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CED-79-99 1 (1979-06-15)

handle is hein.gao/gaobaazju0001 and id is 1 raw text is: t , 1- RELEASED k~4 wv - COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON. D.C. Z0548 NESTRICTED - Not to be released outside the General AccoountiOfe 0 ScP1 0- nhe bass of specific approval bY the C Q-,, UNE 1 79 JUNE 15, 1979 The Honorable Marty Russo Chairman, Subcommittee on Special Small Business Problems /9 Committee on Small Business House of Representatives <I 109698 Dear Mr. Chairman: In your January 9, 1979, letter you asked that we (l)f6x(r study the Interstate Commerce Commission's I Q¢gs) single source leasing rule to advise you of possible administrative or legislative remedies which would allow independent truckers to lease to private fleets without giving up their independent status and (2) meet with officials of various private fleets to discuss this issue. In our subsequent discussions with your office, we agreed that a letter rendering our legal opinion on the questions asked would satisfy your request. Stated simply, the Interstate Commerce Act requires that all carriers engaged in transportation for compen- sation or hire obtain operating authority from ICC. In order to allow independent operators to haul for private fleets and maintain their independent status, the act would have to be amended. A brief discussion of this issue follows. ICC regulates interstate motor common carriage, and anyone engaged in the motor vehicle transportation business must obtain operating authority from it. The law provides: Except as provided in section 3,02(c) of this title * * * no person shall engage in any for-hire trans- portation business by motor vehicle, in interstate or foreign commerce, on any public highway or within any reservation under the exclusive jurisdiction of the United States, unless there is in force with respect to such person a certificate or a permit issued by the Commission authorizing such transportation, nor shall any person engaged in any other business enter-A prise transport property by motor vehicle in inter- state or foreign commerce for business purposes un- less such transportation is within the scope, and in furtherance, of a primary business enterprise (other than transportation) of such person. 49 U.S.C, 9303(c) (1970). N CED-79-99 (990515) B-187797 . & k % J

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