Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 72987 

1The term ‘‘financial responsibility,’’ is not 

specifically defined in subpart C of 49 CFR part 387 

(property brokers) and takes the general, commonly 

understood meaning of responsibility to 

compensate a party for losses, whether those losses 

are caused by physical damage, breach of contract, 

or other type of injury. The use of the term 

‘‘financial responsibility’’ in Subpart C does not 

incorporate the definitions of that term found at 49 

CFR 387.5 and 387.29, which apply to Subparts A 

(motor carriers of property) and B (motor carriers 

of passengers), respectively, of 49 CFR part 387. 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

49 CFR Parts 371, 375, 386, and 387 

[Docket No. FMCSA–2004–17008] 

RIN 2126–AA84 

Brokers of Household Goods 

Transportation by Motor Vehicle 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), DOT. 

ACTION: Final rule. 

SUMMARY: FMCSA amends its 

regulations to require brokers that 

arrange the transportation of household 

goods in interstate or foreign commerce 

for consumers to comply with certain 

consumer protection requirements. 

Brokers must provide: their U.S. DOT 

number on their advertisements and 

Internet Web sites; estimates of expected 

moving charges and brokerage fees; 

FMCSA pamphlets containing tips for 

successful moves and the consumer’s 

rights and responsibilities; and the 

broker’s policies concerning deposits, 

cancellations, and refunds. This 

rulemaking is in response to the Safe, 

Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy for 

Users (SAFETEA–LU) and a petition for 

rulemaking from the American Moving 

and Storage Association. This 

rulemaking is intended to ensure that 

individual shippers who arrange for 

transportation of household goods 

through brokers receive necessary 

information regarding their rights and 

responsibilities in connection with 

interstate household goods moves. 

DATES: Effective date: The effective date 

of this final rule is January 28, 2011. 

Compliance date for 49 CFR 

387.307(a)(2): Brokers that arrange the 

transportation of household goods in 

interstate or foreign commerce must 

increase their surety bonds or trust 

funds to the new minimum amount of 

$25,000 and have surety companies or 

trust fund managers file appropriate 

Forms BMC–84 or BMC–85 with 

FMCSA no later than January 1, 2012. 

ADDRESSES: For access to the docket to 

read background documents or 

comments received, go to http://www.

regulations.gov at any time or to U.S. 

Department of Transportation, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Brodie Mack, FMCSA Household Goods 

Enforcement and Compliance Team 

Leader, (202) 385–2400. 

SUPPLEMENTARY INFORMATION: 

Legal Basis for the Rulemaking 

The Secretary of Transportation’s 

(Secretary) general jurisdiction to 

establish regulations concerning the 

procurement by property brokers of forhire transportation in interstate or 

foreign commerce is found at 49 U.S.C. 

13501. Brokers of household goods are 

a subset of all property brokers and 

specifically register with FMCSA as 

household goods brokers as required by 

49 U.S.C. 13901 and 13904. This 

rulemaking applies only to household 

goods brokers that procure for-hire 

transportation in interstate or foreign 

commerce. 

The Secretary is authorized to collect 

from household goods brokers 

‘‘information the Secretary decides is 

necessary’’ to ensure a transportation 

system that meets the needs of the 

United States (49 U.S.C. 13101 and 

13301). The Secretary also has authority 

to adopt regulations applicable to 

registered household goods brokers 

which ‘‘shall provide for the protection 

of shippers by motor vehicle’’ (49 U.S.C. 

13904(c)). The Secretary’s authority to 

inspect and copy household goods 

broker records is found at 49 U.S.C. 

14122. The Secretary has delegated 

these various authorities to the FMCSA 

Administrator (49 CFR 1.73(a)). 

This rulemaking is based on the 

statutory provisions cited above and on 

the Household Goods Mover Oversight 

Enforcement and Reform Act of 2005, 

Title IV, Subtitle B of the Safe, 

Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy for 

Users (SAFETEA–LU) (Pub. L. 109–59). 

This rulemaking focuses on the business 

practices of household goods brokers 

engaged in interstate or foreign 

commerce. Household goods brokers 

arrange, but do not perform, the 

transportation of household goods 

shipments. 

Section 4212 of SAFETEA–LU directs 

the Secretary to require a household 

goods broker to provide shippers with 

the following information whenever the 

broker has contact with a shipper or a 

potential shipper: 

1. The broker’s U.S. DOT number. 

2. The FMCSA pamphlet titled, ‘‘Your 

Rights and Responsibilities When You 

Move.’’ 

3. A list of all motor carriers 

providing transportation of household 

goods used by the broker and a 

statement that the broker is not a motor 

carrier providing transportation of 

household goods. 

Section 4209 of SAFETEA–LU adds 

new civil penalties for unlawful broker 

estimating practices and increases 

existing civil penalties for providing 

household goods motor carrier or broker 

services subject to FMCSA jurisdiction 

without being registered with FMCSA. 

The Secretary’s general jurisdiction at 

49 U.S.C. 13501 authorizes FMCSA to 

establish shipment estimating and other 

requirements not specifically mandated 

by SAFETEA–LU in this final rule. 

Background 

Existing FMCSA Regulations Applicable 

to Household Goods Brokers 

Household goods brokers have been 

regulated by FMCSA and its predecessor 

agencies for many years and a number 

of regulations apply to them, including 

registration requirements (49 CFR part 

365), process agent requirements (49 

CFR part 366), and financial 

responsibility 1 requirements (49 CFR 

part 387). Section 387.307 requires 

property brokers, including household 

goods brokers, to maintain a surety bond 

or trust fund agreement in the amount 

of at least $10,000 to provide for 

payments to motor carriers or shippers, 

if the broker fails to carry out its 

agreement to supply transportation by 

authorized motor carriers. 

Part 371 of FMCSA’s regulations 

specifies general property broker 

transaction record requirements, 

prohibits misrepresentation of the 

broker’s name or non-carrier status, and 

prohibits certain rebating and 

compensation practices. Part 379 

specifies general recordkeeping 

retention periods. 

FMCSA may also issue orders to 

compel compliance, impose civil 

monetary penalties, revoke the broker’s 

license, or seek Federal court orders to 

stop statutory and/or regulatory 

violations. Because household goods 

brokers do not provide the actual 

transportation, they are not subject to 

FMCSA’s safety jurisdiction. 

Petition for Rulemaking 

On March 6, 2003, the American 

Moving and Storage Association 

(AMSA) petitioned FMCSA to initiate a 

rulemaking to amend 49 CFR part 371, 

‘‘Brokers of Property,’’ to impose specific 

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72988 Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 

additional requirements on household 

goods brokers. A copy of AMSA’s 

petition is in docket FMCSA–2004– 

17008. AMSA’s main argument for 

additional rulemaking was its assertion 

that there were an increasing number of 

moving-related Web sites hosted by 

household goods brokers engaging in 

unfair business practices. 

FMCSA granted AMSA’s petition and 

issued an Advance Notice of Proposed 

Rulemaking (ANPRM) in 2004 (69 FR 

76664, December 22, 2004). In the 

ANPRM, FMCSA sought answers to 36 

questions related to household goods 

broker issues. By posing these 

questions, the Agency sought to 

determine the extent to which the 

public believes a problem exists with 

household goods brokers and, if so, 

whether regulatory or non-regulatory 

solutions would better solve the 

problem. 

Also in the ANPRM, FMCSA 

discussed how it became responsible for 

household goods broker regulatory 

oversight through the Interstate 

Commerce Commission Termination 

Act of 1995 (ICCTA) (Pub. L. 104–88, 

December 29, 1995, 109 Stat. 803) and 

the Motor Carrier Safety Improvement 

Act of 1999 (MCSIA) (Pub. L. 106–159, 

December 9, 1999, 113 Stat. 1748). The 

ICCTA gave the Secretary of 

Transportation jurisdiction over the 

procurement of interstate motor carrier 

transportation (49 U.S.C. 13501). The 

MCSIA, in establishing FMCSA, granted 

to the Agency regulatory oversight of the 

property broker regulations. The former 

Interstate Commerce Commission (ICC) 

decided on May 16, 1949 (Ex Parte MC– 

39 ‘‘Practices of Property Brokers,’’ 49 

M.C.C. 277, at 286) (14 FR 2833, May 

28, 1949) that it was necessary to 

regulate all property brokers, including 

household goods brokers, in interstate 

or foreign commerce. In that proceeding, 

the ICC decided it was unnecessary to 

regulate household goods brokers 

separately from general freight brokers. 

Generally, the commenters to the 

ANPRM did not express support for 

rulemaking action or address many of 

the specific questions raised in the 

ANPRM. For example, none of the 

commenters submitted specific 

information related to the questions 

about the estimated number of 

household goods brokers, or questions 

about details of the household goods 

broker business. Commenters did, 

however, offer useful information and 

suggestions in other areas to assist 

FMCSA in developing a rulemaking 

proposal. 

The Proposed Rule 

The Notice of Proposed Rulemaking 

(NPRM) (72 FR 5947, February 8, 2007), 

addressed the problems and 

recommendations identified by AMSA 

in its petition, incorporated 

requirements mandated by SAFETEA– 

LU, and adopted some of the 

recommendations made by commenters 

to the ANPRM. FMCSA proposed to 

amend the current broker regulations in 

part 371 by adding a new subpart B 

specifically for household goods 

brokers; amend appendix B of part 386 

to incorporate the civil penalties 

applicable to household goods brokers 

added by SAFETEA–LU; and amend 

part 387 to increase the amount of the 

surety bond or trust fund currently 

required for household goods brokers. 

The proposed rule consisted of five 

basic elements that are being made final 

in this rule: 

• It would require household goods 

brokers to disclose to individual 

shippers critical information designed 

to educate the shipper and facilitate a 

satisfactory moving experience. 

• It would require household goods 

brokers to use only household goods 

motor carriers that are properly licensed 

and insured. 

• It would impose requirements 

governing estimates, consistent with 

those statutorily imposed on household 

goods motor carriers. 

• It would incorporate new statutory 

penalties for providing estimates 

without an agreement with a household 

goods motor carrier and for operating 

without being registered with FMCSA. 

• It would adjust for inflation the 

current minimum level of financial 

responsibility required of household 

goods brokers. 

Discussion of Comments on the 

Proposed Rule 

FMCSA received 11 comments on the 

notice of proposed rulemaking (NPRM) 

(72 FR 5947, February 8, 2007). Several 

commenters expressed general support 

for the requirements imposed on 

household goods brokers. The following 

sections discuss comments on specific 

issues and FMCSA’s responses to those 

comments. 

Scope of Part 371, Subpart B 

Proposed § 371.101 would require 

household goods brokers that operate in 

interstate or foreign commerce to 

comply with all of the provisions of 

subpart B. AMSA recommends adding a 

phrase to state that the rule applies to 

a broker offering services ‘‘to individual 

shippers.’’ 

FMCSA response. FMCSA agrees with 

AMSA. The subpart’s scope should be 

limited to only household goods brokers 

offering services to individual shippers. 

It should not include commercial and 

government shippers that are generally 

more knowledgeable of brokerage 

transactions. FMCSA will change the 

rule to the following. ‘‘Yes, you must 

comply with all regulations in this 

subpart when you operate as a 

household goods broker offering 

services to individual shippers in 

interstate or foreign commerce. The 

regulations in this subpart do not apply 

to a household goods broker when 

providing services to commercial or 

government shippers in interstate or 

foreign commerce.’’ 

Definitions of Terms 

Proposed § 371.103 would define 

terms used in subpart B. FMCSA 

proposed definitions for the terms 

‘‘household goods,’’ ‘‘household goods 

broker,’’ and ‘‘individual shipper.’’ The 

acronym ‘‘FMCSA’’ was used numerous 

times in the proposed rule, but the 

Agency does not show a definition of 

the term in part 371.The Agency will 

add the acronym ‘‘FMCSA’’ in the final 

rule and define it to mean ‘‘Federal 

Motor Carrier Safety Administration.’’ 

Qualifications of Motor Carriers Used by 

the Broker 

Proposed § 371.105 would make it 

clear that a household goods broker may 

only act as a household goods broker for 

a household goods motor carrier that 

has a valid, active U.S. DOT number 

and valid, active operating authority 

issued by FMCSA. This requirement 

was requested by AMSA in its Petition 

for Rulemaking and was suggested by 

some of the commenters to the ANPRM. 

The use of FMCSA-registered household 

goods motor carriers to provide the 

transportation will provide a greater 

level of assurance that the household 

goods motor carrier will comply with 

applicable FMCSA regulations. The 

Public Utilities Commission of Ohio 

(PUCO) believes it would be useful to 

keep a database of consumer complaints 

against each carrier so that potential 

shippers could identify potentially 

troublesome movers. 

FMCSA response. FMCSA maintains a 

consumer complaint database and 

allows public access to consumer 

complaint information regarding 

household goods carriers and brokers. 

This database can be accessed on the 

Internet by going to http://www.protect

yourmove.gov and selecting the 

hyperlink ‘‘Search for Moving 

Companies and View Complaint 

History’’ which will lead to http://ai.

volpe.dot.gov/hhg/search.asp. In a 

separate rulemaking (73 FR 9266, 

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Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 72989 

2Brokers currently receive ‘‘MC’’ numbers, not 

U.S. DOT registration numbers. FMCSA proposed 

eliminating the ‘‘MC’’ operating authority number in 

its May 19, 2005 NPRM regarding the Unified 

Registration System (URS) mandated by 49 U.S.C. 

13908 (70 FR 28990). FMCSA intends to issue and 

notify each household goods broker of the U.S. DOT 

number FMCSA will assign to that active household 

goods broker before the URS final rule is published. 

The URS final rule will remove the requirements for 

household goods brokers to display their ‘‘MC’’ 

numbers in their advertisements, Web sites, and 

agreements with household goods motor carriers. 

Household goods brokers will only be required to 

display their assigned U.S. DOT number after the 

URS final rule becomes effective. Until FMCSA 

publishes a final rule in that proceeding, household 

goods brokers must display their ‘‘MC’’ numbers in 

their advertisements. 

February 20, 2008), FMCSA proposed 

that each household goods carrier must 

submit a statutorily-mandated quarterly 

report about consumer complaints it 

receives, which should assist individual 

shippers in evaluating their 

transportation options. 

Information in Advertisements and 

Internet Web Sites 

FMCSA proposed (§ 371.107) 

implementing section 4212 of 

SAFETEA–LU by requiring that 

household goods brokers disclose to 

potential shippers their Department of 

Transportation registration number and 

that they are not motor carriers 

providing transportation of household 

goods. FMCSA also proposed that 

household goods brokers disclose 

certain information not required by 

SAFETEA–LU, but which FMCSA 

believes is necessary to assist individual 

shippers. The Agency proposed that 

household goods brokers prominently 

display in their advertisements and on 

their Web sites the following: 

1. The physical location of the 

business. 

2. Its ‘‘MC’’ operating authority 

number and U.S. DOT registration 

number.2

3. Its status as a household goods 

broker that does not transport 

household goods but that arranges for 

such transportation. 

AMSA urges FMCSA to monitor 

brokers’ Web sites to ensure that 

unscrupulous brokers are not providing 

misleading information. The commenter 

also recommends an additional 

subparagraph in the rule to prohibit the 

broker from including the names or 

logos of motor carriers unless they are 

FMCSA-authorized household goods 

motor carriers with which the broker 

has a written agreement, as specified in 

§ 371.115. 

FMCSA response. As a part of its 

enforcement program, FMCSA already 

monitors the Web sites of household 

goods brokers and carriers to determine 

if they are providing misleading 

information on the Internet. We conduct 

compliance reviews and initiate 

enforcement action when appropriate. 

We add a subparagraph in the final 

rule to provide more information to 

individual shippers receiving estimates 

prepared by brokers pursuant to 

§ 371.113(b). A household goods broker 

that provides an estimate on behalf of a 

motor carrier must state on the broker’s 

Web site that any estimate must be 

based on the carrier’s tariff and that the 

carrier is required to make the tariff 

available for public inspection upon a 

reasonable request. We add this 

requirement to better ensure that 

individual shippers understand their 

rights with respect to broker-prepared 

estimates. 

We have adopted AMSA’s suggestion 

to add a subparagraph in the final rule 

to prohibit household goods brokers 

from including the names or logos of 

motor carriers unless they are FMCSAauthorized household goods motor 

carriers with which the broker has a 

written agreement, as required by 

§ 371.115. We agree that brokers should 

not misrepresent to shippers that their 

shipments will be moved by specific 

moving companies, when the broker 

does not have agreements with those 

companies. The provision is intended to 

further full and honest disclosure to the 

shipper. 

List of Motor Carriers 

FMCSA proposed (§ 371.109) that a 

household goods broker must provide to 

each potential individual shipper who 

has contact with the household goods 

broker a list of all household goods 

motor carriers used by the broker, to 

implement sec. 4212(3) of SAFETEA– 

LU. National Relocation Services and 

Pro Movers Network believe that the 

requirement is burdensome on the 

broker and does not serve a consumer 

protection purpose for the shipper. 

FMCSA response. Notwithstanding 

the commenters’ concerns about burden, 

the carrier list requirement is mandated 

by SAFETEA–LU. To address concerns 

regarding potential burdens on 

household goods brokers, FMCSA 

revises its proposal to allow household 

goods brokers to provide the 

information required by § 371.109 

electronically either through a Web site 

or by electronic messaging (e-mail), as 

an alternative to a paper-based 

communication. 

Consumer Protection Information 

FMCSA proposed (§ 371.111) 

requiring that each household goods 

broker provide potential shippers with 

one copy of each of the two FMCSA 

consumer pamphlets: ‘‘Your Rights and 

Responsibilities When You Move,’’ and 

‘‘Ready to Move?—Tips for a Successful 

Interstate Move.’’ Section 4205 of 

SAFETEA–LU requires household goods 

motor carriers to distribute both 

pamphlets and the proposal would 

impose the same requirement on 

household goods brokers. Proposed 

paragraph (a) permitted the household 

goods broker to make the information 

available through its Web site or by 

distribution of paper copies to each 

potential shipper. PUCO supports the 

proposed requirement. AMSA suggests 

FMCSA’s requirements for household 

goods motor carriers in part 375 should 

allow use of a hyperlink on the carrier’s 

Web site to provide the required 

consumer protection information. 

FMCSA response. To better verify that 

shippers have been fully informed of 

their opportunity to access the 

consumer protection information via the 

broker’s Web site, FMCSA has added a 

new paragraph (b) to § 371.111 to 

provide that the broker must state on 

any written estimate provided pursuant 

to § 371.113 that the individual shipper 

has expressly agreed to accept access to 

the information via the Web site in lieu 

of paper copies. FMCSA has also 

revised § 371.111 paragraph (c) to 

require written or electronic verification 

of the shipper’s agreement to access the 

Federal consumer protection 

information via the Internet, instead of 

receiving the booklet copies in paper 

form. 

AMSA’s suggested revision of part 

375 has merit and FMCSA will make the 

change it requested. This change will 

allow household goods motor carriers 

also to use a hyperlink on the carrier’s 

Web site to provide the required 

consumer protection information. 

FMCSA believes it is in the best 

interests of shippers, brokers, and 

carriers for the consumer protection 

information to be distributed 

electronically if consumers choose to 

receive the information in that format. A 

shipper’s ability to receive consumer 

protection information in his/her 

preferred medium should not depend 

on whether he/she arranges for 

transportation through a broker or 

directly with a motor carrier. 

Written Estimate Based on a Physical 

Survey 

Proposed § 371.113(a) would require 

that, if the household goods broker 

provides an estimate, it must be in 

writing and must be based on a physical 

survey of the shipper’s household 

goods, if the household goods are 

located within a 50 air-mile radius of 

the broker or its estimating agent. The 

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72990 Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 

Owner Operator Independent Drivers 

Association (OOIDA) believes the 

household goods broker should be 

required to conduct a physical survey 

regardless of the distance from the 

broker’s place of business, unless the 

shipper can provide the broker a weight 

by which to determine an estimate of 

charges. 

AMSA argues that proposed 

§ 371.113(a) does not adequately 

address the inaccurate, ‘‘lowball’’ broker 

estimating problems experienced by 

consumers who receive estimates over 

the telephone or Internet without a 

physical survey because, in most cases, 

brokers are not located anywhere near 

shipping sites. Accordingly, AMSA 

recommends that the Agency revise its 

proposal by requiring that estimates be 

based on a physical survey conducted 

by the authorized motor carrier on 

whose behalf the estimate is provided, 

if the goods are located within a 50-mile 

radius of the motor carrier or its agent. 

AMSA also proposes that 49 CFR 

375.409(a) be revised to require that all 

estimates provided by the broker be 

based on physical surveys conducted by 

the motor carrier transporting the 

shipment. 

Pro Movers Network opposes the 

requirement for an in-home survey, 

because the provision is especially 

burdensome for consumers who are 

shipping a very small amount of goods. 

Pro Movers Network believes that if the 

list of goods provided by the shipper is 

complete, an accurate non-binding 

estimate based on weight does not 

require an in-home estimate. Also, Pro 

Movers Network commented that 

requiring in-home surveys limits a 

consumer’s choices and the ability to 

receive a moving estimate remotely via 

the Internet. 

FMCSA response. In the NPRM, 

FMCSA expressly invited comment on 

the impact to shippers, brokers, and 

motor carriers of applying or removing 

the 50-mile requirement for household 

goods broker estimates based on 

physical surveys, and invited comments 

on alternatives to this requirement. The 

Agency agrees with AMSA that because 

household goods brokers are rarely 

located within 50 miles of the shippers 

to whom they provide estimates, it is 

likely that the 50-mile radius exception, 

if implemented as proposed, would 

become the standard practice. As a 

result, FMCSA revised § 371.113(a) to 

require brokers to conduct or arrange for 

someone to conduct physical surveys of 

goods that are located within 50 miles 

of either the broker or the carrier on 

whose behalf the broker submits an 

estimate. As we stated in the NPRM, 

FMCSA recognizes that SAFETEA–LU 

did not prescribe estimating 

requirements for household goods 

brokers as it did for household goods 

motor carriers. Nevertheless, 49 U.S.C. 

13904(c) grants FMCSA the authority to 

promulgate this requirement. The 

Agency believes that an individual 

shipper’s protection against unreliable 

estimates should not depend upon 

whether the shipper uses a broker or 

carrier to provide the estimate. We 

believe AMSA’s suggested revision to 

proposed § 371.113(a) accomplishes the 

goal more effectively than FMCSA’s 

original proposal and we adopt that 

revision in the final rule, with a minor 

modification as described below. 

We decline to adopt AMSA’s 

proposed revision to 49 CFR 375.409(a) 

requiring that all estimates be based on 

physical surveys conducted by motor 

carriers because it would essentially 

prevent household goods brokers from 

making estimates under any 

circumstances. Such a prohibition is 

inconsistent with section 4209 of 

SAFETEA–LU, which prohibits 

household good brokers from making 

estimates before entering into an 

agreement with a carrier to provide the 

transportation. Section 4209, therefore, 

implicitly recognizes that brokers are 

permitted to make estimates after 

entering into agreements with carriers, 

and not simply to provide shippers with 

estimates prepared by motor carriers or 

their agents. However, we have revised 

§ 375.409(a) to make it consistent with 

revised § 371.113(a). 

We also decline to adopt OOIDA’s 

suggestion to require household goods 

brokers to perform a physical survey 

regardless of the distance from the 

broker’s place of business. We do not 

require household goods motor carriers 

or their agents to perform a physical 

survey regardless of the distance from 

the motor carrier’s or agent’s place of 

business. We do not believe it would be 

appropriate to place this burden on 

brokers when we do not place it on 

motor carriers. 

FMCSA does not agree with the 

suggestion of Pro Movers Network that 

the requirement for a physical survey 

should be eliminated because it limits a 

consumer’s choice to receive a remote 

estimate. Section 371.113(c) expressly 

permits the individual shipper to waive 

the physical survey requirement. 

Explanation of Waiving the Physical 

Survey 

PUCO states that estimates are most 

frequently a disputed issue and it is 

important that the broker be required to 

provide estimates in writing based on a 

survey of the property to be shipped. It 

believes the option of waiving the 

physical survey should be explained 

and should be printed in a required font 

size in a required location on a standard 

document to ensure that the shippers 

are fully informed. 

FMCSA response. We agree with 

PUCO that waiving the physical survey 

requirement, where it would otherwise 

apply, should be explained, printed on 

a standard document and printed with 

a minimum font size and font typeface. 

We have adopted PUCO’s suggestion for 

the final rule. FMCSA will adopt in 

today’s final rule the minimum font size 

and font typeface following the General 

Services Administration (GSA) 

guidelines in the ‘‘Standard and 

Optional Forms Procedural Handbook.’’ 

The GSA handbook requires the font 

typeface Universe and minimum font 

size of 7 points for all standard Federal 

forms and documents. 

Estimates Based on Published Tariffs 

FMCSA proposed (§ 371.113(b)) 

requiring household goods brokers to 

base their estimates upon the published 

tariffs (as defined in § 375.103) of the 

authorized household goods motor 

carriers they use. Nationwide Relocation 

Services believes the rule should require 

any motor carrier accepting jobs from a 

broker to adopt the broker’s tariff as its 

own for all jobs secured from the broker. 

AMSA suggests that the rule should 

require the broker’s fee or service charge 

to be separately stated in the estimate 

and not included in the motor carrier’s 

estimate of transportation charges. 

FMCSA response. Household goods 

motor carriers are required to maintain 

tariffs under 49 U.S.C. 13702 and must 

charge individual shippers in 

accordance with those tariffs. 

Implementing regulations of the Surface 

Transportation Board (STB) governing 

household goods carrier tariffs, at 49 

CFR 1310.3(a), require such tariffs to 

provide ‘‘the specific applicable rates, 

charges and service terms; and must be 

arranged in a way that allows for the 

determination of the exact rate, charges 

and service terms applicable to any 

given shipment.’’ Section 1310.3(b) 

permits use of multiple tariffs to 

determine applicable rates and charges, 

provided ‘‘the tariff containing the rates 

must make specific reference to all other 

tariffs required to determine applicable 

rates, charges and service terms. The 

carrier(s) party to the rate(s) must 

participate in all of the tariffs so linked 

***’’. A ‘‘carrier party to the rate’’ 

means more than one carrier can use the 

same rates. A broker’s rate schedule is 

not a tariff subject to 49 U.S.C. 13702 

and the STB regulations. There is no 

regulatory requirement that brokers 

adhere to such rate schedules, as there 

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Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 72991 

is for household goods motor carriers to 

adhere to the terms of their tariffs. 

FMCSA believes Nationwide Relocation 

Services’ suggestion would be 

inconsistent with 49 CFR 1310.3 and 

therefore, FMCSA will not adopt it. 

At this time, the Agency does not 

adopt AMSA’s suggestion that the 

broker’s fee or service charge be 

separately stated in the estimate. The 

Agency does not have sufficient 

information about how different brokers 

charge their fees and what affect this 

change would have. 

Agreements With Motor Carriers 

Proposed § 371.115(a) would require 

household goods brokers to maintain 

written agreements with authorized 

household goods motor carriers before 

providing estimates and lists the items 

that must be included in these 

agreements. Nationwide Relocation 

Services suggests all agreements should 

be submitted and filed with FMCSA. 

Paragraph (a)(6) would require the 

signatures on the agreement to be 

notarized. Pro Movers Network believes 

the requirement for a notarized 

agreement is unrealistic and would 

almost certainly be impossible to 

execute successfully. Because 

household goods carriers typically have 

working agreements with between 5 and 

15 brokers, the commenter asserts, the 

notary requirement would have to be 

repeated many times for each carrier. 

The commenter believes the rule would 

ultimately be too stressful to the brokercarrier business relationships and 

transactions. The commenter argues that 

the potential of lost opportunity costs 

caused by strained business 

relationships between household goods 

brokers and carriers is a distinct 

possibility and FMCSA’s cost and risk 

assessments did not take these lost 

opportunity costs into account. 

We also proposed changing § 375.409 

to state that the written agreement 

between the household goods broker 

and the household goods motor carrier 

must contain all of the items required in 

proposed § 371.115. AMSA 

recommends adding a sentence stating 

that the estimate is based on a physical 

survey of the goods conducted by the 

motor carrier. 

FMCSA response. We believe the 

filing requirement suggested by 

Nationwide Relocation Services would 

create an unnecessary burden for 

FMCSA, carriers, and brokers that 

would have little usefulness in 

protecting individual shippers. Based 

on comments received, we agree that the 

notarization requirement will be unduly 

burdensome and is unnecessary. We 

have removed the requirement that the 

agreements be notarized. 

We have also revised § 375.409 to 

reflect the changes to § 371.113(a) 

discussed above (requiring a physical 

survey if the carrier on whose behalf the 

broker makes an estimate is within 50 

miles of the household goods). 

However, as discussed earlier in this 

preamble, we are not adopting AMSA’s 

suggested change to require that all 

estimates be based on physical surveys 

of the property conducted by household 

goods motor carriers, because it would 

prohibit anyone other than the 

authorized motor carrier from 

performing the estimate. As such, it 

would be inconsistent with SAFETEA– 

LU and would limit the flexibility 

FMCSA intends to afford household 

goods brokers and carriers to provide 

services to their individual shippers. 

Motor carriers can certainly provide 

additional restrictions in their 

agreements with household goods 

brokers beyond FMCSA’s minimum 

requirements. 

Verifying the Motor Carrier’s Authority 

As proposed, § 371.119 would have 

required that each household goods 

broker ‘‘inspect, verify, and document’’ 

the validity of the U.S. DOT registration 

and MC operating authority for each 

household goods motor carrier with 

which it arranges transportation each 

month. The household goods broker 

would comply with this requirement by 

using FMCSA’s Web site (http:// 

www.protectyourmove.gov) to check 

whether the motor carrier has active forhire authority to transport household 

goods and evidence of the necessary 

financial responsibility on file with 

FMCSA. Nationwide Relocation 

Services suggests that monitoring the 

authority and licensing status of motor 

carriers is a role best suited for FMCSA, 

and a private broker should not be 

required to undertake the regulatory 

duty of FMCSA in policing the authority 

status of motor carriers. Pro Movers 

Network believes FMCSA should devise 

an e-mail notification system to register 

a broker’s carriers and automatically email the broker when one of its carrier’s 

authorities is suspended or revoked. 

Manual checks by the broker of its 

entire network of carriers would be 

time- and resource-intensive, the 

commenter asserts, and a once per 

month check by the broker is not a foolproof method of verification. The 

commenter believes the broker should 

only have to confirm whether the carrier 

is in ‘‘Active’’ or ‘‘NonActive’’ status in 

FMCSA’s Safety and Fitness Electronic 

Records (SAFER) database. The 

commenter also states that it is not the 

broker’s obligation and responsibility to 

report carrier non-compliance to 

FMCSA. 

FMCSA response. In response to 

comments and after further 

consideration, FMCSA has decided to 

eliminate proposed § 371.119 from the 

final rule. The intent of proposed 

§ 371.119 was to provide additional 

protection to shippers by requiring 

brokers to verify the validity of carriers’ 

registration and operating authority on a 

monthly basis. However, proposed 

§ 371.105 independently prohibits 

anyone from acting as a household 

goods broker for household goods motor 

carriers that do not have valid U.S. DOT 

numbers and valid operating authority 

from FMCSA. Regardless of whether a 

broker complies with the monthly 

verification and recordkeeping 

requirements, it would nonetheless be 

bound by § 371.105 and subject to 

penalties for arranging moves with 

unregistered or unauthorized carriers. 

Considering this redundancy, it is 

unclear what additional protections 

§ 371.119 would provide to shippers. 

Because brokers would be required to 

comply with § 371.105 under threat of 

penalty with or without § 371.119, the 

Agency does not believe that 

eliminating § 371.119 would diminish 

brokers’ incentives to avoid doing 

business with unregistered or 

unauthorized carriers. Thus, the Agency 

believes that eliminating § 371.119 

would leave shippers with the same 

level of protection against unregistered 

or unauthorized carriers, while reducing 

the administrative burden on brokers. 

Furthermore, striking this provision 

would eliminate any confusion over 

whether compliance with § 371.119 

excuses or provides mitigating 

circumstances for failure to comply with 

§ 371.105. FMCSA is concerned that 

proposed § 371.119, as written, could be 

interpreted as a safe haven for brokers 

who comply with the verification and 

recordkeeping requirements, but 

nonetheless arrange a move with an 

unregistered or unauthorized carrier. 

FMCSA never intended for proposed 

§ 371.119 to be interpreted this way. As 

a result, FMCSA leaves it to the 

household goods brokers to determine 

the most effective and efficient manner 

in which to ensure compliance with 

§ 371.105. 

Broker Surety Bond or Trust Fund 

FMCSA proposed to add specific 

language to § 387.307(a) to require 

household goods brokers to have a 

surety bond or trust fund in effect for 

$25,000, based on adjustments for 

inflation. The former ICC increased the 

financial responsibility requirement for 

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72992 Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 

3The ICC established the broker surety bond 

amount at $5,000 in 1936, 1 FR 1156, August 20, 

1936. 

brokers in 1979 from $5,000 to 

$10,000.3See 44 FR 70167, December 6, 

1979. The NPRM proposed adjusting the 

$10,000 minimum figure for inflation as 

measured by the Consumer Price Index, 

which resulted in purchasing power of 

$24,490.29 in 2006. Because a final rule 

based on the NPRM would not be in 

effect until after the 2007’s NPRM, 

FMCSA found it reasonable to round the 

minimum requirement up to $25,000. 

The requirement was raised to $10,000 

to ensure shippers or motor carriers 

would be paid if the broker failed to 

carry out its contracts, agreements, or 

arrangements for the supplying of 

transportation by authorized motor 

carriers. Sandra Irwin supports raising 

the amount of the surety bond or trust 

fund, and AMSA, PUCO, and OOIDA 

believe an increase to $25,000 is 

inadequate. According to OOIDA, surety 

companies have reported an aggregate 

amount of outstanding claims against 

broker bonds of between $300,000 and 

$500,000 in response to OOIDA’s efforts 

to submit claims by its members against 

broker bonds. Nationwide Relocation 

Services believes the amount of the 

surety bond or trust fund should be 

$50,000, and David Marsh suggests 

$100,000. Sandra Irwin, David Marsh, 

and the Transportation Intermediaries 

Association suggest the increase in the 

surety bond or trust fund should apply 

to all property brokers, not just 

household goods brokers. 

On the other hand, Pro Movers 

Network points out that household 

goods brokers may incur a high cost of 

doing business, such as increased costs 

of advertising, and increasing the surety 

bond or trust fund requirement to 

$25,000 represents an unnecessary 

financial burden. 

FMCSA response. Commenters that 

favored increasing the amount of the 

surety bond or trust fund did not 

provide adequate justification for an 

increase above $25,000, especially in 

light of the number of small business 

household goods brokers and the 

potential impact of significantly 

increasing the amount of financial 

responsibility beyond a level adjusted 

for inflation. Inasmuch as OOIDA did 

not provide specific information 

regarding the number and amount of 

outstanding claims per broker, its 

argument that an aggregate amount of 

$300,000 to $500,000 in outstanding 

claims warrants an increase in the 

amount of the bond to that level is not 

justifiable. 

The surety bond and trust fund 

provisions apply only to household 

goods transportation. FMCSA may 

consider applying the increased surety 

bond and trust fund provisions to 

general freight brokers in the future. 

Finally, FMCSA acknowledges Pro 

Movers Network’s comment about high 

costs of doing business, however, it did 

not provide sufficiently specific 

information to justify changing 

FMCSA’s proposal to something other 

than an adjustment for inflation. 

Implementation of the Household Goods 

Broker Surety Bond or Trust Fund 

Amount 

FMCSA did not propose how the 

Agency would implement the additional 

$15,000 increase in the amount of the 

surety bond or trust fund agreement. 

FMCSA believes it is necessary to 

provide household goods brokers a 

sufficient amount of time to acquire the 

additional $15,000 for surety bonds and 

trust funds. The Agency will set one 

year from the date of the final rule as the 

date when all brokers of household 

goods must have filed new BMC–84s or 

BMC–85s, as appropriate, to prove they 

have the minimum $25,000 in effect. 

This should give sufficient time to 

household goods brokers, especially 

small entities, to find sureties willing to 

write $25,000 surety bonds to replace 

their $10,000 bonds. Likewise, for those 

household goods brokers using trust 

fund agreements, this should give 

sufficient time for these entities to raise 

the additional $15,000 of capital to 

place in escrow with their trust fund 

managers. 

The Final Rule 

FMCSA adopts the proposed rule as 

final with minor changes in response to 

the comments. First, as discussed in the 

section on the ‘‘Scope of part 371, 

subpart B,’’ at the suggestion of AMSA, 

we are limiting the scope of part 371, 

subpart B to only household goods 

brokers offering services to individual 

shippers. We have made the appropriate 

changes to § 371.101 to limit the scope 

to individual shippers. Second, as 

discussed in the section of the 

‘‘Definitions,’’ the Agency is adding the 

acronym ‘‘FMCSA’’ and the definition 

that it means the Federal Motor Carrier 

Safety Administration, an agency within 

the U.S. Department of Transportation. 

Third, as discussed in the section on 

‘‘information in advertisements and 

Internet Web homepages,’’ we are 

adding § 371.107(d) to require 

household goods brokers who provide 

estimates on behalf of household goods 

motor carriers, to state prominently on 

their Web site(s) that the estimates must 

be based on the carrier’s tariff and that 

the carrier is required to make the tariff 

available for public inspection upon a 

reasonable request. Fourth, also as 

discussed in the section on ‘‘information 

in advertisements and Internet Web 

homepages,’’ at the suggestion of AMSA, 

we are adding § 371.107(e) to prohibit 

the broker from including the names or 

logos of motor carriers unless they are 

FMCSA-authorized household goods 

motor carriers with which the broker 

has a written agreement as specified in 

§ 371.115. Fourth, as discussed in the 

section ‘‘list of motor carriers,’’ FMCSA 

will allow household goods brokers to 

provide the information required by 

§ 371.109 electronically as an alternative 

to a paper-based communication. 

Fifth, as discussed in the section 

‘‘consumer protection information,’’ 

FMCSA is adding § 371.111(b) to require 

that, if a shipper elects to access the 

statutorily-mandated consumer 

information via the household goods 

broker’s Web site, then the broker must 

state on the written estimate described 

in § 371.113 that the individual shipper 

expressly agreed to access the consumer 

protection information via the Internet 

in lieu of a paper copy. 

Sixth, as discussed further in the 

section ‘‘consumer protection 

information,’’ FMCSA has also revised 

§ 371.111 paragraph (c) to require 

written or electronic verification of the 

shipper’s agreement to access the 

Federal consumer protection 

information on the Internet, instead of 

receiving the booklet copies in paper 

form. 

Seventh, as discussed in the section 

‘‘Written estimate based on a physical 

survey,’’ we are adopting one of AMSA’s 

two suggestions to require in 

§ 371.113(a) that a physical survey of 

the household goods must be conducted 

by the authorized motor carrier on 

whose behalf the estimate is provided, 

if the shipment is located within a 50- 

mile radius of the carrier’s ‘‘household 

goods agent preparing the estimate,’’ 

unless the physical survey requirement 

is waived by the shipper. 

Eighth, for § 371.113(c)(2), as 

discussed in the section on ‘‘Explanation 

of waiving the physical survey,’’ we are 

adopting PUCO’s suggestion that the 

final rule require brokers to explain the 

physical survey and waiver requirement 

to individual shippers, print the waiver 

agreement on the written estimate, and 

print the agreement with a minimum 

font size and font typeface. Ninth, as 

discussed in the section ‘‘verifying the 

motor carrier’s authority,’’ FMCSA is 

eliminating proposed § 371.119 from the 

final rule. Tenth, as discussed in the 

sections on ‘‘Written estimate based on 

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Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 72993 

a physical survey’’ and ‘‘Estimates 

provided by household goods brokers,’’ 

we have revised the household goods 

motor carrier requirements applicable to 

household goods broker estimates in 

§ 375.409(a) to make them consistent 

with our revised written estimate 

revisions in § 371.113(a). Finally, we are 

adding a 1-year compliance date in 

§ 387.307(a)(2) for household goods 

brokers to obtain the additional $15,000 

of financial responsibility over the 

current $10,000 requirement, and to file 

with FMCSA the required proof (Forms 

BMC–84 or BMC–85, as appropriate) of 

the total $25,000 minimum financial 

responsibility required by the 1-year 

compliance date. 

Regulatory Analyses 

Executive Order 12866 (Regulatory 

Planning and Review); DOT Regulatory 

Policies and Procedures 

FMCSA has determined that this 

action is a not a significant regulatory 

action within the meaning of Executive 

Order 12866 and the U.S. Department of 

Transportation regulatory policies and 

procedures (44 FR 11034, February 26, 

1979). The Agency received only 11 

comments and the costs are minimal. 

The total cost of the final rule is 

approximately $5.543 million in the 

first year with annual, recurring costs of 

$1.776 million thereafter. As such, the 

costs of this final rule do not exceed the 

$100 million annual threshold as 

defined in Executive Order 12866. The 

ten-year costs and benefits of the final 

rule are shown in Table 1: 

TABLE 1—SUMMARY OF TEN-YEAR

COSTS AND BENEFITS FOR FINAL RULE

[In millions] 

7% Discount Rate Option 3 

Costs ................................. $17.11 

Benefits ............................. 46.97 

Net Benefits ...................... 32.25 

3% Discount Rate Option 3 

Costs ................................. 16.58 

Benefits ............................. 54.91 

Net Benefits ...................... 38.33 

FMCSA’s full Final Regulatory 

Evaluation is in the docket for this rule. 

It explains in detail how we estimated 

cost impacts for the final rule. 

This rule establishes additional 

consumer protection regulations 

specifically for household goods brokers 

to supplement the regulations at 49 CFR 

part 375, which apply to motor carriers 

transporting household goods by 

commercial motor vehicle in interstate 

and foreign commerce. 

FMCSA estimates these regulatory 

changes will produce three primary cost 

impacts on household goods brokers: (1) 

Costs of training certain employees on 

the proper application of the regulatory 

changes; (2) costs to revise broker 

marketing materials, forms, and orders 

for service, including technical writing, 

Web site editing, and printing costs 

associated with incorporating mandated 

consumer information; and (3) 

additional information collection 

burdens associated with the new 

regulations, including traveling to and 

performing on-site physical surveys for 

written estimates; making written 

agreements with household goods motor 

carriers, stating on the written estimate 

that the individual shipper expressly 

agreed to access the consumer 

protection information on the Internet; 

obtaining written or electronic 

verification of the shipper’s agreement 

to access the Federal consumer 

protection information on the Internet; 

explaining the physical survey and 

waiver requirement to individual 

shippers; printing the waiver agreement 

on the written estimate; printing the 

agreement with a minimum font size 

and font typeface; and, finally, requiring 

household goods brokers to have their 

sureties or trust fund managers file 

proof of their $25,000 minimum 

financial responsibility on the Forms 

BMC–84 or BMC–85, as appropriate. 

Regulatory Flexibility Act, as Amended 

by the Small Business Regulatory 

Enforcement Fairness Act of 1996 

The Regulatory Flexibility Act (RFA) 

(5 U.S.C. 601–612), as amended by the 

Small Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121, 

110 Stat. 857), requires Federal 

agencies, as a part of each rulemaking, 

to consider regulatory alternatives that 

minimize the impact on small entities 

while achieving the objectives of the 

rulemaking. The Agency’s Initial 

Regulatory Flexibility Analysis is 

available in docket FMCSA–2004–17008 

at item 0018. FMCSA received no 

specific comments about its Initial 

Regulatory Flexibility Analysis. The 

Agency’s Final Regulatory Flexibility 

Analysis (FRFA) for this final rule is 

discussed below. 

(1) A description of the reasons why 

action by the agency is being 

considered. 

The American Moving and Storage 

Association (AMSA) petitioned the DOT 

for a rulemaking in March 2003 that 

would amend the property broker 

regulations in part 371 to require 

brokers that arrange for household 

goods transportation by motor carrier 

(household goods brokers) to provide 

consumer information that only 

household-goods motor-carriers must 

now provide, as well as establish 

additional consumer protection 

requirements. Many of AMSA’s 

concerns were addressed in the Safe 

Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy For 

Users (SAFETEA–LU), Public Law 109– 

59, which was enacted into law on 

August 10, 2005. Specifically, section 

4212 of SAFETEA–LU directs FMCSA 

to issue regulations requiring household 

goods brokers to provide this 

information to consumers. 

(2) Objectives of, and legal basis for, 

the final rule. 

This rulemaking is mandated by 

section 4212 of SAFETEA–LU. 

FMCSA’s general authority to enact 

consumer protection regulations 

governing broker operations is 

contained in 49 U.S.C. 13904(c). The 

objective of this rule is to ensure that 

individual shippers of household goods 

that arrange for transportation through 

household goods brokers (rather than 

directly through motor carriers) receive 

necessary information regarding the 

parties with which they are dealing and 

their rights and responsibilities in 

connection with interstate household 

goods moves. It also is intended to 

ensure that household goods brokers 

deal only with properly registered and 

insured motor carriers and that 

estimates provided by household goods 

brokers be provided under specific 

circumstances designed to protect the 

shipper against abuse. Finally, it 

increases the level of financial 

responsibility required to ensure that 

household goods brokers perform their 

transportation contracts. 

(3) Significant issues raised by small 

entities’ comments. 

A summary of the significant issues 

raised by the public in response to the 

NPRM and the assessment of each 

significant issue are discussed earlier in 

this final rule under the heading 

‘‘Discussion of Comments on the 

Proposed Rule.’’ 

FMCSA is adopting the proposed rule 

as final with the minor changes 

discussed above under the heading The 

Final Rule, based mainly on comments 

to the NPRM. FMCSA believes most 

household goods brokers that 

commented to the NPRM would meet 

the definition of a small business entity. 

(4) Description and estimate of the 

number of small entities to which the 

final rule will apply. 

There are currently 615 active, 

registered household goods brokers and 

another 394 registered household goods 

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72994 Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 

4A broker generally becomes inactive after 

registering with FMCSA when its surety bond or 

trust fund is cancelled. 

5 70 FR 39949 (Jul. 12, 2005). 

brokers that are inactive.4 We do not 

know the number of unregistered 

household goods brokers, but we 

suspect that there are many. For the 

purposes of our analysis, we assume the 

number is 75—which would put the 

percentage of unregistered brokers at 

just over ten percent (75 is 10.87% of 

(615 + 75)). The figure is based on 

conversations with industry experts and 

information from broker Web sites. We 

use 690, then, as the estimate of total 

active brokers—registered and (now) 

unregistered. Almost all are small 

entities according to the definition in 

Small Business Administration (SBA) 

regulations (13 CFR part 121) which 

defines a ‘‘small entity’’ in the North 

American Industrial Classification 

System (NAICS) Code 488510 ‘‘Freight 

Transportation Arrangement’’ industry 

by average annual receipts, which are 

currently set at $7 million per firm. The 

motor carriers with whom household 

goods brokers deal may also be 

indirectly affected. 

(5) Description of the projected 

reporting, record-keeping and other 

compliance requirements for small 

entities. 

The final rule requires additional 

record-keeping on the part of household 

goods brokers to demonstrate 

compliance. The cost to the household 

goods broker industry of this additional 

record-keeping ($5.543 million in the 

first year and $1.776 million annually to 

inform, display, and disclose 

information to shippers and maintain 

the files for three years) is reflected in 

our cost estimates. Additionally, the 

aggregate cost to the household goods 

broker industry of raising the financial 

responsibility requirement to $25,000 

from $10,000 (approximately $50,000 

annually) is also reflected in our cost 

estimates. The total cost has a present 

value of approximately $17.11 million 

over ten years when discounted at 7 

percent, and does not require any 

special skills that would be available to 

large entities any more than to small 

entities. 

(6) Duplication with other Federal 

rules. 

FMCSA is unaware of any other 

Federal rules which will duplicate, 

overlap, or conflict with this proposed 

rule except for the household goods 

carriers rule published on July 12, 

2005.5 Because these rules apply only to 

household goods motor carriers, it was 

necessary to establish separate rules 

applicable to household goods brokers, 

even though they contain certain 

similarities. For example, SAFETEA–LU 

requires every shipper to receive the 

pamphlet ‘‘Your Rights and 

Responsibilities When You Move.’’ 

Household goods carriers are already 

required to make this pamphlet 

available to every shipper. This rule 

requires household goods brokers to 

make the same pamphlet available to 

shippers. There is no practical way 

around the duplication because some 

shippers do not use a household goods 

broker and those who do often do not 

have any direct contact with a 

household goods carrier early enough in 

the process to make effective use of the 

information contained in the pamphlet. 

(7) Description of any significant 

alternatives to the final rule. 

FMCSA believes that there are no 

significant alternatives to the final rule 

which would accomplish the stated 

objectives of the Household Goods 

Mover Oversight Enforcement and 

Reform Act of 2005, otherwise known as 

Title IV, Subtitle B of the Safe, 

Accountable, Flexible, Efficient 

Transportation Equity Act: A Legacy for 

Users (SAFETEA–LU) (Pub. L.109–59) 

and which would minimize any 

significant economic impact of the final 

rule on small entities. 

The Agency did consider ways in 

which it could assist small household 

goods broker entities to mitigate the 

impact of increasing the trust fund 

resources to the new minimum 

requirement of $25,000. The Agency 

decided it could extend the compliance 

date regarding the financial 

responsibility requirement so that 

brokers will have a full year after 

publication of the final rule to come into 

compliance with the $25,000 

requirement, increasing trust funds from 

the minimum of $10,000 to the final 

rule’s minimum requirement of $25,000. 

Therefore, FMCSA is mitigating the 

impact of obtaining the additional 

$15,000 of financial responsibility over 

the current $10,000 requirement by 

adding a 1-year compliance date in 

§ 387.307(a)(2). Thus, all household 

goods brokers will have one year from 

the date of publication of this final rule 

to obtain the additional $15,000 of 

financial responsibility over the current 

$10,000 requirement, and to have their 

sureties and trust fund managers file 

with FMCSA the required proof (Forms 

BMC–84 or BMC–85, as appropriate) of 

the total $25,000 minimum financial 

responsibility required by the 

compliance date for § 387.307(a)(2). 

As we stated above, almost all of the 

690 household goods brokers subject to 

this final rule meet the definition of a 

small business entity under the RFA. 

We have estimated this final rule will 

cause the average household goods 

broker to incur an estimated, additional 

$8,030 in the first year of 

implementation and annual recurring 

costs of about $2,575. The 

Administrator of the FMCSA believes 

this final rule will have a significant 

economic impact on a substantial 

number of small entities (SEISONOSE). 

Unfunded Mandates Reform Act 

This rule does not impose a Federal 

mandate resulting in the expenditure by 

State, local, or Tribal governments, in 

the aggregate, or by the private sector, of 

$140.3 million or more in any one year 

(2 U.S.C. 1531 et seq.). The present 

value of the final rule is about $17.11 

million. 

National Environmental Policy Act 

The Agency analyzed this rule for the 

purpose of the National Environmental 

Policy Act of 1969 (NEPA) (42 U.S.C. 

4321 et seq.) and determined under our 

environmental procedures Order 5610.1 

published March 1, 2004 (69 FR 9680), 

that this action is categorically excluded 

under Appendix 2, paragraphs 6.d, 6.m, 

and 6.q of the Order from further 

environmental documentation. These 

categorical exclusions relate to 

rulemaking actions affecting household 

goods brokers. In addition, the Agency 

believes that the action includes no 

extraordinary circumstances that would 

have any effect on the quality of the 

environment. Thus, the action does not 

require an environmental assessment or 

an environmental impact statement. 

We have also analyzed this rule under 

the Clean Air Act, as amended (CAA) 

section 176(c), (42 U.S.C. 7401 et seq.) 

and implementing regulations 

promulgated by the Environmental 

Protection Agency. Approval of this 

action is exempt from the CAA’s general 

conformity requirement since it 

involves rulemaking and policy 

development and issuance. See 40 CFR 

93.153(c)(2). It will not result in any 

emissions increase nor will it have any 

potential to result in emissions that are 

above the general conformity rule’s de 

minimis emission threshold levels. 

Moreover, it is reasonably foreseeable 

that the rule will not increase total CMV 

mileage, or change the routing of CMVs, 

how CMVs operate, or the CMV fleetmix of motor carriers. This action 

merely establishes regulations 

applicable to the business practices of 

household goods brokers, which do not 

operate CMVs. FMCSA received no 

comments to its NEPA and Clean Air 

Act analyses. 

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Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 72995 

Privacy Impact Assessment 

FMCSA conducted a privacy impact 

assessment of this rule as required by 

section 522(a)(5) of the FY 2005 

Omnibus Appropriations Act, Public 

Law 108–447, 118 Stat. 3268 (Dec. 8, 

2004) [set out as a note to 5 U.S.C. 

552a]. The assessment considers any 

impacts of the rule on the privacy of 

information in an identifiable form and 

related matters. FMCSA has determined 

this rule imposes no privacy impacts. 

Paperwork Reduction Act 

Under the Paperwork Reduction Act 

of 1995 (PRA) (44 U.S.C. 3501–3520), a 

Federal agency must obtain approval 

from the Office of Management and 

Budget (OMB) for each collection of 

information it conducts, sponsors, or 

requires through regulations. FMCSA 

seeks approval of the information 

collection requirements in a new 

information collection to be entitled 

‘‘Practices of Household Goods Brokers.’’ 

The collected information 

encompasses that which is generated, 

maintained, retained, disclosed, and 

provided to, or for, the agency under 49 

CFR part 371. It will assist shippers in 

their commercial dealings with 

interstate household goods brokers. The 

collection of information will be used 

by prospective shippers to make 

informed decisions about contracts and 

services to be ordered, executed, and 

settled within the interstate household 

goods motor carrier industry. Some of 

these information collection items were 

required by regulations issued by the 

former ICC; however, that agency was 

not required to comply with the PRA. 

When these items transferred from the 

ICC to the Federal Highway 

Administration, and ultimately to 

FMCSA, no OMB control number was 

assigned to cover this information 

collection transfer. It was therefore 

necessary to calculate the old 

information collection burden hours for 

these items approved under the ICC 

rules and to add the new burden that 

will be generated by this final rule. 

Assumptions used for calculation of 

the information collection burden 

include the following: (1) There are 

currently approximately 690 active 

household goods brokers; (2) on average, 

each household goods broker will enter 

into written agreements to estimate 

shipment costs with about 31 motor 

carriers, (3) household goods brokers 

will eventually sever some of these 

written agreements and make 

agreements with new household goods 

motor carriers. We assume that an 

average agreement lasts for about six 

years, meaning that brokers will enter 

into about five new agreements each 

year, and (4) FMCSA estimates 

household goods brokers handle about 

100,000 moves each year. The first two 

items result in 24,390 respondents 

subject to the information collection 

(690 × 31 = 24,390). The third item 

results in an additional 3,450 

respondents subject to the information 

collection (690 × 5 = 3,450). Together 

with the fourth item, a total of about 

127,900 respondents (24,390 + 3,450 + 

100,000) would be subject to the 

information collection. 

The PRA regulations at 5 CFR 

1320.3(b)(2) allow FMCSA to calculate 

no burden when the agency 

demonstrates to OMB that the activity 

needed to comply with the specific 

regulation is usual and customary. 

FMCSA sought comment in the NPRM 

on whether setting up the first 

accounting system for a new business is 

a usual and customary business 

practice. FMCSA received no comments 

from the public about this accounting 

system issue. Thus, FMCSA concludes 

the public believes it is a usual and 

customary practice when starting a new 

business. 

Table 2 summarizes the information 

collection burden hours by the actions 

being taken in the final rule. See 

attachment S of the supporting 

statement for the Paperwork Reduction 

Act Submission in docket FMCSA– 

2004–17008 for the detailed FMCSA 

analysis. 

TABLE 2—ANNUAL BURDEN HOURS ACROSS THE 127,900 RESPONDENTS

Section Description Calculation Total hours 

371.3 ............................ Transaction records .............................................................................. 60hr × 690 ................................. 41,400 

371.13 .......................... Second accounting system ................................................................... 8hr × 125 ................................... 1,000 

371.107 ........................ Web site/Ad Modification ...................................................................... 20hr × 690 ................................. 13,800 

371.109 ........................ Create A List of Carriers ....................................................................... 10hr × 690 ................................. 6,900 

371.111(a) ................... Pamphlet Provision (One-Time) ............................................................ 0.5hr × 690 ................................ 345 

371.111(c) .................... Confirming Required Information .......................................................... 0.5hr/month × 12 × 690 ............. 4,140 

371.113 ........................ Explanation of Waiver-Agreement ........................................................ (1/12)hr × 20,000 ....................... 1,667 

371.115 ........................ Negotiation of Agreements (One-Time) ................................................ 4hr × 31 agreements × 690 ....... 85,560 

Additional Agreements Through Turnover ............................................ 4 hrs × 5 agreements × 690 ...... 13,800 

371.117 ........................ Disclosure and Records ........................................................................ 10hr × 690 ................................. 6,900 

371.119 ........................ Removed Verification Requirement ...................................................... Removed ................................... 0 

Total First Year Hours ........................................................................... .................................................... 175,512 

.

Total Recurring Annual Hours ............................................................... .................................................... 89,607 

We have rounded the estimates and 

have asked OMB for approval for firstyear burden-hours of 175,500, and 

subsequent-year burden-hours of 

89,600. We particularly request your 

comments on whether the collection of 

information is necessary for FMCSA to 

meet the goal of 49 CFR part 371 to 

protect consumers and household goods 

motor carriers, including: (1) Whether 

the information is useful to this goal; (2) 

the accuracy of the estimate of the 

burden of the information collection; (3) 

ways to enhance the quality, utility and 

clarity of the information collected; and 

(4) ways to minimize the burden of the 

collection of information on 

respondents, including the use of 

automated collection techniques or 

other forms of information technology. 

You must submit comments on the 

information collection burden 

addressed by this final rule to the Office 

of Management and Budget (OMB). The 

deadline for such submissions is 

December 29, 2010. Interested persons 

are invited to submit written comments 

on the proposed information collection 

to the Office of Information and 

Regulatory Affairs, Office of 

Management and Budget. Comments 

should be addressed to the attention of 

the Desk Officer, Department of 

Transportation/Federal Motor Carrier 

Safety Administration, and sent via 

electronic mail to 

oira_submission@omb.eop.gov, or faxed 

to (202) 395–6974, or mailed to the 

Office of Information and Regulatory 

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72996 Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 

Affairs, Office of Management and 

Budget, Docket Library, Room 10102, 

725 17th Street, NW., Washington, DC 

20503. 

Executive Order 12988 (Civil Justice 

Reform) 

This rulemaking meets applicable 

standards in sections 3(a) and 3(b)(2) of 

Executive Order 12988, entitled ‘‘Civil 

Justice Reform,’’ to minimize litigation, 

eliminate ambiguity, and reduce 

burden. 

Executive Order 12630 (Taking of 

Private Property) 

This rule will not effect a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630, entitled ‘‘Governmental 

Actions and Interference with 

Constitutionally Protected Property 

Rights.’’ 

Executive Order 13132 (Federalism) 

This action has been analyzed in 

accordance with the principles and 

criteria contained in Executive Order 

13132. The FMCSA has determined that 

this rulemaking would not have a 

substantial direct effect on States, nor 

would it limit the policy-making 

discretion of the States. 

Executive Order 13211 (Energy Effects) 

FMCSA has analyzed this action 

under Executive Order 13211, entitled 

‘‘Actions Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use.’’ The Agency has 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it does not appear to be economically 

significant (i.e., imposing a cost of more 

than $100 million in a single year) based 

upon analyses performed at this stage of 

the rulemaking process, and is not likely 

to have a significant adverse effect on 

the supply, distribution, or use of 

energy. 

Executive Order 12372 

(Intergovernmental Review) 

The regulations implementing 

Executive Order 12372 regarding 

intergovernmental consultation on 

Federal programs and activities do not 

apply to this program. 

List of Subjects 

49 CFR Part 371 

Brokers, Motor carriers, Reporting and 

recordkeeping requirements. 

49 CFR Part 375 

Advertising, Arbitration, Consumer 

protection, Freight, Highways and 

roads, Insurance, Motor carriers, Moving 

of household goods, Reporting and 

recordkeeping requirements. 

49 CFR Part 386 

Administrative practice and 

procedure, Brokers, Freight forwarders, 

Hazardous materials transportation, 

Highway safety, Motor carriers, Motor 

vehicle safety, Penalties. 

49 CFR Part 387 

Buses, Freight, Freight forwarders, 

Hazardous materials transportation, 

Highway safety, Insurance, 

Intergovernmental relations, Motor 

carriers, Motor vehicle safety, Moving of 

household goods, Penalties, Reporting 

and recordkeeping requirements, Surety 

bonds. 

■ For the reasons discussed above, 

FMCSA is amending title 49, Code of 

Federal Regulations, chapter III, 

subchapter B, as set forth below: 

PART 371—BROKERS OF PROPERTY 

■ 1. Revise the authority citation for part 

371 to read as follows: 

Authority: 49 U.S.C. 13301, 13501, and 

14122; subtitle B, title IV of Pub. L. 109–59; 

and 49 CFR 1.73. 

Subpart A—General Requirements 

■ 2. Add a heading for subpart A to read 

as set forth above, and designate 

§§ 371.1 through 371.13 under subpart 

A. 

■ 3. Add a new subpart B to read as 

follows: 

Subpart B—Special Rules for Household 

Goods Brokers 

Sec. 

371.101 If I operate as a household goods 

broker in interstate or foreign commerce, 

must I comply with subpart B of this 

part? 

371.103 What are the definitions of terms 

used in this subpart? 

371.105 Must I use a motor carrier that has 

a valid U.S. DOT number and valid 

operating authority issued by FMCSA to 

transport household goods in interstate 

or foreign commerce? 

371.107 What information must I display in 

my advertisements and Internet Web 

homepage? 

371.109 Must I inform individual shippers 

which motor carriers I use? 

371.111 Must I provide individual shippers 

with Federal consumer protection 

information? 

371.113 May I provide individual shippers 

with a written estimate? 

371.115 Must I maintain agreements with 

motor carriers before providing written 

estimates on behalf of these carriers? 

371.117 Must I provide individual shippers 

with my policies concerning 

cancellation, deposits, and refunds? 

371.121 What penalties may FMCSA 

impose for violations of this part? 

Subpart B—Special Rules for 

Household Goods Brokers 

§ 371.101 If I operate as a household 

goods broker in interstate or foreign 

commerce, must I comply with subpart B of 

this part? 

Yes, you must comply with all 

regulations in this subpart when you 

operate as a household goods broker 

offering services to individual shippers 

in interstate or foreign commerce. The 

regulations in this subpart do not apply 

to a household goods broker when 

providing services to commercial or 

government shippers in interstate or 

foreign commerce. 

§ 371.103 What are the definitions of terms 

used in this subpart? 

FMCSA means the Federal Motor 

Carrier Safety Administration within the 

U.S. Department of Transportation. 

Household goods has the same 

meaning as the term is defined in 

§ 375.103 of this subchapter. 

Household goods broker means a 

person, other than a motor carrier or an 

employee or bona fide agent of a motor 

carrier, that as a principal or agent sells, 

offers for sale, negotiates for, or holds 

itself out by solicitation, advertisement, 

or otherwise as selling, providing, or 

arranging for, transportation of 

household goods by motor carrier for 

compensation. 

Individual shipper has the same 

meaning as the term is defined in 

§ 375.103 of this subchapter. 

§ 371.105 Must I use a motor carrier that 

has a valid U.S. DOT number and valid 

operating authority issued by FMCSA to 

transport household goods in interstate or 

foreign commerce? 

You may only act as a household 

goods broker for a motor carrier that has 

a valid, active U.S. DOT number and 

valid operating authority issued by 

FMCSA to transport household goods in 

interstate or foreign commerce. 

§ 371.107 What information must I display 

in my advertisements and Internet Web 

homepage? 

(a) You must prominently display in 

your advertisements and Internet Web 

homepage(s) the physical location(s) 

(street or highway address, city, and 

State) where you conduct business. 

(b) You must prominently display 

your U.S. DOT registration number(s) 

and MC license number issued by the 

FMCSA in your advertisements and 

Internet Web homepage(s). 

(c) You must prominently display in 

your advertisements and Internet Web 

site(s) your status as a household goods 

broker and the statement that you will 

not transport an individual shipper’s 

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household goods, but that you will 

arrange for the transportation of the 

household goods by an FMCSAauthorized household goods motor 

carrier, whose charges will be 

determined by its published tariff. 

(d) If you provide estimates on any 

carrier’s behalf pursuant to § 371.113(b), 

you must prominently display in your 

Internet Web site(s) that the estimate 

must be based on the carrier’s tariff and 

that the carrier is required to make its 

tariff available for public inspection 

upon a reasonable request. 

(e) You may only include in your 

advertisements or Internet Web site(s) 

the names or logos of FMCSAauthorized household goods motor 

carriers with whom you have a written 

agreement as specified in § 371.115 of 

this part. 

§ 371.109 Must I inform individual shippers 

which motor carriers I use? 

(a) You must provide to each potential 

individual shipper who contacts you a 

list of all authorized household goods 

motor carriers you use, including their 

U.S. DOT registration number(s) and 

MC license numbers. You may provide 

the list electronically or on paper. 

(b) You must provide to each 

potential individual shipper who 

contacts you a statement indicating that 

you are not a motor carrier authorized 

by the Federal Government to transport 

the individual shipper’s household 

goods, and you are only arranging for an 

authorized household goods motor 

carrier to perform the transportation 

services and, if applicable, additional 

services. You may provide the statement 

electronically or on paper. 

§ 371.111 Must I provide individual 

shippers with Federal consumer protection 

information? 

(a) You must provide potential 

individual shippers with Federal 

consumer protection information by one 

of the following three methods: 

(1) Provide a hyperlink on your 

Internet Web site to the FMCSA Web 

site containing the information in 

FMCSA’s publications ‘‘Ready to 

Move?—Tips for a Successful Interstate 

Move’’ and ‘‘Your Rights and 

Responsibilities When You Move.’’ 

(2) Distribute to each shipper and 

potential shipper at the time you 

provide an estimate, copies of FMCSA’s 

publications ‘‘Ready to Move?—Tips for 

a Successful Interstate Move’’ and ‘‘Your 

Rights and Responsibilities When You 

Move.’’ 

(3) Distribute to each shipper and 

potential shipper at the time you 

provide an estimate, copies of ‘‘Ready to 

Move?—Tips for a Successful Interstate 

Move’’ and ‘‘Your Rights and 

Responsibilities When You Move’’ as 

modified and produced by the 

authorized, lawful motor carrier to 

which you intend to provide the 

shipment under your written agreement 

required by § 371.115. 

(b) If an individual shipper elects to 

waive physical receipt of the Federal 

consumer protection information by one 

of the methods described in paragraphs 

(a)(2) and (a)(3) of this section, and 

elects to access the same information via 

the hyperlink on the Internet as 

provided in paragraph (a)(1) of this 

section, you must include a clear and 

concise statement on the written 

estimate described in § 371.113 that the 

individual shipper expressly agreed to 

access the Federal consumer protection 

information on the Internet. 

(c) You must obtain a signed, dated, 

electronic or paper receipt showing the 

individual shipper has received both 

booklets that includes, if applicable, 

verification of the shipper’s agreement 

to access the Federal consumer 

protection information on the Internet. 

(d) You must maintain the signed 

receipt required by paragraph (c) of this 

section for three years from the date the 

individual shipper signs the receipt. 

§ 371.113 May I provide individual 

shippers with a written estimate? 

(a) You may provide each individual 

shipper with an estimate of 

transportation and accessorial charges. 

If you provide an estimate, it must be in 

writing and must be based on a physical 

survey of the household goods 

conducted by the authorized motor 

carrier on whose behalf the estimate is 

provided if the goods are located within 

a 50-mile radius of the motor carrier’s or 

its agent’s location, whichever is closer. 

The estimate must be prepared in 

accordance with a signed, written 

agreement, as specified in § 371.115 of 

this subpart. 

(b) You must base your estimate upon 

the published tariffs of the authorized 

motor carrier who will transport the 

shipper’s household goods. 

(c)(1) A shipper may elect to waive 

the physical survey required in 

paragraph (a) of this section by written 

agreement signed by the shipper before 

the shipment is loaded. 

(2) The household goods broker must 

explain the physical survey waiver 

agreement to the individual shipper in 

plain English. The physical survey 

waiver agreement must be printed on 

the written estimate and must be 

printed at no less than 7-point font size 

and with the font typeface Universe. 

(3) A copy of the waiver agreement 

must be retained as an addendum to the 

bill of lading and is subject to the same 

record inspection and preservation 

requirements as are applicable to bills of 

lading. 

(d) You must keep the records 

required by this section for three years 

following the date you provide the 

written estimate for an individual 

shipper who accepts the estimate and 

has you procure the transportation. 

§ 371.115 Must I maintain agreements with 

motor carriers before providing written 

estimates on behalf of these carriers? 

(a) In order to provide estimates of 

charges for the transportation of 

household goods, you must do so in 

accordance with the written agreement 

required by § 375.409 of this subchapter. 

Your written agreement with the motor 

carrier(s) must include the following 

items: 

(1) Your broker name as shown on 

your FMCSA registration, your physical 

address, and your U.S. DOT registration 

number and MC license number; 

(2) The authorized motor carrier’s 

name as shown on its FMCSA 

registration, its physical address, and its 

U.S. DOT registration number and MC 

license number; 

(3) A concise, easy to understand 

statement that your written estimate to 

the individual shipper: 

(i) Will be exclusively on behalf of the 

authorized household goods motor 

carrier; 

(ii) Will be based on the authorized 

household goods motor carrier’s 

published tariff; and 

(iii) Will serve as the authorized 

household goods motor carrier’s 

estimate for purposes of complying with 

the requirements of part 375 of this 

chapter, including the requirement that 

the authorized household goods motor 

carrier relinquishes possession of the 

shipment upon payment of no more 

than 110 percent of a non-binding 

estimate at the time of delivery; 

(4) Your owner’s, corporate officer’s, 

or corporate director’s signature 

lawfully representing your household 

goods broker operation and the date; 

(5) The signature of the authorized 

household goods motor carrier’s owner, 

corporate officer, or corporate director 

lawfully representing the household 

goods motor carrier’s operation and the 

date; and 

(b) The signed written agreement 

required by this section is public 

information and you must produce it for 

review upon reasonable request by a 

member of the public. 

(c) You must keep copies of the 

agreements required by this section for 

as long as you provide estimates on 

behalf of the authorized household 

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72998 Federal Register / Vol. 75, No. 228 / Monday, November 29, 2010 / Rules and Regulations 

goods motor carrier and for three years 

thereafter. 

§ 371.117 Must I provide individual 

shippers with my policies concerning 

cancellation, deposits, and refunds? 

(a) You must disclose prominently on 

your Internet Web site and in your 

agreements with prospective shippers 

your cancellation policy, deposit policy, 

and policy for refunding deposited 

funds in the event the shipper cancels 

an order for service before the date an 

authorized household goods motor 

carrier has been scheduled to pick up 

the shipper’s property. 

(b) You must maintain records 

showing each individual shipper’s 

request to cancel a shipment and the 

disposition of each request for a period 

of three years after the date of a 

shipper’s cancellation request. If you 

refunded a deposit, your records must 

include: 

(1) Proof that the individual shipper 

cashed or deposited the check or money 

order, if the financial institution 

provides documentary evidence; or 

(2) Proof that you delivered the refund 

check or money order to the individual 

shipper. 

§ 371.121 What penalties may FMCSA 

impose for violations of this part? 

The penalty provisions of 49 U.S.C. 

chapter 149, Civil and Criminal 

Penalties apply to this subpart. These 

penalties do not overlap. 

Notwithstanding these civil penalties, 

nothing in this section deprives an 

individual shipper of any remedy or 

right of action under existing law. 

PART 375—TRANSPORTATION OF 

HOUSEHOLD GOODS IN INTERSTATE 

COMMERCE; CONSUMER 

PROTECTION REGULATIONS 

■ 4. Revise the authority citation for part 

375 to read as follows: 

Authority: 5 U.S.C. 553; 49 U.S.C. 13102, 

13301, 13704, 13707, 14104, 14706, 14708; 

subtitle B, title IV of Pub. L. 109–59; and 49 

CFR 1.73. 

■ 5. Amend § 375.213 by revising 

paragraphs (a), (b)(1), and (d), and 

adding paragraph (e) to read as follows: 

§ 375.213 What information must I provide 

to a prospective individual shipper? 

(a) When you provide the written 

estimate to a prospective individual 

shipper, you must also provide the 

individual shipper with a copy of 

Department of Transportation 

publication FMCSA–ESA–03–005 (or its 

successor publication) entitled ‘‘Ready 

to Move?—Tips for a Successful 

Interstate Move.’’ You may provide the 

individual shipper with a paper copy or 

you may provide a hyperlink on your 

Internet Web site to the FMCSA Web 

site containing the information in 

FMCSA’s publication ‘‘Ready to 

Move?—Tips for a Successful Interstate 

Move.’’ 

(b) * * * 

(1) The contents of appendix A of this 

part, entitled ‘‘Your Rights and 

Responsibilities When You Move’’ 

(Department of Transportation 

publication FMCSA–ESA–03–006, or its 

successor publication). You may 

provide the individual shipper with a 

paper copy or you may provide a 

hyperlink on your Internet Web site to 

the FMCSA Web site containing the 

information in FMCSA’s publication 

‘‘Your Rights and Responsibilities When 

You Move.’’ 

* * * * * 

(d) Paragraphs (c)(2) and (c)(3) of this 

section do not apply to exact copies of 

appendix A published in the Federal 

Register, the Code of Federal 

Regulations, or on FMCSA’s Web site. 

(e) If an individual shipper elects to 

waive physical receipt of the Federal 

consumer protection information by one 

of the methods described in paragraphs 

(a) and (b)(1) of this section, and elects 

to access the same information via the 

hyperlink on the Internet as provided in 

paragraphs (a) and (b)(1) of this section: 

(1) You must include a clear and 

concise statement on the written 

estimate described in § 375.401 that the 

individual shipper expressly agreed to 

access the Federal consumer protection 

information on the Internet. 

(2) You must obtain a signed, dated, 

electronic or paper receipt showing the 

individual shipper has received both 

booklets that includes, if applicable, 

verification of the shipper’s agreement 

to access the Federal consumer 

protection information on the Internet. 

(3) You must maintain the signed 

receipt required by paragraph (e)(2) of 

this section for three years from the date 

the individual shipper signs the receipt. 

■ 5. Revise § 375.409 to read as follows: 

§ 375.409 May household goods brokers 

provide estimates? 

(a) Subject to the limitations in 

§ 371.113(a) of this subchapter, 

household goods brokers may provide 

estimates to individual shippers 

provided there is a written agreement 

between the broker and you, the motor 

carrier, adopting the broker’s estimate as 

your own estimate. If you, the motor 

carrier, make such an agreement with a 

household goods broker, you must 

ensure compliance with all 

requirements of this part pertaining to 

estimates, including the requirement 

that you must relinquish possession of 

the shipment if the shipper pays you no 

more than 110 percent of a non-binding 

estimate at the time of delivery. 

(b) Your written agreement with the 

household goods broker(s) must include 

the items required in § 371.115(a) of this 

subchapter. 

PART 386—RULES OF PRACTICE FOR 

MOTOR CARRIER, BROKER, FREIGHT 

FORWARDER, AND HAZARDOUS 

MATERIALS PROCEEDINGS 

■ 6. Revise the authority citation for part 

386 to read as follows: 

Authority: 49 U.S.C. 113, chapters 5, 51, 

59, 131–141, 145–149, 311, 313, and 315; 

Sec. 204, Pub. L. 104–88, 109 Stat. 803, 941 

(49 U.S.C. 701 note); Sec. 217, Pub. L. 105– 

159, 113 Stat. 1748, 1767; Sec. 206, Pub. L. 

106–159, 113 Stat. 1763; subtitle B, title IV 

of Pub. L. 109–59; and 49 CFR 1.45 and 1.73. 

■ 7. Amend appendix B to part 386 by 

revising the heading and by adding 

paragraphs (g)(22) and (23) to read as 

follows: 

Appendix B to Part 386—Penalty 

Schedule; Violations and Monetary 

Penalties 

* * * * * 

(g) * * * 

(22) A broker for transportation of 

household goods who makes an estimate of 

the cost of transporting any such goods 

before entering into an agreement with a 

motor carrier to provide transportation of 

household goods subject to FMCSA 

jurisdiction is liable to the United States for 

a civil penalty of not less than $10,000 for 

each violation. 

(23) A person who provides transportation 

of household goods subject to jurisdiction 

under 49 U.S.C. chapter 135, subchapter I, or 

provides broker services for such 

transportation, without being registered 

under 49 U.S.C. chapter 139 to provide such 

transportation or services as a motor carrier 

or broker, as the case may be, is liable to the 

United States for a civil penalty of not less 

than $25,000 for each violation. 

* * * * * 

PART 387—MINIMUM LEVELS OF 

FINANCIAL RESPONSIBILITY FOR 

MOTOR CARRIERS 

■ 8. The authority citation for part 387 

continues to read as follows: 

Authority: 49 U.S.C. 13101, 13301, 13906, 

14701, 31138, 31139, and 31144; and 49 CFR 

1.73. 

■ 9. Amend § 387.307 by redesignating 

paragraph (a) as paragraph (a)(1) and 

adding new paragraph (a)(2) to read as 

follows: 

§ 387.307 Property broker surety bond or 

trust fund. 

(a) Security. (1) * * * 

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(2) A household goods broker must 

have a surety bond or trust fund in 

effect for $25,000 on and after January 

1, 2012. The FMCSA will not issue a 

household goods broker license until a 

surety bond or trust fund for the full 

limits of liability prescribed herein is in 

effect. The household goods broker 

license remains valid or effective only 

as long as a surety bond or trust fund 

remains in effect and ensures the 

financial responsibility of the household 

goods broker. The compliance date for 

paragraph (a)(2) is January 1, 2012. 

* * * * * 

Issued on: November 19, 2010. 

Anne S. Ferro, 

Administrator. 

[FR Doc. 2010–29813 Filed 11–26–10; 8:45 am] 

BILLING CODE 4910–EX–P 

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