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Federal Register / Vol. 86, No. 192 / Thursday, October 7, 2021 / Rules and Regulations
year since 2012. 46 In 2019, the data provided by Transport Topics showed a similar pattern based on the 28
companies that provided net income information, with an average profit margin of 5.8 percent.47 It is uncertain whether the recent surge in net profit margin will continue through the analysis period, so FMCSA assumes the lower profit margin of 5 percent for motor carriers for purposes of this analysis.
Using the assumed profit margin of 5
percent for motor carriers, FMCSA
estimates the revenue gained per hour
for motor carriers by multiplying the marginal cost per hour by the profit margin. This calculation results in a profit per hour of $3.59.
Based on the loss of 50,446 driving hours, the Agency estimates motor carrier undiscounted opportunity costs at $1.8 million over the 10-year analysis period $3.59 per hour 50,446 hours 10 years. The annualized cost is estimated at $181,051. At a 7 percent discount rate, motor carrier opportunity costs are estimated at $1.3 million over 10 years. The annualized cost is estimated at $181,051.

Summary of the Estimated Cost of the Proposed Rule Table 2 compares the total 10-year and annualized costs, both undiscounted and at a 7 percent discount rate. FMCSA estimates the total 10-year costs of this final rule at $51.7 million undiscounted, and $38.5
million discounted at 7 percent.
Expressed on an annualized basis, this equates to $5.2 million undiscounted, and $5.5 million in costs at a 7 percent discount rate.

TABLE 2TOTAL 10-YEAR AND ANNUALIZED COST OF THE FINAL RULE
Undiscounted 2019 $ million
Discounted at 7%
$ million
Cost category 10-Year total cost
10-Year total cost
Annualized
SDLA Costs
AAMVA IT Cost
Federal Government IT Cost
Driver Opportunity Cost
Motor Carrier Opportunity Cost

$30.1
0.6
2.8
16.4
1.8

$3.0
0.1
0.3
1.6
0.2

$23.1
0.4
2.2
11.5
1.3

$3.3
0.1
0.3
1.6
0.2

Total

51.7

5.2

38.5

5.5

Benefits
lotter on DSK11XQN23PROD with RULES1

Annualized
The 2016 Clearinghouse final rule required States to request information from the Clearinghouse when processing specified licensing transactions. This final rule builds on that requirement by prohibiting SDLAs from issuing, renewing, upgrading, or transferring the CDL, or issuing, renewing, or upgrading the CLP, of any driver prohibited from operating a CMV
due to drug and alcohol program violations. In addition, the rule requires SDLAs to downgrade the driver licenses of individuals prohibited from operating a CMV due to drug and alcohol program violations. SDLAs will rely on applicable State law and procedures to accomplish the downgrade and any subsequent reinstatement of the CLP or CDL privilege. FMCSA believes these requirements will improve highway safety by increasing the detection of CLP
or CDL holders not qualified to operate a CMV due to a drug or alcohol program violation. The safety benefits attributable to the increased distribution of information about the drivers prohibited status must be viewed in the context of the current regulatory scheme, as explained below.
The current CMV driving prohibition has been largely self-enforcing in that it 46 Forbes. Trucking Companies Hauling in Higher Sales. Available at: https www.forbes.com/sites/
sageworks/2018/03/04/trucking-companies-

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relies on motor carrier employers to prevent non-compliant drivers from operating. The Agency is aware, through motor carrier compliance reviews, targeted investigations, and other forms of retrospective compliance monitoring, that non-compliance with the driving prohibition occurs. Non-compliant drivers evade detection because, although subject to the driving prohibition, these drivers continue to hold a valid CLP or CDL in 47 States and the District of Columbia.
Consequently, during a traffic stop or roadside inspection, traffic safety enforcement officers had no way of knowing the driver is not qualified to operate a CMV. The Clearinghouse changed that by making the information available to highway safety enforcement officers able to access the drivers operating status in real time at roadside through FMCSAs electronic enforcement tools, thereby increasing the detection of drivers not qualified to operate a CMV. MCSAP personnel can immediately place these drivers out of service.
The mandatory downgrade will further strengthen detection of drivers not qualified to operate due to a drug and alcohol program violation. The reason is that not all traffic safety
enforcement officers have reliable access to FMCSAs electronic enforcement tools that, after the Clearinghouse became operational, made the drivers prohibited status available at roadside. While the approximately 12,000 officers who are trained and certified under MCSAP
have consistent roadside access to a CMV drivers prohibited status, most of the approximately 500,000 non-MCSAP
enforcement officers do not.
Accordingly, if a driver subject to the prohibition holds a valid CLP or CDL at the time of a traffic stop, non-MCSAP
personnel do not have access to the drivers prohibited operating status.
However, all traffic safety officers have access to the drivers license status; a check of the license is conducted whenever there is a roadside intervention. Therefore, a driver whose license is downgraded due to a drug and alcohol program violation will be detected, through a routine license check, as not qualified to operate a CMV. The downgrade, by increasing the detection of individuals unlawfully driving a CMV, will therefore improve public safety.
Just as a drivers prohibited status is not currently available to non-MCSAP
officers, most SDLAs cannot currently
hauling-in-higher-sales/40e0012f3f27 accessed April 19, 2021.

47 Transport Topics. 2019. Top 100 For-Hire Carriers. Available at: https www.ttnews.com/
top100/for-hire/2019 accessed April 19, 2021.

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