Document ID: FMCSA-2008-0019-0001
Agency: fmcsa
Document Type: Rule
Title: Transportation of Household Goods; Consumer Complaint Information Quarterly Report
Posted Date: 2008-02-20T05:00Z

[Federal Register: February 20, 2008 (Volume 73, Number 34)]
[Proposed Rules]               
[Page 9266-9272]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr20fe08-33]                         

=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 375

[Docket No. FMCSA-2008-0019]
RIN 2126-AB01

 
Transportation of Household Goods; Consumer Complaint Information 
Quarterly Report

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

ACTION: Notice of proposed rulemaking (NPRM); request for comments.

-----------------------------------------------------------------------

SUMMARY: FMCSA proposes to amend the Federal Motor Carrier Safety 
Regulations to implement reporting requirements for household goods 
motor carriers operating in interstate commerce under section 4214 of 
the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A 
Legacy for Users (SAFETEA-LU). SAFETEA-LU directs FMCSA to issue 
regulations requiring that each household goods motor carrier operating 
in interstate commerce submit a quarterly report summarizing specific 
information. These reports must include the number of shipments 
originating with, and delivered by, the carrier; the number and general 
category of complaints lodged by consumers with the carrier; the number 
of claims for loss and damage in excess of $500 filed with the carrier; 
and the number of such claims resolved, declined, and pending during 
the reporting period.

DATES: Submit comments concerning this NPRM on or before April 21, 
2008.

ADDRESSES: You may submit comments identified by the Federal Docket 
Management System Number in the heading of this document by any of the 
following methods. Do not submit the same comments by more than one 
method. However, to allow effective public participation in this 
rulemaking before the comment period deadline, the Agency encourages 
use of the Web site that is listed first. It will provide the most 
efficient and timely method of receiving and processing your comments.
     Federal eRulemaking Portal: Go to http://www.regulations.gov.
 Follow the online instructions for submitting 

comments.
     Fax: 1-202-493-2251.
     Mail: Docket Management Facility; U.S. Department of 
Transportation, Room W12-140, 1200 New Jersey Avenue, SE., Washington, 
DC 20590-0001.
     Hand Delivery: Ground floor, Room W12-140, 1200 New Jersey 
Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., e.t., Monday 
through Friday, except Federal holidays.
    Instructions: All submissions must include the Agency name and 
docket number or Regulatory Identification Number for this regulatory 
action. Note that all comments received will be posted without change 
to http://www.regulations.gov, including any personal information provided. Refer to the Privacy Act heading on http://

http://www.regulations.gov for further information. If addressing a specific 

request for comments in this NPRM, please provide detailed information 
(including examples) and clearly identify the related section heading 
or question number for each topic addressed in your comments.
    Public Participation: The regulations.gov system is generally 
available 24 hours each day, 365 days each year. You can find 
electronic submission and retrieval help and guidelines under the 
``help'' section of the Web site. For notification that FMCSA received 
the comments, please include a self-addressed, stamped envelope or 
postcard, or print the acknowledgement page that appears after 
submitting comments on line.
    Copies or abstracts of all documents referenced in this notice are 
in the docket for this rulemaking: FMCSA-2008-0019. For access to the 
docket to read background documents or comments received, go to http://www.regulations.gov
 at any time or to Room W12-140, 1200 New Jersey 

Avenue, SE., Washington, DC, between 9 a.m. and 5 p.m., e.t., Monday 
through Friday, except Federal holidays.
    All comments received before the close of business on the comment 
closing date indicated above will be considered and will be available 
for examination in the docket at the above address. Comments received 
after the comment closing date will be filed in the docket and will be 
considered to the extent practicable. In addition to late comments, 
FMCSA will also continue to file relevant information in the docket as 
it becomes available after the comment period closing date, and 
interested persons should continue to examine the docket for new 
material. A final rule may be published at any time after the close of 
the comment period.

FOR FURTHER INFORMATION CONTACT: Ms. Dorothea Grymes, (202) 385-2400. 
Office hours are from 8:30 a.m. to 5 p.m., e.t., Monday through Friday, 
except Federal holidays.

SUPPLEMENTARY INFORMATION:

Legal Basis for the Rulemaking

    Under 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)), 
the Secretary of Transportation (Secretary) must issue regulations 
requiring each motor carrier of household goods operating in interstate 
commerce to submit a quarterly report. [See section 4214(a)(2) of Pub. 
L. 109-59.] The quarterly report must summarize: (1) The number of 
shipments that originate and are delivered for individual shippers 
during the reporting period by the carrier; (2) the number and general 
category of complaints lodged by consumers with the carrier; (3) the 
number of claims for loss and damage exceeding $500 filed with the 
carrier; and (4) the number of such claims resolved, declined, and 
pending during the reporting period. The regulatory changes in this 
proposed rule would implement that reporting requirement. Under 49 CFR 
1.73(a), the Secretary has delegated the various authorities described 
in this section to the FMCSA Administrator.

Background

    The Motor Carrier Safety Improvement Act of 1999 (Pub. L. 106-159, 
December 9, 1999, 113 Stat. 1749) established FMCSA as a separate 
agency within the U.S. Department of Transportation (DOT). Through that 
statute, Congress also authorized the Agency to regulate motor carriers 
transporting household goods in interstate commerce for individual 
shippers. We codified and published regulations setting forth Federal 
consumer protection requirements for interstate household goods motor 
carriers in 49 CFR part 375.
    In testimony before the U.S. House Subcommittee on Highways and

[[Page 9267]]

Transportation (Hearing: Oversight of the Household Goods Moving 
Industry. July 12, 2001. No. 107-32),\1\ the Government Accountability 
Office urged DOT to collect and analyze nationwide complaint 
information that would help the Department understand and oversee the 
household goods moving industry. Consumer groups also expressed the 
need for DOT to aggregate complaints nationwide to help direct 
enforcement activities.
---------------------------------------------------------------------------

    \1\ An electronic copy of the Hearing: Oversight of the 
Household Goods Moving Industry. July 12, 2001. No. 107-32 may be 
found at: http://commdocs.house.gov/committees/Trans/hpw107-32.000/hpw107-32_0f.htm
.

---------------------------------------------------------------------------

    On June 11, 2003, FMCSA published an interim final rule (68 FR 
35064) that required household goods motor carriers to have an 
arbitration program for individual shippers and to provide prospective 
shippers with a description of the household goods motor carrier's 
customer complaint and inquiry handling procedure.
    Subsequently, Congress enacted section 4214(a)(2) of SAFETEA-LU, 
which directed the Secretary to issue regulations requiring each motor 
carrier of household goods to submit a quarterly report summarizing the 
following:
     The number of shipments that originate and are delivered 
for individual shippers during the reporting period by the carrier;
     The number and general category of complaints lodged by 
consumers with the carrier;
     The number of claims for loss and damage exceeding $500 
filed with the carrier; and
     The number of such claims resolved, declined, and pending 
during the reporting period.
    Although FMCSA maintains both online access for filing consumer 
complaints and a consumer complaint hotline, the Agency does not 
require household goods motor carriers to report carrier shipments, 
complaints received, and claims resolution. This proposed rule would 
implement the statutory mandate that each household goods motor carrier 
submit quarterly reports addressing these subjects.
    Because an individual shipper has the option of filing a claim or 
complaint against any carrier involved in handling his or her household 
goods, the Agency interprets the statute as requiring household goods 
motor carriers to report all interstate shipments handled by the 
carrier, including those in which other carriers may have provided all 
or part of the line-haul transportation.

Section 4214 Consumer Complaint Information

    Section 4214(a)(1) requires FMCSA to establish a system, database, 
and procedures for filing and logging consumer complaints relating to 
household goods motor carriers for the purpose of compiling or linking 
complaint information gathered by FMCSA and the States with regard to 
such carriers. Section 4214(a)(1) also requires FMCSA to establish 
procedures to allow the public to have access, subject to 5 U.S.C. 
552(a),\2\ to aggregated complaint information and a process for 
carriers to challenge duplicate or fraudulent information in the 
database. FMCSA was also directed, under section 4214(a)(3), to develop 
a procedure to forward complaints to the motor carrier named in the 
complaint and to the appropriate State authority in the State in which 
the complainant resides. Section 4214(b) requires FMCSA to consider the 
information gathered in the database as a part of the Agency's 
household goods compliance and enforcement program. FMCSA has 
implemented the requirements of subsections 4214(a)(1), (a)(3), and (b) 
of SAFETEA-LU by establishing a system, database, and procedures for 
filing and logging consumer complaints relating to household goods 
motor carriers.\3\ The only requirement left to implement is section 
4214(a)(2). This section requires FMCSA to promulgate regulations 
requiring household goods motor carriers to file quarterly reports 
about the consumer complaints they receive and their disposition of 
loss and damage claims in excess of $500. FMCSA plans to link the 
quarterly complaint information reports with the system of complaints 
previously established and currently in operation.
---------------------------------------------------------------------------

    \2\ The Privacy Act of 1974, Public Law 93-579, 88 Stat, 1897 
(December 31, 1974), as amended.
    \3\ Individual shippers may either fill out the Household Goods 
Consumer Complaint form found at http://nccdb.fmcsa.dot.gov/HomePage.asp
 or telephone the FMCSA Household Goods Consumer 

Complaint Hotline at 1-888-DOT-SAFT (1-888-368-7238) Monday-Friday 
between the hours of 9 a.m. and 9 p.m. e.t.
---------------------------------------------------------------------------

Section 4214(a)(2) Household Goods Carrier Quarterly Reports: Proposed 
Reporting Requirements

    Under section 4214(a)(2)(B), the quarterly report must group 
complaints into general categories. In today's NPRM, FMCSA proposes 
that household goods carriers be required to submit quarterly reports 
on a standard form that prescribes general complaint categories. We 
propose to use four general complaint categories and a fifth category 
for all other complaints that do not fit within one of the four 
specific categories. FMCSA also proposes that household goods motor 
carrier quarterly reports be submitted to the Agency either through a 
web-based system or in hard copy form.
    In prescribing four specific complaint categories, we seek to 
ensure consistency regarding the types and number of complaints--
important factors when we use the data to identify trends, problems and 
potential future program changes. This approach helps ensure we collect 
data that FMCSA, regulated entities, and the public can compare and 
measure meaningfully. If we allow household goods motor carriers to 
decide what categories of complaints to report, we may get data that 
users cannot measure or compare objectively. Prescribing general 
categories of complaints will allow users to compare and assess data 
quality by cross-referencing complaint categories in the consumer 
database with the quarterly reports from motor carriers.
    Our proposed requirement that carriers record quarterly data on a 
standard form would help ensure the collection of data in a way that is 
easy to process and disseminate. A standard form avoids the burden of 
comparing disparate elements and sorting them into meaningful data.
    The Agency proposes to use the following five complaint categories: 
Loss and damage; service \4\; rates or charges; how claims are handled; 
and other complaints that do not fall within these four categories. The 
four specific complaint categories are the four most often reported to, 
or filed with, FMCSA on its household goods complaint hotline or on its 
household goods complaint Web page.\5\
---------------------------------------------------------------------------

    \4\ Service complaints by individual shippers usually involve 
(1) a delay in providing service; or (2) refusal or failure to 
provide services as agreed. Two examples are refusing to weigh 
shipments upon requests by an individual shipper and failing to pick 
up or deliver household goods at agreed upon times or in an agreed 
upon manner.
    \5\ See footnote 3 above.
---------------------------------------------------------------------------

    We also propose making this required form web-based so that 
household goods motor carriers can submit it electronically. We believe 
that most household goods motor carriers have Internet access. With 
online filing, we expect fewer data entry mistakes because the 
household goods motor carrier directly inputs the information. Online 
filing will also reduce processing time and be more cost efficient. 
However, we recognize that all carriers may not have convenient 
Internet access. If a carrier lacks Internet access,

[[Page 9268]]

it may file a paper version of FMCSA's report form.
    The Agency plans to incorporate the quarterly report system into 
its COMPASS program. The COMPASS program is an FMCSA-wide initiative 
that is consolidating all of FMCSA's separate databases and information 
technology systems into one coordinated system that should improve the 
Agency's ability to accomplish its mission and serve the public. More 
information on COMPASS is available at http://www.fmcsa.dot.gov FMCSA 

plans to require motor carriers using the quarterly reporting system to 
access the COMPASS system with a secure sign-on procedure. FMCSA plans 
to display summaries of all reported data on the Agency's Web site, as 
it does with other information in FMCSA's systems.
    As we stated previously, FMCSA also plans to link the quarterly 
reports with the other complaints the Agency receives directly from 
individual shippers to monitor the household goods industry as required 
by subsections 4214(a)(1) and (a)(3) of SAFETEA-LU. This information 
will assist FMCSA with its household goods compliance and enforcement 
program.

Proposed Penalties for Failing To File a Quarterly Report or for Filing 
an Incomplete or Inaccurate Quarterly Report

    Household goods motor carriers or their officers, agents, or 
employees who fail to: (1) File a report with FMCSA; (2) specifically, 
completely and truthfully answer a question on the report; or (3) make, 
prepare, or preserve the report in the form and manner prescribed are 
subject to a minimum civil penalty of $650 for each violation and for 
each additional day the violation continues under 49 U.S.C. 14901(a). 
Under 49 U.S.C. 14907, a maximum civil penalty of $6,500 can be 
assessed for: (1) Failing to file a required report; (2) failing to 
answer a question on the report within 30 days from the date FMCSA 
requires the question to be answered; (3) failing to make, prepare, or 
preserve the report in the form and manner prescribed; (4) falsifying, 
destroying, or changing the report; (5) filing a false report; (6) 
making a false or incomplete entry in the report about a business 
related fact; or (7) preparing or preserving the report in violation of 
FMCSA regulations.\6\
---------------------------------------------------------------------------

    \6\ For more information, see paragraphs (g)(1) and (g)(16) in 
Appendix B to 49 CFR part 386--Penalty Schedule; Violations and 
Maximum Civil Penalties.
---------------------------------------------------------------------------

Other Approaches We Considered

    In 49 CFR 375.209(b)(4), FMCSA already requires household goods 
motor carriers to maintain a record of all inquiries and complaints 
received from an individual shipper by any means of communication. 
Therefore, household goods motor carriers must already collect 
complaint data, presumably on an existing company form or through an 
electronic company system organized into general categories useful to 
the household goods motor carrier. We considered allowing carriers to 
use their existing forms to satisfy section 4214(a)(2) reporting 
requirements.
    This approach would permit carriers to report information captured 
in their company databases using their own general categories without 
prescribing uniform categories of complaints or requiring a standard 
form. If a company summarizes its complaint data on its own form using 
its own categories, then requiring the company to change to a standard 
form and standard categories would impose a burden to weigh against any 
possible benefit--especially if the company system already brings in 
the numerical data required for the quarterly report under SAFETEA-LU 
section 4214(a)(2).
    Although this approach may be less burdensome and less costly for 
household goods carriers, it likely would result in a lack of 
uniformity in the data received from the industry, severely limiting 
the usefulness of the quarterly report.
    We also considered an approach that would be identical to our 
proposal, except that web-based reporting would be required in all 
circumstances. Required web-based data collection would facilitate 
Agency data sorting and processing. On the other hand, for a carrier 
without Internet access, requiring web-based reporting would result in 
additional cost associated with procuring access through other 
locations. Nevertheless, the incremental cost to household goods 
carriers of a fully web-based reporting system would be relatively 
small, and the Agency is considering a final rule that would not allow 
the filing of reports by mail. FMCSA solicits comments on the costs and 
feasibility of an all-electronic method of reporting the information 
required by section 4214.
    We also considered whether to propose a similar quarterly reporting 
requirement for household goods brokers, although SAFETEA-LU does not 
mandate such a requirement. We concluded it was premature to propose 
such a requirement at this time because we have recently proposed new 
regulatory requirements for household goods brokers. Our experience 
with the quarterly reporting requirement for household goods carriers 
mandated by SAFETEA-LU and proposed in this rulemaking will help the 
Agency evaluate whether such a requirement would be useful in 
connection with household goods brokers, in light of the new 
requirements.

Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    FMCSA has made a determination that this action is a significant 
regulatory action within the meaning of Executive Order 12866 
(Regulatory Planning and Review) and DOT Regulatory Policies and 
Procedures (44 FR 11034, February 26, 1979) because of public interest 
in household goods transportation issues. The purpose of this analysis 
is to present the likely costs and benefits to the motor carrier 
industry of complying with these proposed regulations.
    A preliminary estimate of the costs of the proposed complaint 
reporting system was made based on certain assumptions. This analysis 
assumes that only active household goods motor carriers involved in 
interstate commerce will be required to assemble quarterly reports on 
complaints received, shipments moved, and loss or damage claims filed. 
We estimate that the quarterly reports will take 2 hours per quarter 
for household goods motor carriers to assemble. The regulations will 
require household goods motor carriers to report the ``number and 
general category'' of complaints received, but household goods motor 
carriers will not have to provide full details of the complaints, as a 
result of this regulation.
    Under the Agency's proposal, we anticipate that most reports will 
be compiled and filed via an online report filing system. Regardless of 
which method of transmission is chosen, the costs for compiling the 
reports are expected to be the same. We assume that the reports will be 
compiled and filed by clerical staff working for the motor carrier. The 
hourly wage for a general office worker is $11.82 per hour, according 
to the Bureau of Labor Statistics. Inflating this number by 30 percent 
to account for fringe benefits, the total cost of time for a general 
office clerk would be $15.37 per hour.
    There are about 5,400 active household goods motor carriers 
operating in interstate commerce in the United States as of April 2006. 
Assuming 2 hours per report filed, the reports would cost each active 
household goods carrier just under $31 to file. Since reports are to be 
filed

[[Page 9269]]

quarterly, this amounts to an annual per-carrier cost of about $123. 
Multiplying this figure by the 5,400 current active household goods 
motor carriers yields a total annual cost to the industry of about 
$664,000.
    While we anticipate that most motor carriers will file online 
reports, some household goods motor carriers would file reports by 
mail. Carriers would bear the costs of mailing forms. Although the 
number of motor carriers who would choose to file by mail is unknown, 
it is unlikely to be very large. For the purposes of the Agency's 
regulatory analysis, FMCSA assumed that 25 percent of carriers would 
choose to file by mail. Assuming 25 percent of motor carriers opt to 
mail forms, FMCSA would expect to receive 5,400 forms by mail a year; 
and mailing costs would amount to $5,400 annually.
    Regarding benefits, this rule is intended to improve the Agency's 
oversight of the nation's household goods motor carriers and make 
complaint data more accessible to the public. FMCSA has experienced an 
increase in the number of complaints it receives against household 
goods motor carriers in recent years, which could be an indication that 
customer service in this industry may be declining. We anticipate that 
this requirement will enable the Agency to better detect household 
goods motor carriers that are potentially not complying with Federal 
regulations governing the movement of household goods, including those 
governing the payment of loss and damage claims. Improved monitoring 
should reduce the number of complaints against this segment of the 
motor carrier industry by assisting the Agency in identifying companies 
that may be out of compliance with consumer protection regulations. 
Once identified, the Agency can monitor these carriers to ensure 
compliance with consumer protection guidelines or take action to remove 
them from the household goods moving segment of the industry, if 
appropriate. Although the Agency cannot quantify these benefits at this 
time, we believe that the rule will result in fewer damaged goods, 
better customer satisfaction, and fewer instances in which carriers 
attempt to extort inflated payments from individuals by refusing to 
deliver their goods. These benefits would result from providing 
customers with improved information on past carrier performance. This 
information would enable customers to select carriers which do not have 
poor customer service, which would result in more business for carriers 
that protect customer goods and honor pricing and damaged goods 
reimbursement agreements. A copy of the full regulatory evaluation is 
in the docket. The Office of Management and Budget (OMB) has reviewed 
this document.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501 et 
seq.), Federal agencies must determine whether requirements contained 
in rulemakings are subject to information collection provisions of the 
PRA and, if they are, obtain approval from the Office of Management and 
Budget for each collection of information they conduct, sponsor, or 
require through regulations. This rulemaking is subject to those 
provisions because it requires motor carriers of household goods to 
submit quarterly reports. FMCSA will seek approval of the information 
collection requirements proposed in this NPRM and the proposed 
Household Goods Motor Carrier Quarterly Report form in the revised 
information collection for ``Transportation of Household Goods; 
Consumer Protection,'' OMB No. 2126-0025, which covers all information 
collections included under 49 CFR part 375.
    The Agency expects the information proposed to be collected will 
assist individual shippers of household goods in their commercial 
dealings with household goods motor carriers engaged in interstate 
commerce, thereby providing a desirable consumer protection service. 
The collection of information would be used by prospective household 
goods shippers to make informed decisions about contracts and services 
to be ordered, executed, and settled within the interstate household 
goods carrier industry. The Agency also believes the information will 
help consumer advocacy groups to assist household goods shippers to 
make informed decisions.
    Assumptions used for calculation of the additional information 
collection burdens included in this proposal are the following: (1) 
There are currently approximately 5,400 interstate household goods 
motor carriers; (2) 75 percent of the quarterly reports of consumer 
complaints will be collected electronically; and (3) it will take motor 
carriers approximately 2 hours to compile and file the quarterly 
reports.
    Household goods motor carriers may file reports online or via 
regular mail. For online submission, carriers would use an Internet 
portal created by the Agency to fill out an online form that would 
require the carrier to submit specific information. The Agency would 
therefore specify exactly what data carriers must report. A paper 
version of this online form would also be created for carriers that 
prefer to file the required information by mail. It is anticipated that 
most reports will be compiled and filed via the online report filing 
system, by administrative staff in motor carrier offices. Regardless of 
which method of transmission is chosen, FMCSA expects the burden for 
compiling the reports will be the same. The Agency assumes that, on 
average, it will take carriers approximately 2 hours to compile 
reports. Since carriers must file quarterly reports, this amounts to an 
annual per-carrier burden of 8 hours. Multiplying this figure by the 
5,400 current active household goods motor carriers, we estimate a 
total annual additional burden of 43,200 hours. See Table 1.

      Table 1.--Current and Proposed Information Collection Burdens
------------------------------------------------------------------------
                      Burden hours       Additional
 OMB approval No.      currently        burden hours     Proposed total
                        approved          proposed
------------------------------------------------------------------------
      2126-0025          4,552,737             43,200       *4,595,937
------------------------------------------------------------------------
*Rounded up to 4,600,000 for the 2126-0025 estimate.

    FMCSA will round the number up to 4,600,000 and ask OMB to approve 
this rounded number as the annual burden hour estimate. The Agency 
invites comment on this information collection analysis.

Regulatory Flexibility Act

    FMCSA has completed a preliminary analysis of the burdens on small 
businesses as required under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) and the Small Business Regulatory Enforcement Fairness Act 
(5 U.S.C. 601 note), and found that this rulemaking will increase 
reporting requirements for businesses in the household goods moving 
industry. FMCSA expects that compiling and

[[Page 9270]]

submitting quarterly reports on complaints received will impose a 
modest cost on household goods motor carriers.
    FMCSA's Motor Carrier Management Information System (MCMIS) had 
5,400 active interstate household goods carriers in the United States 
as of April 2006.\7\ Household goods carriers in both interstate and 
intrastate commerce brought in a total of approximately $12.7 billion 
in revenue in 2002. They employed more than 111,000 people, with a 
total payroll of over $3.1 billion.\8\
---------------------------------------------------------------------------

    \7\ FMCSA Analysis Division. MCMIS Data Query on Active 
Household Goods Carriers. April 4, 2006.
    \8\ U.S. Census Bureau. Truck Transportation: 2002. U.S. 
Department of Commerce, Economics and Statistics Administration. 
October, 2004.
---------------------------------------------------------------------------

    The MCMIS data indicate that the household goods segment employed 
more than 165,000 drivers as of April 2006. These numbers are somewhat 
higher than those included in the 2002 Census report. The largest 20 
household goods carriers employ 110,541 of these drivers, or roughly 67 
percent of the drivers employed by this segment. Some 4,926 household 
goods carriers employ 20 or fewer drivers, and 4,489 employ 10 or fewer 
drivers. This industry is made up of a few very large carriers and many 
small-to-medium sized businesses.
    The Small Business Administration's revenue threshold for small 
businesses in the used household and office goods moving sector (NAICS 
code 484210) is $23.5 million in annual revenue.\9\ The Agency believes 
that the vast majority of motor carriers in this sector would fall 
under this threshold. Census Bureau data provide evidence that a large 
majority of household goods carriers are small businesses.
---------------------------------------------------------------------------

    \9\ Small Business Administration. ``Table of Small Business 
Size Standards Matched to North American Industry Classification 
System Codes'' Effective October 1, 2007. Available online at http://www.sba.gov/idc/groups/public/documents/sba_homepage/serv_sstd_tablepdf.pdf
.

---------------------------------------------------------------------------

    The Economic Census collects data on the size of establishments in 
various sectors of the economy. According to the 2002 data, 125 of the 
7,225 establishments in the Used Household and Office Goods Moving 
segment of the economy had revenues that exceeded $10 million per 
year.\10\ These data imply that as many as 98 percent of household 
goods carriers would qualify as small businesses. However, given that 
some firms have more than one establishment, the Census figures may 
underestimate the size of firms in the industry.
---------------------------------------------------------------------------

    \10\ The Economic Census counts each storefront or business 
location of a firm as a separate establishment, which is why there 
are more establishments than firms in the household goods moving 
industry. Also, the Census Bureau found a total of 8,642 firms in 
the household goods moving industry, but only 7,225 were in business 
for the entire year, which is the number cited above. The Census 
Bureau also does not collect data on whether the firm is engaged in 
interstate commerce or exclusively in intrastate commerce. Thus, 
wholly intrastate firms not regulated by FMCSA are shown in the 
Economic Census data.
---------------------------------------------------------------------------

    This rule would require interstate household goods carriers to 
submit quarterly reports containing the following data: (1) The number 
of shipments by the carrier; (2) the number and general category of 
complaints lodged by consumers with the carrier; (3) the number of 
claims for loss and damage exceeding $500 filed with the carrier; and 
(4) the number of such claims resolved, declined, and pending during 
the reporting period. The information requested is not specialized in 
nature, and would not require specialized personnel to compile or 
submit. A general office worker should be capable of compiling and 
submitting the required information. FMCSA estimates that compiling the 
information will cost household goods carriers approximately 2 hours 
per quarter worth of time, which has an economic value, when aggregated 
across the industry, of $664,000 per year. This would be about $123 per 
carrier annually. While some carriers may incur additional costs by 
opting to submit the information by mail rather than electronically, 
these costs will be negligible.
    Accordingly, the Administrator of the FMCSA hereby certifies that 
this proposal will not have a significant economic impact on a 
substantial number of small entities.

Unfunded Mandates Imposed Upon State, Local, and Tribal Governmental 
Entities

    The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4; 2 U.S.C. 
1532) requires each agency to assess the effects of its regulatory 
actions on State, local, and tribal governments and the private sector. 
Any agency promulgating a final rule likely to result in a Federal 
mandate requiring expenditures by a State, local or tribal government 
or by the private sector of $128.1 million or more in any one year must 
prepare a written statement incorporating various assessments, 
estimates, and descriptions that are delineated in the Act. FMCSA has 
determined that the quarterly report proposed in this rulemaking would 
not have an impact of $128.1 million or more in any one year.

Environmental Impacts

    FMCSA analyzed this rule under the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.) (NEPA), the Council on 
Environmental Quality Regulations Implementing NEPA (40 CFR 1500-1508), 
and FMCSA's NEPA Implementation Order (69 FR 6980, March 1, 2004). This 
rule would be categorically excluded from further analysis and 
documentation in an environmental assessment or environmental impact 
statement under paragraphs 6.m.(6) and 6.q of Appendix 2 to FMCSA's 
Order as regulations implementing data collection activities. This rule 
would merely amend the information collection requirements for 
household goods carriers to include a quarterly report of the number of 
shipments, complaints, and claims.
    We have also analyzed this proposed 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 would not result 
in any emissions increase nor would 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 would not increase total CMV mileage, change the routing of 
CMVs, how CMVs operate, or the CMV fleet-mix of motor carriers. This 
action merely establishes a quarterly reporting regulation applicable 
to the business practices of household goods motor carriers.

Privacy Impact Assessment

    FMCSA conducted a privacy impact assessment of this proposed rule 
as required by section 522(a)(5) of the FY 2005 Omnibus Appropriations 
Act, Public Law 108-447, 118 Stat. 3268 (December 8, 2004) [set out as 
a note to 5 U.S.C. 552a]. FMCSA has determined that the changes 
proposed in this rulemaking would not have privacy impacts. The 
quarterly reports FMCSA proposes that household goods motor carriers 
would submit under this proposal would not include personally 
identifiable information about individual shippers or motor carriers.

Executive Order 13045 (Protection of Children)

    FMCSA has analyzed this proposed action under Executive Order 
13045, Protection of Children from Environmental Health Risks and 
Safety Risks. FMCSA certifies that this proposed action would not cause 
any environmental risk to health or safety that may disproportionately 
affect children.

[[Page 9271]]

Executive Order 12630 (Taking of Private Property)

    FMCSA has analyzed this proposed rule under Executive Order 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights. FMCSA does not anticipate that this proposed action 
would effect a taking of private property or otherwise have taking 
implications under Executive Order 12630.

Executive Order 13132 (Federalism)

    This proposed action has been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132, and FMCSA 
has preliminarily determined that this proposed action would not 
warrant the preparation of a Federalism assessment. FMCSA has 
determined that this proposed action would not affect the States' 
ability to discharge traditional State government functions.

Executive Order 12988 (Civil Justice Reform)

    This proposed action meets applicable standards in sections 3(a) 
and 3(b)(2) of Executive Order 12988, Civil Justice Reform, to minimize 
litigation, eliminate ambiguity, and reduce burden.

Executive Order 12372 (Intergovernmental Review)

    The regulations implementing Executive Order 12372 regarding 
intergovernmental consultation on Federal programs and activities do 
not apply to this NPRM.

Executive Order 13211 (Energy Supply, Distribution, or Use)

    We have analyzed this proposed rule under Executive Order 13211, 
Actions Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use. We have determined that it is not a significant 
energy action within the meaning of section 4(b) of the Executive Order 
and is not likely to have a significant adverse effect on the supply, 
distribution, or use of energy. Therefore, a Statement of Energy 
Effects is not required.

Executive Order 13175 (Tribal Consultation)

    The FMCSA has analyzed this action under Executive Order 13175, 
dated November 6, 2000, and believes that the proposed action would not 
have substantial direct effects on one or more Indian tribes; would not 
impose substantial compliance costs on Indian tribal governments; and 
will not preempt tribal law. Therefore, a tribal summary impact 
statement is not required.

List of Subjects in 49 CFR Part 375

    Advertising, Arbitration, Consumer protection, Freight, Highways 
and roads, Insurance, Motor carriers, Moving of household goods, 
Reporting and recordkeeping requirements.

    In consideration of the foregoing, FMCSA proposes to amend title 
49, Code of Federal Regulations, by revising part 375 as set forth 
below.

PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE; 
CONSUMER PROTECTION REGULATIONS

    1. Revise the authority citation for part 375 to read as follows:

    Authority: 5 U.S.C. 553; 49 U.S.C. 13301, 13704, 13707, 14104, 
14706; sec. 4214 of Pub. L. 109-59, 119 Stat. 1144; and 49 CFR 1.73.

    2. Amend 49 CFR 375.105 by revising paragraph (b) to read as 
follows:

Sec.  375.105  What are the information collection requirements of this 
part?

* * * * *
    (b) The information collection requirements are found in the 
following sections: Section 375.107, Section 375.205, Section 375.207, 
Section 375.209, Section 375.211, Section 375.213, Section 375.215, 
Section 375.217, Section 375.303, Section 375.401, Section 375.403, 
Section 375.405, Section 375.409, Section 375.501, Section 375.503, 
Section 375.505, Section 375.507, Section 375.515, Section 375.519, 
Section 375.521, Section 375.605, Section 375.607, Section 375.609, 
Section 375.803, Section 375.805, and Section 375.807.
    3. Add Sec.  375.107 to read as follows:

Sec.  375.107  What information must I provide in a quarterly report to 
FMCSA?

    (a) You must submit on a quarterly basis a report summarizing all 
of the following:
    (1) The number of shipments that originate, and are delivered for 
individual shippers during the reporting period by your company.
    (2) The total number of complaints (representing both oral and 
written complaints) lodged by consumers with your company in each of 
the following general categories:
    (i) Rates or charges;
    (ii) Service (including, but not limited to, failure to timely pick 
up or deliver household goods or refusal to weigh a shipment upon a 
request by an individual shipper);
    (iii) Loss and damage;
    (iv) How claims are handled; and
    (v) Other.
    (3) The number of claims filed against your company for loss and 
damage in excess of $500.
    (4) The number of claims for loss and damage in excess of $500 
settled during the reporting period.
    (5) The number of claims for loss and damage in excess of $500 
declined in the reporting period.
    (6) The number of claims for loss and damage in excess of $500 that 
are pending at the close of the reporting period.
    (b) You must submit the quarterly report on Form MCSA--(form number 
will be issued in the final rule), Household Goods Motor Carrier 
Quarterly Report. You may submit the quarterly report electronically by 
completing the form on our Web site at (the address will be provided in 
the final rule). If you do not have access to Internet service for 
online filing, you may submit the quarterly report by mail to (the 
address will be provided in the final rule).
    (c) Quarterly reports are due as follows:

                       Table to 49 CFR 375.107(c)
------------------------------------------------------------------------
                  Quarter                                Due
------------------------------------------------------------------------
1st Quarter January 1-March 31............  April 30.
2nd Quarter April 1-June 30...............  July 31.
3rd Quarter July 1-September 30...........  October 31.
4th Quarter October 1-December 31.........  January 31.
------------------------------------------------------------------------

[[Page 9272]]

    (d) You must always submit a quarterly report, even when the 
quarterly count for all categories is zero.

Form MCSA-XX Household Goods Motor Carrier Quarterly Report

Submission Date:-------------------------------------------------------

Check here if this is an amended report:
-----------------------------------------------------------------------

Company Name:----------------------------------------------------------

Company Address:-------------------------------------------------------

City:------------------------------------------------------------------

State:-----------------------------------------------------------------

Zip:-------------------------------------------------------------------

Individual Point of Contact:
-----------------------------------------------------------------------

Phone:-----------------------------------------------------------------

Fax Phone:-------------------------------------------------------------

E-mail:----------------------------------------------------------------

USDOT:--------------------------------------------------------

MC:-----------------------------------------------------------

Reporting Period: Year:------------------------------------------------

Quarter: 1st [ballot] 2nd [ballot] 3rd [ballot] 4th [ballot]

    Summary of Complaint and Claim Information for the Reporting 
Period:
    1. Number of shipments that originate and are delivered for 
individual shippers during the reporting period:
-----------------------------------------------------------------------

    2. Number of oral and written complaints in these general 
categories that consumers lodged against the company:
A. Rates or Charges----------------------------------------------------
B. Service-------------------------------------------------------------
C. Loss and Damage-----------------------------------------------------
D. How Claims are Handled----------------------------------------------
E. Other---------------------------------------------------------------

    3. Number of claims filed with you for loss and damage in excess of 
$500:
-----------------------------------------------------------------------

    4. Number of claims for loss and damage in excess of $500 settled 
during the reporting period:
-----------------------------------------------------------------------

    5. Number of claims for loss and damage in excess of $500 declined 
in the reporting period:
-----------------------------------------------------------------------

    6. Number of claims for loss and damage in excess of $500 pending 
at the close of the reporting period:
-----------------------------------------------------------------------

    Issued on: February 6, 2008
John H. Hill,
Administrator.
 [FR Doc. E8-2867 Filed 2-19-08; 8:45 am]

BILLING CODE 4910-EX-P