Mid-Con Freight Systems, Inc. v. Michigan Public Service Commission

545 U.S. 440, 125 S. Ct. 2427, 162 L. Ed. 2d 418, 18 Fla. L. Weekly Fed. S 427, 2005 U.S. LEXIS 4844, 73 U.S.L.W. 4535
Supreme Court of the United States·Decided June 20, 2005·No. 03-1234·Published·Cited by 8 cases

Opinion

Justice Breyer

delivered the opinion of the Court.

This case concerns pre-emption. A Michigan law imposes “an annual fee of $100.00” upon each Michigan license-plated truck that is “operating entirely in interstate commerce.” Mich. Comp. Laws Ann. §478.2(2) (West 2002) (hereinafter MCL). A federal statute states that “a State registration requirement , . . is an unreasonable burden” upon interstate commerce when it imposes so high a fee. 49 U. S. C. § 14504(b) (emphasis added); see also § 14504(e)(2)(B)(iv)(III). Does this federal statutory provision pre-empt the Michigan law? We conclude that the Michigan fee requirement is not the kind of “State registration requirement” to which the federal statute refers. And for that reason, the statute does not pre-empt it.

I

A

Federal law has long required most motor carriers doing interstate business to obtain a permit — which we shall call a Federal Permit — that reflects compliance with certain federal requirements. See 49 U. S. C. § 13901 et seq.; 49 CFR § 365.101 et seq. (2004). In 1965, Congress authorized States to require proof that the operator of an interstate truck had secured a Federal Permit. 49 U. S. C. § 302(b)(2) (1976 ed.); *443 see generally Yellow Transp., Inc. v. Michigan, 537 U. S. 36, 39 (2002). By 1991, 39 States demanded such proof by requiring some form of what we shall call State Registration (of the Federal Permit). Those States typically would require truckers to file with a state agency evidence that each interstate truck was covered by a Federal Permit. They would require the trucker to pay a State Registration fee of up to $10 per truck. And they would issue a State Registration stamp that the trucker would affix to a multistate “bingo card” carried within the vehicle. See 49 CFR §§ 1023.32, 1023.33 (1990); Yellow Transp., 537 U. S., at 39.

In 1991, Congress focused upon the fact that the “bingo card” system required a trucking company to obtain a separate stamp from each State through which an interstate truck traveled. It found this scheme inefficient and burdensome. See id., at 39-40. And it enacted a statute setting forth a new system, the Single State Registration System (SSRS), which remains in effect today. Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA), 49 U. S. C. § 14504. The SSRS allows a trucking company to fill out one set of forms in one State (the base State), and by doing so to register its Federal Permit in every participating State through which its trucks will travel. § 14504(c); 49 CFR § 367.4(b) (2004).

The SSRS statute says that the base State can demand: (1) proof of the trucking company’s possession of a Federal Permit, (2) proof of insurance, (3) the name of an agent designated to receive “service of process,” and (4) a total fee (charged for the filing of the proof of insurance) equal to the sum of the individual state fees. 49 U. S. C. §§ 14604(c)(2)(A)(i)-(iv); 49 CFR §§ 367.4(c)(1)-(4) (2004). Each individual state fee, it adds, cannot exceed the amount the State charged under the “bingo card” system, and in no event can it exceed $10 per truck. 49 U. S. C. § 14504(c) (2)(B)(iv)(III). After a truck owner registers, base state officials provide the owner with a receipt to be kept in the cab *444 of each registered truck. 49 CFR §§ 367.5(a), (b), (e) (2004). The base State distributes to each participating State its share of the total registration fee. § 367.6(a).

The SSRS statute specifies that a State may not impose any additional “registration requirement.” It states specifically, in the statutory sentence at issue here, that when a State Registration requirement imposes further obligations, “the part in excess is an unreasonable burden.” 49 U. S. C. § 14504(b). It adds that a State may not require “decals, stamps, cab cards, or any other means of registering . . . specific vehicles.” § 14504(c)(2)(B)(iii). And it provides that the “charging or collection of any fee under this section that is not in accordance with the fee system established [in this provision] shall be deemed to be a burden on interstate commerce.” § 14504(c)(2)(C). At the same time, the statute makes clear that a State that complies with the SSRS system need not fear Commerce Clause attack, for it says that a state requirement that an interstate truck “must register with the State” is “not an unreasonable burden on transportation,” provided that “the State registration is completed” in accordance with the SSRS statute. § 14504(b).

B

The state law at issue here, §478.2(2) of the Michigan Motor Carrier Act, reads as follows:

“A motor carrier licensed in this state shall pay an annual fee of $100.00 for each vehicle operated by the motor carrier which is registered in this state [i e., which has a Michigan license plate] and operating entirely in interstate commerce.”

Related state rules and regulations require a carrier paying the $100 fee to identify each interstate truck by make, type, year, serial number, and unit number. See Equipment List Form P-344-T, App. to Defendant’s Response to Plaintiffs’ Motion for Summary Disposition in No. 95-15628-CM etc. *445 (Mich. Ct. Cl.) (hereinafter Equipment List Form P-344-T). They also make clear that, upon payment of the fee, the carrier will receive a decal that must be affixed to the truck. App. 24 (Affidavit of Pub. Serv. Comm’n. official Thomas R. Lonergan). And they provide that a carrier who pays this fee need not pay the $10 SSRS registration fee if the carrier chooses Michigan as its SSRS base State. See, e.g., id., at 67, n.; Westlake Transp., Inc. v. Michigan Pub. Serv. Comm’n, 255 Mich. App. 589, 603-604, n. 6, 662 N. W. 2d 784, 790-792, n. 6 (2003); Reply Brief for Petitioners 14-15, n. 8.

C

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Mid-Con Freight Systems, Inc. v. Michigan Public Service Commission, 545 U.S. 440, 125 S. Ct. 2427, 162 L. Ed. 2d 418, 18 Fla. L. Weekly Fed. S 427, 2005 U.S. LEXIS 4844, 73 U.S.L.W. 4535 (2005).

545 U.S. 440 (Mid-Con Freight Systems, Inc. v. Michigan Public Service Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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