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[Federal Register Volume 89, Number 250 (Tuesday, December 31, 2024)]
[Rules and Regulations]
[Pages 107021-107026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30509]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 386 and 387

[Docket No. FMCSA-2024-0280]
RIN 2126-AC76

Broker and Freight Forwarder Financial Responsibility; Extension 
of Compliance Date

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), Department 
of Transportation (DOT).

ACTION: Final rule.

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SUMMARY: FMCSA amends its November 16, 2023, final rule, ``Broker and 
Freight Forwarder Financial Responsibility,'' by extending the 
compliance date for certain provisions from January 16, 2025, to 
January 16, 2026. FMCSA is taking this action because the Agency 
determined that only its forthcoming online registration system will be 
used to accept filings and track notifications, and this functionality 
will not be added to its legacy systems. As the online registration 
system is not expected to be available before January 16, 2025, FMCSA 
extends the compliance date to provide regulated entities time to begin 
using and familiarizing themselves with the system before compliance is 
required.

DATES: Effective date: This rule is effective December 31, 2024.
    Expiration dates: Section 387.307T, which contains the regulations 
on brokers of property surety bonds or trust funds which are currently 
in effect, expires as of January 16, 2026. Section 387.307 is stayed 
until January 16, 2026.
    Compliance dates: Brokers, freight forwarders, surety providers, 
and financial institutions must comply with all the provisions of Sec.  
387.307 beginning on January 16, 2026.
    Petition submittal date: Petitions for reconsideration of this 
final rule must be submitted to the FMCSA Administrator no later than 
January 30, 2025.

FOR FURTHER INFORMATION CONTACT: Ana Alvarez, Financial Analyst, Office 
of Registration, Financial Responsibility Filings Division, FMCSA, 1200 
New Jersey Avenue SE, West Building, 6th Floor, Washington, DC 20590; 
(202) 366-0401; [email protected]. If you have questions on viewing 
or submitting material to the docket, call Dockets Operations at (202) 
366-9826.

SUPPLEMENTARY INFORMATION: FMCSA organizes this final rule as follows:

[[Page 107022]]

I. Availability of Rulemaking Documents
II. Executive Summary
    A. Purpose and Summary of the Regulatory Action
    B. Costs and Benefits
III. Abbreviations
IV. Legal Basis
V. Discussion of Proposed Rulemaking and Comments
    A. Proposed Rulemaking
    B. Comments and Responses
    C. Effective Date
VI. Regulatory Analyses
    A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 
(Improving Regulation and Regulatory Review), E.O. 14094 
(Modernizing Regulatory Review), and DOT Regulatory Policies and 
Procedures
    B. Congressional Review Act
    C. Regulatory Flexibility Act (Small Entities)
    D. Assistance for Small Entities
    E. Unfunded Mandates Reform Act of 1995
    F. Paperwork Reduction Act
    G. E.O. 13132 (Federalism)
    H. Privacy
    I. E.O. 13175 (Indian Tribal Governments)
    J. National Environmental Policy Act of 1969

I. Availability of Rulemaking Documents

    To view any documents mentioned as being available in the docket, 
go to https://www.regulations.gov/docket/FMCSA-2024-0280/document and 
choose the document to review. To view comments, click this final rule, 
then click ``Browse Comments.'' If you do not have access to the 
internet, you may view the docket online by visiting Dockets Operations 
on the ground floor of the DOT West Building, 1200 New Jersey Avenue 
SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays. To be sure someone is there to 
help you, please call (202) 366-9317 or (202) 366-9826 before visiting 
Dockets Operations.

II. Executive Summary

A. Purpose and Summary of the Regulatory Action

    FMCSA extends certain compliance dates in the 2023 final rule, 
``Broker and Freight Forwarder Financial Responsibility'' (88 FR 78656, 
Nov. 16, 2023), from January 16, 2025, to January 16, 2026, creating a 
single compliance date for all provisions in the rule. This extension 
will ensure that parties required to comply with the regulations have 
sufficient opportunity to register in the new online registration 
system and begin using it, and that FMCSA is able to properly process 
and respond to such filings. The provisions affected by this extension 
are:
    1. Immediate suspension of broker/freight forwarder operating 
authority. When a broker or freight forwarder's available financial 
security falls below $75,000, FMCSA shall suspend its operating 
authority registration.
    2. Surety or trust responsibilities in cases of broker/freight 
forwarder financial failure or insolvency. If a surety/trustee becomes 
aware that a broker or freight forwarder is experiencing financial 
failure or insolvency, it must notify FMCSA and initiate cancellation 
of the financial responsibility.
    3. Enforcement authority and penalties for financial responsibility 
providers who do not comply with the regulations. FMCSA is 
incorporating statutorily mandated penalties into its regulations. 
After notice and an opportunity for a hearing, surety companies or 
financial institutions who violate 49 CFR 387.307 will be ineligible to 
provide financial responsibility for 3 years and may also be subject to 
a civil penalty.
    The extension of the compliance date is necessary so that FMCSA can 
make the new online registration system available to entities required 
to register and make filings in the system. This extension is also 
intended to provide users with an opportunity to begin using, and 
become familiar with, the new online registration system before 
compliance with the system becomes mandatory. The planned release for 
the new registration system is 2025.

B. Costs and Benefits

    The 2023 Broker and Freight Forwarder Financial Responsibility 
final regulatory impact analysis estimated costs for compliance and 
implementation among brokers, freight forwarders, surety bond and trust 
fund providers, and the Federal government. This rule delays certain 
provisions requiring filings in the new online registration system 
until January 16, 2026, resulting in all provisions of the rule 
becoming effective at the same time.
    Despite the delayed compliance for certain provisions, FMCSA finds 
that the benefits stipulated in the 2023 final rule remain unchanged by 
this rule. The provision mandating that brokers and freight forwarders 
maintain assets readily available in trust funds, will still take 
effect as originally scheduled, on January 16, 2026.
    As it pertains to the immediate suspension provision, in the 2023 
final rule's Regulatory Impact Analysis, the Agency estimated that less 
than 0.5 percent of all brokers would have faced immediate suspension 
proceedings under the new requirements in 2025. FMCSA lacked the data 
to quantify the number of financial failures that will occur in any 
given year and would therefore trigger the surety or trust 
responsibilities in cases of brokers/freight forwarder financial 
failure or insolvency. However, the Agency believes that the number of 
determinations of financial failure or insolvency is already 
represented in the immediate suspension estimate. As the affected 
population is relatively small, the Agency believes that the impact of 
a delay is de minimis.
    Brokers and freight forwarders, surety bond and trust fund 
providers may incur cost savings by not being required to file 
documentation relating to certain other provisions until January 16, 
2026. FMCSA may also incur cost savings in delaying the enforcement of 
several provisions of the 2023 final rule. In conclusion, the Agency 
finds that the change in costs and benefits as a result of the 
extension would be de minimis for these entities.

III. Abbreviations

CE Categorical exclusion
CFR Code of Federal Regulations
DOT Department of Transportation
E.O. Executive Order
FMCSA Federal Motor Carrier Safety Administration
FR Federal Register
NOOA National Owner Operators Association
NPRM Notice of proposed rulemaking
OMB Office of Management and Budget
OOIDA Owner-Operator Independent Drivers Association
PIA Privacy Impact Assessment
PTA Privacy Threshold Assessment
SBTC Small Business in Transportation Coalition
URS Unified Registration System
UMRA Unfunded Mandates Reform Act
U.S.C. United States Code

IV. Legal Basis

    The legal basis of the Broker and Freight Forwarder Financial 
Responsibility final rule, set forth at 88 FR 78658 (Nov. 16, 2023), 
also serves as the legal basis for this final rule. The statutory 
authority identified in that discussion is 49 U.S.C. 13906, which 
contains requirements for the financial security of brokers and freight 
forwarders and directs the Secretary to issue regulations to implement 
and enforce these requirements. Authority to carry out and enforce 
these provisions has been delegated to the Administrator of FMCSA (49 
CFR 1.87(a)(5)).
    As discussed in the November 16, 2023, final rule, 49 CFR 
387.403T(c) makes any requirements applicable to broker of property 
surety bonds and trust funds in Sec.  387.307 applicable to the surety 
bond or trust fund required

[[Page 107023]]

of freight forwarders as well.\1\ Therefore, any time this rule refers 
to brokers, the same requirements are also applicable to freight 
forwarders.
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    \1\ Although 49 CFR 387.403 is currently suspended, it contains 
the same language making Sec.  387.307 applicable to freight 
forwarders. Thus, when the suspension is ultimately lifted, it will 
have no effect on the analysis here.
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    Unless stated otherwise, FMCSA generally considers provisions that 
are not inextricably intertwined to be severable, meaning that if any 
provision in a rule is later held to be invalid, the remainder of the 
rule is not affected (49 CFR 389.41). While many provisions of this 
rule are integrated and the Agency anticipates the rule will function 
most effectively with all provisions operating together, FMCSA 
nonetheless finds that each major provision of the rule is severable 
from the others and could operate functionally even in the event some 
provisions were deemed invalid. In the event a court were to invalidate 
one or more of this final rule's unique provisions, the remaining 
provisions should stand.

V. Discussion of the Proposed Rulemaking and Comments

A. Proposed Rule

    On November 16, 2023, FMCSA published a final rule adopting 
regulations to implement 49 U.S.C. 13906(b) and (c) (88 FR 78656). The 
final rule became effective 60 days later, on January 16, 2024. 
However, compliance with the provisions relating to immediate 
suspension, financial failure or insolvency, and penalties for trust or 
surety providers who fail to comply with the regulations is not 
required until January 16, 2025, and full compliance with all of the 
final rule's provisions is not required until 2 years after the 
effective date, beginning on January 16, 2026.
    On November 4, 2024, FMCSA published a notice of proposed 
rulemaking (NPRM), proposing to extend the compliance deadlines for the 
provisions of the Broker and Freight Forwarder Financial Responsibility 
rule from January 16, 2025, to January 16, 2026. The affected 
provisions relate to immediate suspension, financial failure or 
insolvency, and penalties for trust or surety providers who fail to 
comply with the regulations., In addition, FMCSA proposed to amend the 
expiration date of the temporary rule governing current practices, 
Sec.  387.307T, and the compliance dates in Sec.  387.307. This 
extension would create a single compliance date for all provisions in 
the rule, allow FMCSA to implement the new online registration system 
for filers to use, and ensure that filers are familiar with the online 
registration system and able to perform all duties mandated by the rule 
prior to the compliance date.
    The close of comments was initially set as November 19, 2024. The 
Small Business in Transportation Coalition (SBTC) requested an 
extension of the comment period, and FMCSA granted a 7-day reopening of 
the comment period on November 21, 2024, with the comment period 
closing on November 29, 2024 (89 FR 92084).

B. Comments and Responses

    FMCSA received 13 comments on this proposed rule with nine opposing 
the extension of the compliance date, two supporting it, one requesting 
an extension to the comment period, and one out of scope comment. The 
National Owner Operators Association (NOOA), the Owner-Operator 
Independent Drivers Association (OOIDA), and seven individual 
commenters opposed delaying the compliance dates for the provisions 
outlined in the November 16, 2023, final rule. First Century Financial 
Corporation and one individual commenter supported delaying the 
effective date for certain provisions outlined in the November 2023 
final rule. SBTC requested an extension of the comment period, which 
was granted. One commenter addressed broker transparency issues, which 
fall outside the scope of this rule.
1. Need for the Extension
Comments
    NOOA commented that FMCSA has had sufficient lead time to either 
add to its existing infrastructure or accelerate development of the 
forthcoming online registration system. NOOA states that regulated 
entities have been anticipating the need to comply with the 
regulations, making the proposed delay excessive. NOOA also stated that 
FMCSA did not provide adequate justification for extending the 
compliance date, as it does not outline any significant challenges that 
regulated entities would face in using the system.
FMCSA Response
    The proposed revised compliance dates are crucial to ensure the 
smooth transfer of vital data, requiring careful coordination to avoid 
disruptions for users. It also allows adequate time to finalize and 
thoroughly test the capabilities of the new online registration system, 
to ensure the system's stability and security. This timeframe also 
enables FMCSA to provide training and outreach to both internal staff 
and external stakeholders, supporting a more efficient transition and 
reducing potential difficulties for regulated entities who will use the 
new system.
    FMCSA determined that implementing the new online registration 
system was a priority because of its wide-ranging impacts, given that 
it is intended to function as a clearinghouse and depository of 
information on, and identification of, all foreign and domestic motor 
carriers, brokers, and freight forwarders, and other entities required 
to register with the Department, as well as information on safety 
fitness and compliance with minimum levels of financial responsibility. 
Additionally, prioritizing rollout of the comprehensive online 
registration system aligns with statutory requirements for FMCSA to 
improve its information technology and data systems to ensure better 
oversight of motor carriers, drivers, and equipment, pursuant to 
section 103 of the ICC Termination Act of 1995 (Pub. L. 104-88, 109 
Stat. 803, 888, Dec. 29, 1995) and subtitle C of title IV of the Safe, 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
for Users (Pub. L. 109-59, 119 Stat. 1144, 1761, Aug. 10, 2005). 
Building the functionality into the existing system would have required 
the Agency to divert critical resources away from development of the 
new online registration system and fulfillment of that statutory 
mandate.
2. Impacts of Delayed Compliance
Comments
    NOOA commented that delaying compliance with these rules would 
disproportionately impact small operators, brokers, and freight 
forwarders, and that the industry relies on a streamlined process for 
transparency and operational efficiency and will be disadvantaged by 
the delay.
    Michael Ravnitzky commented that the extension of the compliance 
date would have a positive impact on small businesses, as the burdens 
of compliance generally affect small businesses more than large ones. 
He stated that having additional time to comply would reduce small 
business burdens and facilitate a smoother transition to the new 
regulations.
FMCSA Response
    FMCSA understands that this extension will provide cost savings for 
certain small businesses. By delaying the implementation of certain 
provisions, those small businesses will incur fewer expenses related to 
paperwork and regulatory compliance. The additional time provided by 
this

[[Page 107024]]

extension will allow small businesses to better prepare for the 
implementation of all provisions, likely leading to increased 
compliance. However, FMCSA also recognizes that other small businesses, 
mainly motor carriers, would prefer the immediate suspension provisions 
to take effect as originally scheduled because of the deterrent effect 
on brokers who fail to pay carriers and continue to accrue claims. As 
described in the Costs and Benefits section, above, the Agency 
estimates this rule will affect less than 0.5 percent of property 
brokers each year, and the effects of delaying compliance will 
therefore not be substantial across the transportation industry.
    FMCSA finds that without certain automated processes currently 
under development in the new online registration system, effective 
compliance management will be compromised. Specifically, the Agency 
believes that tracking and processing drawdown notifications manually 
will be inefficient, leading to delays, higher administrative costs, 
and potential compliance risks for both FMCSA and the industry. The 
ability to efficiently suspend the operating authority of brokers and 
freight forwarders who fail to maintain the required financial security 
within the 7-day regulatory time frame depends upon both the regulated 
entities and the Agency being able to utilize a fully functional online 
filing system. For more detailed information regarding the launching of 
the new online registration system, stakeholders are encouraged to 
visit https://www.fmcsa.dot.gov/registration/resources-hub.
3. Training and Familiarization Period
Comments
    In its comment, NOOA asserted that the training and familiarization 
period can be streamlined if FMCSA provides thoughtful, targeted 
training programs to circumvent the need to delay the compliance date. 
NOOA believes FMCSA has previously demonstrated its capacity to do so 
and requested that the Agency maintain its original compliance date of 
January 16, 2025.
FMCSA Response
    FMCSA is committed to developing both general and audience-specific 
training materials to support users in navigating the new registration 
system effectively once it is rolled out and made available. This will 
include tailored guidance for different user groups to address specific 
filing needs and reduce any potential learning curve. FMCSA will 
continue to leverage feedback to refine these training programs, 
ensuring that they are comprehensive, accessible, and focused on 
facilitating a smooth transition for all users.
4. Timeline for Online Registration System
Comments
    OOIDA submitted a comment noting that it had previously expressed 
skepticism in its December 2023 Petition for Reconsideration about the 
timeline provided for the URS rulemaking process to be completed before 
the January 2025 compliance date. OOIDA stressed that URS remains a 
work in progress and that historically there have been numerous 
problems associated with its rollout. Additionally, OOIDA raised the 
issue that there are no assurances that the online registration system 
will be completed by the new proposed compliance date. OOIDA requested 
that the Agency find alternative and/or temporary methods to support 
the January 2025 implementation date issued in the November 2023 final 
rule (88 FR 78656).
FMCSA Response
    FMCSA is actively engaged in developing and preparing for rollout 
of the new registration system, with a planned rollout in 2025. 
Although FMCSA always planned to build the filing functionality 
necessary to implement this rule into the new system, the compliance 
dates were not specifically tied to the launch date for that system. 
FMCSA initially believed its existing systems could be used to accept 
the required filings. However, through its stakeholder engagement 
efforts, FMCSA determined that adding the filing functionality to its 
legacy systems for use in the interim would likely create confusion and 
additional training burdens for filers, who would be responsible for 
learning to use two different filing systems in quick succession. Doing 
so would also utilize FMCSA resources that are better directed toward 
implementing the new online registration system. Therefore, FMCSA 
determined that stakeholders would benefit from delaying the compliance 
date until after the planned rollout of the new online registration 
system.
5. Out of Scope Comments
    FMCSA received one comment concerning issues beyond the scope of 
this rule, which related to a separate rulemaking on broker 
transparency.\2\ FMCSA has moved this comment to the appropriate docket 
and will consider it in connection with that rulemaking.
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    \2\ The Transparency in Property Broker Transactions docket can 
be found at: https://www.regulations.gov/docket/FMCSA-2023-0257.
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C. Effective Date

    The Administrative Procedure Act section 553 prescribes a 30-day 
waiting period between publication of a rule and the effective date of 
that rule. However, agencies may waive this waiting period for 
substantive rules which grant or recognize an exemption or relieve a 
restriction (5 U.S.C. 553(d)(1)). Here, FMCSA finds that the delay of 
an effective date of a substantive rule requirement is a substantive 
rule that relieves a restriction for a period of time, so making the 
rule effective immediately on publication is justified. FMCSA is 
balancing the benefit of requiring compliance as soon as is practicable 
with the burden on regulated entities, who are not yet required to 
comply with any of the provisions in the November 16, 2023, final rule, 
to perform the duties required. As the extension of the compliance date 
does not change the substance of any provisions of that rule, but 
merely provides regulated parties additional time to prepare, they 
would not be prejudiced if the change goes into effect immediately.

VI. Regulatory Analyses

A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O. 
13563 (Improving Regulation and Regulatory Review), E.O. 14094 
(Modernizing Regulatory Review), and DOT Regulatory Policies and 
Procedures

    FMCSA has considered the impact of this final rule under E.O. 12866 
(58 FR 51735, Oct. 4, 1993), Regulatory Planning and Review, as 
supplemented by E.O. 13563 (76 FR 3821, Jan. 21, 2011), Improving 
Regulation and Regulatory Review, and amended by E.O. 14094 (88 FR 
21879, Apr. 11, 2023), Modernizing Regulatory Review, as well as the 
impact under DOT regulatory policies and procedures (DOT Order 2100.6A, 
June 7, 2021). This final rule is not a significant regulatory action 
under section 3(f) of E.O. 12866, as amended. Accordingly, the Office 
of Management and Budget (OMB) has not reviewed it under that E.O.
    The 2023 Broker and Freight Forwarder Financial Responsibility 
final regulatory impact analysis estimated costs for compliance and 
implementation among brokers, freight

[[Page 107025]]

forwarders, surety bond and trust fund providers, and the Federal 
government. This rule delays certain provisions requiring filings in 
the new online registration system until January 16, 2026, resulting in 
all provisions of the rule becoming effective at the same time.
    Despite the delayed compliance for certain provisions, FMCSA finds 
that the benefits stipulated in the 2023 final rule remain unchanged by 
this rule. The provision mandating that brokers and freight forwarders 
maintain assets readily available in trust funds, will still take 
effect as originally scheduled, on January 16, 2026.
    As it pertains to the immediate suspension provision, in the 2023 
final rule's regulatory impact analysis, the Agency estimated that less 
than 0.5 percent of all brokers would have faced immediate suspension 
proceedings under the new requirements in 2025. FMCSA lacked the data 
to quantify the number of financial failures that will occur in any 
given year and would therefore trigger the surety or trust 
responsibilities in cases of brokers/freight forwarder financial 
failure or insolvency. However, the Agency believes that the number of 
determinations of financial failure or insolvency is already 
represented in the immediate suspension estimate. As the affected 
population is relatively small, the Agency believes that the impact of 
a delay is de minimis.
    Brokers and freight forwarders, surety bond and trust fund 
providers may incur cost savings by not being required to file 
documentation relating to certain other provisions until January 16, 
2026. FMCSA may also incur cost savings in delaying the enforcement of 
several provisions of the 2023 final rule. In conclusion, the Agency 
finds that the change in costs and benefits as a result of the 
extension would be de minimis for these entities.

B. Congressional Review Act

    This rule is not amajor ruleas defined under the Congressional 
Review Act (5 U.S.C. 801-808).\3\
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    \3\ A major rule means any rule that OMB finds has resulted in 
or is likely to result in (a) an annual effect on the economy of 
$100 million or more; (b) a major increase in costs or prices for 
consumers, individual industries, geographic regions, Federal, 
State, or local government agencies; or (c) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and export 
markets (5 U.S.C. 802(4)).
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C. Regulatory Flexibility Act (Small Entities)

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement Fairness Act of 1996 \4\ 
requires Federal agencies to consider the effects of the regulatory 
action on small business and other small entities and to minimize any 
significant economic impact. The term small entities comprises small 
businesses and not-for-profit organizations that are independently 
owned and operated and are not dominant in their fields, and 
governmental jurisdictions with populations of less than 50,000 (5 
U.S.C. 601(6)). Accordingly, DOT policy requires an analysis of the 
impact of all regulations on small entities, and mandates that agencies 
strive to lessen any adverse effects on these businesses.
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    \4\ Public Law 104-121, 110 Stat. 857 (Mar. 29, 1996).
---------------------------------------------------------------------------

    This final rule will extend the compliance date for specific 
provisions of the 2023 final rule, ``Broker and Freight Forwarder 
Financial Responsibility,'' by 1 year from January 16, 2025, to January 
16, 2026. The provisions already scheduled for compliance on January 
16, 2026, will not be affected. The rule will impact small entities 
such as some surety bond and trust fund providers, brokers, and freight 
forwarders. The extension will provide small entities with additional 
time to register in the new online registration system and understand 
its operations and functionalities. By delaying the submission of 
documentation for certain provisions until January 16, 2026, these 
entities will also realize de minimis cost savings.
    Consequently, I certify that this action will not have a 
significant economic impact on a substantial number of small entities.

D. Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 857), 
FMCSA wants to assist small entities in understanding this final rule 
so they can better evaluate its potential effects on themselves and 
participate in the rulemaking initiative. If the final rule will affect 
your small business, organization, or governmental jurisdiction and you 
have questions concerning its provisions or options for compliance, 
please consult the person listed under FOR FURTHER INFORMATION CONTACT.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the Small Business Administration's Small Business and 
Agriculture Regulatory Enforcement Ombudsman (Office of the National 
Ombudsman, see https://www.sba.gov/about-sba/oversight-advocacy/office-national-ombudsman) and the Regional Small Business Regulatory Fairness 
Boards. The Ombudsman evaluates these actions annually and rates each 
agency's responsiveness to small business. If you wish to comment on 
actions by employees of FMCSA, call 1-888-REG-FAIR (1-888-734-3247). 
DOT has a policy regarding the rights of small entities to regulatory 
enforcement fairness and an explicit policy against retaliation for 
exercising these rights.

E. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
(UMRA) requires Federal agencies to assess the effects of their 
discretionary regulatory actions. The Act addresses actions that may 
result in the expenditure by State, local, or Tribal government, in the 
aggregate, or by the private sector of $200 million (which is the value 
equivalent of $100 million in 1995, adjusted for inflation to 2023 
levels) or more in any 1 year. This final rule will not result in such 
an expenditure, so the analytical requirements of UMRA do not apply.

F. Paperwork Reduction Act

    Due to the change of compliance date, the existing information 
collection requirements pertaining to broker and freight forwarder 
financial responsibilities will be updated at a later date.

G. E.O. 13132 (Federalism)

    A rule has implications for federalism under section 1(a) of E.O. 
13132 if it has ``substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.''
    FMCSA has determined that this rule will not have substantial 
direct costs on or for States. Nothing in this document preempts any 
State law or regulation. Therefore, this rule does not have sufficient 
federalism implications to warrant the preparation of a Federalism 
Impact Statement.

[[Page 107026]]

H. Privacy

    The Consolidated Appropriations Act, 2005,\5\ requires the Agency 
to assess the privacy impact of a regulation that will affect the 
privacy of individuals. This rule will not change any previously 
analyzed collections of personally identifiable information.
---------------------------------------------------------------------------

    \5\ Public Law 108-447, 118 Stat. 2809, 3268, note following 5 
U.S.C. 552a (Dec. 4, 2014).
---------------------------------------------------------------------------

    The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies 
and any non-Federal agency that receives records contained in a system 
of records from a Federal agency for use in a matching program.
    The E-Government Act of 2002,\6\ requires Federal agencies to 
conduct a Privacy Impact Assessment (PIA) for new or substantially 
changed technology that collects, maintains, or disseminates 
information in an identifiable form. No new or substantially changed 
technology will collect, maintain, or disseminate information as a 
result of this rule. Accordingly, FMCSA has not conducted a PIA. 
However, FMCSA will publish a PIA and a System of Records Notice 
covering all information that will be collected in the new online 
registration system.
---------------------------------------------------------------------------

    \6\ Public Law 107-347, sec. 208, 116 Stat. 2899, 2921 (Dec. 17, 
2002).
---------------------------------------------------------------------------

    In addition, the Agency submitted a Privacy Threshold Assessment 
(PTA) to evaluate the risks and effects the proposed rulemaking might 
have on collecting, storing, and sharing personally identifiable 
information. The PTA was adjudicated by DOT's Chief Privacy Officer on 
November 21, 2024.

I. E.O. 13175 (Indian Tribal Governments)

    This rule does not have Tribal implications under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, because 
it will not have a substantial direct effect on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes.

J. National Environmental Policy Act of 1969

    FMCSA analyzed this rule pursuant to the National Environmental 
Policy Act of 1969 (42 U.S.C. 4321 et seq.) and determined this action 
is categorically excluded from further analysis and documentation in an 
environmental assessment or environmental impact statement under FMCSA 
Order 5610.1 (69 FR 9680), appendix 2, paragraphs (6.k) and (6.q). The 
categorical exclusions (CEs) in paragraphs (6.k) and (6.q) cover broker 
activities and implementation of record preservation. The requirements 
in this rule are covered by these CEs.

List of Subjects

49 CFR Part 386

    Administrative practice and procedure, Brokers, Freight forwarders, 
Hazardous materials transportation, Highway safety, Highway and roads, 
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 set forth in the preamble, FMCSA amends 49 CFR 
parts 386 and 387 as follows:

PART 386--RULES OF PRACTICE FOR FMCSA PROCEEDINGS

0
1. The authority citation for part 386 continues to read as follows:

    Authority:  28 U.S.C. 2461 note; 49 U.S.C. 113, 1301 note, 
31306a; 49 U.S.C. chapters 5, 51, 131-141, 145-149, 311, 313, and 
315; and 49 CFR 1.81, 1.87.

0
2. Amend appendix B by revising and republishing paragraph (g)(24) to 
read as follows:

Appendix B to Part 386--Penalty Schedule: Violations and Monetary 
Penalties

* * * * *
    (g) * * *
    (24) Beginning on January 16, 2026, a surety company or financial 
institution for a broker or freight forwarder pursuant to Sec.  387.307 
of this subchapter that violates 49 U.S.C. 13906(b) or (c) or Sec.  
387.307:
    (i) Is liable to the United States for a penalty of $12,882 for 
each violation; and
    (ii) Will be ineligible to provide broker financial security for 3 
years.
* * * * *

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR 
CARRIERS

0
3. The authority citation for part 387 continues to read as follows:

    Authority:  49 U.S.C. 13101, 13301, 13906, 13908, 14701, 31138, 
31139; sec. 204(a), Pub. L. 104-88, 109 Stat. 803, 941; and 49 CFR 
1.87.

0
4. Amend Sec.  387.307 by:
0
a. Lifting the stay of the section;
0
b. Revising the introductory text and paragraphs (b) and (c)(6);
0
c. Removing paragraph (c)(7);
0
d. Redesignating paragraph (c)(8) as paragraph (c)(7); and
0
e. Staying the section until January 16, 2026.
    The revisions read as follows:

Sec.  387.307   Property broker surety bond or trust fund.

    This section is effective January 16, 2026.
* * * * *
    (b) Acceptable assets. Trust funds under this section must contain 
assets aggregating to $75,000 that can be liquidated to cash within 7 
calendar days. Acceptable assets included in any trust fund filed under 
this section are limited to cash, irrevocable letters of credit issued 
by a federally insured depository institution, and Treasury bonds.
    (c) * * *
    (6) An insurance company; or
* * * * *

0
5. Amend Sec.  387.307T by revising the introductory text to read as 
follows:

Sec.  387.307T   Property broker surety bond or trust fund.

    This section will remain in effect until January 16, 2026.
* * * * *

    Issued under the authority of delegation in 49 CFR 1.87.
Vincent G. White,
Deputy Administrator.
[FR Doc. 2024-30509 Filed 12-30-24; 8:45 am]
BILLING CODE 4910-EX-P
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