No. 42494 (Amendment): Rule R909-1. Safety Regulations for Motor Carriers

(Amendment)

DAR File No.: 42494
Filed: 01/23/2018 04:28:19 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

Before the Department of Transportation (Department) may enforce the North American Standard Out-of-Service Criteria, Level VI Inspection Procedures, and Out-of-Service Criteria for Commercial Highway Vehicles Transporting Transuranics and Highway Route Controlled Quantities of Radioactive Materials as defined in 49 CFR part 173.403, as federal law requires, it must adopt 49 CFR Part 385.4. Adoption of this section of the Code of Federal Regulations (CFR) is the primary purpose of this amendment. This amendment also makes several technical and grammatical corrections.

Summary of the rule or change:

This amendment adopts 49 CFR Part 385.4 by reference, and makes several technical and grammatical corrections.

Statutory or constitutional authorization for this rule:

This rule or change incorporates by reference the following material:

Adds 49 CFR Part 385.4, published by U.S. Government Publishing Office, 10/01/2014

Anticipated cost or savings to:

the state budget:

No cost or savings are anticipated with this rule change. This rule change does not create any new requirements or change present practices, so the state's budget will not be impacted by this amendment.

local governments:

No cost or savings are anticipated with this rule change. This rule change does not create any new requirements or change present practices for local governments, so local governments will not be impacted by this amendment.

small businesses:

The Department anticipates that motor carriers that are small businesses will be affected by this rule change. The Electronic Logging Devices (ELD) and Hours of Service Supporting Documents, 80 FR 78292-01, states: In the Supplemental Notice of Proposed Rulemaking (SNPRM), the Federal Motor Carrier Safety Administration (FMCSA) took a very conservative approach to the cost of an ELD. It analyzed the Mobile Computing Platform 50, a higher-end Functional Movement System (FMS), and included installation, hardware costs, and monthly fees. However, by relying on performance standards and prescribing minimal requirements, FMCSA allowed for the use of a basic ELD that would satisfy the rule. The SNPRM estimated an average cost of $495 per Commercial Motor Vehicle (CMV) on an annualized basis where the range is from $165 to $832. In the SNPRM, FMCSA analyzed a range of devices, the most expensive one being $1,675 and the least expensive provided for free as part of a monthly service agreement.

persons other than small businesses, businesses, or local governmental entities:

No cost or savings are anticipated with this rule change. No new requirements are created by this rule change that will impact the budgets of persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

The ELDs and Hours of Service Supporting Documents, 80 FR 78292-01 states: In the Supplemental Notice of Proposed Rulemaking (SNPRM), the Federal Motor Carrier Safety Administration (FMCSA) took a very conservative approach to the cost of an ELD. It analyzed the Mobile Computing Platform 50, a higher-end FMS, and included installation, hardware costs, and monthly fees. However, by relying on performance standards and prescribing minimal requirements, FMCSA allowed for the use of a basic ELD that would satisfy the rule. The SNPRM estimated an average cost of $495 per Commercial Motor Vehicle (CMV) on an annualized basis where the range is from $165 to $832. In the SNPRM, FMCSA analyzed a range of devices, the most expensive one being $1,675 and the least expensive provided for free as part of a monthly service agreement. The Department of Workforce Services lists 75 motor carriers with offices in Utah that employ 50 or more persons, and 1,613 motor carriers within the NCAIS categories 4841, 4842, and 4885, with offices in Utah that employ fewer than 50 persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

This rule change will have a fiscal impact on businesses. However, the fiscal cost should be less than the fiscal benefit that will result for the industry due to this amendment to the federal regulation, which this change to Rule R909-1 incorporates by reference. In its Summary of Annualized Costs and Benefits included in SNPRM, the FMCSA estimates the total annualized cost to the motor carrier industry nationwide at $1,836,000,000. However, the SNPRM estimates the total annualized benefit to the industry will be $3,010,000,000. The difference is an annualized net benefit to the industry of $1,174,000,000.

Carlos Braceras, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Transportation
Motor Carrier
CALVIN L RAMPTON COMPLEX
4501 S 2700 W
SALT LAKE CITY, UT 84119-5998

Direct questions regarding this rule to:

Christine Newman at the above address, by phone at 801-965-4026, by FAX at 801-965-4338, or by Internet E-mail at cwnewman@utah.gov
James Palmer at the above address, by phone at 801-965-4000, by FAX at 801-965-4338, or by Internet E-mail at jimpalmer@utah.gov
Linda Hull at the above address, by phone at 801-965-4253, by FAX at , or by Internet E-mail at lhull@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/19/2018

This rule may become effective on:

03/26/2018

Authorized by:

Carlos Braceras, Executive Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2018

FY 2019

FY 2020

State Government

Local Government

Small Businesses

$495 per vehicle

Non-Small Businesses

$495 per vehicle

Other Person

Estimated Total Fiscal Costs for industry in Utah:

$174,420,000.00

Fiscal Benefits

State Government

Local Government

Small Businesses

Non-Small Businesses

Other Persons

Total Fiscal Benefits to the state, including the industry:

$285,950,000

$291,669,000

$297,502,380

Net Fiscal Benefits:

$111,530,000

$291,669,000**

$297,502,380**

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non-Small Businesses are described below.

**Figures are increased by 2% to account for estimated inflation.

The change in federal regulations that is the catalyst for this rule change requires firms in the motor carrier industry to install ELDs in each truck, and this is a fiscal cost for the firms. However, once the firms install the ELDs, the only costs that will continue in subsequent years will be for maintenance, which are impossible to quantify with accuracy. Once the ELDs are installed, society, including the industry and state and local governments will gain benefits due in part to increased safety. The industry will also experience fiscal benefits due to increased efficiency. The benefits will continue.

Appendix 2: Regulatory Impact to Non-Small Businesses

Federal law requires the state of Utah to enforce the North American Standard Out-of-Service Criteria, Level VI Inspection Procedures, and Out-of-Service Criteria for Commercial Highway Vehicles Transporting Transuranics and Highway Route Controlled Quantities of Radioactive Materials as defined in 49 CFR part 173.403. Continued enforcement of these regulations requires the Department to adopt 49 CFR Part 385.4. Adoption of this section of the Code of Federal Regulations (CFR) is the primary purpose of this amendment. This amendment also makes several technical and grammatical corrections.

The Electronic Logging Devices ELDs and Hours of Service Supporting Documents, 80 FR 78292-01 states: In the Supplemental Notice of Proposed Rulemaking (SNPRM), the Federal Motor Carrier Safety Administration (FMCSA) took a very conservative approach to the cost of an ELD. It analyzed the Mobile Computing Platform 50, a higher-end FMS, and included installation, hardware costs, and monthly fees. However, by relying on performance standards and prescribing minimal requirements, FMCSA allowed for use of a basic ELD that would satisfy the rule. The SNPRM estimated an average cost of $495 per Commercial Motor Vehicle (CMV) on an annualized basis where the range is from $165 to $832. In the SNPRM, FMCSA analyzed a range of devices, the most expensive one being $1,675 and the least expensive provided for free as part of a monthly service agreement. The Department of Workforce Services lists 75 motor carriers with offices in Utah that employ 50 or more persons, and 1,613 motor carriers with offices in Utah that employ fewer than 50 persons in NAICS categories 4841, 4842, and 4885.

This rule change will have a fiscal impact on all businesses in the industry. However, the fiscal cost should be less than the fiscal benefit that will result for the industry and the state due to this amendment to the federal regulation, which this change to Rule R909-1 adopts by reference. In its Summary of Annualized Costs and Benefits included in SNPRM, the FMCSA estimates the total annualized cost to the motor carrier industry nationwide at $1,836,000,000. However, the SNPRM estimates the total annualized benefit to the state and the industry will be $3,010,000,000. The difference is an annualized net benefit to the industry of $1,174,000,000.

The U.S Census Bureau estimates that 0.95% of the U.S. population resides in Utah. If Utah accounts for 0.95% of the motor carrier industry, the estimated annualized cost to the industry in Utah is $174,420,000, and the estimated annualized cost to the industry in Utah is $285,950,000. Therefore, this rule change will result in a net benefit to the state of Utah, including the motor carrier industry, of $111,530,000.

It is unlikely that state and local governments will experience any negative fiscal impacts due to this rule change. The state is already regulating this industry and its logging requirements, and local governments do not regulate this industry. If there are any fiscal impacts to state and local governments, they are too remote and notional to measure. However, the state, local governments, and the industry will participate in the benefits.

Carlos E. Braceras, Executive Director of the Department of Transportation, has reviewed and approved this fiscal analysis.

R909. Transportation, Motor Carrier.

R909-1. Safety Regulations for Motor Carriers.

R909-1-1. Authority and Purpose.

This Rule is enacted under the authority of Section 72-9-103 to enable the department to enforce the Federal Motor Carrier Safety Regulations as contained in Title 49, Code of Federal Regulations related to the operation of a motor carrier within the state, as required by Section 72-9-301.

R909-1-2. Adoption of Federal Regulations.

(1) Safety Regulations for Motor Carriers, 49 CFR Parts 350 through 384, Part 385.4, Parts 387 through 399, and Part 40,(October 1, 2014), as amended by the Federal Register through [~~April 23, 2015~~]December 16, 2015, are incorporated by reference, except for 49 CFR Parts 391.11(b)(1) and 391.49 as [~~it applies~~]they apply to intrastate drivers only. These requirements apply to all motor carrier(s) as defined in 49 CFR Part 390.5, excluding commercial motor vehicles which are designed or used to transport more than 8 and less than 15 passengers (including the driver) for compensation and Utah Code Section 72-9-102(2) engaged in intrastate commerce.

(2) Intrastate trucking operations in which the carriers operate double trailer combinations only are not required to comply with 49 CFR Part 380.203(a)(2).

(3) Exceptions to Part 391.41, Physical Qualification may be granted under the rules of Department of Public Safety, Driver's License Division, Section 53-3-303.5 for intrastate drivers under R708-34.

(4) Drivers involved wholly in intrastate commerce shall be at least 18 years old. However, if they are transporting placarded amounts of hazardous materials or carrying 16 or more passengers, including the driver, they must be 21 years old.

(5) Licensed child care providers operating a passenger vehicle with a seating capacity of not more than 30 passengers, and wholly in intrastate commerce, are exempt from 49 CFR Part 387 Subpart B but are subject to the minimum coverage requirements in Section 72-9-103.

R909-1-3. Insurance for Private Intrastate/Interstate Motor Carriers.

(1) "Private Motor Carrier" means a person who provides transportation of property or passengers by commercial motor vehicle and is not a for-hire motor carrier.

(2) All intrastate private motor carriers shall have a minimum amount of $750,000 liability.

(3) All intrastate for-hire and private motor carriers transporting any quantities of oil listed in 49 CFR 172.101; hazardous waste, hazardous material and hazardous substances defined in 49 CFR 171.101, shall have $1,000,000 minimum level of financial responsibility and a MCS-90 endorsement maintained at the principal place of business.

R909-1-4. Implements of Husbandry.

"Implements of Husbandry" is defined in Section 41-1a-102(23) and must [~~be in compliance~~]comply with all provisions of Chapter 6, Title 41, Utah Code Annotated. Vehicles meeting this definition are exempt from 49 CFR Part 393 - Parts and Accessories Necessary for Safe Operations.

KEY: trucks, transportation safety, implements of husbandry

Date of Enactment or Last Substantive Amendment: [~~August 24, 2015~~]2018

Notice of Continuation: August 30, 2016

Authorizing, and Implemented or Interpreted Law: 72-9-103; 72-9-104; 72-9-101; 72-9-301; 72-9-303; 72-9-701; 72-9-703