Suspension and Revocation of Carrier Operating Authority
This regulatory impact statement, regulatory flexibility analysis, rural area flexibility analysis and/or job impact statement pertain(s) to a notice of emergency rule making, I.D. No. TRN-32-11-00009-E, printed in the State Register on August 10, 2011.
Regulatory Impact Statement
1. Statutory authority:
Transportation Law section 138(2), Transportation Law Section 140, Transportation Law Section 145 (1).
The commissioner of transportation is empowered to prescribe rules and regulations concerning the issuance of certificates and permits to motor carriers.
2. Legislative objectives:
To promote public safety by assuring that motor carriers engaging in intrastate transportation as common carriers of passengers by motor vehicle comply with the laws and regulations relating to vehicle safety as required by transportation Law Section 140 as a condition of continued use of the permit or certificate required by Transportation Law Section 152.
3. Needs and benefits:
The emergency rule provides a mechanism for the suspension and revocation of intrastate operating authority for motor carriers of passengers with poor safety records. Bus companies may operate within the state of New York only upon operating authority issued by the United States Department of Transportation (for interstate transportation) or issued by the commissioner of transportation (for intrastate transportation). Operating authority from the commissioner of transportation is conditioned upon compliance with safety laws and regulations, including the regulations of the Federal Motor Carrier Safety Administration that are incorporated into the commissioner's safety regulations by 17 NYCRR Section 720 (a).
A series of recent accidents involving bus companies has exposed the potential for a bus company to have multiple safety violations, or even have federal operating authority suspended or revoked, and yet continue to operate under authority issued by the commissioner of transportation within the state of New York. The commissioner has concluded that the continued operation of any such bus company that fails to meet the applicable laws and regulations relating to vehicle safety and/or driver credentialing and/or hours-of-service requirements poses a threat to public safety.
The commissioner has determined that the continued access to state operating authority is contrary to the interests of public safety (1) where a motor carrier has a high incidence of being taken out-of-service as the result of roadside inspections, (2) where a motor carrier has a high rate of out-of-service violations found during the course of semi-annual vehicle inspections, (3) where a roadside inspection or other investigation reveals certain egregious violations of law, or (4) where a motor carrier's federal operating authority has been suspended or revoked.
The purpose of the emergency rule is to provide criterion and a framework for the suspension of state operating authority in the event that a bus company fails to meet objective requirements relating to safety. In the addition to requiring continued federal operating authority (where applicable), the rule articulates the basis for action and provides a framework for the suspension and revocation of operating authority.
4. Costs:
Regulated parties have an obligation under the existing laws and regulations to conform to safety requirements. The new rule imposes no additional safety requirements. There are no added costs associated with compliance. Noncompliance with laws and regulations related to safety presently carry costs in the form of civil penalties that may be imposed. The new rule expands the number of situations where civil penalties may be imposed under Transportation Law Section 145.
5. Local government mandates:
The rule imposes no government mandates.
6. Paperwork:
The rule includes no reporting requirements.
7. Duplication:
There are no rules that relate to the suspension or revocation of intrastate operating authority.
8. Alternatives:
Transportation Law Section 145 provides that the commissioner of transportation may suspend or revoke any permit or certificate after a hearing. However, there is no law or regulation prescribing the reasons that such action may be taken in the form of any objective criterion. It has been concluded that the adoption of a rule setting forth objective criterion that warrants suspension and revocation affords motor carriers with appropriate warning that action will be taken and affords equal application of criterion and due process to motor carriers.
9. Federal standards:
There are no federal standards relating to state operating authority.
10. Compliance schedule:
Compliance with existing laws and regulations has been and remains a requirement for all motor carriers. Compliance with the applicable laws and regulations obviates the necessity of any action under the new rule.
Regulatory Flexibility Analysis
1. Effect of rule:
The rule applies exclusively to motor carriers of passengers by motor vehicles that possess a permit or certificate from the commissioner of transportation pursuant to articles 6 or 7 of the Transportation Law. There are approximately 2,600 such motor carriers that posses such operating authority. These motor carriers are primarily limousine and charter bus operators engaged in at least some intrastate transportation of passengers for hire.
2. Compliance requirements:
The requirements applicable to motor carriers are set forth in existing laws and regulations. The new rule imposes no additional record-keeping or reporting requirements. The new rule provides only the criterion warranting sanctions for a motor carrier's non-compliance with rules and a framework for the application of such sanctions.
3. Professional services:
Motor carriers are already required to comply with safety requirements. The new rule will mean action against non-compliant motor carriers. Motor carriers that trigger action under the new rule may seek professional services in an effort to retain operating authority.
4. Compliance costs:
No additional compliance costs are anticipated.
5. Economic and technological feasibility:
No additional requirements are imposed by the new rule. The rule simply sets forth the objective criterion of action to suspend or revoke operating authority and provides the framework by which action will be taken.
6. Minimizing adverse impact:
The new rule is designed to help small business by establishing the objective criteria that will trigger action by the commissioner. The actions being taken by the commissioner are based upon existing laws and regulations.
7. Small business and local government participation:
The laws and rules that are applicable to motor carriers are not changed by the rule. Non-compliance with the laws and regulations will trigger action to suspend or revoke operating authority. Small businesses seeking to avoid action to suspend or revoke their operating authority must comply with the existing laws and regulations.
Rural Area Flexibility Analysis
1. Types and estimated numbers of rural areas:
The rule applies across the state.
2. Reporting, recordkeeping and other compliance requirements; and professional services:
The rule includes no reporting requirements. Motor carriers are already required to comply with safety requirements. The new rule will mean action against non-compliant motor carriers. Motor carriers that trigger action under the new rule may seek professional services in an effort to retain operating authority.
3. Costs:
There are no new regulatory requirements that would entail additional costs for compliance.
4. Minimizing adverse impact:
The rule has no impact upon motor carriers that comply with existing laws and regulations.
5. Rural area participation:
The laws and rules that are applicable to motor carriers are not changed by the rule. Non-compliance with the laws and regulations will trigger action to suspend or revoke operating authority. Small businesses seeking to avoid action to suspend or revoke their operating authority must comply with the existing laws and regulations.
Job Impact Statement
1. Nature of impact:
The rule will have no impact on jobs or employment opportunities in relation to motor carriers who comply with existing laws and regulations relating to motor carrier safety. It is possible that non-compliant motor carriers who are in violation of safety laws and regulations may experience a suspension or revocation of state operating authority as a result of their failure under the new rule and that this could result in a loss of employment opportunities for persons employed by or seeking employment with non-compliant motor carriers. It is equally possible that, being compelled to comply with the existing laws and regulations, motor carriers may be compelled to create new job opportunities for mechanics, drivers and compliance specialists.
2. Categories and numbers affected:
Motor carriers with state operating authority employ bus operators, clerical staff, and various maintenance employees including cleaners and mechanics. The number of employees required by a motor carrier is that number that is necessary to comply with the existing laws and regulations.
3. Regions of adverse impact:
No adverse impact on jobs in any region is anticipated. The impact on employment stems, not from the new rule, but from the existing laws and regulations.
4. Minimizing adverse impact:
The purpose of the rule is to compel compliance with existing laws and regulations that are designed to preserve public safety. The absence of such a mechanism for removing operating authority from unsafe motor carrier jeopardizes public safety. Compliant motor carriers will experience no impact on jobs or employment.
