Rule-Making Notices (Hearing Notices)

Minnesota. Minnesota statutes require CDL applicants to self-certify one of four types of driving and, if required by federal law (i.e. certifies as a non-exempt interstate driver) to provide and maintain with the driver licensing authority a valid federal medical examiner's certificate. Minnesota downgrades the commercial driving privileges of any driver who has certified himself or herself as being required by federal law to provide a federal medical examiner's certificate, unless within 30 days following written notice to the driver that the medical examiner's certificate is expired, the driver self-certifies as not engaged in non-exempt interstate driving, or provides the required a federal medical examiner's certificate or medical waiver. Minnesota accomplishes the downgrade by removing the commercial driving privileges from the person's driver license. These provisions are found at Minnesota Statutes Annot. 171.162. Minnesota administrative rules allow a downgraded CDL driver to reinstate commercial driving privileges within one year or less by submitting a valid federal medical certificate or by self-certifying as driving in something other than non-excepted interstate driving. However, if the commercial driving privileges are downgraded for more than one year the CDL driver must apply as a new CDL applicant and retake the knowledge and driving skills tests. These provisions are found at Minnesota Admin. Code 7421.0800.

Summary of factual data and analytical methodologies used and how the related findings support the regulatory approach chosen

Wisconsin considered several options for implementing this federal rule: require all commercial drivers, regardless of their tier of operation, to keep a current FedMed Card on record with the department; require that certification or provision of FedMed Cards could only be done in DMV service centers, or only online; require downgraded drivers to appear at service centers to reinstate or repeat some or all of the CDL licensing process. The current approach was selected because it is the most flexible and driver-friendly, yet still meets the letter and spirit of the federal requirements.

Analysis and supporting documentation used to determine effect on small businesses

This rule-making will have a minor fiscal impact on independent truckers and small trucking companies. The new burdens placed on drivers include having to declare a type of operation to the department and, for drivers that declare themselves to be engaged in non-excepted interstate travel, to file and maintain a FedMed Card with the department. FMCSA estimates that 80% of all CDL holders are engaged in non-excepted interstate commerce. Neither the federal regulations nor this rulemaking change the requirements that drivers engaged in non-excepted interstate commerce maintain a FedMed Card on their person when driving a CMV in interstate commerce, so the burden of this rule is largely a reporting burden. However, this rule will simplify the process of drivers providing proof of a FedMed Card, as the federal regulations will make this information available to all employers, drivers and states through a national database, CDLIS. The department has minimized the driver's compliance costs in a variety of ways.

Effect on Small Business

The department has attempted to identify flexible and business-friendly methods of implementing and enforcing this rule, and has included them in this rule. The department expects the long-term effect on small business to be relatively minor. The requirements of self-certifying a CDL driver's tier of operation, and of Tier 1 drivers maintaining valid FedMed Cards with the department, will be jointly enforced by the Division of State Patrol (through implementation of the federal motor carriers safety regulations) and by DMV. Commercial drivers and trucking companies will need to ensure that they and their drivers have certified their tier of operation, and that Tier 1 drivers have a current FedMed Card on file with the department. FedMed requirements remain unchanged. There is no fee: to certify a tier of operation; to change a certification at any time to another tier of operation; to provide a FedMed Card; to verify one's own tier of operation or the expiration of a FedMed Card, or; to reinstate a CDL after being downgraded. Employers and drivers can check a driver's status online or through employer notification, for no charge. Both drivers and employers are notified 60 days before expiration of a FedMed Card, upon expiration and, if the driver does not provide a new, valid FedMed card or declare a tier of driving other than `non-excepted interstate', upon downgrade. The department has been providing outreach to individual drivers and to trucking companies to inform them of these new requirements, and will continue to do so.

Fiscal Effect

This rule imposes costs in three ways. First, applicants for a CDL are now required to self-certify the type of driving in which they intend to engage. The department estimates that this part of the application process can be completed in less than 1 minute.

Next, the rule requires current CDL holders to self-certify the type of driving in which they intend to engage. Because certification by existing drivers will not be done in conjunctions with a CDL application, the department estimates this will take approximately 5 to 10 minutes to complete.

Last, drivers who certify that they engage in non-excepted interstate commerce will be required to file proof of their FedMed Card with the Department, and to refile proof at least once every 2 years when the FedMed card expires. The department believes this can be done in conjunction with the self-certification process, or separately, in no more than 5 minutes per driver.

In December 2012, there were 299,221 CDLs issued by this state, of which 235,808 were valid and 63,413 were withdrawn or expired. Assuming for purposes of estimating the greatest impact that each of 299,221 CDL holders will comply, and that each driver spends 5 minutes complying with the self-certification requirements of this rule, the aggregate compliance time will be 24,935 hours. CDLs are valid for 8 years, so assuming an even rate of CDL issuance and renewals, the aggregate compliance time may be 3,116 hours per year statewide. FMCSA estimates that 74% of CDL holders engage in non-excepted interstate commerce [See, 71 FR 66743 (Nov. 16, 2006)]. If that is correct, as many as 221,423 drivers will also be required to file FedMed Cards with the department. If compliance takes 5 minutes to file a FedMed Card, the aggregate time spent on initial compliance may be 18,451 hours. The FedMed Card is generally valid for 2 years, but drivers with specific medical conditions may require more frequent medical fitness certification (for example, a FedMed Card for a driver with the following diagnoses is valid for one year: high blood pressure, heart disease, diabetes and vision exemption or waiver programs). Assuming that each FedMed Card is valid for 2 years, the aggregate annual time spent on compliance may be 9,226 hours. Taken together, the aggregate time spent to self-certify (3,116 hours) and file FedMed Cards (9,226 hours) could be 12,342 hours annually.

This rule requires the department to enter the self-certification on the CDLIS driving record of each driver. If each record entry can be completed in 2 minutes, the aggregate time to enter may be 1,246 hours, or 0.6 FTE. This figure assumes only one entry per driver every 8 years, which will increase if drivers change their self-certified type of driving during the 8-year CDL duration.

The rule also requires the department to record on the CDLIS driving each FedMed Card it receives. If each record entry can be completed in 2 minutes, the aggregate time to complete those entries is 7,977 hours every two years, or 3,989 hours per year, or 1.9 FTE.

In all, it appears the department will require 2.5 FTE annually to complete the work required by this rule.

The department will incur ongoing costs to provide written notices to drivers that: 1) a FedMed card will expire within 60 days; 2) that a FedMed Card has expired; and 3) that a CDL is downgraded. It is unknown how many of the estimated 239,336 non-excepted interstate drivers will require such notices from the department, but these notices could be required for each driver every 2 years to coincide with the valid period of a FedMed Card. If 10% of all estimated 221,423 drivers required to file FedMed Cards require all 3 notices every 2 years the department will mail 33,213 notices per year as result of this rule. If half of those drivers have employers on file, mailing those notices to employers will require an additional 16,606 mailed notices.

On March 11, 2014, the department solicited information and advice as required under s. 227.137, Stats., and Executive Order #50, to help prepare this economic impact analysis. The Department has solicited information and advice from six individuals who hold CDL's, from around the state and engaged in both interstate and intrastate driving operations, and from all members of the department's standing Motor Carrier Advisory Committee. The motor carrier advisory committee consists of 6 members, including: 3 trucking company representatives; one representative of a corporation specializing in motor carrier driver and fleet management and regulatory compliance; one citizen; and the Wisconsin Motor Carriers Association, a non-profit trade association representing the interests of truck and motor coach owners within the state of Wisconsin, and having 1,050 members ranging from independent contractors with one truck to companies with thousands of trucks, and affiliated with the American Trucking Associations (ATA) in Washington. The comment period remains open until April 5, 2014. As of today's date, March 28, 2014, the department has received no comments responding to the solicitation. Any comments received in response to the solicitation will be considered and addressed in the final rule along with any comments received at the forthcoming public hearing. In addition, the department promulgated Emergency Rule Trans. 327 on February 16, 2014, that implements all of the requirements of this proposed rulemaking, and has received no comments in response to that emergency rule.

Anticipated Costs Incurred by Private Sector

See the discussion above for the anticipated time required to comply with this rule. The department has identified flexible and business-friendly methods of implementing and enforcing this rule. As with small businesses, the department expects compliance with this rule to take no more than 10 minutes per driver, at no charge by the department, so overall costs incurred by the private sector are believed to be minimal per driver, and are the consequence of federal regulations. All commercial drivers and trucking companies will need to ensure that they and their drivers have certified their tier of operation and that Tier 1 drivers have a current FedMed Card on file with the department. FedMed Card requirements remain unchanged. There is no charge by the department to a driver to certify a tier of operation, to change one's tier of operation at any time, to provide a FedMed Card, to verify a tier of operation or the expiration of a FedMed Card, or to reinstate a CDL after being downgraded. Drivers and employers can verify a driver's status online or through employer notification, free of charge. Both drivers and employers are notified 60 days before expiration, upon expiration and upon downgrade. The department is also providing outreach to individual drivers and to trucking companies.

Agency Contact Person and Place Where Comments are to be Submitted and Deadline For Submission

Comments may be submitted to the agency contact person that is listed below until the deadline given in the upcoming notice of public hearing. The deadline for submitting comments and the notice of public hearing will be posted on the Wisconsin Administrative Rules Website at http://adminrules.wisconsin.gov after the hearing is scheduled.

Any such comments should be submitted to:

Alison Lebwohl

Bureau of Driver Services Section, Division of Motor Vehicles

Wisconsin Department of Transportation

4802 Sheboygan Avenue, Room 809

P. O. Box 7995

Madison, WI 53707-7995

Phone: [phone]

E-mail: [e-mail].

STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION DOA 2049 (R 07/2011) ADMINISTRATIVE RULES FISCAL ESTIMATE AND ECONOMIC IMPACT ANALYSIS
Type of Estimate and Analysis
X Original ⍽ Updated ⍽ Corrected
Administrative Rule Chapter, Title and Number
Chapter Trans 327, Motor Carrier Safety
Subject
Procedures for commercial driver's to certify driving type, provide federal medical certificate to the department, and define procedures for downgrade of commercial driver's license (interstate only) if no valid federal medical certificate is on file.
Fund Sources Affected			Chapter 20 , Stats. Appropriations Affected
X GPR ⍽ FED ⍽ PRO ⍽ PRS ⍽ SEG ⍽ SEG-S			20.395 (5) (CQ)
Fiscal Effect of Implementing the Rule
⍽ No Fiscal Effect ⍽ Indeterminate	⍽ Increase Existing Revenues ⍽ Decrease Existing Revenues		X Increase Costs X Could Absorb Within Agency's Budget ⍽ Decrease Costs
The Rule Will Impact the Following (Check All That Apply)
X State's Economy X Local Government Units		X Specific Businesses/Sectors ⍽ Public Utility Rate Payers
Would Implementation and Compliance Costs Be Greater Than $20 million? ⍽ Yes X No
Policy Problem Addressed by the Rule
Changes in federal regulations 49 CFR 383 and 384 require commercial drivers operating in interstate commerce to notify the department of their type of driving (interstate vs. intrastate / excepted vs. non-excepted). Additionally, interstate, non-excepted drivers must keep a valid copy of their federal medical certificate on file with the department. Failure to maintain a valid certificate on file will result in a downgrade of their commercial operating privileges. These changes are required, effective January 30, 2012. 2011 Wisconsin Act 32 also created s. 343065 (3) which allows the department to downgrade any commercial driver's license authorizing operation in interstate commerce if the driver does not file a current federal medical certificate. In addition, this section requires the department to promulgate rules to define the downgrade process in accordance with the federal regulations, as well as to establish the process for reinstating a downgraded license after a valid federal medical certificate is received.
Summary of Rule's Economic and Fiscal Impact on Specific Businesses, Business Sectors, Public Utility Rate Payers, Local Governmental Units and the State's Economy as a Whole (Include Implementation and Compliance Costs Expected to be Incurred)
All commercial drivers operating in interstate commerce are already required to carry a valid federal medical card in their possession. This rulemaking requires that these drivers (or their employers) notify us of their driving type. In addition, drivers operating in interstate commerce are required to keep a copy of a valid federal medical certificate on file with the department.
Benefits of Implementing the Rule and Alternative(s) to Implementing the Rule
Implementing this rule will ensure Wisconsin's compliance with federal regulations. Failure to comply with federal regulations could result in Wisconsin being found in non-compliance, per 49 CFR 384. Penalties for non-compliance are up to 10% of federal highway funding annually (over $50 million), loss of MCSAP funding (about $4 million annually) and decertification of Wisconsin Commercial Driver's License program. As such, the only alternative is to implement the rule. In addition, the rule helps ensure commercial drivers are medically competent.
Long Range Implications of Implementing the Rule
Implementing this rule allows Wisconsin to remain in compliance with federal regulations on commercial driver's licenses. Failure to comply with federal regulations could result in Wisconsin being found in non-compliance, per 49 CFR 384. Penalties for non-compliance are up to 10% of federal highway funding annually (over $50 million), loss of MCSAP funding (about $4 million annually) and decertification of Wisconsin Commercial Driver's License program.
Compare With Approaches Being Used by Federal Government
The federal government is requiring all states to comply with these requirements. However, the states have some flexibility to determine how to downgrade their drivers.
Compare With Approaches Being Used by Neighboring States (Illinois, Iowa, Michigan and Minnesota)

State	Method for Certifying Driving Type	Downgrade Process	Reinstatement Process
Iowa	Drivers can self-certify in person, by mail, by fax, or via the web	A courtesy letter will be sent prior to the expiration date of the federal medical certificate. If no updated card is received, the driver will lose their commercial privileges immediately upon the expiration of the federal medical certificate.	Drivers can get their commercial license back by self certifying they are no longer operating in interstate commerce, or by providing an updated federal medical certificate. No fee is required.
Michigan	Drivers can self-certify in person, by mail, by fax, or via the web	A courtesy letter will be sent 10 days prior to the expiration date of the federal medical certificate. If no updated card is received, the driver will lose their commercial privileges immediately upon the expiration of the federal medical certificate.	Drivers can get their commercial license back by self certifying they are no longer operating in interstate commerce, or by providing an updated federal medical certificate. A $25 fee is required.
Minnesota	Drivers can self-certify in person, by mail, or by fax	A courtesy letter will be sent 45 days prior to the expiration date of the federal medical certificate. If no updated card is received, the driver will lose their commercial privileges 60 days after the expiration date of the federal medical certificate.	Drivers can get their commercial license back by self certifying they are no longer operating in interstate commerce, or by providing an updated federal medical certificate. No fee is required.
Wisconsin	Drivers can self-certify in person, by mail, by fax, or via the web	A courtesy letter will be sent 60 days prior to the expiration date of the federal medical certificate. If no updated card is received, the driver will lose their commercial privileges 10 days after the expiration date of the federal medical certificate.	Drivers can get their commercial license back by self certifying they are no longer operating in interstate commerce, or by providing an updated federal medical certificate. No fee is required.
Please note: several attempts were made to contact Illinois. No one responded to our repeated messages.
Name and Phone Number of Contact Person
Alison Lebwohl, 608-266-0054