[Code of Federal Regulations]
[Title 49, Volume 8]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR1420.3]

[Page 237-238]
 
                        TITLE 49--TRANSPORTATION
 
     CHAPTER XI--BUREAU OF TRANSPORTATION STATISTICS, DEPARTMENT OF 
                             TRANSPORTATION
 
PART 1420_REPORTS OF MOTOR CARRIERS--Table of Contents
 
Sec. 1420.3  Classification of carriers--motor carriers of passengers.

    (a) Common and contract carriers of passengers are grouped into the 
following two classes:
    Class I--Carriers having average annual gross transportation 
operating revenues (including interstate and intrastate) of $5 million 
or more from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    Class II--Carriers having average annual gross transportation 
operating revenues (including interstate or intrastate) of less than $5 
million from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues after applying the revenue deflator 
formula as shown in the Note. Upward and downward reclassification will 
be effective as of January 1 of the year immediately following the third 
consecutive year of revenue qualification.
    (2) Any carrier which begins new operations (obtains operating 
authority not previously held) or extends its existing authority 
(obtains additional operating rights) shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in the Note.
    (3) When a business combination occurs, such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the year when the combination 
occurred after applying the revenue deflator formula shown in the Note.
    (4) Carriers shall notify the BTS of any change in classification or 
when their annual operating revenues exceed the Class II limit by 
writing to the Bureau of Transportation Statistic at the address in 
Sec. 1420.6. In unusual circumstances where the classification 
regulations and reporting requirements will unduly burden the carrier, 
the carrier may request from the BTS a waiver from these regulations. 
This request shall be in writing specifying the conditions justifying 
the waiver. The BTS then shall notify carriers of any change in 
classification or reporting requirements.

[[Page 238]]

    (c) For classification purposes, the BTS shall publish in the 
Federal Register annually an index number which shall be used for 
adjusting gross annual operating revenues. The index number (deflator) 
is based on the Producer Price Index of Finished Goods and is used to 
eliminate the effects of inflation from the classification process.

    Note: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
them with the dollar revenue limits prescribed in paragraph (a) of this 
section. The PPI is published monthly by the Bureau of Labor Statistics. 
The formula to be applied is as follows:
[GRAPHIC] [TIFF OMITTED] TC03MR91.052


[53 FR 4029, Feb. 11, 1988. Redesignated at 63 FR 52193, Sept. 30, 1998, 
and amended at 68 FR 4719, Jan. 30, 2003]