National Ass'n of Regulatory Utility Commissioners v. Interstate Commerce Commission

41 F.3d 721, 309 U.S. App. D.C. 325
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 2, 1994
DocketNos. 93-1362, 93-1450
StatusPublished
Cited by71 cases

This text of 41 F.3d 721 (National Ass'n of Regulatory Utility Commissioners v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Ass'n of Regulatory Utility Commissioners v. Interstate Commerce Commission, 41 F.3d 721, 309 U.S. App. D.C. 325 (D.C. Cir. 1994).

Opinion

Opinion for the Court filed by Circuit Judge SILBERMAN.

SILBERMAN, Circuit Judge:

In these consolidated cases, petitioners seek review of several aspects of the Interstate Commerce Commission’s “single-state registration” regulations, which modify the system under which interstate motor carriers register with the states through which they operate their vehicles. We vacate and remand that part of the ICC’s regulations which authorizes motor carriers, rather than the states, to copy the official state-issued receipt that is required by federal law to be carried in each vehicle. We affirm, however, the ICC’s determination to ban states from charging registration fees under the single-state system in excess of preexisting reciprocal discounts, and we dismiss intervenors’ challenge to the ICC’s prohibition on independent state insurance filing requirements as not properly before the court.

I.

State regulation of interstate motor carriers exists as a matter of congressional grace. Early in this century, the Supreme Court held that independent state attempts to impose significant regulatory burdens on interstate motor carriers are inconsistent with the Commerce Clause unless authorized by Congress. See, e.g., Michigan Pub. Util. Comm’n v. Duke, 266 U.S. 570, 577, 45 S.Ct. 191, 193, 69 L.Ed. 445 (1925). With the passage of the Motor Carrier Act of 1935, Pub.L. No. 74-255, 49 Stat. 543, 49 U.S.C. §§ 301 et seq. (1940), Congress provided for limited state regulation of interstate commercial transportation and, through successive statutory amendments, eventually authorized the states to require registration by interstate motor carriers, subject to the supervision of the Interstate Commerce Commission, see 49 U.S.C. § 11506 (1988) (superseded). Recently, in 1991, Congress passed the Intermodal Surface Transportation Efficiency Act (ISTEA), Pub.L. No. 102-240, 105 Stat. 1914, which addressed numerous aspects of national transportation funding and regulation. The Act directed the ICC to reform the then-existing federal regulations governing state licensing and registration procedures for interstate motor carriers. See id. § 4005, 105 Stat. 2146-48, 49 U.S.C. § 11506 (1993). The Commission, after informal notice and comment procedures, issued final regulations implementing a “single-state” registration system. Single-State [724]*724Insurance Registration, 9 I.C.C.2d 610 (1993).

A full understanding of the disputes over the current regulations requires some familiarity with the former state-registration system which they replace, the broad outlines of which were authorized by Congress in 1965. See Pub.L. No. 89-170, 79 Stat. 648, eventually codified at 49 U.S.C. § 11506 (1988) (superseded). Under the prior regime, states could require interstate motor carriers to register annually, for a fee assessed on a per-vehicle basis, and such impositions were not deemed unconstitutional burdens on interstate commerce provided that the state requirements were consistent with uniform provisions set forth in ICC regulations. See 49 C.F.R. Pt. 1023 (1992) (superseded). As proof of annual “registration,” each state that chose to participate in the program issued a stamp for each vehicle, and these stamps were placed in the appropriate state spot on vehicle-specific “bingo cards.” Id. §§ 1023.31-32. Carriers, to get the cards, applied to the National Association of Regulatory Utilities Commissioners (NARUC), an interstate umbrella organization that, as envisioned by Congress, played a role in drafting the regulations that the ICC issued to create the “bingo card” system. 49 U.S.C. § 11506(c)(1) (1988) (superseded).

States were allowed to charge up to $10 for each stamp issued (i.e., for each vehicle registered). 49 C.F.R. § 1023.33 (1992) (superseded). Some states charged less, and some entered into reciprocal arrangements under which they would discount the listed fee for carriers based in each other’s state. As of 1991, 39 states participated in the “bingo card” program, taking in approximately $50 million in aggregate revenues per year. H.R.Conf.Rep. No. 102-404, 102d Cong., 1st Sess. 437 (1991), reprinted in 1991 U.S.Code Cong. & Admin.News, 1526, 1679, 1817. Non-participating states, although prohibited from demanding registration fees (because they did not issue the “bingo stamps” that were the statutory basis for state filing charges), were nonetheless permitted to request insurance filings, such as proof that a carrier was covered by an insurer authorized to do business in the state. Under the “bingo card” regime, officers of participating states were able to determine whether a specific vehicle had been registered (and paid for) simply by requiring the driver to produce his vehicle’s “bingo card” at a roadside stop or weigh station and cheeking whether it had a “bingo stamp” from the state. In this manner, the “bingo card” program helped to ensure that a carrier could not get away with registering (and paying for) only 10 vehicles while in fact operating 20. This system incidentally aided insurers as well. By constraining carriers from operating unregistered vehicles, the “bingo card” system made it more difficult for carriers to operate uninsured vehicles.

This was the system that Congress wished to dismantle and replace. The legislative history makes clear that the ISTEA amendments to § 11506 reflected a compromise between the House and Senate. Initially, only the House bill contained a provision for replacing the “bingo card” program with a system less burdensome for truckers. It would have accomplished this by simply eliminating state registration and the accompanying fees, and provided for a one-time $50 million grant to “bingo” program states to offset unexpected revenue losses during the first year. The Senate bill, by contrast, did not deal with the subject at all. The ISTEA amendments before us emerged from conference, and reflect somewhat inconsistent purposes, seeking both “to benefit the interstate carriers by eliminating unnecessary compliance burdens” and “to preserve revenues for the states which had participated in the bingo program.” H.R.Conf.Rep. No. 102-404, 102d Cong., 1st Sess. 437 (1991), reprinted in 1991 U.S.Code Cong. & Admin.News, 1526, 1679, 1817. To further these ends, Congress directed the ICC to implement a “single-state” registration system, which was intended to be the sole constitutional avenue for state registration of interstate carriers. The statute provides that “[t]he requirement of a State that a motor carrier ... register the certificate or permit issued to the carrier” by the ICC “is not an unreasonable burden on transportation ... when the registration is completed under standards of the Commis[725]*725sion under subsection (c) of this section.” 49 U.S.C. § 11506(b).

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Bluebook (online)
41 F.3d 721, 309 U.S. App. D.C. 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-assn-of-regulatory-utility-commissioners-v-interstate-commerce-cadc-1994.