Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Rules and Regulations 107021 

§ 309.130 How will Tribal IV–D programs 

be funded and what forms are required? 

(a) * * * 

(2) Tribes and Tribal organizations 

eligible for grants will receive a single 

annual award. 

* * * * * 

§ 309.135 [Amended] 

■ 50. Amend § 309.135(d) by removing 

the number ‘‘269A’’ and adding, in its 

place, the number ‘‘425’’. 

§ 309.145 [Amended] 

■ 51. Amend § 309.145(a)(3)(v) by 

removing the acronym ‘‘OCSE’’ and 

adding, in its place, the acronym 

‘‘OCSS’’. 

§ 309.160 [Amended] 

■ 52. Amend § 309.160 by removing the 

acronym ‘‘OCSE’’ everywhere it appears 

and adding, in its place, the acronym 

‘‘OCSS’’. 

§ 309.170 [Amended] 

■ 53. Amend § 309.170 by: 

■ a. Revising the first sentence of 

paragraph (a), the introductory text of 

paragraph (b), and paragraphs (b)(1) and 

(2); 

■ b. Adding the word ‘‘and’’ at the end 

of paragraph (b)(6); 

■ c. Removing paragraph (b)(7); 

■ d. Redesignate paragraph (b)(8) as 

paragraph (b)(7); and 

■ e. Revising paragraph (c). 

The revisions read as follows: 

§ 309.170 What statistical and narrative 

reporting requirements apply to Tribal IV–D 

programs? 

(a) Tribes and Tribal organizations 

operating a Tribal IV–D program must 

submit to OCSS the Child Support 

Services Program: Quarterly Report of 

Collections (Form OCSS–34). * * * 

(b) Tribes and Tribal organizations 

must submit the following information 

and statistics for Tribal IV–D program 

activity and caseload on the Tribal 

Annual Data Report (OCSS–75) for each 

annual funding period: 

(1) Total number of cases and, of the 

total number of cases, the number that 

are Tribal cases, the number that are 

State or Tribal TANF cases, and the 

number that are non-TANF cases; 

(2) Total number of children in cases 

open during the fiscal year and total 

number of children with paternity 

concluded; 

* * * * * 

(c) A Tribe or Tribal organization 

must submit the Tribal Annual Data 

Report (OCSS–75) required by 

paragraph (b) of this section no later 

than 90 days after the end of each 

funding period. 

PART 310—COMPUTERIZED TRIBAL 

IV–D SYSTEM AND OFFICE 

AUTOMATION 

■ 54. The authority citation for part 310 

continues to read as follows: 

Authority: 42 U.S.C. 655(f) and 1302. 

§ 310.1 [Amended] 

■ 55. Amend § 310.1(a)(6) by removing 

the acronym ‘‘OCSE’’ and adding, in its 

place, the acronym ‘‘OCSS’’. 

§ 310.5 [Amended] 

■ 56. Amend § 310.5(b)(1) by: 

■ a. Removing the acronym ‘‘OCSE’’ and 

adding, in its place, the acronym 

‘‘OCSS’’; and 

■ b. Removing the words ‘‘of this part’’. 

§ 310.10 [Amended] 

■ 57. Amend § 310.10 by removing the 

acronym ‘‘OCSE’’ and adding, in its 

place, the acronym ‘‘OCSS’’ in 

paragraphs (a)(1), (f) introductory text, 

(f)(2), and (g). 

§ 310.20 [Amended] 

■ 58. Amend § 310.20 by removing the 

acronym ‘‘OCSE’’ everywhere it appears 

and adding, in its place, the acronym 

‘‘OCSS’’ in paragraphs (a)(1) and (b). 

§ 310.25 [Amended] 

■ 59. Amend § 310.25 by removing the 

acronym ‘‘OCSE’’ and adding, in its 

place, the acronym ‘‘OCSS’’ in 

paragraphs (b), (c)(2), and (d). 

§ 310.30 [Amended] 

■ 60. Amend § 310.30 by removing the 

acronym ‘‘OCSE’’ everywhere it appears 

and adding, in its place, the acronym 

‘‘OCSS’’ in paragraphs (a) and (b). 

§ 310.35 [Amended] 

■ 61. Amend § 310.35 by removing the 

acronym ‘‘OCSE’’ everywhere it appears 

and adding, in its place, the acronym 

‘‘OCSS’’ in paragraphs (a) introductory 

text, (a)(1) introductory text, (a)(1)(ii), 

(a)(2) introductory text, (a)(2)(ii), and 

(b). 

§ 310.40 [Amended] 

■ 62. Amend § 310.40 by removing the 

acronym ‘‘OCSE’’ everywhere it appears 

and adding, in its place, the acronym 

‘‘OCSS’’. 

[FR Doc. 2024–30987 Filed 12–30–24; 8:45 am] 

BILLING CODE 4184–41–P 

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. 

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 § 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; ana.alvarez@dot.gov. 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: 


khammond on DSK9W7S144PROD with RULES
107022 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Rules and Regulations 

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 § 387.307 applicable to 

the surety bond or trust fund required 


khammond on DSK9W7S144PROD with RULES
Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Rules and Regulations 107023 

1Although 49 CFR 387.403 is currently 

suspended, it contains the same language making 

§ 387.307 applicable to freight forwarders. Thus, 

when the suspension is ultimately lifted, it will 

have no effect on the analysis here. 

of freight forwarders as well.1 Therefore, 

any time this rule refers to brokers, the 

same requirements are also applicable to 

freight forwarders. 

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, § 387.307T, 

and the compliance dates in § 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 


khammond on DSK9W7S144PROD with RULES
107024 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Rules and Regulations 

2The Transparency in Property Broker 

Transactions docket can be found at: https://

www.regulations.gov/docket/FMCSA-2023-0257. 

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. 

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 


khammond on DSK9W7S144PROD with RULES
Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Rules and Regulations 107025 

3A 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)). 

4Public Law 104–121, 110 Stat. 857 (Mar. 29, 

1996). 

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

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. 

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-nationalombudsman) 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. 


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107026 Federal Register / Vol. 89, No. 250 / Tuesday, December 31, 2024 / Rules and Regulations 

5Public Law 108–447, 118 Stat. 2809, 3268, note 

following 5 U.S.C. 552a (Dec. 4, 2014). 

6Public Law 107–347, sec. 208, 116 Stat. 2899, 

2921 (Dec. 17, 2002). 

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. 

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. 

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 

■ 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. 

■ 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 § 387.307 of this subchapter 

that violates 49 U.S.C. 13906(b) or (c) or 

§ 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 

■ 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. 

■ 4. Amend § 387.307 by: 

■ a. Lifting the stay of the section; 

■ b. Revising the introductory text and 

paragraphs (b) and (c)(6); 

■ c. Removing paragraph (c)(7); 

■ d. Redesignating paragraph (c)(8) as 

paragraph (c)(7); and 

■ e. Staying the section until January 16, 

2026. 

The revisions read as follows: 

§ 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 

* * * * * 

■ 5. Amend § 387.307T by revising the 

introductory text to read as follows: 

§ 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 

DEPARTMENT OF THE INTERIOR 

Fish and Wildlife Service 

50 CFR Parts 19, 21, and 22 

[Docket No. FWS–HQ–MB–2022–0023; 

FXMB12320900000–245–FF09M31000] 

RIN 1018–BC76 

Regulatory Authorizations for 

Migratory Bird and Eagle Possession 

by the General Public, Educators, and 

Government Agencies 

AGENCY: Fish and Wildlife Service, 

Interior. 

ACTION: Final rule. 

SUMMARY: We, the U.S. Fish and 

Wildlife Service, are revising current 

regulatory authorizations and adding 


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