RULES AND REGULATIONS
Title 52--PUBLIC UTILITIES
PENNSYLVANIA PUBLIC UTILITY COMMISSION
[52 PA. CODE CHS. 3 AND 5]
[28 Pa.B. 5769] [L-980133]
Motor Carrier Property Applications The Pennsylvania Public Utility Commission (Commission) on August 13, 1998, adopted a final rulemaking to discontinue publication of property carrier applications. Given the Commission's limited regulatory role of safety and insurance issues, it no longer serves a useful purpose to require publication of property carrier applications. The contact person is John Herzog, Assistant Counsel, Legal Division, Bureau of Transportation and Safety, (717) 783-3714.
Executive Summary
The Federal Aviation Authorization Act of 1994 preempted state regulation of motor carriers of property in the areas of rates, routes and service. 49 U.S.C.A. §§ 14501(c), 41713(b). Currently, the Commission's regulatory oversight of property carriers is limited to safety and insurance issues. In light of the Federal preemption, the Commission modified its regulations to reflect its changed regulatory role. See Regulation of Motor Carriers of Property, Doc. No. L-00950106.
Historically, property carrier applications have been published in the Pennsylvania Bulletin to afford existing carriers the opportunity to protest new entrants into the market. Since the Commission no longer regulates the rates, routes and service of property carriers, the rationale for requiring publication of applications no longer exists. Further, the protest mechanism is a vestigial process left over from the bygone era of economic regulation and should likewise be eliminated.
The proposed amendments were published in the May 9, 1998, edition of the Pennsylvania Bulletin, 28 Pa.B. 2143. No comments were filed.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P.S. § 745.5a) on April 28, 1998, the Commission submitted a copy of the final rulemaking, which was published as a proposed rulemaking at 28 Pa.B. 2143 (May 9, 1998) with a 30-day comment period and served to the Independent Regulatory Review Commission (IRRC) and the Chairpersons of the House Committee on Consumer Affairs and the Senate Committee on Consumer Protection and Professional Licensure for review and comment. In compliance with section 5(b.1) of the Regulatory Review Act, the Commission also provided IRRC and the Committees with copies of all comments received, as well as other documentation.
In preparing these final-form regulations, the Commission has considered all comments received from IRRC, the Committees and the public.
These final-form regulations were deemed approved by the House Committee on Consumer Affairs on October 13, 1998, and approved by the Senate Committee on Consumer Protection and Professional Licensure on September 29, 1998, and were approved by IRRC on October 22, 1998, in accordance with section 5(c) of the Regulatory Review Act.
Commissioners Present: John M. Quain, Chairperson; Robert K. Bloom, Vice Chairperson; David W. Rolka; Nora Mead Brownell
Public Meeting held
August 13, 1998
Order By the Commission:
By Order entered March 3, 1998, the Commission initiated a proposed rulemaking to amend its regulations governing publication and protest of applications for motor carrier property authority. Specifically, the Commission proposed eliminating both the publication and protest processes for applications for motor property carrier authority.
On April 6, 1998, the Office of Attorney General issued its approval of the proposed amendments as to form and legality. On April 28, 1998, copies of the proposed amendments were delivered for review and comment to the designated standing committees of both Houses of the General Assembly and IRRC. The proposed rulemaking was published in the May 9, 1998 edition of the Pennsylvania Bulletin, 28 Pa.B. 2143. No comments to the proposed regulations were filed.
The catalyst for the Commission's proposal to eliminate the publication and protest processes was its changed regulatory role mandated by the Federal Aviation Authorization Act, which inter alia, amended the Interstate Commerce Act at 49 U.S.C.A. §§ 14501(c) and 41713(b). In effect, the Aviation Act preempted state regulation of rates, routes or service of property carriers. However, states do maintain oversight of safety and financial responsibility for property carriers.
In response to the Aviation Act, the Commission promulgated regulations consistent with its changed regulatory role. Docket No. L-00950106. Those regulations provided, in part, for the continuing publication of property carrier applications. Further, the regulations provided that protests to property applications on the basis of safety/fitness could be filed within 10 days of the date of publication of the application in the Pennsylvania Bulletin.
Since passage of the Aviation Act and up to the time of the initiation of this rulemaking, there were approximately 2,214 new applications filed with the Commission for property carrier authority. Only one protest was filed, which was dismissed because it failed to address safety issues.
Given the Commission's limited regulatory role over property carriers, we conclude that it no longer serves a useful public purpose to require publication of property carrier applications. As noted, the Commission's oversight of property carriers is limited to safety and insurance issues. No property carrier application has been protested on these issues since passage of the Aviation Act. Further, since passage of the Aviation Act, the Commission has instituted a Safety Fitness Review program for new carriers and a Safety Audit program for existing carriers. We believe that these programs effectively carry out the Commission's charge to ensure that property carriers provide safe service in this Commonwealth.
In light of the foregoing, we will delete the publication requirement for motor carrier property applications. Further, we will eliminate the protest process for property carrier applicants. As noted, no protests on the basis of safety/insurance have been filed to property carrier applications since passage of the Aviation Act. We believe the protest mechanism is a vestigial process left over from the bygone era of economic regulation. Currently, the protest process serves no useful purpose. Safety and insurance concerns are adequately addressed through the application process and the safety fitness review. We believe that deletion of the protest process in conjunction with the publication requirement eliminates an unnecessary step in the application process.
Accordingly, under section 501 of the Pennsylvania Public Utility Code, 66 Pa.C.S. § 501, the Commonwealth Documents Law (45 P. S. § 1201 et seq.) and 45 Pa.C.S. § 702(3), we hereby amend the regulations in 52 Pa. Code, as discussed previously and as set forth at 28 Pa.B. 2143; Therefore,
It Is Ordered:
1. The regulations of the Commission, 52 Pa. Code Chapters 3 and 5, are amended by amending §§ 3.381 and 5.51 to read as set forth at 28 Pa.B. 2143.
2. The Secretary shall submit a copy of this order, together with 28 Pa.B. 2143 to the Office of Attorney General for approval as to form and legality.
3. The Secretary shall submit a copy of this order, together with 28 Pa.B. 2143, to the Governor's Budget Office for review of fiscal impact.
4. The Secretary shall submit a copy of this order, together with 28 Pa.B. 2143, for formal review by the designated standing committees of both Houses of the General Assembly and by IRRC.
5. The Secretary shall deposit this order and 28 Pa.B. 2143 with the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.
6. This regulation shall become effective immediately upon publication in the Pennsylvania Bulletin.
JAMES J. MCNULTY,
Secretary(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 5636 (November 7, 1998).)
Fiscal Note: Fiscal Note 57-196 remains valid for the final adoption of the subject regulations.
[Pa.B. Doc. No. 98-1905. Filed for public inspection November 20, 1998, 9:00 a.m.]
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