Document ID: FMCSA-2012-0101-0005
Agency: fmcsa
Document Type: Rule
Title: Consumer Protection Regulations: Transportation of Household Goods in Interstate Commerce; Released Rates of Motor Carriers of Household Goods
Posted Date: 2012-04-30T04:00Z

[Federal Register Volume 77, Number 83 (Monday, April 30, 2012)]
[Rules and Regulations]
[Pages 25371-25374]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-9865]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Part 375

[Docket No. FMCSA-2012-0101]
RIN 2126-AB51

Transportation of Household Goods in Interstate Commerce; 
Consumer Protection Regulations: Released Rates of Motor Carriers of 
Household Goods

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

ACTION: Final rule.

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SUMMARY: FMCSA harmonizes its regulations with a recent Surface 
Transportation Board (STB) order that requires certain information 
about household goods motor carrier liability to appear on the 
estimates and bills of lading that carriers must provide to individual 
shippers.

DATES: This final rule is effective May 15, 2012.

ADDRESSES: Documents mentioned in this rule are available for 
inspection or copying in the docket, Docket No. FMCSA-2012-0101 
available at www.regulations.gov, and at the Docket Management 
Facility, U.S. Department of Transportation, 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.

FOR FURTHER INFORMATION CONTACT: Mr. Brodie Mack, FMCSA Household Goods 
Enforcement and Compliance Team Leader, (202) 385-2400, email: 
Brodie.Mack@dot.gov.

SUPPLEMENTARY INFORMATION: 

I. Legal Basis for the Rulemaking

    The Secretary of Transportation's (Secretary) general jurisdiction 
to establish regulations over transportation of property by motor 
carrier is found at 49 U.S.C. 13501. Household goods motor carriers are 
a subset of all property motor carriers and are required by 49 U.S.C. 
13902 to register with FMCSA as household goods motor carriers.
    The ICC Termination Act of 1995 (Pub. L. 104-88, 109 Stat. 803, 
Dec. 29, 1995) abolished the Interstate Commerce Commission (ICC), 
which previously had jurisdiction over the commercial activities of 
household goods motor carriers. Its functions relating to household 
goods carriers were split between the STB and the Secretary. The STB 
was given jurisdiction over most tariff issues, while the Secretary was 
given jurisdiction over consumer protection matters.
    The Secretary has delegated these authorities to the FMCSA 
Administrator (49 CFR 1.73(a)). This rulemaking applies only to 
household goods motor carriers that provide for-hire transportation in 
interstate or foreign commerce.
    FMCSA implements this final rule without notice and comment 
pursuant to 5 U.S.C. 553(b)(B). While the Administrative Procedure Act 
(APA) normally requires issuance of a notice of proposed rulemaking and 
an opportunity for public comment, the APA provides an exception when 
an agency ``for good cause finds * * * that notice and public procedure 
* * * are impracticable, unnecessary, or contrary to the public 
interest.'' 5 U.S.C. 553(b)(B). This final rule updates 49 CFR part 375 
to reflect recent changes the STB made to its requirements after 
engaging in notice and comment

[[Page 25372]]

rulemaking. See Released Rates of Motor Common Carriers of Household 
Goods, Surface Transportation Board, Docket No. RR 999 (Amendment No. 
5), Order, Jan. 10, 2012 (Released Rates Order). These changes fall 
within the STB's jurisdiction and FMCSA does not have authority to 
exercise discretion in implementing them. Therefore, FMCSA finds that 
the opportunity for notice and public comment is unnecessary and 
contrary to the public interest under the APA.

II. Background

    STB is charged with the oversight of household goods motor 
carriers' tariffs. Tariffs include the rates and terms under which 
household goods carriers may provide transportation services. In 
accordance with 49 U.S.C. 14706(f)(3), the Board authorizes household 
goods carriers to set ``released rates,'' which are lower rates for 
transportation services when the shipper agrees to release the carrier 
from full liability for potential loss and damage to the shipper's 
cargo. There are currently two generally applicable liability options 
for interstate household goods moves. The first reimburses the shipper 
for the replacement value of his or her goods, referred to as the full 
value option. The second reimburses the shipper at a lower rate, 
currently 60 cents per pound, and is referred to as the released rate 
option. The Board's rules provide that any rate a carrier charges for 
transportation services, whether under the full liability option or the 
released rate option, must be published in the carrier's tariff.
    In a decision served January 21, 2011, the STB implemented a 
congressional directive to enhance consumer protection in cases of loss 
or damage that occur during interstate moves. See Safe, Accountable, 
Flexible, Efficient Transportation Act: A Legacy for Users (SAFETEA-
LU), Sec.  4215, Public Law 109-59, 119 Stat. 1144, 1760 (2005). That 
decision required household goods motor carriers to provide certain 
information concerning the two available cargo liability options to 
shippers on written estimates for household goods transportation. On 
January 12, 2012, STB served another decision clarifying and modifying 
certain aspects of the January 2011 decision. STB modified the order to 
require household goods movers to place the following liability 
election notice on the estimates they provide to prospective shippers:

    WARNING: If a moving company loses or damages your goods, there 
are 2 different standards for the company's liability based on the 
types of rates you pay. BY FEDERAL LAW, THIS FORM MUST CONTAIN A 
FILLED-IN ESTIMATE OF THE COST OF A MOVE FOR WHICH THE MOVING 
COMPANY IS LIABLE FOR THE FULL (REPLACEMENT) VALUE OF YOUR GOODS in 
the event of loss of, or damage to, the goods. This form may also 
contain an estimate of the cost of a move in which the moving 
company is liable for FAR LESS than the replacement value of your 
goods, typically at a lower cost to you. You will select the 
liability level later, on the bill of lading (contract) for your 
move. Before selecting a liability level, please read ``Your Rights 
and Responsibilities When You Move,'' provided by the moving 
company, and seek further information at the government Web site 
www.protectyourmove.gov.

Released Rates Order, Appendix 1.
    That decision also directed household goods motor carriers to 
provide the STB's required valuation statement on the shipper's bill of 
lading. The valuation statement includes specific language that 
requires the consumer either to choose the replacement value option and 
declare a total value for the shipment, or choose the released rate 
option. This statement is much lengthier than the notice carriers must 
include in the estimate and contains specific information about the 
cost to the shipper. Released Rates Order, Appendix 2. These 
requirements go into effect May 15, 2012. See Released Rates of Motor 
Common Carriers of Household Goods, Surface Transportation Board, 
Docket No. RR 999 (Amendment No. 5), Order, Mar. 8, 2012 (extending 
compliance date) (77 FR 15187).
    FMCSA is charged with overseeing consumer protection matters 
related to the transportation of household goods. In this capacity, 
FMCSA administers regulations requiring household goods motor carriers 
to provide estimates and certain shipping documents to individual 
shippers and establishes the terms and conditions under which those 
documents must be provided.
    STB's January 2012 order affects FMCSA's regulations because it 
mandates that specific language regarding carriers' rates and liability 
be placed on the estimates and bills of lading that FMCSA requires 
carriers to provide to prospective shippers. As a result, FMCSA amends 
its regulations governing those documents to reflect the STB's new 
requirements.

III. Discussion of the Rule

    FMCSA amends 49 CFR 375.401 and 375.505 to eliminate 
inconsistencies resulting from the STB's recent publication of its 
Released Rates Order. These changes incorporate the STB's new 
requirements into FMCSA's regulations governing estimates and bills of 
lading.
    FMCSA amends Sec.  375.401 by adding a new paragraph (g) which 
states that household goods motor carriers must include STB's liability 
election notice on all written estimates. This notice is a brief 
statement advising prospective shippers that they will have to select 
one of two options that govern the extent of the carrier's liability 
for damage to their cargo. New paragraph (g) directs household goods 
motor carriers to use the language set forth in the STB Released Rates 
Order. FMCSA redesignates old paragraphs (g) and (h) as new paragraphs 
(h) and (i) respectively.
    FMCSA also amends Sec.  375.505 to make it clear that the STB's 
valuation statement, a lengthier statement which requires shippers to 
select one of the two levels of liability, must appear on the shipper's 
bill of lading. Previously, Sec.  375.505(e) permitted carriers to 
provide the valuation statement on either the bill of lading or the 
order for service. FMCSA removes paragraph (e) and revises subparagraph 
(b)(12) to make conforming changes to remove any ambiguity about where 
the valuation statement must appear.

IV. Regulatory Analyses

A. Regulatory Planning and Review

    FMCSA has determined that this action does not meet the criteria 
for a ``significant regulatory action,'' either as specified in 
Executive Order 12866 as supplemented by Executive Order 13563 (76 FR 
3821, January 18, 2011), or within the meaning of the DOT regulatory 
policies and procedures (44 FR 1103, February 26, 1979). The estimated 
economic costs of the rule do not exceed the $100 million annual 
threshold and the Agency does not expect the rule to have substantial 
congressional or public interest. Therefore, this rule has not been 
formally reviewed by the Office of Management and Budget.

B. Regulatory Flexibility Act

    Under the Regulatory Flexibility Act, as amended by the Small 
Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 
110 Stat. 857), FMCSA is not required to prepare a final regulatory 
flexibility analysis under 5 U.S.C. 604(a) for this final rule because 
the Agency has not issued a notice of proposed rulemaking prior to this 
action.

C. Federalism (Executive Order 13132)

    A rule has federalism implications if the rule has a substantial 
direct effect on State or local governments and would either preempt 
State law or impose a

[[Page 25373]]

substantial direct cost of compliance on the States. FMCSA analyzed 
this rule under E.O. 13132 and has determined that it does not have 
federalism implications.

D. Unfunded Mandates Reform Act of 1995

    This final rule does not impose an unfunded Federal mandate, as 
defined by the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1532 et 
seq.), that will result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of $143.1 
million (which is the value of $100 million in 2010 after adjusting for 
inflation) or more in any 1 year.

E. Executive Order 12988 (Civil Justice Reform)

    This final rule 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.

F. Executive Order 13045 (Protection of Children)

    FMCSA analyzed this action under Executive Order 13045, Protection 
of Children from Environmental Health Risks and Safety Risks. The 
Agency determined that this rule will not create an environmental risk 
to health or safety that may disproportionately affect children.

G. Executive Order 12630 (Taking of Private Property)

    FMCSA reviewed this final rule in accordance with Executive Order 
12630, Governmental Actions and Interference with Constitutionally 
Protected Property Rights, and has determined it will not affect a 
taking of private property or otherwise have taking implications.

H. Privacy Impact Assessment

    Section 522 of title I of division H of the Consolidated 
Appropriations Act, 2005, enacted December 8, 2004 (Pub. L. 108-447, 
118 Stat. 2809, 3268, 5 U.S.C. 552a note), requires the Agency to 
conduct a privacy impact assessment (PIA) of a regulation that will 
affect the privacy of individuals. This rule does not require the 
collection of any personally identifiable information.
    The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies 
and any non-Federal agency which receives records contained in a system 
of records from a Federal agency for use in a matching program. FMCSA 
has determined this rule will not result in a new or revised Privacy 
Act System of Records for FMCSA.

I. Executive Order 12372 (Intergovernmental Review)

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

J. Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), 
Federal agencies must obtain approval from the Office of Management and 
Budget for each collection of information they conduct, sponsor, or 
require through regulations. The changes in this rule are mandated by 
the STB, exercising its authority over household goods motor carriers' 
tariffs. Any change to the paperwork burden associated with these 
requirements is required to be accounted for by the STB in connection 
with its Released Rates Order. As this rule merely incorporates the 
STB's requirements, FMCSA does not conduct, sponsor or require any 
additional information collection through this rule.

K. National Environmental Policy Act and Clean Air Act

    FMCSA analyzed this rule in accordance with the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). The Agency 
has determined under its environmental procedures Order 5610.1, 
published in the Federal Register March 1, 2004 (69 FR 9680), that this 
action is categorically excluded from further environmental 
documentation under Appendix 2, Paragraph 6(b) of the Order (69 FR 
9702). This categorical exclusion (CE) relates to regulations that are 
editorial in nature making technical corrections and minor amendments, 
which applies to this rule as FMCSA is simply aligning its regulations 
with the STB's regulations. Environmental impacts, if any, would have 
been analyzed during the rulemaking by STB. In addition, the Agency 
believes this rule presents no extraordinary circumstances that will 
have any effect on the quality of the environment. Thus, the action 
does not require an environmental assessment or an environmental impact 
statement.
    FMCSA also analyzed this rule under the Clean Air Act, as amended 
(CAA), section 176(c) (42 U.S.C. 7401 et seq.), and implementing 
regulations promulgated by the Environmental Protection Agency. 
Approval of this action is exempt from the CAA's general conformity 
requirement since it does not affect direct or indirect emissions of 
criteria pollutants.

L. Executive Order 13211 (Energy Effects)

    FMCSA has analyzed this rule under Executive Order 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution or Use. The Agency has determined that it is not a 
``significant energy action'' under that Executive Order because it is 
not economically significant and is not likely to have a significant 
adverse effect on the supply, distribution, or use of energy.

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.

V. The Final Rule

    For the reasons stated in the preamble, FMCSA amends 49 CFR part 
375 in title 49, Code of Federal Regulations, chapter III, subchapter 
B, as follows:

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

0
1. The authority citation for part 375 is revised to read as follows:

    Authority:  5 U.S.C. 553; 49 U.S.C. 13102, 13301, 13501, 13704, 
13707, 13902, 14104, 14706, 14708; subtitle B, title IV of Pub. L. 
109-59; and 49 CFR 1.73.

0
2. In Sec.  375.401, redesignate paragraphs (g) and (h) as paragraphs 
(h) and (i), and add new paragraph (g) to read as follows:

Sec.  375.401  Must I estimate charges?

* * * * *
    (g) You must include as a part of your estimate the liability 
election notice provided in the Surface Transportation Board's released 
rates order. Contact the STB for a copy of the Released Rates of Motor 
Carrier Shipments of Household Goods.
* * * * *

0
3. In Sec.  375.505, revise paragraph (b)(12) and remove paragraph (e) 
to read as follows:

Sec.  375.505  Must I write up a bill of lading?

* * * * *
    (b)(12) The valuation statement provided in the Surface 
Transportation Board's released rates order requires individual 
shippers either to choose Full Value Protection for your liability or 
waive the Full Value Protection in favor of the STB's released rates. 
The released rates may be increased

[[Page 25374]]

annually by the motor carrier based on the U.S. Department of 
Commerce's Cost of Living Adjustment. Contact the STB for a copy of the 
Released Rates of Motor Carrier Shipments of Household Goods. If the 
individual shipper waives your Full Value Protection in writing on the 
STB's valuation statement, you must include the charges, if any, for 
optional valuation coverage (other than Full Value Protection).

    Issued on: April 17, 2012.
Anne S. Ferro,
Administrator.
[FR Doc. 2012-9865 Filed 4-27-12; 8:45 am]
BILLING CODE 4910-EX-P