[Federal Register Volume 79, Number 81 (Monday, April 28, 2014)]
[Proposed Rules]
[Pages 23306-23316]
[FR Doc No: 2014-09376]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 370, 371, 373, 375, 376, 378, 379, 387, 389, 390, 391,
395, 396, and 398

[Docket No. FMCSA-2012-0376]
RIN 2126-AB47

Electronic Documents and Signatures

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: FMCSA proposes amendments to its regulations to allow the use
of electronic records and signatures to satisfy FMCSA's regulatory
requirements. The amendments would permit the use of electronic methods
to sign, certify, generate, exchange or maintain records so long as the
documents accurately reflect the information in the record and can be
used for their intended purpose. This proposed rule would apply only to
those documents that FMCSA's regulations obligate entities or
individuals to retain; it would not apply to forms or other documents
that must be submitted directly to FMCSA. This proposed rule responds
in part to the President's January 2011 Regulatory Review and Reform
initiative and would implement the Government Paperwork Elimination Act
(GPEA) and the Electronic Signatures in Global and National Commerce
Act (E-SIGN).

DATES: You may submit comments on or before June 27, 2014. Comments
received after this date will be considered to the extent practicable.

ADDRESSES: You may submit comments identified by the docket number
FMCSA-2012-0376 using any one of the following methods:
     Federal eRulemaking Portal: www.regulations.gov.
     Fax:<PHONE_NUMBER>.
     Mail: Docket Services (M-30), U.S. Department of
Transportation, West Building Ground Floor, Room W12-140, 1200 New
Jersey Avenue SE., Washington, DC 20590-0001.
     Hand delivery: Same as mail address above, between 9 a.m.
and 5 p.m., Monday through Friday, except Federal holidays. The
telephone number is<PHONE_NUMBER>.
    To avoid duplication, please use only one of these four methods.
See the ``Public Participation and Request for Comments'' heading under
the SUPPLEMENTARY INFORMATION section below for instructions on
submitting comments.

FOR FURTHER INFORMATION CONTACT: If you have questions on this proposed
rule, please call or email Genevieve Sapir, Office of Counsel, FMCSA,
telephone:<PHONE_NUMBER>; email<EMAIL_ADDRESS>If you have
questions on viewing or submitting material to the docket, please call
Barbara Hairston, Docket Services, telephone<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: The SUPPLEMENTARY INFORMATION section of
this NPRM is organized as follows.

Table of Contents

I. Executive Summary
    A. Purpose and Summary of the Major Provisions
    B. Benefits and Costs
II. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
III. Background
IV. Legal Basis for the Rulemaking
V. Section-by-Section Analysis
    A. Part 370
    B. Part 371
    C. Part 373
    D. Part 375
    E. Part 376
    F. Part 378
    G. Part 379
    H. Part 387
    I. Part 389
    J. Part 390
    K. Part 391

    L. Part 395
    M. Part 396
    N. Part 398
VI. Rulemaking Analysis

I. Executive Summary

A. Purpose and Summary of the Major Provisions

    This proposed rule would establish parity between paper and
electronic documents and signatures, and expand businesses' and
individuals' ability to use electronic methods to comply with FMCSA's
requirements. This rule would apply only to documents that FMCSA
requires individuals or entities to retain. It would also update
references to outdated recordkeeping and reporting methods throughout
chapter III of subtitle B of title 49, Code of Federal Regulations (49
CFR parts 300-399) to make them technologically neutral.
    This proposed rulemaking would implement the Government Paperwork
Elimination Act (GPEA) and the Electronic Signatures in Global and
National Commerce Act (E-SIGN).

B. Benefits and Costs

    FMCSA expects this proposed rule to provide regulatory relief to
the industry. Under this proposed rule, regulated entities would have
the flexibility to conduct business using either electronic or
traditional paper-based methods. The Agency also expects regulated
entities to choose technologies that would maximize benefits in
accordance with their individual needs and circumstances.

II. Public Participation and Request for Comments

A. Submitting Comments

    If you submit a comment, please include the docket number for this
rulemaking (FMCSA-2012-0376), indicate the specific section of this
document to which each comment applies, and provide a reason for each
suggestion or recommendation. You may submit your comments and material
either online, by fax, mail, or hand delivery, but please use only one
of these means. FMCSA recommends that you include your name and a
mailing address, an email address, or a phone number in the body of
your document so the Agency can contact you if it has questions
regarding your submission.
    To submit your comment online, go to www.regulations.gov, put the
docket number, ``FMCSA-2012-0376'' in the ``Keyword'' box, and click
``Search.'' When the new screen appears, click on the ``Comment Now!''
button and type your comment into the text box in the following screen.
Choose whether you are submitting your comment as an individual or on
behalf of a third party and then submit. If you submit your comments by
mail or hand delivery, submit them in an unbound format, no larger than
8\1/2\ by 11 inches, suitable for copying and electronic filing. If you
submit comments by mail and would like to know that they reached the
facility, please enclose a stamped, self-addressed postcard or
envelope.
    FMCSA will consider all comments and material received during the
comment period and may change this proposed rule based on your
comments.

B. Viewing Comments and Documents

    To view comments and any document mentioned in this preamble, go to
www.regulations.gov, insert the docket number, ``FMCSA-2012-0376'' in
the ``Keyword'' box, and click ``Search.'' Next, click ``Open Docket
Folder'' button and choose the document listed to review. If you do not
have access to the Internet, you may view the docket online by visiting
the Docket Services in Room W12-140 on the ground floor of the DOT West
Building, 1200 New Jersey Avenue SE., Washington, DC 20590, between 9
a.m. and 5 p.m., Monday through Friday, except Federal holidays.

C. Privacy Act

    All comments received will be posted without change to
www.regulations.gov and will include any personal information you have
provided. Anyone may search the electronic form of all comments
received into any of our dockets by the name of the individual
submitting the comment (or of the person signing the comment, if
submitted on behalf of an association, business, labor union, etc.).
You may review the DOT Privacy Act Statement for the Federal Docket
Management System published in the Federal Register (FR) on December
29, 2010 (75 FR 82132), or you may visit http://www.gpo.gov/fdsys/pkg/FR-2010-12-29/pdf/2010-32876.pdf.

III. Background

    In recent years, FMCSA has received a number of requests from motor
carriers and other interested parties asking permission to use
electronic methods to comply with various Agency regulations that
require motor carriers and individuals to generate, sign or store
documents. Previously, FMCSA made determinations on a case-by-case
basis as to whether certain categories of documents could be generated,
signed or stored electronically. Modern technologies and evolving
business practices, however, have rendered the distinction between
paper and electronic documents and signatures obsolete in most cases.
Recognizing that many businesses and individuals can achieve greater
efficiencies using electronic methods but that others prefer paper-
based recordkeeping, FMCSA decided to give regulated entities the
flexibility to choose which methods to use.
    As a result, on January 4, 2011, FMCSA issued regulatory guidance
(76 FR 23338) on the use of electronic signatures and documents to
satisfy FMCSA's regulatory requirements. That guidance provided that,
for the purposes of complying with any provision in chapter III of
subtitle B of title 49, Code of Federal Regulations (49 CFR parts 300-
399) that requires a document to be created, signed, certified or
retained by any person or entity, that person or entity may, but is not
required to, use electronic methods. The guidance further stated that
in order for electronic methods to satisfy FMCSA's regulatory
requirements, the documents or signatures had to accurately reflect the
information in the record and remain accessible in a form that can be
accurately viewed or reproduced according to Agency rules.
    In addition, Presidential Executive Order (E.O.) 13563, ``Improving
Regulation and Regulatory Review'' (issued January 18, 2011, and
published January 21 at 76 FR 3821), prompted DOT to publish a notice
in the Federal Register (76 FR 8940, February 16, 2011). This notice
requested comments on a plan for reviewing existing rules, as well as
identification of existing rules that DOT should review because they
may be outmoded, ineffective, insufficient, or excessively burdensome.
DOT placed all retrospective regulatory review comments, including a
transcript of a March 14, 2011, public meeting, in docket DOT-OST-2011-
0025. This proposed rule responds to a comment submitted to that
docket.
    This proposed rulemaking would codify FMCSA's guidance in newly
proposed Sec.  390.32 and eliminate references to outdated
recordkeeping and reporting methods throughout the Agency's
regulations. For further description of the proposed changes, please
see the Section-by-Section Analysis in Part V of this preamble.

IV. Legal Basis for the Rulemaking

    The Motor Carrier Safety Act of 1984 (Pub. L. 98-554, Title II, 98
Stat. 2832, October 30, 1984) (the 1984 Act) provides authority to
regulate drivers, motor carriers, and vehicle equipment. Section 211 of
the 1984 Act grants the

Secretary broad power, in carrying out motor carrier safety statutes
and regulations, to ``prescribe recordkeeping and reporting
requirements'' and to ``perform other acts the Secretary considers
appropriate'' (49 U.S.C. 31133(a)(8) and (10)). The FMCSA Administrator
has been delegated authority under 49 CFR 1.86(f) to carry out the
functions vested in the Secretary of Transportation by 49 U.S.C.
chapter 311, subchapters I and III, relating to commercial motor
vehicle programs and safety regulation.
    Two Federal statutes govern the Agency's implementation of
electronic document and signature requirements. The GPEA (Title XVII
(Sec. 1701-1710) of Public Law 105-277, 112 Stat. 2681-749, 44 U.S.C.
3504 note) was enacted on October 21, 1998, to improve customer service
and governmental efficiency through the use of information technology.
E-SIGN (Pub. L. 106-229, 114 Stat. 464, 15 U.S.C. 7001-7031) was signed
into law on June 30, 2000. E-SIGN was designed to promote the use of
electronic contract formation, signatures, and recordkeeping in private
commerce by establishing legal equivalence between traditional paper-
based methods and electronic methods.
    The GPEA defines an electronic signature as a method of signing an
electronic communication that: (a) Identifies and authenticates a
particular person as the source of the electronic communication; and
(b) indicates such person's approval of the information contained in
the electronic communication (section 1710(1)). It also requires
Federal agencies to provide individuals and entities the options of:
(a) Submitting information or transacting with the agency
electronically; and (b) using electronic records retention when
practicable. The GPEA states that electronic records and their related
electronic signatures shall not be denied legal effect, validity or
enforceability merely because they are in electronic form. It also
encourages agencies to use electronic signature alternatives (sections
1704, 1707).
    For any transaction in or affecting interstate or foreign commerce,
E-SIGN supersedes all pre-existing requirements that paper records be
kept so long as: (a) Such records are generated in commercial,
consumer, and business transactions between private parties; and (b)
those parties consent to using electronic methods. Specifically, the
statute establishes the legal equivalence for the following types of
documents, whether in traditional paper or electronic form: (a)
Contracts, (b) signatures, and (c) other legally-required documents (15
U.S.C. 7001(a)(1)).
    In response to Presidential E.O. 13563, issued January 18, 2011,
``Improving Regulation and Regulatory Review'' (76 FR 3821, January 21,
2011), DOT published a request for comments in the Federal Register (76
FR 8940, February 16, 2011). It requested comments on a plan for
reviewing existing rules, as well as identification of existing rules
that DOT should review because they may be outmoded, ineffective,
insufficient, or excessively burdensome. As a result of that notice and
review, this amendment to regulations was placed on the list of
opportunities to relieve the public burden.

V. Section-by-Section Analysis

A. Part 370

49 CFR 370.3
    The Agency proposes non-substantive changes to this section to
conform to the proposed definition of ``written or in writing'' at
Sec.  390.5, which would eliminate the distinction between paper and
electronic methods of communication. Currently, Sec.  370.3
distinguishes between ``written'' and ``electronic'' communications;
however, under the proposed definition of ``written or in writing,''
there is no such distinction. The proposed changes would incorporate
both paper-based and electronic communications into the meaning of the
terms ``written or in writing.'' Thus, ``written'' documentation could
mean written on paper or written electronically.
    In today's commercial and legal environment, the term ``written''
no longer necessarily means ``on paper.'' To the contrary, it can mean
paper-based or electronic communications. Because ``written or in
writing'' would mean either paper or electronic communications, FMCSA
proposes to remove reference to electronic methods to eliminate
redundancy and confusion. These changes would not mean, however, that
parties are prohibited from using electronic methods. All parties would
remain free to conduct their business using either paper or electronic
means of documentation and communication.
49 CFR 370.5
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  370.5.
49 CFR 370.9
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  370.9.

B. Part 371

49 CFR 371.109
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  371.109.
49 CFR 371.111
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  371.111.

C. Part 373

    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  373.103. In addition, FMCSA
proposes to remove references to ``original'' documents to reflect the
practical reality that there is no real distinction between originals
and copies of electronic documents. Moreover, these changes conform to
the proposed changes at Sec.  390.31 which permit parties to maintain
accurate copies in lieu of originals. FMCSA has determined that in
today's commercial and legal environment, it does not need access to
these original documents in order to discharge its regulatory
responsibilities as long as the parties maintain accurate copies that
otherwise meet the Agency's requirements.

D. Part 375

49 CFR 375.209
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation in Sec.  375.209.
49 CFR 375.213
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation in Sec.  375.213.
49 CFR 375.505
    The proposed changes to Sec.  375.505 would make clear that when a
household goods motor carrier transports a shipment on a collection-
delivery basis, notification of the charges can be made using the
following methods of communication: fax, email, overnight courier, and
certified mail, or return receipt requested.

E. Part 376

49 CFR 376.11
    Currently, Sec.  376.11(b)(1) includes outdated language specifying
that receipts for leased equipment may be transmitted by mail,
telegraph, or similar means of communication. FMCSA proposes to amend
this section by removing all reference to the method of transmitting
receipts, thereby leaving the parties the freedom to choose their own
medium of communication.
    In paragraph (d)(1), FMCSA proposes to eliminate reference to
``papers,'' replacing the term with the word ``documents.'' This change
recognizes that the records this section requires motor carriers to
maintain may be generated or maintained using traditional paper or
electronic methods and eliminates any suggestion that the documentation
must be in paper form.
49 CFR 376.12
    In paragraph (f) of Sec.  376.12, FMCSA proposes to eliminate
references to ``paperwork,'' replacing the term with the word
``documentation,'' for the same reasons explained in the discussion of
Sec.  376.11(d)(1), above.
    In paragraph (g), FMCSA proposes to eliminate outdated references
to computer generated documents to eliminate the distinction between
electronic and manually generated documents. In today's business and
legal environment, there is no need to afford special treatment to
computer generated documentation; eliminating this special treatment
establishes technological neutrality in this section. These changes
would not mean, however, that parties are prohibited from using
computers to generate the documents required in this section. To the
contrary, all parties would remain free to conduct their business using
the technology they choose, as long as it otherwise meets the Agency's
requirements.
    In paragraph (l), FMCSA proposes to eliminate references to
originals and copies of documents for the same reasons explained in the
discussion of Sec.  373.103, above.

F. Part 378

49 CFR 378.3
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
communication in Sec.  378.3.
49 CFR 378.4
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  378.4.
49 CFR 378.5
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
communication in Sec.  378.5.
49 CFR 378.6
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation in Sec.  378.6.
49 CFR 378.7
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  378.7.
49 CFR 378.8
    For the same reasons explained in the discussion of Sec.  370.3,
FMCSA proposes to remove references to electronic methods of
documentation and communication in Sec.  378.8.

G. Part 379

49 CFR 379.5
    Section 379.5 requires motor carriers to protect records required
under FMCSA's regulations from damage or loss. The current language in
paragraph (a) is outdated in that it refers to physical damage that
generally applies only to paper records. FMCSA proposes to update this
paragraph by changing it to require motor carriers to protect records
against destruction, deterioration, and data corruption. This change
reflects the importance of maintaining the integrity of records
regardless of the method used to maintain them.
49 CFR 379.7
    Section 379.7 currently contains outdated record preservation
language that does not take into account the use of computers and
modern technology. FMCSA proposes to replace this language with new
language that permits companies to preserve records using any
technology that accurately reflects all of the information in the
record and remains accessible for later use in accordance with the
Agency's record keeping requirements. These proposed changes conform to
the requirements for electronic methods proposed in new Sec.  390.32.
49 CFR part 379 Appendix A
    FMCSA proposes to eliminate references to ``papers'' in Appendix A,
replacing the term with the word ``documents'' for the same reasons
explained in the discussion of Sec.  376.11(d)(1), above.

H. Part 387

49 CFR 387.7
    Paragraph (b)(1) of Sec.  387.7 requires insurers and motor
carriers to give 35 days' notice prior to cancelling the financial
responsibility policies required in Sec.  387.9. Currently, this
section establishes mail as the only method of communicating
cancellations. FMCSA proposes to amend this section by replacing the
word ``mailed'' with the more technologically neutral term
``transmitted,'' and ``Proof of mailing'' with ``Proof of transmittal''
thus establishing parity between mailing and other methods of
transmission as proof of cancellation.
49 CFR 387.31
    FMCSA proposes to amend Sec.  387.31(b)(1) by replacing the term
``mailed'' with ``transmitted,'' and ``Proof of mailing'' with ``Proof
of transmittal''for the reasons explained in the discussion of Sec.
387.7, above.

I. Part 389

49 CFR 389.19
    Currently, Sec.  389.19 requires members of the public who submit a
petition for an extention of time within which to submit comments to a
rulemaking to do so in duplicate. This language is outdated because
members of the public have the option of submitting electronic or paper
petitions and there is no need to submit multiple electronic copies. In
addition, FMCSA no longer requires multiple paper copies to process
these requests. As a result, FMCSA proposes to eliminate the
requirement that these petitions be filed in duplicate.
49 CFR 389.21
    Currently, Sec.  389.21 requires members of the public who wish to
comment on a rulemaking to submit five copies of those comments. For
the reasons explained in the discussion of Sec.  389.19, above, FMCSA
proposes to eliminate the requirement that multiple copies be filed.
49 CFR 389.31
    Currently, Sec.  389.31(b)(1) requires members of the public to
submit petitions for rulemaking in duplicate. For the reasons explained
in the discussion of Sec.  389.19, above, FMCSA proposes to eliminate
the requirement that multiple copies be filed.

49 CFR 389.35
    Currently Sec.  389.35 requires members of the public to submit
five copies of a petition for reconsideration. For the reasons
explained in the discussion of Sec.  389.19, above, FMCSA proposes to
eliminate the requirement that multiple copies be filed.

J. Part 390

49 CFR 390.5
    FMCSA proposes to add a definition of ``written or in writing'' to
Sec.  390.5. The new definition would be technologically neutral and
would include anything typed, handwritten, or printed on a tangible
medium, such as paper, as well as anything typed or generated
electronically, as long as it otherwise meets the new standards
proposed in Sec.  390.32. This definition would establish technological
neutrality through the Federal Motor Carrier Safety Regulations
(FMCSRs) and eliminate any distinction between paper and electronic
documentation as being ``written or in writing.''
49 CFR 390.7
    FMCSA proposes to remove the outdated explanation of the term
``writing'' from the rules of construction in Sec.  390.7(b)(2). As
explained above, FMCSA proposes to include a new definition of
``written or in writing'' in Sec.  390.5.
49 CFR 390.31
    Revised Sec.  390.31 would permit persons or entities subject to
document retention requirements to keep copies in lieu of originals.
This change would remove reference to microfilm as the only acceptable
method for storing such copies. It would also remove the prohibition on
using computer technology to maintain documents with signatures. This
change would provide the flexibility to choose the type of
recordkeeping and storage that best suits a person's or entity's
capacities and business needs. To comply with the requirements of this
section, copies must be legible; anyone entitled to inspect them must
be able to view and read the content required to be in the record. The
requirement that the Agency be able to inspect records applies
regardless of whether the copy is in paper or electronic form.
49 CFR 390.32
    New Sec.  390.32 would permit any person or entity to use
electronic methods to comply with any provision in chapter III of
subtitle B of title 49, Code of Federal Regulations (49 CFR parts 300-
399) that requires a document to be signed, certified, generated,
maintained or exchanged. It would apply to all forms of written
documentation, including forms, records, notations and other documents.
This would establish parity between paper and electronic documents and
signatures, greatly expanding interested parties' ability to use
electronic methods to comply with FMCSA's requirements.
    Paragraph (a) would specify that the rule would apply only to
documents that FMCSA requires entities or individuals to retain,
regardless of whether the Agency subsequently requires them to be
produced or displayed at the request of an FMCSA official or other
parties entitled to access. It would not apply to documents that
individuals or entities are required to file directly with the Agency.
For more information about electronic filing methods for documents
filed directly with FMCSA, interested parties can consult specific
program information on FMCSA's Web site (www.fmcsa.dot.gov).
    Paragraph (b) would permit, but not require, anyone to satisfy
FMCSA requirements by using electronic methods to generate, maintain or
exchange documents. The substance of the document would otherwise have
to comply with applicable Federal laws and Agency rules.
    Paragraph (c) would permit, but not require, anyone required to
sign or certify a document to do so using electronic signatures. The
rule would define an electronic signature as a method of signing an
electronic communication that: (1) Identifies and authenticates a
particular person as the source of the electronic communication; and
(2) indicates such person's approval of the information contained in
the electronic communication. The rule would specify that a person may
use any available technology so long as the signature otherwise
complies with FMCSA's requirements.
    Paragraph (d) would establish the minimum requirements for
electronic documents and signatures. Any electronic document or
signature would be considered the legal equivalent of a paper document
or signature if it is the functional equivalent with respect to
integrity, accuracy and accessibility. In other words, the electronic
documents or signatures would have to be legible as well as accurately
and reliably reflect the information in the record. They would have to
remain accessible in a form that could be accurately viewed or
reproduced according to Agency rules.
    Electronic documents would not be considered the legal equivalent
of traditional paper documents if they are not capable of being
retained and accurately reproduced for reference by any individual or
entity entitled to access by law, for the period of time required by
the Agency's recordkeeping requirements. For example, if Agency rules
require that a document be produced upon demand, the individual or
entity must be able to provide the Agency with an accurate copy of the
electronic record upon demand. Similarly, if Agency rules require that
a document be produced to the Agency within 48 hours, the individual or
entity would have to provide the Agency with an accurate copy of the
electronic record within 48 hours. The person inspecting the document
must be able to view and read the content of that electronic record. As
with any documents, paper or electronic, documents that are not
legible--for any reason--do not satisfy the Agency's requirements.
    This proposed rule would not apply to other agencies' rules, even
if FMCSA requires compliance with those rules. For example, some of
FMCSA's regulations cross-reference other agencies' rules, such as
those related to drug and alcohol testing (49 CFR part 40) and
hazardous materials (49 CFR parts 105-109). This proposed rule would
not apply to those requirements. In addition, if a motor carrier is
operating in a foreign country, it must follow the rules that apply in
that country.

K. Part 391

    Currently, 49 CFR 391.55 requires each motor carrier to maintain a
``photographic'' copy of a Longer Combination Vehicle driver-
instructor's commercial driver's license. But current technology for
reproducing documents is not limited to photographic methods; other
methods for capturing digital images also exist. As a result, FMCSA
proposes to remove the word ``photographic'' to make this section
technologically neutral. Motor carriers would still be required to
maintain a copy of the Longer Combination Vehicle driver-instructor's
commercial driver's license, but they would be free to choose the
method of making that copy.

L. Part 395

49 CFR 395.8
    Currently, Sec.  395.8(f)(2) requires that records of duty status
(RODS) be made in the driver's own handwriting. Recognizing that many
drivers and motor carriers prefer to use electronic RODS, including
electronic signatures, FMCSA proposes to remove the requirement that
RODS be in the driver's own handwriting. But drivers would still be
required to make their

own entries; and those entries would have to be legible, regardless of
the medium used to record them. This change would permit drivers to
choose whether to use electronic or handwritten entries and signatures.
For example, a driver could make RODS entries in his or her own
handwriting with a handwritten signature; electronically with an
electronic signature; or typed and printed with a handwritten
signature.
    Currently, paragraph (i) requires drivers to submit or mail their
RODS to employers within 13 days. Recognizing that many drivers and
motor carriers prefer to use electronic or other methods to submit
RODS, FMCSA proposes to remove the reference to mail. Drivers would
still be required to submit RODS to employers within 13 days, however,
they would be free to choose the method of submission as long as the
documents submitted otherwise meet FMCSA's requirements.
49 CFR 395.15
    Currently, Sec.  395.15 (b)(2) permits use of automatic on-board
recording devices (AOBRDs) in conjunction with handwritten or printed
RODS. Recognizing that many drivers and motor carriers prefer to use
electronic means of recording duty status, FMCSA proposes to remove
reference to handwritten or printed RODS. The proposed changes would
permit drivers and motor carriers to use RODS maintained in other media
in conjunction with AOBRDs as long as they otherwise meet FMCSA's
requirements.
    Currently, paragraph (b)(4) requires a driver to have the previous
7 consecutive days of RODS available for inspection and specifies that
those RODS can be from an AOBRD, handwritten records, computer
generated records, or any combination thereof. FMCSA proposes to make
this section technologically neutral by removing reference to
handwritten and computer generated records. Drivers would still be
permitted to use handwritten or computer generated records, but they
would be free to choose any medium for maintaining these records that
otherwise meets FMCSA's requirements.
    Currently, paragraph (b)(5) references ``hard copies'' of the RODS
documents described in paragraph (b)(4). FMCSA proposes to remove
reference to ``hard copies'' for the same reasons explained in the
discussion of paragraph (b)(4), above.
    In paragraph (e), FMCSA proposes to remove the requirement that
RODS be made in a driver's own handwriting for the reasons explained in
the discussion of Sec.  395.8(f)(2), above.
    In paragraph (f), FMCSA proposes to remove the requirement that
RODS be made in a driver's own handwriting for the reasons explained in
the discussion of Sec.  395.8(f)(2), above.
    In paragraph (h), FMCSA proposes to remove the requirement that
RODS be submitted to employers via mail for the same reasons explained
in the discussion of Sec.  395.8(i), above.
    In the introduction to paragraph (i), FMCSA proposes to remove
reference to handwritten RODS for the reasons explained in the
discussion of Sec.  395.8(f)(2), above. In paragraphs (i)(4) and (7),
FMCSA proposes to remove outdated language applicable to AOBRDs
installed before October 31, 1988. FMCSA does not believe that AOBRDs
installed before this date are still in use. As such, this language is
no longer necessary.

M. Part 396

49 CFR 396.11
    FMCSA proposes to remove all uses of the word ``original'' in this
section for the reasons explained in the discussion of Sec.  373.103,
above.
49 CFR 396.12
    FMCSA proposes to remove the word ``original'' in this section for
the reasons explained in the discussion of Sec.  373.103, above.

N. Part 398

    FMCSA proposes to remove the requirement in 49 CFR 398.3 that
certain documents must be ``photographically reproduced'' for the same
reasons explained in the discussion of Sec.  391.55, above.

VI. Rulemaking Analysis

E.O. 12866 (Regulatory Planning and Review and DOT Regulatory Policies
and Procedures as Supplemented by E.O. 13563)

    FMCSA has determined that this action is not a ``significant
regulatory action'' under E.O. 12866 as supplemented by E.O. 13563 (76
FR 3821, January 18, 2011), or within the meaning of the DOT regulatory
policies and procedures (44 FR 1103, February 26, 1979). The Agency
believes that this proposed rule would not impose new costs on the
industry since carriers are allowed to choose to continue to handle
documents as they had before. The proposed rule would not impose new
requirements on the industry; it would simply codify existing
regulatory guidance and remove outdated and obsolete references in the
regulatory text. The benefits of the rule would stem from savings in
paper and printing expense and other efficiency gains. Examples of
documents affected by this rule are vehicle maintenance records, driver
qualification files, and business records. There is no way to estimate
how many carriers would change their practices given the options, or
how many documents would be affected. Neither the benefits nor the
costs of this rule can be reliably estimated. The Agency does not
believe that the economic costs of the rule, if any, would exceed the
$100 million threshold for economic significance. It is clear, however,
that this proposed rule would be expected to provide considerable
flexibility and relief to the industry.

Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.)
requires Federal agencies to consider the effects of the regulatory
action on small business and other small entities and to minimize any
significant economic impact. The term ``small entities'' comprises
small businesses and not-for-profit organizations that are
independently owned and operated and are not dominant in their fields,
and governmental jurisdictions with a population of less than 50,000.
    Accordingly, DOT policy requires an analysis of the impact of all
regulations on small entities, and mandates that agencies strive to
lessen any adverse effects on these businesses. Under the Regulatory
Flexibility Act, as amended by the Small Business Regulatory
Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857), the
proposed rule is not expected to have a significant economic impact on
a substantial number of small entities. Consequently, I certify the
proposed action would not have a significant economic impact on a
substantial number of small entities. FMCSA invites comment from
members of the public who believe there will be a significant impact
either on small businesses or on governmental jurisdictions with a
population of less than 50,000.

Assistance for Small Entities

    Under section 213(a) of the Small Business Regulatory Enforcement
Fairness Act of 1996 (Pub. L. 104-121), FMCSA wants to assist small
entities in understanding this proposed rule so that they can better
evaluate its effects on them and participate in the rulemaking
initiative. If the proposed rule would affect your small business,
organization, or governmental jurisdiction and you have questions
concerning its provisions or options for compliance,

please consult the FMCSA point of contact, Genevieve Sapir, listed in
the FOR FURTHER INFORMATION CONTACT section of this proposed rule.

Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538)
requires Federal agencies to assess the effects of their discretionary
regulatory actions. In particular, the Act addresses actions that may
result in the expenditure by a State, local, or tribal government, in
the aggregate, or by the private sector of $151.0 million (which is the
2012 value of $100 million in 1995 dollars after adjusting for
inflation) or more in any 1 year. As far as determined, this proposed
rule would not result in any such expenditure.

National Environmental Policy Act and Clean Air Act

    FMCSA analyzed this NPRM for the purpose of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and
determined under its environmental procedures Order 5610.1, published
February 24, 2004 (69 FR 9680), that this proposed action does not have
any effect on the quality of the environment. Therefore, this NPRM is
categorically excluded from further analysis and documentation in an
environmental assessment or environmental impact statement under FMCSA
Order 5610.1, paragraphs 6(q) and (y). A Categorical Exclusion
determination is available for inspection or copying in the
regulations.gov Web site listed under ADDRESSES.
    In addition to the NEPA requirements, the Clean Air Act (CAA) as
amended (42 U.S.C. 7401 et seq.) also requires FMCSA to analyze the
potential impact of its actions on air quality and to ensure that FMCSA
actions conform to State and local air quality implementation plans. No
additional contributions to air emissions are expected from this
proposed rule, and FMCSA expects the rule to not be subject to the
Environmental Protection Agency's General Conformity Rule (40 CFR parts
51 and 93).
    FMCSA seeks comment on these determinations.

E.O. 12898 (Environmental Justice)

    FMCSA evaluated the environmental effects of this proposed rule in
accordance with E.O. 12898 and determined that there are no
environmental justice issues associated with its provisions nor any
collective environmental impact resulting from its promulgation.
Environmental justice issues would be raised if there were
``disproportionate'' and ``high and adverse impact'' on minority or
low-income populations. None of the alternatives analyzed in the
Agency's environmental assessment, discussed under National
Environmental Policy Act, would result in high and adverse
environmental impacts.

Paperwork Reduction Act

    This proposed rule would call for no new collection of information
under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The
rulemaking would likely provide a reduction in information collections.
However,the Agency is unable to calculate those reductions because
there is no way to estimate how many carriers would change their
practices given the option and how many documents that would affect.
The Agency requests comments on this issue.

E.O. 12630 (Taking of Private Property)

    This rule does not effect a taking of private property or otherwise
have taking implications under E.O. 12630, Governmental Actions and
Interference with Constitutionally Protected Property Rights.

E.O. 12988 (Civil Justice Reform)

    This rule meets applicable standards in sections 3(a) and 3(b)(2)
of E.O. 12988, Civil Justice Reform, to minimize litigation, eliminate
ambiguity, and reduce burden.

E.O. 13045 (Protection of Children)

    E.O. 13045, ``Protection of Children from Environmental Health
Risks and Safety Risks'' (April 23, 1997, 62 FR 19885), requires that
agencies issuing economically significant rules, which also concern an
environmental health or safety risk that an Agency has reason to
believe may disproportionately affect children, must include an
evaluation of the environmental health and safety effects of the
regulation on children. Section 5 of E.O. 13045 directs an Agency to
submit for a covered regulatory action an evaluation of its
environmental health or safety effects on children. The FMCSA has
determined that this rule is not a covered regulatory action as defined
under E.O. 13045. This determination is based on the fact that this
proposal would not constitute an environmental health risk or safety
risk that would disproportionately affect children.

E.O. 13132 (Federalism)

    A rule has implications for federalism under E.O. 13132,
Federalism, if it has a substantial direct effect on State or local
governments and would either preempt State law or impose a substantial
direct cost of compliance on States or localities. FMCSA has analyzed
this rule under that Order and has determined that it does not have
implications for federalism.

E.O. 12372 (Intergovernmental Review)

    The regulations implementing E.O. 12372 regarding intergovernmental
consultation on Federal programs and activities do not apply to this
program.

E.O. 13175 (Consultation and Coordination With Indian Tribal
Governments)

    FMCSA analyzed this rulemaking in accordance with the principles
and criteria in E.O. 13175, Consultation and Coordination With Indian
Tribal Governments. This rulemaking is required by law and does not
significantly or uniquely affect the communities of the Indian tribal
governments or impose substantial direct compliance costs on tribal
governments. Thus, the funding and consultation requirements of E.O.
13175 do not apply and no tribal summary impact statement is required.

E.O. 13211 (Energy Supply, Distribution, or Use)

    The FMCSA has analyzed this rule under E.O. 13211, ``Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use.'' This proposed rule is not a significant energy
action within the meaning of section 4(b) of the E.O. This proposed
rule is a procedural action, is not economically significant, and does
not have a significant adverse effect on the supply, distribution, or
use of energy.

Privacy Impact Assessment

    Section 522 of title I of division H of the Consolidated
Appropriations Act, 2005, enacted December 8, 2004 (Pub. L. 108-447,
118 Stat. 2809, 3268, 5 U.S.C. 552a note), requires the Agency to
conduct a privacy impact assessment of a regulation that will affect
the privacy of individuals. This proposed rule would not require the
collection of any personally identifiable information.
    The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies
and any non-Federal agency which receives records contained in a system
of records from a Federal agency for use in a matching program. FMCSA
has determined this proposed rule would not result in a new or revised
Privacy Act System of Records for FMCSA.

E-Government Act of 2002

    The E-Government Act of 2002, Public Law 107-347, section 208, 116
Stat. 2899, 2921 (Dec. 17, 2002),

requires Federal agencies to conduct a privacy impact assessment for
new or substantially changed technology that collects, maintains, or
disseminates information in an identifiable form. No new or
substantially changed technology would collect, maintain, or
disseminate information as a result of this rule. As a result, FMCSA
has not conducted a privacy impact assessment.

National Technology Transfer and Advancement Act (Technical Standards)

    The National Technology Transfer and Advancement Act (NTTAA) (15
U.S.C. 272 note) directs agencies to use voluntary consensus standards
in their regulatory activities unless the agency provides Congress,
through OMB, with an explanation of why using these standards would be
inconsistent with applicable law or otherwise impractical. Voluntary
consensus standards (e.g., specifications of materials, performance,
design, or operation; test methods; sampling procedures; and related
management systems practices) are standards that are developed or
adopted by voluntary consensus standards bodies. This proposed rule
does not use technical standards. Therefore, we did not consider the
use of voluntary consensus standards.

List of Subjects

49 CFR Part 370

    Freight forwarders, Investigations, Motor carriers.

49 CFR Part 371

    Brokers, Motor carriers, Reporting and recordkeeping requirements.

49 CFR Part 373

    Buses, Freight, Freight forwarders, Motor carriers, Moving of
household goods.

49 CFR Part 375

    Advertising, Consumer protection, Freight, Highways and roads,
Insurance, Motor carriers, Moving of household goods, Reporting and
recordkeeping requirements.

49 CFR Part 376

    Motor carriers, Reporting and recordkeeping requirements.

49 CFR Part 378

    Freight forwarders, Investigations, Motor carriers, Moving of
household goods.

49 CFR Part 379

    Freight forwarders, Maritime carriers, Motor carriers, Moving of
household goods, Reporting and recordkeeping requirements.

49 CFR Part 387

    Buses, Freight, Freight forwarders, Hazardous materials
transportation, Highway safety, Insurance, Intergovernmental relations,
Motor carriers, Motor vehicle safety, Moving of household goods,
Penalties, Reporting and recordkeeping requirements, Surety bonds.

49 CFR Part 389

    Administrative practice and procedure, Highway safety, Motor
carriers, Motor vehicle safety.

49 CFR Part 390

    Highway safety, Intermodal transportation, Motor carriers, Motor
vehicle safety, Reporting and recordkeeping requirements.

49 CFR Part 391

    Alcohol abuse, Drug abuse, Drug testing, Highway safety, Motor
carriers, Reporting and recordkeeping requirements, Safety,
Transportation.

49 CFR Part 395

    Highway safety, Motor carriers, Reporting and recordkeeping
requirements.

49 CFR Part 396

    Highway safety, Motor carriers, Motor vehicle safety, Reporting and
recordkeeping requirements.

49 CFR Part 398

    Highway safety, Migrant labor, Motor carriers, Motor vehicle
safety, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, FMCSA proposes to amend 49
CFR, chapter III, to read as follows:

PART 370--PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND
VOLUNTARY DISPOSITION OF LOSS AND DAMAGE CLAIMS AND PROCESSING
SALVAGE

0
1. The authority citation for part 370 continues to read as follows:

    Authority:  49 U.S.C. 13301 and 14706; and 49 CFR 1.87.

Sec.  370.3  [Amended]

0
2. Amend Sec.  370.3 as follows:
0
a. Remove the words ``or electronic'' from paragraph (b), and
0
b. Remove the phrase ``where claims are electronically handled,'' from
paragraph (b)(3).

Sec.  370.5  [Amended]

0
3. Amend Sec.  370.5(a) as follows:
0
a. Remove the phrase ``or by electronic transmission'', and
0
b. Remove both instances of the words ``or electronically''.

Sec.  370.9  [Amended]

0
4. Amend Sec.  370.9(a) as follows:
0
a. Remove the phrase ``or electronically transmitted'', and
0
b. Remove both additional instances of the words ``or electronically''.

PART 371--BROKERS OF PROPERTY

0
5. The authority citation for part 371 continues to read as follows:

    Authority:  49 U.S.C. 13301, 13501, and 14122; subtitle B, title
IV of Pub. L. 109-59; and 49 CFR 1.87.

Sec.  371.109  [Amended]

0
6. Amend Sec.  371.109 as follows:
0
a. Remove the last sentence in paragraph (a), and
0
b. Remove the last sentence in paragraph (b).

Sec.  371.111  [Amended]

0
7. Amend Sec.  371.111(c) by removing the words ``electronic or
paper''.

PART 373--RECEIPTS AND BILLS

0
8. The authority citation for part 373 continues to read as follows:

    Authority:  49 U.S.C. 13301, 13531 and 14706; and 49 CFR 1.87.

0
9. Amend Sec.  373.103 by revising the undesignated paragraphs
following paragraphs (a)(11) and (b)(11) to read as follows:

Sec.  373.103  Expense bills.

    (a) * * *
    (11) * * *
    The shipper or receiver owing the charges shall be given the
freight or expense bill and the carrier shall keep a copy as prescribed
at 49 CFR part 379.
    (b) * * *
    (11) * * *
    The carrier shall keep a copy of all expense bills issued for the
period prescribed at 49 CFR part 379. If any expense bill is spoiled,
voided, or unused for any reason, a written record of its disposition
shall be retained for a like period.

PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE;
CONSUMER PROTECTION REGULATIONS

0
10. The authority citation for part 375 continues to read as follows:

    Authority:  49 U.S.C. 13102, 13301, 13501, 13704, 13707, 13902,
14104, 14706, 14708; subtitle B, title IV of Pub. L. 109-59; and 49
CFR 1.87.

0
11. Amend Sec.  375.209 by revising paragraph (b)(3) to read as
follows:

Sec.  375.209  How must I handle complaints and inquires?

* * * * *
    (b) * * *
    (3) A system for recording in writing all inquiries and complaints
received from an individual shipper by any means of communication.
* * * * *

Sec.  375.213  [Amended]

0
12. Amend paragraph (e)(2) of Sec.  375.213 by removing the words
``electronic or paper''.
0
13. Amend Sec.  375.505 by revising paragraph (b)(5) to read as
follows:

Sec.  375.505  Must I write up a bill of lading?

* * * * *
    (b) * * *
    (5) When you transport on a collect-on-delivery basis, the name,
address, and if furnished, the telephone number, fax number, or email
address of a person to notify about the charges. The notification may
be made by fax transmission; email; overnight courier; or certified
mail, return receipt requested.
* * * * *

PART 376--LEASE AND INTERCHANGE OF VEHICLES

0
14. The authority citation for part 376 continues to read as follows:

    Authority:  49 U.S.C. 13301 and 14102; and 49 CFR 1.87.

Sec.  376.11  [Amended]

0
15. Amend Sec.  376.11 as follows:
0
a. Remove the last sentence in paragraph (b)(1);
0
b. Remove the word ``papers'' and add in its place ``documents'' in the
third and fourth sentences of paragraph (d)(1); and
0
c. Remove the words ``or papers'' from the fifth sentence of paragraph
(d)(1).
0
16. Amend Sec.  376.12 by revising paragraphs (f), (g), and (l) to read
as follows:

Sec.  376.12  Written lease requirements.

* * * * *
    (f) Payment period. The lease shall specify that payment to the
lessor shall be made within 15 days after submission of the necessary
delivery documents concerning a trip in the service of the authorized
carrier. The documentation required before the lessor can receive
payment is limited to log books required by the Department of
Transportation and those documents necessary for the authorized carrier
to secure payment from the shipper. In addition, the lease may provide
that, upon termination of the lease agreement, as a condition precedent
to payment, the lessor shall remove all identification devices of the
authorized carrier and, except in the case of identification painted
directly on equipment, return them to the carrier. If the
identification device has been lost or stolen, a letter certifying its
removal will satisfy this requirement. Until this requirement is
complied with, the carrier may withhold final payment. The authorized
carrier may require the submission of additional documents by the
lessor but not as a prerequisite to payment. Payment to the lessor
shall not be made contingent upon submission of a bill of lading to
which no exceptions have been taken. The authorized carrier shall not
set time limits for the submission by the lessor of required delivery
documents.
    (g) Copies of freight bill or other form of freight documentation.
When a lessor's revenue is based on a percentage of the gross revenue
for a shipment, the lease must specify that the authorized carrier will
give the lessor, before or at the time of settlement, a copy of the
rated freight bill, or, in the case of contract carriers, any other
form of documentation actually used for a shipment containing the same
information that would appear on a rated freight bill. Regardless of
the method of compensation, the lease must permit lessor to examine
copies of the carrier's tariff or, in the case of contract carriers,
other documents from which rates and charges are computed, provided
that where rates and charges are computed from a contract of a contract
carrier, only those portions of the contract containing the same
information that would appear on a rated freight bill need be
disclosed. The authorized carrier may delete the names of shippers and
consignees shown on the freight bill or other form of documentation.
* * * * *
    (l) Copies of the lease. The parties must sign the lease. The
authorized carrier shall keep a copy and shall place another copy of
the lease on the equipment during the period of the lease unless a
statement as provided for in Sec.  376.11(c)(2) is carried on the
equipment instead. The owner of the equipment shall keep a copy of the
lease.
* * * * *

PART 378--PROCEDURES GOVERNING THE PROCESSING, INVESTIGATION, AND
DISPOSITION OF OVERCHARGE, DUPLICATE PAYMENT, OR OVERCOLLECTION
CLAIMS

0
17. The authority citation for part 378 continues to read as follows:

    Authority:  49 U.S.C. 13321, 14101, 14704 and 14705; and 49 CFR
1.87.

Sec.  378.3  [Amended]

0
18. Amend Sec.  378.3(a) by removing the words ``or electronically
communicated (when agreed to by the carrier and shipper or receiver
involved)'' from the first sentence.
0
19. Amend Sec.  378.4 by revising the introductory text of paragraph
(b) and paragraph (c) to read as follows:

Sec.  378.4  Documentation of claims.

* * * * *
    (b) Claims for overcharge shall be accompanied by the original
freight bill. Additional information may include, but is not limited
to, the following:
* * * * *
    (c) Claims for duplicate payment and overcollection shall be
accompanied by the original freight bill(s) for which charges were paid
and by freight bill payment information.
* * * * *

Sec.  378.5  [Amended]

0
20. Amend Sec.  378.5(c) by removing the words ``or electronically
transmitted''.

Sec.  378.6  [Amended]

0
21. Amend Sec.  378.6 by removing the words ``or electronic''.
0
22. Revise Sec.  378.7 to read as follows:

Sec.  378.7  Acknowledgment of claims.

    Upon receipt of a written claim, the carrier shall acknowledge its
receipt in writing to the claimant within 30 days after the date of
receipt except when the carrier shall have paid or declined in writing
within that period. The carrier shall include the date of receipt in
its written claim which shall be placed in the file for that claim.
0
23. Revise Sec.  378.8 to read as follows:

Sec.  378.8  Disposition of claims.

    The processing carrier shall pay, decline to pay, or settle each
written claim within 60 days after its receipt by that carrier, except
where the claimant and the carrier agree in writing to a specific
extension based upon extenuating circumstances. If the carrier declines
to pay a claim or makes settlement in an amount different from that
sought, the carrier shall notify the claimant in writing of the
reason(s) for its action, citing tariff authority or other

pertinent information developed as a result of its investigation.

PART 379--PRESERVATION OF RECORDS

0
24. The authority citation for part 379 continues to read as follows:

    Authority:  49 U.S.C. 13301, 14122 and 14123; and 49 CFR 1.87.

0
25. Revise Sec.  379.5(a) to read as follows:

Sec.  379.5  Protection and storage of records.

    (a) The company shall protect records subject to this part from
destruction, deterioration, and data corruption.
* * * * *
0
26. Revise Sec.  379.7 to read as follows:

Sec.  379.7  Preservation of records.

    (a) All records may be preserved by any technology that accurately
reflects all of the information in the record and remains accessible in
a form that can be accurately reproduced later for reference.
    (b) Common information, such as instructions, need not be preserved
for each record as long as it is common to all such forms and an
identified specimen of the form is maintained for reference.

Appendix A to Part 379 [Amended]

0
27. Amend Appendix A by removing the word ``papers'' wherever it
appears and adding in its place the word ``documents''.

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR
CARRIERS

0
28. The authority citation for part 387 is revised to read as follows:

    Authority: 49 U.S.C. 13101, 13301, 13906, 13908, 14701, 31138,
and 31139; and 49 CFR 1.87.

0
29. Revise Sec.  387.7(b)(1) to read as follows:

Sec.  387.7  Financial responsibility required.

* * * * *
    (b)(1) Policies of insurance, surety bonds, and endorsements
required under this section shall remain in effect continuously until
terminated. Cancellation may be effected by the insurer or the insured
motor carrier giving 35 days' notice in writing to the other. The 35
days' notice shall commence to run from the date the notice is
transmitted. Proof of transmission shall be sufficient proof of notice.
* * * * *
0
30. Revise Sec.  387.31(b)(1) to read as follows:

Sec.  387.31  Financial responsibility required.

* * * * *
    (b) * * *
    (1) Cancellation may be effected by the insurer or the insured
motor carrier giving 35 days notice in writing to the other. The 35
days notice shall commence to run from the date the notice is
transmitted. Proof of transmission shall be sufficient proof of notice.
* * * * *

Sec.  387.313  [Amended]

0
31. Amend Sec.  387.313(b) by removing the words ``in triplicate''.

PART 389--RULEMAKING PROCEDURES--FEDERAL MOTOR CARRIER SAFETY
REGULATIONS

0
32. The authority citation for part 389 continues to read as follows:

    Authority:  49 U.S.C. 113, 501 et seq., subchapters I and III of
chapter 311, chapter 313, and 31502; 42 U.S.C. 4917; and 49 CFR
1.87.

Sec.  389.19  [Amended]

0
33. Amend Sec.  389.19 by removing the words ``in duplicate''.

Sec.  389.21  [Amended]

0
34. Amend Sec.  389.21 by removing the phrase ``and submitted in five
(5) legible copies, unless the number of copies is specified in the
notice''.

Sec.  389.31  [Amended]

0
35. Amend Sec.  389.31(b)(1) by removing the words ``in duplicate''.

Sec.  389.35  [Amended]

0
36. Amend Sec.  389.35(a) by removing the words ``in five (5) legible
copies''.

PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL

0
37. The authority citation for part 390 continues to read as follows:

    Authority:  49 U.S.C. 504, 508, 31132, 31133, 31136, 31144,
31151, 31502; sec. 114, Pub. L. 103-311, 108 Stat. 1673, 1677-1678;
sec. 212, 217, 229, Pub. L. 106-159, 113 Stat. 1748, 1766, 1767;
sec. 229, Pub. L. 106-159 (as transferred by sec. 4114 and amended
by secs. 4130-4132, Pub. L. 109-59, 119 Stat. 1144, 1726, 1743-
1744); sec. 4136, Pub. L. 109-59, 119 Stat. 114, 1745; sections
32101(d) and 34934, Pub. L. 112-141, 126 Stat. 405, 778, 830; and 49
CFR 1.87.

0
38. Amend Sec.  390.5 by adding a definition of ``Written or in
writing'' in alphabetical order to read as follows:

Sec.  390.5  Definitions.

* * * * *
    Written or in writing means printed, handwritten, or typewritten
either on paper or other tangible medium, or by any method of
electronic documentation that meets the requirements of 49 CFR 390.32.

Sec.  390.7  [Amended]

0
39. Amend Sec.  390.7 by removing paragraph (b)(2) and redesignating
paragraphs (b)(3) through (7) as (b)(2) through (6).
0
40. Revise Sec.  390.31 to read as follows:

Sec.  390.31  Copies of records and documents.

    All records and documents required to be maintained under this
subchapter must be maintained for the periods specified. Except as
otherwise provided, copies that are legible and accurately reflect the
information required to be contained in the record or document may be
maintained in lieu of originals.
0
41. Add a new Sec.  390.32 to read as follows:

Sec.  390.32  Electronic documents and signatures.

    (a) Applicability. This section applies to documents documents that
entities or individuals are required to retain, regardless of whether
FMCSA subsequently requires them to be produced or displayed to FMCSA
staff or other parties entitled to access. This section does not apply
to documents that must be submitted directly to FMCSA.
    (b) Electronic records or documents. Anyone required to generate,
maintain or exchange documents to satisfy requirements in chapter III
of subtitle B of title 49, Code of Federal Regulations (49 CFR parts
300 through 399) may use electronic methods to satisfy those
requirements.
    (c) Electronic signatures. (1) Anyone required to sign or certify a
document to satisfy the requirements of chapter III of subtitle B of
title 49, Code of Federal Regulations (49 CFR parts 300 through 399)
may use an electronic signature.
    (2) An electronic signature is a method of signing an electronic
communication that identifies and authenticates a particular person as
the source of the electronic communication and indicates such person's
approval of the information contained in the electronic communication.
An electronic signature may be made using any available technology that
otherwise satisfies FMCSA's requirements.
    (d) Requirements. Any person or entity may use documents signed,
certified, generated, maintained or exchanged using electronic methods
if the documents accurately reflect the information otherwise required
to be contained in them. Records, documents

or signatures generated, maintained or exchanged using electronic
methods do not satisfy the requirements of this section if they are not
legible or capable of being retained, used for the purpose they were
created for, or accurately reproduced for reference by any party
entitled to access.

PART 391--QUALIFICATIONS OF DRIVERS AND LONGER COMBINATION VEHICLE
(LCV) DRIVER INSTRUCTORS

0
42. The authority citation for part 391 continues to read as follows:

    Authority:  49 U.S.C. 504, 508, 31133, 31136, and 31502; sec.
4007(b) of Pub. L. 102-240, 105 Stat. 1914, 2152; sec. 114 of Pub.
L. 103-311, 108 Stat. 1673, 1677; sec. 215 of Pub. L. 106-159, 113
Stat. 1748, 1767; sec. 32934 of Pub. L. 112-141, 126 Stat. 405, 830;
and 49 CFR 1.87.

Sec.  391.55  [Amended]

0
43. Amend Sec.  391.55(b)(2) by removing the word ``photographic''.

PART 395--HOURS OF SERVICE OF DRIVERS

0
44. The authority citation for part 395 continues to read as follows:

    Authority:  49 U.S.C. 504, 31133, 31136, 31137, and 31502; sec.
113, Pub. L. 103-311, 108 Stat. 1673, 1676; sec. 229, Pub. L. 106-
159 (as transferred by sec. 4115 and amended by secs. 4130-4132,
Pub. L. 109-59, 119 Stat. 1144, 1726, 1743, 1744); sec. 4133, Pub.
L. 109-59, 119 Stat. 1144, 1744; sec. 108, Pub. L. 110-432, 122
Stat. 4860-4866; sec. 32934, Pub. L. 112-141, 126 Stat. 405, 830;
and 49 CFR 1.87.

0
45. Amend Sec.  395.8 by revising paragraphs (f)(2) and (i) to read as
follows:

Sec.  395.8  Driver's record of duty status.

* * * * *
    (f) * * *
    (2) Entries made by driver only. All entries relating to a driver's
duty status must be legible and made by the driver.
* * * * *
    (i) Filing driver's record of duty status. The driver shall submit
the driver's record of duty status to the regular employing motor
carrier within 13 days following completion of the form.
* * * * *
0
46. Amend Sec.  395.15 by revising paragraphs (b)(2), (4), and (5),
(e), (f), (h)(1), (i) introductory text, and (i)(4) and (7) to read as
follows:

Sec.  395.15  Automatic on-board recording devices.

* * * * *
    (b) * * *
    (2) The device shall provide a means whereby authorized Federal,
State, or local officials can immediately check the status of a
driver's hours of service. This information may be used in conjunction
with records of duty status maintained in other media, for the previous
7 days.
* * * * *
    (4) The driver shall have in his/her possession records of duty
status for the previous 7 consecutive days available for inspection
while on duty. These records shall consist of information stored in and
retrievable from the automatic on-board recording device, other written
records, or any combination thereof.
    (5) All copies of other written records of duty status referenced
in paragraph (b)(4) of this section must be signed by the driver. The
driver's signature certifies that the information contained thereon is
true and correct.
* * * * *
    (e) Entries made by driver only. If a driver is required to make
written entries relating to the driver's duty status, such entries must
be made by the driver and be legible.
    (f) Reconstruction of records of duty status. Drivers are required
to note any failure of automatic on-board recording devices, and to
reconstruct the driver's record of duty status for the current day, and
the past 7 days, less any days for which the drivers have records, and
to continue to prepare a written record of all subsequent duty status
until the device is again operational.
* * * * *
    (h) * * *
    (1) The driver shall submit to the employing motor carrier, each
record of the driver's duty status within 13 days following the
completion of each record;
* * * * *
    (i) Performance of recorders. Motor carriers that use automatic on-
board recording devices for recording their drivers' records of duty
status shall ensure that:
* * * * *
    (4) The automatic on-board recording device warns the driver
visually and/or audibly that the device has ceased to function.
* * * * *
    (7) The on-board recording device/system identifies sensor failures
and edited data.
* * * * *

PART 396--INSPECTION, REPAIR, AND MAINTENANCE

0
47. The authority citation for part 396 continues to read as follows:

    Authority:  49 U.S.C. 504, 31133, 31136, 31151, and 31502; sec.
32934, Pub. L. 112-141, 126 Stat. 405, 830; and 49 CFR 1.87.

Sec.  396.11  [Amended]

0
48. Amend Sec.  396.11 by removing the word ``original'' from
paragraphs (a)(3)(ii), (a)(4), (b)(4), and (c)(1) and (2).

Sec.  396.12  [Amended]

0
49. Amend Sec.  396.12 by removing the word ``original'' from paragraph
(d).

PART 398--TRANSPORTATION OF MIGRANT WORKERS

0
50. The authority citation for part 398 continues to read as follows:

    Authority:  49 U.S.C. 13301, 13902, 31132, 31133, 31136, 31502,
and 31504; sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 U.S.C.
701 note); sec. 212, Pub. L. 106-159, 113 Stat. 1748, 1766; and 49
CFR 1.87.

Sec.  398.3  [Amended]

0
51. Amend Sec.  398.3(b)(8) by removing the words ``photographically
reproduced'' wherever they appear.

    Issued under the authority of delegation in 49 CFR 1.87: April
2, 2014.
Anne S. Ferro,
Administrator.
[FR Doc. 2014-09376 Filed 4-25-14; 8:45 am]
BILLING CODE 4910-EX-P


[Federal Register Volume 83, Number 114 (Wednesday, June 13, 2018)]
[Notices]
[Pages 27638-27640]
[FR Doc No: 2018-12647]

=======================================================================
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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-83392; File No. SR-FINRA-2018-022]

Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Tier Size Pilot of Rule 6433
(Minimum Quotation Size Requirements for OTC Equity Securities)

June 7, 2018.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 31, 2018, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission (``SEC''
or ``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by FINRA. FINRA has designated
the proposed rule change as constituting a ``non-controversial'' rule
change under paragraph (f)(6) of Rule 19b-4 under the Act,\3\ which
renders the proposal effective upon receipt of this filing by the
Commission. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    FINRA is proposing to amend FINRA Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity Securities) to extend the Tier Size Pilot,
which currently is scheduled to expire on June 7, 2018, until December
7, 2018.
    The text of the proposed rule change is available on FINRA's
website at http://www.finra.org, at the principal office of FINRA and
at the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    FINRA proposes to amend FINRA Rule 6433 (Minimum Quotation Size
Requirements for OTC Equity Securities) (the ``Rule'') to extend, until
December 7, 2018, the amendments set forth in File No. SR-FINRA-2011-
058 (``Tier Size Pilot'' or ``Pilot''), which currently are scheduled
to expire on June 7, 2018.\4\
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    \4\ See Securities Exchange Act Release No. 82153 (November 22,
2017), 82 FR 56300 (November 28, 2017) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2017-035).
---------------------------------------------------------------------------

    The Tier Size Pilot was filed with the SEC on October 6, 2011,\5\
to amend the minimum quotation sizes (or ``tier sizes'') for OTC Equity
Securities.\6\ The goals of the Pilot were to simplify the tier
structure, facilitate the display of customer limit orders, and expand
the scope of the Rule to apply to additional quoting participants.
During the course of the Pilot, FINRA collected and provided to the SEC
specified data with which to assess the impact of the Pilot tiers on
market quality and limit order display.\7\ On September 13, 2013, FINRA
provided to the Commission an assessment on the operation of the Tier
Size Pilot utilizing data covering the period from November 12, 2012
through June 30, 2013.\8\ As noted in the 2013 Assessment, FINRA
believed that the analysis of the data generally showed that the Tier
Size Pilot had a neutral to positive impact on OTC market quality for
the majority of OTC Equity Securities and tiers; and that there was an
overall increase of 13% in the number of customer limit orders that met
the minimum quotation sizes to be eligible for display under the Pilot
tiers. In the 2013 Assessment, FINRA recommended adopting the tiers as
permanent, but extended the Pilot period to allow more time to gather
and analyze data after the November 12, 2012 through June 30, 2013
assessment period.\9\
---------------------------------------------------------------------------

    \5\ See Securities Exchange Act Release No. 65568 (October 14,
2011), 76 FR 65307 (October 20, 2011) (Notice of Filing of File No.
SR-FINRA-2011-058).
    \6\ ``OTC Equity Security'' means any equity security that is
not an ``NMS stock'' as that term is defined in Rule 600(b)(47) of
SEC Regulation NMS; provided, however, that the term OTC Equity
Security shall not include any Restricted Equity Security. See FINRA
Rule 6420.
    \7\ FINRA ceased collecting Pilot data for submission to the
Commission on February 13, 2015.
    \8\ The assessment is part of the SEC's comment file for SR-
FINRA-2011-058 and also is available on FINRA's website at: http://www.finra.org/Industry/Regulation/RuleFilings/2011/P124615 (``Pilot
Assessment'').
    \9\ See Securities Exchange Act Release No. 70839 (November 8,
2013), 78 FR 68893 (November 15, 2013) (Notice of Filing and
Immediate Effectiveness of File No. SR-FINRA-2013-049).
---------------------------------------------------------------------------

    On April 20, 2018, FINRA proposed a rule change to adopt the pilot
tiers as permanent. The Commission published that proposal in the
Federal Register for notice and comment on May 7, 2018, and the comment
period expired on May 29, 2018.\10\ The Commission received one comment
letter in response to the Proposal.\11\ The purpose of the instant
filing is to extend the operation of the Tier Size Pilot until December
7, 2018, to provide additional time for the Commission to consider
FINRA's proposal to adopt the pilot tiers as permanent and comments
received.
---------------------------------------------------------------------------

    \10\ See Securities Exchange Act Release No. 83129 (April 30,
2018), 83 FR 20131 (May 7, 2018) (Notice of Filing of File No. SR-
FINRA-2018-015).
    \11\ See Letter from Eugene P. Torpey, Chief Compliance Officer,
Vandham Securities Corp., dated May 10, 2018.
---------------------------------------------------------------------------

    FINRA has filed the proposed rule change for immediate
effectiveness. The operative date of the proposed rule change will be
June 7, 2018.
2. Statutory Basis
    FINRA believes that the proposed rule change is consistent with the
provisions of Section 15A(b)(6) of the Act,\12\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA also believes that the proposed rule change is
consistent with the provisions of Section 15A(b)(11) of the Act.\13\
Section 15A(b)(11) requires that FINRA rules include provisions
governing the form and content of quotations relating to securities
sold otherwise than on a national securities exchange which may be
distributed or published by any member or person associated with a
member, and the persons to whom such quotations may be supplied.
---------------------------------------------------------------------------

    \12\ 15 U.S.C. 78o-3(b)(6).
    \13\ 15 U.S.C. 78o-3(b)(11).
---------------------------------------------------------------------------

    FINRA believes that the extension of the Tier Size Pilot until
December 7, 2018, is consistent with the Act in that it would provide
the Commission with additional time to consider FINRA's proposal to
adopt the pilot tiers as permanent and comments received.

B. Self-Regulatory Organization's Statement on Burden on Competition

    FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act.

C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \14\ and Rule 19b-
4(f)(6) thereunder.\15\
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    \14\ 15 U.S.C. 78s(b)(3)(A).
    \15\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires FINRA to give the Commission written notice of its intent
to file the proposed rule change, along with a brief description and
text of the proposed rule change, at least five business days prior
to the date of filing of the proposed rule change, or such shorter
time as designated by the Commission. FINRA has satisfied this
requirement.
---------------------------------------------------------------------------

    A proposed rule change filed under Rule 19b-4(f)(6) \16\ normally
does not become operative prior to 30 days after the date of filing.
However, pursuant to Rule 19b-4(f)(6)(iii),\17\ the Commission may
designate a shorter time if such action is consistent with the
protection of investors and the public interest.
---------------------------------------------------------------------------

    \16\ 17 CFR 240.19b-4(f)(6).
    \17\ 17 CFR 240.19b-4(f)(6)(iii).
---------------------------------------------------------------------------

    The Commission is waiving the 30-day operative delay so that the
proposal may become operative immediately upon filing. The Commission
believes that waiver of the operative delay is consistent with the
protection of investors and the public interest because such waiver
will allow the pilot program to continue without interruption.
Therefore, the Commission

designates the proposal operative upon filing.\18\
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    \18\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------

    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to [email protected]. Please include
File Number SR-FINRA-2018-022 on the subject line.

Paper Comments

     Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.

All submissions should refer to File Number SR-FINRA-2018-022. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (http://www.sec.gov/rules/sro.shtml).
Copies of the submission, all subsequent amendments, all written
statements with respect to the proposed rule change that are filed with
the Commission, and all written communications relating to the 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 website 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 will also be available for inspection
and copying at the principal office of FINRA. All comments received
will be posted without change. Persons submitting comments are
cautioned that we do not redact or edit personal identifying
information from comment submissions. You should submit only
information that you wish to make available publicly. All submissions
should refer to File Number SR-FINRA-2018-022 and should be submitted
on or before July 5, 2018.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\19\
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    \19\ 17 CFR 200.30-3(a)(12).
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Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-12647 Filed 6-12-18; 8:45 am]
 BILLING CODE 8011-01-P