| The Motor Carrier Act || Partial
Deregulation || Intermodal Surface Transportation
Act || ICC Termination Act of 1995 || MCSIA of 1999
|| FMCSA | |
History of Trucking
Regulation at LAWDOG® |
 |
|
 |
|
|
|
|
|
| The Motor Carrier Act, enacted by Congress in 1935, gave to
the Interstate Commerce Commission (ICC) the authority to regulate motor carriers and
drivers involved in interstate commerce by controlling operating permits, approving
trucking routes, and the setting of tariff rates. The theory was that this prevented large
shippers from receiving an unfair trade advantage due to lower freight costs from
volume discounts. The Interstate Commerce Commission prevented competition by
establishing uniform tariff rates for everyone. SECTION 206(A) of the Federal
Motor Carrier Act of 1935, declared that no carrier by motor vehicle subject to the
provisions of the Act may engage in interstate commerce unless there shall have been
issued by the Interstate Commerce Commission a CERTIFICATE OF PUBLIC
CONVENIENCE AND NECESSITY authorizing the operation (with certain "grandfather"
provisions which permitted certain motor carriers in operation on June 1, 1935 to
continue.) |
|
|
|
|
|
| The Motor Carrier Act of 1980, and other laws which would follow attempted to promote
competition by substantially reducing Federal motor carrier regulation. Section 14 of the
1980 Act prohibited rate bureaus (and their members) from interfering with any carrier's
right to publish its own rates, and from voting on rate proposals in which they did not
participate. |
|
| During this period, Congress partially deregulated the freight
transportation industry by permitting price competition, but, not to everyone's great
delight, continuing provisions requiring motor carriers to file interstate tariffs with
the Interstate Commerce Commission (ICC). Carriers negotiated rates with happy
shippers which were lower than the "reasonable" rate filed with the
Interstate Commerce Commission. The Supreme Court would later not find this approach to be
amusing, but for now, deregulation in fact, if not in form, was the law of this land.
Before this "deregulation", the industry had simply passed higher wage and
operating costs on to shippers through higher tariff applications. This law would have far
reaching consequences, causing price competition and lower profit margins, forcing a
search for efficiency in the industry. |
|
|
|
| Intermodal Surface Transportation Efficiency Act of
1991(ISTEA) - PL 102-240 |
| The Intermodal Surface Transportation Efficiency Act of 1991
announced a policy of developing "a National Intermodal Transportation System that is
economically efficient, environmentally sound, provides the foundation for the Nation to
compete in the global economy and will move people and goods in an energy efficient
manner" The Act provided Federal resources for roads that are important for
interstate travel, that connect with other modes of transportation, and that are essential
for international commerce. State and local governments were given more control in transit
and highways decisions, but the Act also amended metropolitan planning requirements and
established statewide transportation planning requirements to consider freight and goods
movement. This Act also required states to meet uniform vehicle registration and fuel tax
reporting requirements. |
|
The National Network
consists of the National System of Interstate and Defense Highways and qualifying
Federal Aid primary system highways as designated by Secretary of Transportation.
|
|
|
|
The Interstate Commerce Commission Termination Act of 1995
removed some remnants of economic control remaining in the reform process
then removing Federal economic regulatory
oversight from the railroad, trucking, and bus industries. The ICC
Termination Act terminated the Interstate Commerce Commission (ICC) effective December 31,
1995, eliminated some functions previously performed by ICC, transferred licensing and
certain motor carrier functions to then Federal Highway Administration within
Department of Transportation. The Act transferred remaining rail and non-rail functions
of Interstate Commerce Commission to the Surface Transportation Board
, which it established January 1, 1996, as independent body within U.S. Department of Transportation, with
jurisdiction over certain surface transportation economic regulatory matters.
|
|
|
| Commercial Motor Vehicle Safety Act of 1986 When
the Commercial Motor Vehicle Safety Act of 1986 was enacted, the goal of the Act was to
improve highway safety by attempting to determine that drivers of large trucks and buses
are qualified to operate those vehicles and to remove unsafe and unqualified drivers from
the highways. The Act established minimum national standards which states must meet when
licensing commercial motor vehicle drivers. The Act made it illegal to hold more than one
license and required states to adopt testing and licensing standards for truck and bus
drivers. This Act, and the regulations implementing it place requirements on commercial
motor vehicle driver, the employing motor carrier and the states. |
|
|
|
|
| In 1998, the President signed Public Law 105-178, the
Transportation Equity Act for the 21st Century (TEA-21), major legislation which
authorized highway, highway safety, transit and other surface transportation programs for
the following 6 years. The Motor Carrier Safety Assistance Program (MCSAP) provided funds
for State enforcement of commercial motor vehicle safety and hazardous materials
regulations. Uniform roadside driver and vehicle safety inspections, traffic enforcement,
compliance reviews, and other complementary activities are eligible. Under the Act, States
were required to adopt and implement a performance-based program by the year 2000. The Act
authorized a total of $579 million over the 6 years. The Act added to the basic motor
carrier grant program by requiring the mandatory shutdown of all unfit carriers,
strengthening the authority of the Secretary of Transportation to order unsafe motor
carriers to cease operations. The Transportation Equity Act for the 21st Century
also established a $10,000 maximum penalty for all non-recordkeeping violations of the
safety regulations, and clarified the definition of commercial motor vehicles.website |
|
|
|
| Motor Carrier Safety
Improvement Act of 1999 P.L.106-159 The stated purposes of the Act were to
(1) establish a Federal Motor Carrier Safety Administration and (2) reduce the number and
severity of large-truck involved crashes through more commercial motor vehicle (CMV) and
driver inspections and carrier compliance reviews, stronger enforcement, expedited
completion of rules, sound research, and effective commercial driver’s license (CDL)
testing, record keeping, and sanctions. |
|
|
| The Federal Motor Carrier Safety Administration (FMCSA) started January
1, 2000 within the Department of Transportation, with a directive to develop a long-term
strategy to improve motor carrier safety. Progress in safety improvement must be assessed
semi-annually and reported to Congress annually. Many functions and responsibilities
involving motor carriers have been transferred to this new administration. |
| Legislation and Regulations |
| |
|
| Copyright © 1996-2000 by
LAWDOG.COM Publishing, Inc. |
|
![[Return To Previous Page]](rt30.gif){kind=small}