TITLE 24. TRANSPORTATION AND MOTOR VEHICLES

DEPARTMENT OF MOTOR VEHICLES

Fast-Track Regulation

Title of Regulation: 24VAC20-82. Overload and Hauling Permits Regulation (amending 24VAC20-82-20).

Statutory Authority: § 46.2-203 of the Code of Virginia.

Public Hearing Information: No public hearing is currently scheduled.

Public Comment Deadline: September 11, 2024.

Effective Date: September 26, 2024.

Agency Contact: Nicholas Megibow, Senior Policy Analyst, Department of Motor Vehicles, 2300 West Broad Street, Richmond, VA 23220, telephone (804) 367-6701, FAX (804) 367-4336, or email nicholas.megibow@dmv.virginia.gov.

Basis: Section 46.2-203 of the Code of Virginia provides the Department of Motor Vehicles (DMV) with specific and general authority to adopt reasonable administrative regulations necessary to carry out the laws administered by the DMV. Section 46.2-1139 of the Code of Virginia authorizes DMV to issue permits that allow certain vehicles that exceed statutory weight or size limits to operate on the highway and authorizes DMV to promulgate regulations governing such permits.

Purpose: The proposed amendments benefit the public health, safety, and welfare by reducing the regulatory burden on motor carrier businesses without detrimentally affecting citizens of the Commonwealth.

Rationale for Using Fast-Track Rulemaking Process: DMV concluded a review of its regulations as part of the ongoing regulatory reduction process mandated by Executive Order 19 (2022) and expects this action to be noncontroversial as it reduces the regulatory burden on motor carrier businesses while not detrimentally affecting citizens of the Commonwealth.

Substance: The proposed amendments eliminate the requirement that expired decals for overload permits be removed or destroyed and clarify the process for purchasing overload permits.

Issues: The proposed amendments do not present any disadvantages to the public or the Commonwealth. The advantages to the public and the Commonwealth are that this regulatory action would remove an unnecessary regulatory requirement from the regulation, add additional clarity to the steps required to obtain a permit, and lessen the regulatory burden on motor carrier companies.

Department of Planning and Budget's Economic Impact Analysis:

The Department of Planning and Budget (DPB) has analyzed the economic impact of this proposed regulation in accordance with § 2.2-4007.04 of the Code of Virginia and Executive Order 19. The analysis presented represents DPB's best estimate of the potential economic impacts as of the date of this analysis.¹

Summary of the Proposed Amendments to Regulation. The Department of Motor Vehicles (DMV) proposes to eliminate the requirement that expired decals for overload permits be removed or destroyed.

Background. "Overload permit" is defined in the regulation as a permit issued by the Virginia Department of Motor Vehicles to allow Virginia-based and foreign-based vehicles or combinations of vehicles to exceed the weight limitations otherwise applicable to such vehicles by 5.0%.

Estimated Benefits and Costs. The current regulation requires that expired decals for overload permits be removed or destroyed. According to DMV, in practice, law-enforcement officers have not penalized motor carrier companies for failing to remove expired decals. If this proposal is finalized, permit holders who have been removing or destroying their expired decals, and who choose to no longer regularly do so, would benefit by a small reduction in required staff time.

Businesses and Other Entities Affected. The proposed amendment potentially affects the 2,418 distinct overload permit holders.² Permit holders who have been removing or destroying their expired decals, who choose to no longer regularly do so if the proposal is finalized, would be particularly affected.

The Code of Virginia requires DPB to assess whether an adverse impact may result from the proposed regulation.³ An adverse impact is indicated if there is any increase in net cost or reduction in net benefit for any entity, even if the benefits exceed the costs for all entities combined.⁴ The proposed amendment neither increases costs nor reduces revenue. Thus, no adverse impact is indicated.

Small Businesses⁵ Affected.⁶ The proposed amendment does not adversely affect small businesses.

Localities⁷ Affected.⁸ The proposed amendment neither disproportionately affects particular localities nor introduces costs for local governments.

Projected Impact on Employment. The proposed amendment does not appear to affect total employment.

Effects on the Use and Value of Private Property. Some motor carrier companies who currently regularly remove or destroy expired decals may no longer do so. This would save a small amount of staff time but would not likely substantively affect the value of the firms. The proposed amendment does not affect real estate development costs.

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¹Section 2.2-4007.04 of the Code of Virginia requires that such economic impact analyses determine the public benefits and costs of the proposed amendments. Further the analysis should include but not be limited to: (1) the projected number of businesses or other entities to whom the proposed regulatory action would apply, (2) the identity of any localities and types of businesses or other entities particularly affected, (3) the projected number of persons and employment positions to be affected, (4) the projected costs to affected businesses or entities to implement or comply with the regulation, and (5) the impact on the use and value of private property.

² Data source: DMV.

³ Pursuant to § 2.2-4007.04 D: In the event this economic impact analysis reveals that the proposed regulation would have an adverse economic impact on businesses or would impose a significant adverse economic impact on a locality, business, or entity particularly affected, the Department of Planning and Budget shall advise the Joint Commission on Administrative Rules, the House Committee on Appropriations, and the Senate Committee on Finance. Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation.

⁴ Statute does not define "adverse impact," state whether only Virginia entities should be considered, nor indicate whether an adverse impact results from regulatory requirements mandated by legislation. As a result, DPB has adopted a definition of adverse impact that assesses changes in net costs and benefits for each affected Virginia entity that directly results from discretionary changes to the regulation.

⁵ Pursuant to § 2.2-4007.04, small business is defined as "a business entity, including its affiliates, that (i) is independently owned and operated and (ii) employs fewer than 500 full-time employees or has gross annual sales of less than $6 million."

⁶ If the proposed regulatory action may have an adverse effect on small businesses, § 2.2-4007.04 requires that such economic impact analyses include: (1) an identification and estimate of the number of small businesses subject to the proposed regulation, (2) the projected reporting, recordkeeping, and other administrative costs required for small businesses to comply with the proposed regulation, including the type of professional skills necessary for preparing required reports and other documents, (3) a statement of the probable effect of the proposed regulation on affected small businesses, and (4) a description of any less intrusive or less costly alternative methods of achieving the purpose of the proposed regulation. Additionally, pursuant to § 2.2-4007.1 of the Code of Virginia, if there is a finding that a proposed regulation may have an adverse impact on small business, the Joint Commission on Administrative Rules shall be notified.

⁷ "Locality" can refer to either local governments or the locations in the Commonwealth where the activities relevant to the regulatory change are most likely to occur.

⁸ Section 2.2-4007.04 defines "particularly affected" as bearing disproportionate material impact.

Agency's Response to Economic Impact Analysis: The Department of Motor Vehicles has reviewed the economic impact analysis prepared by the Department of Planning and Budget and has no comment.

Summary:

The amendments (i) clarify requirements for purchasing overload permits and (ii) eliminate the requirement that expired decals for overload permits be removed or destroyed.

24VAC20-82-20. Overload permit requirements.

A. Overload permits are ordinarily purchased at the time of vehicle registration. The fee for an overload permit purchased at the time of a quarterly vehicle registration shall be prorated.

B. Overload permits may be transferred from one vehicle to another if the license plates associated with the permit are also being transferred. The fee to transfer an overload permit is $2.00. This fee is in addition to any fee authorized to be collected for the transfer of the license plates associated with the permit. Permit decals shall be removed from the vehicle from which the permit is being transferred and shall either accompany the application for a new overload permit or be destroyed by the permit holder.

C. Overload permits will be issued in the same name and for the same vehicle as the vehicle registration.

D. Overload permit fees are not refundable. However, an applicant for a new permit may receive credit for the fee paid for a previously issued, unexpired permit that has been removed from a vehicle. Such credit shall not exceed (i) the prorated fee for the number of months remaining on the previously issued permit, or (ii) the amount of the fee for the new permit, whichever is less. The credit shall not be applied to the $2.00 permit transfer fee.

E. In order to purchase an overload permit, the owner of a motor vehicle shall:

1. Request the permit from DMV;

2. Pay the appropriate fee; and

3. 1. Furnish, on an application supplied by DMV, the following information for the motor vehicle:

a. Make;

b. Identification number;

c. Current license plate number;

d. Expiration date;

e. State of issue; and

f. Registered gross weight; and

2. Pay the fee specified in § 46.2-1128 of the Code of Virginia.

F. The fee for an initial permit issued on a vehicle may be prorated to the month of the expiration of the vehicle registration.

G. Overload permits may be in the form of decals, issued in duplicate. Any decals issued shall be placed on the vehicle in the following locations:

1. One decal shall be placed on the driver side of the vehicle.

2. The second decal shall be placed on the passenger side in the same approximate area as the first decal.

H. Expired decals shall be removed or destroyed.