[Federal Register Volume 75, Number 202 (Wednesday, October 20, 2010)]
[Notices]
[Pages 64779-64781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-26202]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
[Docket No. FMCSA-2009-0271]
Identification of Interstate Motor Vehicles: New York City, Cook
County, and New Jersey Tax Identification Requirements; Petition for
Determination
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Notice; Grant of petition for determination.
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SUMMARY: The FMCSA grants three petitions submitted by the American
Trucking Associations (ATA) requesting determinations that the
commercial motor vehicle (CMV) identification requirements imposed by
the State of New Jersey, New York City, and Cook County, Illinois are
preempted by Federal law. The Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU) prohibits
States and their political subdivisions from requiring motor carriers
to display in or on CMVs any form of identification other than forms
required by the Secretary of Transportation, with certain exceptions.
FMCSA grants ATA's requests because the three credential display
requirements do not qualify for the relevant statutory exception for
State display of credentials and are preempted by Federal statute.
DATES: This decision is effective October 20, 2010.
[[Page 64780]]
FOR FURTHER INFORMATION CONTACT: Genevieve D. Sapir, Office of the
Chief Counsel, Federal Motor Carrier Safety Administration, 1200 New
Jersey Avenue, SE., Washington, DC 20590, (202) 366-7056; e-mail
[email protected].
SUPPLEMENTARY INFORMATION:
Background
New Jersey's tax code requires all motor carriers hauling,
transporting, or delivering fuel to display a Motor Fuel Transport
License Plate and annual Transport License Certificate. This
requirement applies to all motor carriers hauling, transporting, or
delivering fuel in New Jersey regardless of their State of domicile or
registration. New Jersey Statutes Annotated Sec. 54:39-41 and Sec.
54:39-53. New York City's Administrative Code, Sec. 11-809, requires
CMVs used principally in New York City or in connection with a business
carried on within New York City to pay a tax and display a stamp. The
requirement appears to apply whether or not the CMV is registered to an
address in New York City. Cook County's Code of Ordinances requires
motor vehicle owners residing within the unincorporated area of Cook
County to: (a) Display a window sticker showing payment of fees; and
(b) paint business vehicle identification information on their
vehicles. Article XIV of chapter 74 of the Cook County Code of
Ordinances is referred to as the ``Cook County Wheel Tax on Motor
Vehicles Ordinance.''
Section 4306(a) of SAFETEA-LU, codified at 49 U.S.C. 14506(a),
prohibits States from requiring motor carriers to display in or on CMVs
any form of identification other than forms required by the Secretary
of Transportation. Section 14506(b), however, establishes several
exceptions to this prohibition:
(b) Exception.--Notwithstanding subsection (a), a State may
continue to require display of credentials that are required--
(1) Under the International Registration Plan under section
31704 [of title 49, United States Code];
(2) Under the International Fuel Tax Agreement under section
31705 [of title 49, United States Code];
(3) Under a State law regarding motor vehicle license plates or
other displays that the Secretary determines are appropriate;
(4) In connection with Federal requirements for hazardous
materials transportation under section 5103 [of title 49, United
States Code]; or
(5) In connection with the Federal vehicle inspection standards
under section 31136 [of title 49, United States Code].
The exception relevant to ATA's petitions is Sec. 14506(b)(3),
which provides that ``a State may continue to require display of
credentials that are required * * * under a State law regarding motor
vehicle license plates or other displays that the Secretary determines
are appropriate.'' The Secretary's authority is delegated to FMCSA by
49 CFR 1.73(a)(7).
ATA's petitions seeking determinations, along with the applicable
statutes, regulations, and ordinances, are available for inspection in
the docket established for this notice.
Public Comments
On October 19, 2009, FMCSA published a notice in the Federal
Register, ``Identification of Interstate Motor Vehicles: New York City,
Cook County and New Jersey Tax Identification Requirements; Petition
for Determination'' (74 FR 53578), requesting public comment on ATA's
petitions. In formulating its decision, FMCSA considered all of the
comments received in response to the Agency's notice.
FMCSA received 11 comments, of which 7 were from trade
associations, 3 from motor carriers, and 1 from an individual. All
commenters supported preemption.
ATA and the Distribution and LTL Carriers Association commented
that the credential display requirements are related to revenue raising
and that they do not fall under any of the Sec. 14506(b) exceptions.
Con-way Inc. commented that the credential display requirements are
impediments to interstate commerce. United Parcel Service, Inc. (UPS)
commented that, as an interstate carrier operating in many States, it
finds credential display requirements to be burdensome. UPS further
commented that, although the vehicles in its fleet may be in compliance
with State or local tax, fee, or permit requirements, if its drivers
cannot display the appropriate credential on demand, the company can
nonetheless receive a citation. Martin Storage Co. also commented that
the paperwork associated with State and local credential display
requirements is burdensome. The Truckload Carriers Association and the
Truck Renting and Leasing Association commented that the credential
display requirements are not eligible for the Sec. 14506(b)(3)
exception because they are not related to vehicle registration. The
National Private Truck Council observed that none of the affected
jurisdictions submitted comments to justify the credential display
requirements.
In addition, FMCSA received a letter from the Office of the State's
Attorney of Cook County acknowledging that its credential display
requirement is preempted. This letter is also available for review in
the docket.
FMCSA Decision
New Jersey's tax credential display requirement is a State-mandated
form of identification preempted by 49 U.S.C. 14506(a) and does not
qualify for the exception at Sec. 14506(b)(3). First, it is not an
identification requirement related to motor vehicle license plates.
Even though the credential itself is in the form of a license plate,
its purpose does not relate to State licensing of vehicles. Rather, it
appears to identify those motor carriers, registered in New Jersey or
elsewhere, that have paid State taxes for hauling, transporting, or
delivering motor fuel. Second, New Jersey failed to articulate any
justification for FMCSA to exercise its delegated discretion to approve
the display.
New York City's and Cook County's display requirements are also
preempted by 49 U.S.C. 14506(a) because they are identification
requirements mandated by political subdivisions of a State. However,
the assessment of whether a Sec. 14506(b) exception applies to these
display requirements requires a slightly different analysis. The
prohibition in Sec. 14506(a) specifically applies to States, political
subdivisions of States, interstate agencies and other political
agencies of two or more States, whereas the exceptions in Sec.
14506(b) apply to States without mention of political subdivisions or
agencies. Consequently, the first question the Agency must answer is
whether a Sec. 14506(b) exception can apply to a political subdivision
of a State.
Two possible interpretations exist. One is that Congress intended
for States, political subdivisions of States, interstate agencies and
other political agencies of two or more States to be subject to the
general prohibition on display of identification requirements, but only
intended for States (and not the other subdivisions and agencies) to be
eligible for the exceptions in Sec. 14506(b). The second is that
Congress intended the States, as well as political subdivisions and
agencies, to be eligible for the exceptions and that its omission of
these other entities from Sec. 14506(b) is not evidence of its intent
to exclude them from being eligible for the exception. FMCSA believes
that the latter is the correct interpretation.
In City of Columbus v. Ours Garage & Wrecker Service, 536 U.S. 424
(2002), the Supreme Court considered a provision with nearly identical
language to Sec. 14506 and determined that Congress' exclusion of
political
[[Page 64781]]
subdivisions in the exception was not a sufficiently clear and manifest
indication of its intent to preempt local regulation. In reaching this
conclusion, the Court made two points that guide our analysis and
conclusions here. First, consistent with existing precedent, a
political subdivision may exercise whatever portion of State power the
State chooses to delegate under its own constitution and laws. Id. at
428. Second, if the exception were interpreted to apply only to States,
political subdivisions would be preempted from enforcing laws
legitimately enacted by the State pursuant to the exception. The Court
found it unlikely that Congress would preserve State power to enact
rules but bar routine enforcement through local instrumentalities. Id.
at 435.
The Agency concludes that the exceptions in Sec. 14506(b) can
apply to New York City's and Cook County's credential display
requirements, if they meet the statutory criteria. The only exception
relevant to ATA's petition is found in Sec. 14506(b)(3); however, no
evidence supports the application of this exception to New York City's
and Cook County's credential display requirements. These display
requirements are unrelated to State vehicle licensing requirements, and
neither jurisdiction articulated any justification for the Agency to
exercise its delegated discretion to approve the display. In fact, the
only jurisdiction to respond to the Agency, Cook County, conceded that
its credential display requirements are preempted by Federal law.
In consideration of the above, FMCSA grants the petitions submitted
by ATA. New York City, New Jersey, and Cook County are preempted from
imposing and may no longer enforce their credential display
requirements.
Issued on: October 4, 2010.
Anne S. Ferro,
Administrator.
[FR Doc. 2010-26202 Filed 10-19-10; 8:45 am]
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