (38.5%), 
Kent Wood (31.5%), Robert Downs (24%), and Lisa Kyle (6%).
    Applicant states that U.S.C. is a limited liability company 
established under the laws of North Carolina and holds authority from 
the Federal Motor Carrier Safety Administration (FMCSA) as a motor 
carrier of passengers (MC-872586). According to Applicant, U.S.C. is 
engaged in the same specialized type of interstate transportation of 
passengers by motor carrier as Applicant, operating specially equipped 
van and bus equipment suitable for the transportation of prisoners and 
complies with the Interstate Transportation of Dangerous Criminals Act. 
Applicant states that U.S.C. operates 12 vans that can hold up to 14 
passengers. Applicant states that U.S.C. is currently owned by Steve 
Jacques (50%), Ashley Jacques (25%), and Dustin Baldwin (25%).
    According to Applicant, if Board approval is granted, U.S.C. would 
join it in providing specialized transportation focused on the recovery 
and extradition of prisoners from jails and detention facilities in one 
state and delivery to points of incarceration in interstate commerce 
under guard, using both air-ex and passenger motor carrier service 
based upon attractive contract rates.
    Applicant explains that under the proposed transaction, the owners 
of U.S.C. would transfer their complete interest in U.S.C. to Applicant 
and receive a shareholder's interest in Applicant in return. Applicant 
states that its combined member and membership interest of would be as 
follows once the transfer is complete: Alan Sielbeck (32.7%), Kent Wood 
(26.8%), Robert Downs (20.4%), Lisa Kyle (5.1%), Steve Jacques (7.5%), 
Dustin Baldwin (3.75%), and Ashley Jacques (3.75%). Applicant would 
acquire all the interest in U.S.C., and U.S.C. would join Applicant as 
one of its affiliate carriers. The current owners of U.S.C. would 
retain indirect control of U.S.C. and acquire indirect control of the 
affiliate carriers already under Applicant. Applicant would acquire 
indirect control of U.S.C. and retain indirect control of its 
affiliated entities.
    Under 49 U.S.C. 14303(b), the Board must approve and authorize a 
transaction that it finds consistent with the public interest, taking 
into consideration at least: (1) The effect of the proposed transaction 
on the adequacy of transportation to the public; (2) the total fixed 
charges that result; and (3) the interest of affected carrier 
employees. Applicant submitted information, as required by 49 CFR 
1182.2, including information to demonstrate that the proposed 
transaction is consistent with the public interest under 49 U.S.C. 
14303(b), and a statement that the aggregate gross operating revenues 
of Applicant and U.S.C. exceeded $2 million for the preceding 12-month 
period, see 49 U.S.C. 14303(g).\1\
---------------------------------------------------------------------------

    \1\ Applicants with gross operating revenues exceeding $2 
million are required to meet the requirements of 49 CFR 1182.
---------------------------------------------------------------------------

    Applicant submits that the proposed transaction would have no 
significant impact on the adequacy of transportation services to the 
public. Rather, Applicant anticipates that common control of the 
carriers would result in more efficient and timely transportation. By 
combining the pickup and delivery schedules of both companies, 
Applicant states, detainees scheduled for pickup could be booked more 
expeditiously on the nearest available bus or transporter, regardless 
of whether the vehicle is operated by one of its existing affiliates or 
U.S.C..
    Applicant notes that U.S.C. brings with it a higher degree of 
operational skill and experience in a unique and specialized 
marketplace. Applicant says that U.S.C.'s leadership team will become 
high-ranking members of its leadership team. According to Applicant, 
U.S.C. has developed custom-designed, specialized software that 
Applicant intends to use across its affiliates that will significantly 
increase the organization's efficiency and effectiveness.
    Applicant also notes that consolidation would permit vehicle 
sharing arrangements, coordinated driver training, and safety 
management and load sharing arrangements. Applicant claims that it is 
time intensive and expensive to increase the size of a fleet due to the 
necessary aftermarket customization of the vehicles, and this 
transaction would improve its fleet and provide it with more 
flexibility. It further claims that consolidation would allow for the 
centralization of various management support functions such as vehicle 
licensing, legal affairs, accounting, human resources, purchasing, and 
environmental compliance.
    Applicant claims that the proposed transaction would not have any 
adverse competitive effect on any portion of the passenger 
transportation industry. Applicant states that the vast majority of 
prisoners and detainees are transported by U.S. Marshals, state law 
enforcement officers, sheriffs, deputies, or local police officers. 
Furthermore, Applicant states, other for-hire carriers are also in the 
national marketplace. In total, after consummation, Applicant asserts 
that the combined operation would constitute less than five percent of 
the population being transported.
    According to Applicant, competitors would not be adversely affected 
by the

[[Page 41370]]

transaction, because prisoner extradition services are provided based 
upon open competition among qualified service providers. Applicant also 
states that there is nothing to preclude existing carriers from 
expanding their routes, rates and services, and nothing to keep well 
capitalized new entrants from entering the market at any time.
    With respect to fixed charges, Applicant believes that assuming 
control of U.S.C. would generate greater economies of scale, which 
would reduce the variety of unit costs now being incurred to operate 
these carriers under separate ownership. Additionally, Applicant states 
that the combined carriers should be able to enhance their volume 
purchasing power, thereby reducing insurance premiums and achieving 
deeper discounts for equipment and fuel.
    Applicant also claims that affected employees would benefit from 
the transaction. It says that employees would maintain job security, 
would retain or expand the volume of available work, and would have an 
increased opportunity to schedule shorter tours of duty, resulting in 
less time away from their home base.
    On the basis of the application, the Board finds that the proposed 
acquisition is consistent with the public interest and should be 
tentatively approved and authorized. If any opposing comments are 
timely filed, these findings will be deemed vacated, and, unless a 
final decision can be made on the record as developed, a procedural 
schedule will be adopted to reconsider the application. See 49 CFR 
1182.6(c). If no opposing comments are filed by the expiration of the 
comment period, this notice will take effect automatically and will be 
the final Board action.
    Board decisions and notices are available on our Web site at 
``WWW.STB.DOT.GOV''.
    It is ordered:
    1. The proposed transaction is approved and authorized, subject to 
the filing of opposing comments.
    2. If opposing comments are timely filed, the findings made in this 
notice will be deemed vacated.
    3. This notice will be effective August 9, 2016, unless opposing 
comments are filed by August 8, 2016.
    4. A copy of this notice will be served on: (1) The U.S. Department 
of Transportation, Federal Motor Carrier Safety Administration, 1200 
New Jersey Avenue SE., Washington, DC 20590; (2) the U.S. Department of 
Justice, Antitrust Division, 10th Street & Pennsylvania Avenue NW., 
Washington, DC 20530; and (3) the U.S. Department of Transportation, 
Office of the General Counsel, 1200 New Jersey Avenue SE., Washington, 
DC 20590.

    Decided: June 20, 2016.

    By the Board, Chairman Elliott, Vice Chairman Miller, and 
Commissioner Begeman.
Tia Delano,
Clearance Clerk.
[FR Doc. 2016-15009 Filed 6-23-16; 8:45 am]
 BILLING CODE 4915-01-P