Patrick O. Regan-Acquisition of Control-Faribault Transportation Service, Inc., Minnesota Coaches, Inc., Marschall Line, Inc., Rehbein Transit Co., Inc., Minn-Dakota Coaches, Inc., Voyageur Bus Company, Inc., and Ready Bus Company, Inc., 90208-90211 [2024-26469]
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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.49
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–26532 Filed 11–13–24; 8:45 am]
BILLING CODE 8011–01–P
Authority: 5 U.S.C. 4314(c)(4).
Isabella Casillas Guzman,
Administrator.
[FR Doc. 2024–26392 Filed 11–13–24; 8:45 am]
BILLING CODE 8026–09–P
SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21123]
Patrick O. Regan—Acquisition of
Control—Faribault Transportation
Service, Inc., Minnesota Coaches, Inc.,
Marschall Line, Inc., Rehbein Transit
Co., Inc., Minn-Dakota Coaches, Inc.,
Voyageur Bus Company, Inc., and
Ready Bus Company, Inc.
Surface Transportation Board.
Notice Tentatively Approving
and Authorizing Finance Transaction.
AGENCY:
SMALL BUSINESS ADMINISTRATION
Senior Executive Service and Senior
Level: Performance Review Board
Members
U.S. Small Business
Administration.
ACTION: Notice of Appointees to the
Performance Review Board.
Federal Law requires each
agency to publish notification of the
appointment of individuals who will
serve as members of that agency’s
Performance Review Board (PRB). The
following individuals have been
designated to serve on the PRB for the
U.S. Small Business Administration.
SUPPLEMENTARY INFORMATION:
SUMMARY:
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Members
1. John Miller (Chair), Deputy Associate
Administrator, Office of Capital
Access
2. Bruce Purdy, Jr, Associate
Administrator for Small Business
Development Centers, Office of
Entrepreneurial Development
3. George Holman, Associate
Administrator, Office of
Congressional and Legislative
Affairs
4. John Klein, Associate General
Counsel for Procurement Law,
Office of General Counsel
5. Kimberly McLeod, Assistant
Administrator, Office of Hearings
and Appeals
6. Melissa Atwood, Director of Financial
Operations Management, Office of
Performance, Planning, and the
Chief Financial Officer
7. Victor Parker, Deputy Associate
Administrator, Office of Field
Operations
CFR 200.30–3(a)(57).
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Patrick O. Regan (Applicant)
filed an application seeking authority to
acquire control of Faribault
Transportation Service, Inc. (FTS),
through a corporate reorganization in
which Applicant would become the
majority shareholder in MNC Holding
Company, a new entity created to serve
as a holding company for FTS and other
motor carriers and noncarrier entities.
Applicant also seeks after-the-fact
authority for several alreadyconsummated transactions that
ultimately resulted in Applicant’s
acquisition of control of six passenger
motor carriers: Minnesota Coaches, Inc.,
Marschall Line, Inc., Rehbein Transit
Co., Inc., Minn-Dakota Coaches, Inc.,
Voyageur Bus Company, Inc., and Ready
Bus Company, Inc. (collectively,
Affiliated Carriers). The Board is
tentatively approving and authorizing
these transactions. If no opposing
comments are timely filed, this notice
will be the final Board action.
DATES: Comments must be filed by
December 30, 2024. If any comments are
filed, Applicant may file a reply by
January 13, 2025. If no opposing
comments are filed by December 30,
2024, this notice shall be effective on
December 31, 2024.
ADDRESSES: Comments, referring to
Docket No. MCF 21123, may be filed
with the Board either via e-filing on the
Board’s website or in writing addressed
to: Surface Transportation Board, 395 E
Street SW, Washington, DC 20423–0001.
In addition, send one copy of comments
to Applicant’s representative: Edward
Fishman, Hogan Lovells US LLP,
Columbia Square, 555 Thirteenth Street
NW, Washington, DC 20004.
FOR FURTHER INFORMATION CONTACT:
Brian O’Boyle at (202) 245–0364. If you
SUMMARY:
AGENCY:
49 17
ACTION:
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require an accommodation under the
Americans with Disabilities Act, please
call (202) 245–0245.
SUPPLEMENTARY INFORMATION: According
to the application,1 Applicant, a
noncarrier, seeks to acquire control of
FTS, which is currently owned by
Garrett O. Regan. Applicant
characterizes his proposed acquisition
as a ‘‘corporate reorganization,’’ that, if
approved and consummated, would
result in Applicant becoming the
majority shareholder of MNC Holding
Company, and Garrett O. Regan
becoming a minority shareholder in
MNC Holding Company, together with
certain other minority shareholders.2
(Appl. 3.) 3
Applicant states that FTS has its
principal place of business in Faribault,
Minn., and provides student
transportation service, including general
and special education transportation, to
and from school on a regular schedule,
as well as school bus charter service for
extracurricular activities and other
special trips. (Id. at 4; Suppl. 1–2.)
Applicant states that, on limited
occasions, FTS’s school bus charter
service involves trips from Minnesota
into Wisconsin and other neighboring
states (depending on the location of
those activities involving the school bus
customers served by FTS). (Suppl. 2.)
FTS operates approximately 66 power
units and employs approximately 88
drivers. (Appl. 4.) 4
Applicant also seeks after-the-fact
authorization for his acquisition of
control of six motor carriers through six
previously consummated transactions.
Applicant states that, if approval is
granted, each of these carriers would be
brought under control of MNC Holding
Company, with Applicant as the
majority shareholder and other minority
shareholders of the carriers becoming
minority shareholders of MNC Holding
Company. (Id. at 5.) Applicant describes
the transactions for which he seeks
after-the-fact authority as follows.
Minnesota Coaches, Inc., Marschall
Line, Inc., and Rehbein Transit Co., Inc.
1 Applicant originally filed the application on
August 30, 2024, but it then filed a supplement on
October 15, 2024. Therefore, for purposes of
determining the procedural schedule and statutory
deadlines, the filing date of the application is
October 15, 2024. See 49 CFR 1182.4(a).
2 More information about the proposed corporate
structure and ownership can be found in the
application. (See Appl., Ex. 3.)
3 The application does not have page numbers.
The page numbers cited in this decision refer to the
PDF page numbers of the application.
4 Applicant indicates that FTS has two wholly
owned subsidiaries, PEM Transportation, LLC, and
Harmony Transit, LLC, which Applicant states are
both intrastate passenger carriers not subject to the
Board’s jurisdiction. (Appl. 4 n.1.)
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According to the application, in 1994,
Applicant founded and incorporated
Family Bus Service, Inc. (Family Bus),
a noncarrier, which is the parent
company of three passenger motor
carriers providing interstate service:
Minnesota Coaches, Inc. (Minnesota
Coaches), Marschall Line, Inc.
(Marschall Line), and Rehbein Transit
Co., Inc. (Rehbein).
Family Bus purchased 100%
ownership of Minnesota Coaches from
RECO, Inc., a corporation owned by
Applicant and his siblings (though the
date of the transaction is not given). (Id.
at 9.) Minnesota Coaches has its
principal place of business in Hastings,
Minn., and operates in its name and
through the assumed names Hasting Bus
Company, Big River Bus Company, and
Big River Tours. (Id. at 10.) Minnesota
Coaches provides school bus service
that includes general and special
education transportation to and from
school on a regular schedule, and school
bus charter service for extracurricular
activities and special trips, which, on
limited occasions, involve
transportation between Minnesota and
neighboring states including Wisconsin.
(Id. at 10–11; Suppl. 3.) Minnesota
Coaches also offers motorcoach contract
service for universities, sports teams,
and other business, as well as event
specific charter services for weddings,
conventions, and other events,
concentrated primarily in the
Minneapolis, Minn., St. Paul, Minn.,
and the surrounding Twin Cities area, as
well as some interstate operations
primarily in Wisconsin, Iowa, Illinois,
and Missouri. (Suppl. 3, 4.) Minnesota
Coaches operates approximately 196
power units and employs approximately
174 drivers. (Appl. 10.)
In 1994, Family Bus became the sole
shareholder of Marschall Line, which
was founded in 1971 by the Marschall
family. (Id. at 9.) Applicant states that
Marschall Line has its principal place of
business in Farmington, Minn. (Id. at
11.) Marschall Line, operating in its
name and through the assumed name
Mid-County Bus Company, provides
school bus transportation services,
which includes general and special
education transportation to and from
school on a regular schedule, and school
bus charter service for extracurricular
activities and special trips. (Id.; Suppl.
4–5.) Applicant states that, on limited
occasions, the school bus charter service
involves trips from Minnesota into
Wisconsin and other neighboring states.
(Suppl. 5.) Marschall Line operates
approximately 110 power units and
employs approximately 118 drivers.
(Appl. 11.)
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In 2012, Family Bus acquired the
assets of Rehbein Transit, Inc., from the
Rehbein family and formed the
subsidiary, Rehbein. (Id. at 10.)
Applicant states that Rehbein, whose
principal place of business is in Circle
Pines, Minn., provides school bus
services that include general and special
education transportation to and from
school on a regular schedule, and school
bus charter service for extracurricular
activities and special trips. (Id. at 12;
Suppl. 5.) Applicant states that, on very
limited occasions, the school bus
charter service involves trips from
Minnesota into Wisconsin or other
neighboring states. (Suppl. 5.) Rehbein
operates approximately 97 power units
and employs approximately 91 drivers.
(Appl. 12.)
Minn-Dakota Coaches, Inc. In 1997,
Applicant acquired control of MinnDakota Coaches, Inc. (Minn-Dakota),
from August L. Fitch, William H.
Barber, and Bonnie L. Barber. (Id. at 14.)
Applicant controls Minn-Dakota
through his control of Ottertail
Transportation, Inc., and Ottertail
Coaches, Inc. (Id. at 13.) 5 According to
Applicant, Minn-Dakota, whose
principal place of business is in Fergus
Falls, Minn., provides school bus
transportation service that includes
general and special education
transportation to and from school on a
regular schedule, and school charter
service for extracurricular activities and
special trips. (Id. at 15–16; Suppl. 6.)
Applicant notes that some of these trips
involve transportation between
Minnesota and neighboring states
including North Dakota. (Suppl. 6.)
Applicant states that Minn-Dakota also
offers motorcoach contract service for
universities, sports teams, and other
business, as well as event specific
charter services for weddings,
conventions, and other events in the
Fergus Falls area, with some
motorcoach services conducted out of
state, mostly within North Dakota and
South Dakota, but a limited amount of
activity in Iowa and Wisconsin, and the
remainder spread out nationally based
on customer demand for special event
service. (Id. at 6–7.) Applicant states
5 In 1997, Applicant and Michael R. Clark, a
noncarrier, founded and incorporated Ottertail
Transportation, Inc., which is 65% owned by
Applicant and 35% owned by Michael R. Clark.
(Appl. 13.) Ottertail Transportation, Inc., a
noncarrier, acquired Ottertail Coaches, Inc., an
intrastate motor carrier, which is the parent
company to Minn-Dakota Coaches, Inc. (Id.) In
2006, Applicant and Michael R. Clark founded and
incorporated Ottertail Trucking, Inc., a motor
carrier of property, as a wholly owned subsidiary
of Ottertail Transportation, Inc. (Id. at 15 n.7.)
According to Applicant, Ottertail Trucking, Inc., is
not subject to Board jurisdiction. (Id.)
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that Minn-Dakota operates
approximately 14 power units and
employs approximately 34 drivers.
(Appl. 15.)
Voyageur Bus Company, Inc. In 1992,
Applicant and Michael J. Krois (Krois),
a noncarrier, acquired Metropolitan
School & Charter Bus Service, Inc., from
Donald B. Regan. (Id. at 17.) In 2005,
Applicant and Krois founded and
incorporated Metro Bus Service, Inc., a
noncarrier, and changed the name of
Metropolitan School & Charter Bus
Service, Inc., to Voyageur Bus Company,
Inc., (Voyageur), which became a
subsidiary of Metro Bus Service, Inc.6
(Id. at 16–17.) According to Applicant,
Voyageur has its principal place of
business in Duluth, Minn., and provides
school bus transportation service that
includes general and special education
transportation to and from school on a
regular schedule, and school charter
service for extracurricular activities and
special trips, with some trips on
occasion involving transportation
between Minnesota and neighboring
states. (Suppl. 7–8.) Voyageur Bus also
offers motorcoach contract services for
universities, sports teams, and other
business, as well as event specific
charter services for weddings,
conventions, and other events in the
greater Duluth area. (Id. at 8.) Voyageur
Bus’s motorcoach services are
conducted primarily in Minnesota, with
some operations in Wisconsin, Iowa,
Illinois, or other states across the U.S.
based on customer demand for special
event service. (Id.) Applicant states that
Voyageur operates approximately 118
power units and employs approximately
125 drivers. (Appl. 18.) Applicant
further notes that Voyageur also
operates a fleet of motorcoaches owned
by Lake Superior Motorcoaches, Inc., a
noncarrier subsidiary of Metro Bus
Service, Inc., through a revenue-sharing
arrangement. (Id. at 17 n.8 & 18.)
Ready Bus Company, Inc. In 2013,
Applicant, Garrett O. Regan, and Casey
O. Regan acquired the school bus assets
of Ready Bus Line Company through
River Bluff Bus Company, a corporation
founded and incorporated in November
2013. (Id. at 19.) In December 2013,
River Bluff Bus Company was renamed
Ready Bus Company, Inc. (Ready Bus).
(Id. at 18.) Applicant is the controlling
shareholder of Ready Bus, which is 50%
owned by Applicant, 25% owned by
Garrett O. Regan, and 25% owned by
Casey O. Regan. (Id. at 18–19.)
Applicant states that Ready Bus
6 Applicant states that Krois owns 50% of Metro
Bus Service, Inc., but does not have a controlling
interest in any passenger motor carrier other than
Voyageur. (Appl. 16.)
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operates motorcoaches owned by River
Bluff Motorcoach, Inc., a noncarrier that
is 50% owned by Applicant.7 (Id. at 19
n.9.)
According to Applicant, Ready Bus,
whose primary place of business is in
Rochester, Minn., provides school
transportation service that includes
general and special education
transportation to and from school on a
regular schedule, and school charter
service for extracurricular activities and
special trips. (Id. at 21; Suppl. 9.)
Applicant notes that, on limited
occasions, some of these trips involve
transportation between Minnesota and
neighboring states including Wisconsin,
depending on the location of the
customer activity. (Suppl. 9.) Ready Bus
also offers motorcoach contract service
for universities, sports teams, and other
business, as well as event-specific
charter services for weddings,
conventions, and other events with
service in Minnesota, Wisconsin, and
neighboring states. (Id.) According to
the application, most of the motorcoach
service (outside of Minnesota and
Wisconsin) is regionally concentrated in
Iowa, Illinois, Missouri, and Indiana,
and the remainder is spread out
nationally based on customer demand
for special event service. (Id. at 10.)
Applicant states that Ready Bus
operates approximately 59 power units
and employs approximately 56 drivers.
(Appl. 21.) 8
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 resulting from the
proposed transaction, and (3) the
interest of affected carrier employees.
Applicant has submitted the
information required by 49 CFR 1182.2,
including information demonstrating
that the proposed transaction is
consistent with the public interest
under 49 U.S.C. 14303(b), see 49 CFR
1182.2(a)(7), and a jurisdictional
statement under 49 U.S.C. 14303(g) that
the aggregate gross operating revenues
of the involved carriers exceeded $2
7 River Bluff Motorcoach, Inc. (RBM), a
noncarrier, was founded and incorporated in
November 2013, and acquired the motorcoach
operating assets of Ready Bus Line Company.
(Appl. 19.) Applicant states that RBM is 50%
owned by Applicant and 10% each owned by
Garrett O. Regan, Casey O. Regan, Troy J. Nelson,
Mike Karlen, and Tom Severson. (Id.)
8 Further information about these motor carriers,
including U.S. Department of Transportation
(USDOT) numbers, motor carrier numbers, and
USDOT safety fitness ratings, can be found in the
application. (See Appl. 26; id., Ex. 1.)
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million during the 12-month period
immediately preceding the filing of the
application, see 49 CFR 1182.2(a)(5).
(See Appl. 22.)
Acquisition of FTS. Applicant states
that his proposed acquisition of FTS
would be consistent with the public
interest, as it would not result in any
significant changes to the nature or
scope of the operations that are
conducted by FTS or any of the other
motor carriers of passengers in the
corporate family. (Id. at 23; Suppl. 17.)
Applicant asserts that the acquisition
would allow him to make strategic
decisions regarding the operational,
asset management, and safety
compliance needs of FTS based on his
years of experience in the school bus
market and strong track record of
managing successful school bus
providers. (Suppl. 16–17.)
Applicant asserts that there would be
no negative impact on competition as a
result of his acquisition of FTS.
Applicant states that FTS is exclusively
a school bus service provider that only
occasionally crosses state lines. (Id. at
10–11.) According to Applicant, FTS
does not compete for school bus
contracts against the Affiliated Carriers,
which each serve distinct school district
communities within Minnesota. (Id. at
10 (stating that FTS provides service
primarily in the City of Faribault and
surrounding areas); see also id. at 13–15
(describing which school districts the
other carriers at issue here serve.)
Moreover, Applicant asserts that the
existing school district contracts with
FTS are subject to competitive bid
procedures and that there is substantial
competition for such school
transportation services in the relevant
service area from national providers and
from local competitors. (Id. at 10–11,
17.)
Applicant states that his acquisition
of control of FTS would not affect fixed
charges, as he would obtain control of
FTS through a corporate reorganization
that would not involve any external
financing. (Appl. 24; Suppl. 17.)
Applicant asserts that there would be no
material effect on employee or labor
conditions at FTS, as there are no plans
for employee layoffs or reductions in
staff at FTS as a result of the proposed
restructuring transaction, nor plans for
adverse changes to existing FTS
employee benefits. (Appl. 25; Suppl.
18.)
Historical Acquisitions of Affiliated
Carriers. Applicant contends that the
historical acquisitions of control of the
Affiliated Carriers were consistent with
the public interest because those
transactions enabled him to strengthen
the depth and quality of service
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provided by each of the Affiliated
Carriers, based on Applicant’s track
record in the bus industry and the
opportunity to more efficiently use the
assets, resources, and management
experience of the affiliated companies.
(Suppl. 18.) Applicant contends that the
acquisitions did not result in any
adverse changes to the nature or scope
of the operations that are conducted by
those Affiliated Carriers; rather, the
transactions contributed to an overall
increase in the available motorcoach
and school bus service capacity in the
relevant service areas, as Applicant has
continued to invest over time in
equipment, operating personnel, and
other resources to support the business
activities of these Affiliated Carriers.
(Id.)
Applicant argues that there has been
no negative impact on competition, as
these Affiliated Carriers do not compete
with each other today and generally did
not compete directly with each other at
the time of the respective acquisitions
by Applicant, due to the nature of the
services they each provide in their
respective service areas. (Id. at 11.)
Moreover, Applicant asserts that the
Affiliated Carriers have faced (and
continue to face) substantial
competition in each of the relevant
markets from national, regional, and
local bus operations, as well as
intermodal competition from motor
vehicles, passenger train, and passenger
aviation service. (Id. at 12, 19.)
Applicant notes that two of the carriers
subject to the application, Marschall
Line and Rehbein, are exclusively
school bus service providers that only
occasionally provide interstate charter
service. (Id. at 13.) Applicant asserts
that these two carriers compete for
different school bus contracts, do not
serve the same student population, and
compete in markets with substantial
competition from national and local bus
transportation providers. (Id. at 13–14.)
Applicant states that Minnesota
Coaches, Ready Bus, Minn-Dakota, and
Voyageur, all of which provide both
school bus and motorcoach services,
also do not directly compete, have
served different service areas, operate
their assets out of different geographic
terminals, and face intense competition
from other bus transportation providers.
(Id. at 14–16 (describing the different
areas served and other entities with
whom these four carriers compete for
both school bus and motorcoach
service).)
Applicant asserts that, while limited
debt financing was used to acquire some
of the Affiliated Carriers, the historical
acquisitions did not result in fixed
charges that adversely affected the
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ability of those carriers to continue to
provide safe and quality transportation
service. (Id. at 19.) Applicant states that
he has no outstanding debts related to
these transactions, has minimal overall
debts, and was able to pay down
acquisition debt promptly following the
relevant acquisitions. (Appl. 24; Suppl.
19.)
Applicant states that the historical
acquisitions of control of the Affiliated
Carriers have not had any material
adverse effect on employee or labor
conditions. Applicant asserts that, since
those acquisitions, there have not been
any mass layoffs or substantial
employee restructurings, and no adverse
changes to wage and benefit
arrangements have been implemented.
(Suppl. 20.)
Based on Applicant’s representations,
the Board finds that the acquisition of
FTS is consistent with the public
interest and should be tentatively
approved and authorized. The Board
also finds that the historical acquisitions
of control of the Affiliated Carriers are
consistent with the public interest and
should be tentatively approved and
authorized after the fact. 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. 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 in this
proceeding.
This action is categorically excluded
from environmental review under 49
CFR 1105.6(c).
Board decisions and notices are
available at www.stb.gov.
It is ordered:
1. The proposed acquisition of FTS is
approved and authorized, subject to the
filing of opposing comments.
2. The acquisitions of the Affiliated
Carriers are approved and authorized
after the fact, subject to the filing of
opposing comments.
3. If opposing comments are timely
filed, the findings made in this notice
will be deemed vacated.
4. This notice will be effective
December 31, 2024, unless opposing
comments are filed by December 30,
2024. If any comments are filed,
Applicants may file a reply by January
13, 2025.
5. 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
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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: November 7, 2024.
By the Board, Board Members Fuchs,
Hedlund, Primus, and Schultz.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2024–26469 Filed 11–13–24; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
[Docket No. 2120–0076]
Agency Information Collection
Activities: Requests for Comments;
Clearance of a Renewed Approval of
Information Collection: Renewal of
AVIATOR (Automated Vacancy
Information Access Tool for Online
Referral) Customer Satisfaction Survey
Federal Aviation
Administration (FAA), DOT.
ACTION: Notice and request for
comments.
AGENCY:
In accordance with the
Paperwork Reduction Act of 1995, FAA
invites public comments about our
intention to request the Office of
Management and Budget (OMB)
approval to renew an information
collection. The Federal Register Notice
with a 60-day comment period soliciting
comments on the following collection of
information was published on June 5,
2024. The collection involves on-line,
electronic applicant (customer) answers
to standard survey questions. The
questions are presented as multiplechoice selections and free-form text
areas where applicants can choose their
desired answer and, if they wish, add
additional comments. The information
to be collected will be used to and is
necessary to gage the level of user
satisfaction with the AVIATOR
(Automated Vacancy Information
Access Tool for Online Referral) system.
Additionally, the surveys are used to
obtain benchmarking and feedback to
ensure quality.
DATES: Written comments should be
submitted by December 16, 2024.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain. Find this particular
information collection by selecting
SUMMARY:
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90211
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
FOR FURTHER INFORMATION CONTACT: Toni
Main-Valentin by email at: toni.mainvalentin@faa.gov; phone: 405–954–
0870.
SUPPLEMENTARY INFORMATION:
Public Comments Invited: You are
asked to comment on any aspect of this
information collection, including (a)
Whether the proposed collection of
information is necessary for FAA’s
performance; (b) the accuracy of the
estimated burden; (c) ways for FAA to
enhance the quality, utility and clarity
of the information collection; and (d)
ways that the burden could be
minimized without reducing the quality
of the collected information.
OMB Control Number: 2120–0699.
Title: AVIATOR (Automated Vacancy
Information Access Tool for Online
Referral) Customer Satisfaction Survey.
Form Numbers: N/A (electronic).
Type of Review: Renewal of an
information collection.
Background: The Federal Register
Notice with a 60-day comment period
soliciting comments on the following
collection of information was published
on June 5, 2024 (89 FR 48213). The
Government Performance and Results
Act of 1993 (GPRA) Section 2(b)(3)
requires agencies to ‘‘improve Federal
program effectiveness and public
accountability by promoting a new
focus on results, service quality, and
customer satisfaction’’. In addition, as
stated in the White House
‘‘Memorandum for Heads of Executive
Departments and Agencies’’ regarding
Executive Order No. 12862, ‘‘the actions
the order prescribes, such as surveying
customers, surveying employees, and
benchmarking, shall be continuing
agency activities’’. This collection
supports the Department of
Transportation (DOT) strategic goal of
Organizational Excellence.
In compliance with the Government
Paperwork Elimination Act (GPEA), all
of our data collection will be 100%
electronic using an online form;
Applicants will be asked to complete
the survey just before they exit the
system. The AVIATOR Customer
Satisfaction Survey is designed to
identify potential problems with FAA’s
automated staffing solutions as well as
to evaluate customer satisfaction with
the on-line application process. The
information is not gathered by any other
collection. It will be difficult, if not
impossible, to improve the AVIATOR
system’s overall performance and
customer satisfaction without utilizing
E:\FR\FM\14NON1.SGM
14NON1
Agencies
[Federal Register Volume 89, Number 220 (Thursday, November 14, 2024)]
[Notices]
[Pages 90208-90211]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-26469]
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SURFACE TRANSPORTATION BOARD
[Docket No. MCF 21123]
Patrick O. Regan--Acquisition of Control--Faribault
Transportation Service, Inc., Minnesota Coaches, Inc., Marschall Line,
Inc., Rehbein Transit Co., Inc., Minn-Dakota Coaches, Inc., Voyageur
Bus Company, Inc., and Ready Bus Company, Inc.
AGENCY: Surface Transportation Board.
ACTION: Notice Tentatively Approving and Authorizing Finance
Transaction.
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SUMMARY: Patrick O. Regan (Applicant) filed an application seeking
authority to acquire control of Faribault Transportation Service, Inc.
(FTS), through a corporate reorganization in which Applicant would
become the majority shareholder in MNC Holding Company, a new entity
created to serve as a holding company for FTS and other motor carriers
and noncarrier entities. Applicant also seeks after-the-fact authority
for several already-consummated transactions that ultimately resulted
in Applicant's acquisition of control of six passenger motor carriers:
Minnesota Coaches, Inc., Marschall Line, Inc., Rehbein Transit Co.,
Inc., Minn-Dakota Coaches, Inc., Voyageur Bus Company, Inc., and Ready
Bus Company, Inc. (collectively, Affiliated Carriers). The Board is
tentatively approving and authorizing these transactions. If no
opposing comments are timely filed, this notice will be the final Board
action.
DATES: Comments must be filed by December 30, 2024. If any comments are
filed, Applicant may file a reply by January 13, 2025. If no opposing
comments are filed by December 30, 2024, this notice shall be effective
on December 31, 2024.
ADDRESSES: Comments, referring to Docket No. MCF 21123, may be filed
with the Board either via e-filing on the Board's website or in writing
addressed to: Surface Transportation Board, 395 E Street SW,
Washington, DC 20423-0001. In addition, send one copy of comments to
Applicant's representative: Edward Fishman, Hogan Lovells US LLP,
Columbia Square, 555 Thirteenth Street NW, Washington, DC 20004.
FOR FURTHER INFORMATION CONTACT: Brian O'Boyle at (202) 245-0364. If
you require an accommodation under the Americans with Disabilities Act,
please call (202) 245-0245.
SUPPLEMENTARY INFORMATION: According to the application,\1\ Applicant,
a noncarrier, seeks to acquire control of FTS, which is currently owned
by Garrett O. Regan. Applicant characterizes his proposed acquisition
as a ``corporate reorganization,'' that, if approved and consummated,
would result in Applicant becoming the majority shareholder of MNC
Holding Company, and Garrett O. Regan becoming a minority shareholder
in MNC Holding Company, together with certain other minority
shareholders.\2\ (Appl. 3.) \3\
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\1\ Applicant originally filed the application on August 30,
2024, but it then filed a supplement on October 15, 2024. Therefore,
for purposes of determining the procedural schedule and statutory
deadlines, the filing date of the application is October 15, 2024.
See 49 CFR 1182.4(a).
\2\ More information about the proposed corporate structure and
ownership can be found in the application. (See Appl., Ex. 3.)
\3\ The application does not have page numbers. The page numbers
cited in this decision refer to the PDF page numbers of the
application.
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Applicant states that FTS has its principal place of business in
Faribault, Minn., and provides student transportation service,
including general and special education transportation, to and from
school on a regular schedule, as well as school bus charter service for
extracurricular activities and other special trips. (Id. at 4; Suppl.
1-2.) Applicant states that, on limited occasions, FTS's school bus
charter service involves trips from Minnesota into Wisconsin and other
neighboring states (depending on the location of those activities
involving the school bus customers served by FTS). (Suppl. 2.) FTS
operates approximately 66 power units and employs approximately 88
drivers. (Appl. 4.) \4\
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\4\ Applicant indicates that FTS has two wholly owned
subsidiaries, PEM Transportation, LLC, and Harmony Transit, LLC,
which Applicant states are both intrastate passenger carriers not
subject to the Board's jurisdiction. (Appl. 4 n.1.)
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Applicant also seeks after-the-fact authorization for his
acquisition of control of six motor carriers through six previously
consummated transactions. Applicant states that, if approval is
granted, each of these carriers would be brought under control of MNC
Holding Company, with Applicant as the majority shareholder and other
minority shareholders of the carriers becoming minority shareholders of
MNC Holding Company. (Id. at 5.) Applicant describes the transactions
for which he seeks after-the-fact authority as follows.
Minnesota Coaches, Inc., Marschall Line, Inc., and Rehbein Transit
Co., Inc.
[[Page 90209]]
According to the application, in 1994, Applicant founded and
incorporated Family Bus Service, Inc. (Family Bus), a noncarrier, which
is the parent company of three passenger motor carriers providing
interstate service: Minnesota Coaches, Inc. (Minnesota Coaches),
Marschall Line, Inc. (Marschall Line), and Rehbein Transit Co., Inc.
(Rehbein).
Family Bus purchased 100% ownership of Minnesota Coaches from RECO,
Inc., a corporation owned by Applicant and his siblings (though the
date of the transaction is not given). (Id. at 9.) Minnesota Coaches
has its principal place of business in Hastings, Minn., and operates in
its name and through the assumed names Hasting Bus Company, Big River
Bus Company, and Big River Tours. (Id. at 10.) Minnesota Coaches
provides school bus service that includes general and special education
transportation to and from school on a regular schedule, and school bus
charter service for extracurricular activities and special trips,
which, on limited occasions, involve transportation between Minnesota
and neighboring states including Wisconsin. (Id. at 10-11; Suppl. 3.)
Minnesota Coaches also offers motorcoach contract service for
universities, sports teams, and other business, as well as event
specific charter services for weddings, conventions, and other events,
concentrated primarily in the Minneapolis, Minn., St. Paul, Minn., and
the surrounding Twin Cities area, as well as some interstate operations
primarily in Wisconsin, Iowa, Illinois, and Missouri. (Suppl. 3, 4.)
Minnesota Coaches operates approximately 196 power units and employs
approximately 174 drivers. (Appl. 10.)
In 1994, Family Bus became the sole shareholder of Marschall Line,
which was founded in 1971 by the Marschall family. (Id. at 9.)
Applicant states that Marschall Line has its principal place of
business in Farmington, Minn. (Id. at 11.) Marschall Line, operating in
its name and through the assumed name Mid-County Bus Company, provides
school bus transportation services, which includes general and special
education transportation to and from school on a regular schedule, and
school bus charter service for extracurricular activities and special
trips. (Id.; Suppl. 4-5.) Applicant states that, on limited occasions,
the school bus charter service involves trips from Minnesota into
Wisconsin and other neighboring states. (Suppl. 5.) Marschall Line
operates approximately 110 power units and employs approximately 118
drivers. (Appl. 11.)
In 2012, Family Bus acquired the assets of Rehbein Transit, Inc.,
from the Rehbein family and formed the subsidiary, Rehbein. (Id. at
10.) Applicant states that Rehbein, whose principal place of business
is in Circle Pines, Minn., provides school bus services that include
general and special education transportation to and from school on a
regular schedule, and school bus charter service for extracurricular
activities and special trips. (Id. at 12; Suppl. 5.) Applicant states
that, on very limited occasions, the school bus charter service
involves trips from Minnesota into Wisconsin or other neighboring
states. (Suppl. 5.) Rehbein operates approximately 97 power units and
employs approximately 91 drivers. (Appl. 12.)
Minn-Dakota Coaches, Inc. In 1997, Applicant acquired control of
Minn-Dakota Coaches, Inc. (Minn-Dakota), from August L. Fitch, William
H. Barber, and Bonnie L. Barber. (Id. at 14.) Applicant controls Minn-
Dakota through his control of Ottertail Transportation, Inc., and
Ottertail Coaches, Inc. (Id. at 13.) \5\ According to Applicant, Minn-
Dakota, whose principal place of business is in Fergus Falls, Minn.,
provides school bus transportation service that includes general and
special education transportation to and from school on a regular
schedule, and school charter service for extracurricular activities and
special trips. (Id. at 15-16; Suppl. 6.) Applicant notes that some of
these trips involve transportation between Minnesota and neighboring
states including North Dakota. (Suppl. 6.) Applicant states that Minn-
Dakota also offers motorcoach contract service for universities, sports
teams, and other business, as well as event specific charter services
for weddings, conventions, and other events in the Fergus Falls area,
with some motorcoach services conducted out of state, mostly within
North Dakota and South Dakota, but a limited amount of activity in Iowa
and Wisconsin, and the remainder spread out nationally based on
customer demand for special event service. (Id. at 6-7.) Applicant
states that Minn-Dakota operates approximately 14 power units and
employs approximately 34 drivers. (Appl. 15.)
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\5\ In 1997, Applicant and Michael R. Clark, a noncarrier,
founded and incorporated Ottertail Transportation, Inc., which is
65% owned by Applicant and 35% owned by Michael R. Clark. (Appl.
13.) Ottertail Transportation, Inc., a noncarrier, acquired
Ottertail Coaches, Inc., an intrastate motor carrier, which is the
parent company to Minn-Dakota Coaches, Inc. (Id.) In 2006, Applicant
and Michael R. Clark founded and incorporated Ottertail Trucking,
Inc., a motor carrier of property, as a wholly owned subsidiary of
Ottertail Transportation, Inc. (Id. at 15 n.7.) According to
Applicant, Ottertail Trucking, Inc., is not subject to Board
jurisdiction. (Id.)
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Voyageur Bus Company, Inc. In 1992, Applicant and Michael J. Krois
(Krois), a noncarrier, acquired Metropolitan School & Charter Bus
Service, Inc., from Donald B. Regan. (Id. at 17.) In 2005, Applicant
and Krois founded and incorporated Metro Bus Service, Inc., a
noncarrier, and changed the name of Metropolitan School & Charter Bus
Service, Inc., to Voyageur Bus Company, Inc., (Voyageur), which became
a subsidiary of Metro Bus Service, Inc.\6\ (Id. at 16-17.) According to
Applicant, Voyageur has its principal place of business in Duluth,
Minn., and provides school bus transportation service that includes
general and special education transportation to and from school on a
regular schedule, and school charter service for extracurricular
activities and special trips, with some trips on occasion involving
transportation between Minnesota and neighboring states. (Suppl. 7-8.)
Voyageur Bus also offers motorcoach contract services for universities,
sports teams, and other business, as well as event specific charter
services for weddings, conventions, and other events in the greater
Duluth area. (Id. at 8.) Voyageur Bus's motorcoach services are
conducted primarily in Minnesota, with some operations in Wisconsin,
Iowa, Illinois, or other states across the U.S. based on customer
demand for special event service. (Id.) Applicant states that Voyageur
operates approximately 118 power units and employs approximately 125
drivers. (Appl. 18.) Applicant further notes that Voyageur also
operates a fleet of motorcoaches owned by Lake Superior Motorcoaches,
Inc., a noncarrier subsidiary of Metro Bus Service, Inc., through a
revenue-sharing arrangement. (Id. at 17 n.8 & 18.)
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\6\ Applicant states that Krois owns 50% of Metro Bus Service,
Inc., but does not have a controlling interest in any passenger
motor carrier other than Voyageur. (Appl. 16.)
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Ready Bus Company, Inc. In 2013, Applicant, Garrett O. Regan, and
Casey O. Regan acquired the school bus assets of Ready Bus Line Company
through River Bluff Bus Company, a corporation founded and incorporated
in November 2013. (Id. at 19.) In December 2013, River Bluff Bus
Company was renamed Ready Bus Company, Inc. (Ready Bus). (Id. at 18.)
Applicant is the controlling shareholder of Ready Bus, which is 50%
owned by Applicant, 25% owned by Garrett O. Regan, and 25% owned by
Casey O. Regan. (Id. at 18-19.) Applicant states that Ready Bus
[[Page 90210]]
operates motorcoaches owned by River Bluff Motorcoach, Inc., a
noncarrier that is 50% owned by Applicant.\7\ (Id. at 19 n.9.)
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\7\ River Bluff Motorcoach, Inc. (RBM), a noncarrier, was
founded and incorporated in November 2013, and acquired the
motorcoach operating assets of Ready Bus Line Company. (Appl. 19.)
Applicant states that RBM is 50% owned by Applicant and 10% each
owned by Garrett O. Regan, Casey O. Regan, Troy J. Nelson, Mike
Karlen, and Tom Severson. (Id.)
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According to Applicant, Ready Bus, whose primary place of business
is in Rochester, Minn., provides school transportation service that
includes general and special education transportation to and from
school on a regular schedule, and school charter service for
extracurricular activities and special trips. (Id. at 21; Suppl. 9.)
Applicant notes that, on limited occasions, some of these trips involve
transportation between Minnesota and neighboring states including
Wisconsin, depending on the location of the customer activity. (Suppl.
9.) Ready Bus also offers motorcoach contract service for universities,
sports teams, and other business, as well as event-specific charter
services for weddings, conventions, and other events with service in
Minnesota, Wisconsin, and neighboring states. (Id.) According to the
application, most of the motorcoach service (outside of Minnesota and
Wisconsin) is regionally concentrated in Iowa, Illinois, Missouri, and
Indiana, and the remainder is spread out nationally based on customer
demand for special event service. (Id. at 10.) Applicant states that
Ready Bus operates approximately 59 power units and employs
approximately 56 drivers. (Appl. 21.) \8\
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\8\ Further information about these motor carriers, including
U.S. Department of Transportation (USDOT) numbers, motor carrier
numbers, and USDOT safety fitness ratings, can be found in the
application. (See Appl. 26; id., Ex. 1.)
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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 resulting from the proposed transaction, and (3) the interest
of affected carrier employees. Applicant has submitted the information
required by 49 CFR 1182.2, including information demonstrating that the
proposed transaction is consistent with the public interest under 49
U.S.C. 14303(b), see 49 CFR 1182.2(a)(7), and a jurisdictional
statement under 49 U.S.C. 14303(g) that the aggregate gross operating
revenues of the involved carriers exceeded $2 million during the 12-
month period immediately preceding the filing of the application, see
49 CFR 1182.2(a)(5). (See Appl. 22.)
Acquisition of FTS. Applicant states that his proposed acquisition
of FTS would be consistent with the public interest, as it would not
result in any significant changes to the nature or scope of the
operations that are conducted by FTS or any of the other motor carriers
of passengers in the corporate family. (Id. at 23; Suppl. 17.)
Applicant asserts that the acquisition would allow him to make
strategic decisions regarding the operational, asset management, and
safety compliance needs of FTS based on his years of experience in the
school bus market and strong track record of managing successful school
bus providers. (Suppl. 16-17.)
Applicant asserts that there would be no negative impact on
competition as a result of his acquisition of FTS. Applicant states
that FTS is exclusively a school bus service provider that only
occasionally crosses state lines. (Id. at 10-11.) According to
Applicant, FTS does not compete for school bus contracts against the
Affiliated Carriers, which each serve distinct school district
communities within Minnesota. (Id. at 10 (stating that FTS provides
service primarily in the City of Faribault and surrounding areas); see
also id. at 13-15 (describing which school districts the other carriers
at issue here serve.) Moreover, Applicant asserts that the existing
school district contracts with FTS are subject to competitive bid
procedures and that there is substantial competition for such school
transportation services in the relevant service area from national
providers and from local competitors. (Id. at 10-11, 17.)
Applicant states that his acquisition of control of FTS would not
affect fixed charges, as he would obtain control of FTS through a
corporate reorganization that would not involve any external financing.
(Appl. 24; Suppl. 17.) Applicant asserts that there would be no
material effect on employee or labor conditions at FTS, as there are no
plans for employee layoffs or reductions in staff at FTS as a result of
the proposed restructuring transaction, nor plans for adverse changes
to existing FTS employee benefits. (Appl. 25; Suppl. 18.)
Historical Acquisitions of Affiliated Carriers. Applicant contends
that the historical acquisitions of control of the Affiliated Carriers
were consistent with the public interest because those transactions
enabled him to strengthen the depth and quality of service provided by
each of the Affiliated Carriers, based on Applicant's track record in
the bus industry and the opportunity to more efficiently use the
assets, resources, and management experience of the affiliated
companies. (Suppl. 18.) Applicant contends that the acquisitions did
not result in any adverse changes to the nature or scope of the
operations that are conducted by those Affiliated Carriers; rather, the
transactions contributed to an overall increase in the available
motorcoach and school bus service capacity in the relevant service
areas, as Applicant has continued to invest over time in equipment,
operating personnel, and other resources to support the business
activities of these Affiliated Carriers. (Id.)
Applicant argues that there has been no negative impact on
competition, as these Affiliated Carriers do not compete with each
other today and generally did not compete directly with each other at
the time of the respective acquisitions by Applicant, due to the nature
of the services they each provide in their respective service areas.
(Id. at 11.) Moreover, Applicant asserts that the Affiliated Carriers
have faced (and continue to face) substantial competition in each of
the relevant markets from national, regional, and local bus operations,
as well as intermodal competition from motor vehicles, passenger train,
and passenger aviation service. (Id. at 12, 19.) Applicant notes that
two of the carriers subject to the application, Marschall Line and
Rehbein, are exclusively school bus service providers that only
occasionally provide interstate charter service. (Id. at 13.) Applicant
asserts that these two carriers compete for different school bus
contracts, do not serve the same student population, and compete in
markets with substantial competition from national and local bus
transportation providers. (Id. at 13-14.) Applicant states that
Minnesota Coaches, Ready Bus, Minn-Dakota, and Voyageur, all of which
provide both school bus and motorcoach services, also do not directly
compete, have served different service areas, operate their assets out
of different geographic terminals, and face intense competition from
other bus transportation providers. (Id. at 14-16 (describing the
different areas served and other entities with whom these four carriers
compete for both school bus and motorcoach service).)
Applicant asserts that, while limited debt financing was used to
acquire some of the Affiliated Carriers, the historical acquisitions
did not result in fixed charges that adversely affected the
[[Page 90211]]
ability of those carriers to continue to provide safe and quality
transportation service. (Id. at 19.) Applicant states that he has no
outstanding debts related to these transactions, has minimal overall
debts, and was able to pay down acquisition debt promptly following the
relevant acquisitions. (Appl. 24; Suppl. 19.)
Applicant states that the historical acquisitions of control of the
Affiliated Carriers have not had any material adverse effect on
employee or labor conditions. Applicant asserts that, since those
acquisitions, there have not been any mass layoffs or substantial
employee restructurings, and no adverse changes to wage and benefit
arrangements have been implemented. (Suppl. 20.)
Based on Applicant's representations, the Board finds that the
acquisition of FTS is consistent with the public interest and should be
tentatively approved and authorized. The Board also finds that the
historical acquisitions of control of the Affiliated Carriers are
consistent with the public interest and should be tentatively approved
and authorized after the fact. 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. 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 in this proceeding.
This action is categorically excluded from environmental review
under 49 CFR 1105.6(c).
Board decisions and notices are available at www.stb.gov.
It is ordered:
1. The proposed acquisition of FTS is approved and authorized,
subject to the filing of opposing comments.
2. The acquisitions of the Affiliated Carriers are approved and
authorized after the fact, subject to the filing of opposing comments.
3. If opposing comments are timely filed, the findings made in this
notice will be deemed vacated.
4. This notice will be effective December 31, 2024, unless opposing
comments are filed by December 30, 2024. If any comments are filed,
Applicants may file a reply by January 13, 2025.
5. 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: November 7, 2024.
By the Board, Board Members Fuchs, Hedlund, Primus, and Schultz.
Aretha Laws-Byrum,
Clearance Clerk.
[FR Doc. 2024-26469 Filed 11-13-24; 8:45 am]
BILLING CODE 4915-01-P