Document ID: FMCSA-2004-17008-0038
Agency: fmcsa
Document Type: Rule
Title: Brokers of Household Goods Transportation by Motor Vehicle
Posted Date: 2010-11-29T05:00Z

[Federal Register: November 29, 2010 (Volume 75, Number 228)]
[Rules and Regulations]               
[Page 72987-72999]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29no10-16]                         

[[Page 72987]]

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 371, 375, 386, and 387

[Docket No. FMCSA-2004-17008]
RIN 2126-AA84

 
Brokers of Household Goods Transportation by Motor Vehicle

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

ACTION: Final rule.

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SUMMARY: FMCSA amends its regulations to require brokers that arrange 
the transportation of household goods in interstate or foreign commerce 
for consumers to comply with certain consumer protection requirements. 
Brokers must provide: their U.S. DOT number on their advertisements and 
Internet Web sites; estimates of expected moving charges and brokerage 
fees; FMCSA pamphlets containing tips for successful moves and the 
consumer's rights and responsibilities; and the broker's policies 
concerning deposits, cancellations, and refunds. This rulemaking is in 
response to the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users (SAFETEA-LU) and a petition for 
rulemaking from the American Moving and Storage Association. This 
rulemaking is intended to ensure that individual shippers who arrange 
for transportation of household goods through brokers receive necessary 
information regarding their rights and responsibilities in connection 
with interstate household goods moves.

DATES: Effective date: The effective date of this final rule is January 
28, 2011. Compliance date for 49 CFR 387.307(a)(2): Brokers that 
arrange the transportation of household goods in interstate or foreign 
commerce must increase their surety bonds or trust funds to the new 
minimum amount of $25,000 and have surety companies or trust fund 
managers file appropriate Forms BMC-84 or BMC-85 with FMCSA no later 
than January 1, 2012.

ADDRESSES: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov at any time or to 
U.S. Department of Transportation, Room W12-140, 1200 New Jersey 
Avenue, SE., Washington, DC 20590, between 9 a.m. and 5 p.m., Monday 
through Friday, except Federal holidays.

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

SUPPLEMENTARY INFORMATION:

Legal Basis for the Rulemaking

    The Secretary of Transportation's (Secretary) general jurisdiction 
to establish regulations concerning the procurement by property brokers 
of for-hire transportation in interstate or foreign commerce is found 
at 49 U.S.C. 13501. Brokers of household goods are a subset of all 
property brokers and specifically register with FMCSA as household 
goods brokers as required by 49 U.S.C. 13901 and 13904. This rulemaking 
applies only to household goods brokers that procure for-hire 
transportation in interstate or foreign commerce.
    The Secretary is authorized to collect from household goods brokers 
``information the Secretary decides is necessary'' to ensure a 
transportation system that meets the needs of the United States (49 
U.S.C. 13101 and 13301). The Secretary also has authority to adopt 
regulations applicable to registered household goods brokers which 
``shall provide for the protection of shippers by motor vehicle'' (49 
U.S.C. 13904(c)). The Secretary's authority to inspect and copy 
household goods broker records is found at 49 U.S.C. 14122. The 
Secretary has delegated these various authorities to the FMCSA 
Administrator (49 CFR 1.73(a)).
    This rulemaking is based on the statutory provisions cited above 
and on the Household Goods Mover Oversight Enforcement and Reform Act 
of 2005, Title IV, Subtitle B of the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) 
(Pub. L. 109-59). This rulemaking focuses on the business practices of 
household goods brokers engaged in interstate or foreign commerce. 
Household goods brokers arrange, but do not perform, the transportation 
of household goods shipments.
    Section 4212 of SAFETEA-LU directs the Secretary to require a 
household goods broker to provide shippers with the following 
information whenever the broker has contact with a shipper or a 
potential shipper:
    1. The broker's U.S. DOT number.
    2. The FMCSA pamphlet titled, ``Your Rights and Responsibilities 
When You Move.''
    3. A list of all motor carriers providing transportation of 
household goods used by the broker and a statement that the broker is 
not a motor carrier providing transportation of household goods.
    Section 4209 of SAFETEA-LU adds new civil penalties for unlawful 
broker estimating practices and increases existing civil penalties for 
providing household goods motor carrier or broker services subject to 
FMCSA jurisdiction without being registered with FMCSA.
    The Secretary's general jurisdiction at 49 U.S.C. 13501 authorizes 
FMCSA to establish shipment estimating and other requirements not 
specifically mandated by SAFETEA-LU in this final rule.

Background

Existing FMCSA Regulations Applicable to Household Goods Brokers

    Household goods brokers have been regulated by FMCSA and its 
predecessor agencies for many years and a number of regulations apply 
to them, including registration requirements (49 CFR part 365), process 
agent requirements (49 CFR part 366), and financial responsibility \1\ 
requirements (49 CFR part 387). Section 387.307 requires property 
brokers, including household goods brokers, to maintain a surety bond 
or trust fund agreement in the amount of at least $10,000 to provide 
for payments to motor carriers or shippers, if the broker fails to 
carry out its agreement to supply transportation by authorized motor 
carriers.
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    \1\ The term ``financial responsibility,'' is not specifically 
defined in subpart C of 49 CFR part 387 (property brokers) and takes 
the general, commonly understood meaning of responsibility to 
compensate a party for losses, whether those losses are caused by 
physical damage, breach of contract, or other type of injury. The 
use of the term ``financial responsibility'' in Subpart C does not 
incorporate the definitions of that term found at 49 CFR 387.5 and 
387.29, which apply to Subparts A (motor carriers of property) and B 
(motor carriers of passengers), respectively, of 49 CFR part 387.
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    Part 371 of FMCSA's regulations specifies general property broker 
transaction record requirements, prohibits misrepresentation of the 
broker's name or non-carrier status, and prohibits certain rebating and 
compensation practices. Part 379 specifies general recordkeeping 
retention periods.
    FMCSA may also issue orders to compel compliance, impose civil 
monetary penalties, revoke the broker's license, or seek Federal court 
orders to stop statutory and/or regulatory violations. Because 
household goods brokers do not provide the actual transportation, they 
are not subject to FMCSA's safety jurisdiction.

Petition for Rulemaking

    On March 6, 2003, the American Moving and Storage Association 
(AMSA) petitioned FMCSA to initiate a rulemaking to amend 49 CFR part 
371, ``Brokers of Property,'' to impose specific

[[Page 72988]]

additional requirements on household goods brokers. A copy of AMSA's 
petition is in docket FMCSA-2004-17008. AMSA's main argument for 
additional rulemaking was its assertion that there were an increasing 
number of moving-related Web sites hosted by household goods brokers 
engaging in unfair business practices.
    FMCSA granted AMSA's petition and issued an Advance Notice of 
Proposed Rulemaking (ANPRM) in 2004 (69 FR 76664, December 22, 2004). 
In the ANPRM, FMCSA sought answers to 36 questions related to household 
goods broker issues. By posing these questions, the Agency sought to 
determine the extent to which the public believes a problem exists with 
household goods brokers and, if so, whether regulatory or non-
regulatory solutions would better solve the problem.
    Also in the ANPRM, FMCSA discussed how it became responsible for 
household goods broker regulatory oversight through the Interstate 
Commerce Commission Termination Act of 1995 (ICCTA) (Pub. L. 104-88, 
December 29, 1995, 109 Stat. 803) and the Motor Carrier Safety 
Improvement Act of 1999 (MCSIA) (Pub. L. 106-159, December 9, 1999, 113 
Stat. 1748). The ICCTA gave the Secretary of Transportation 
jurisdiction over the procurement of interstate motor carrier 
transportation (49 U.S.C. 13501). The MCSIA, in establishing FMCSA, 
granted to the Agency regulatory oversight of the property broker 
regulations. The former Interstate Commerce Commission (ICC) decided on 
May 16, 1949 (Ex Parte MC-39 ``Practices of Property Brokers,'' 49 
M.C.C. 277, at 286) (14 FR 2833, May 28, 1949) that it was necessary to 
regulate all property brokers, including household goods brokers, in 
interstate or foreign commerce. In that proceeding, the ICC decided it 
was unnecessary to regulate household goods brokers separately from 
general freight brokers.
    Generally, the commenters to the ANPRM did not express support for 
rulemaking action or address many of the specific questions raised in 
the ANPRM. For example, none of the commenters submitted specific 
information related to the questions about the estimated number of 
household goods brokers, or questions about details of the household 
goods broker business. Commenters did, however, offer useful 
information and suggestions in other areas to assist FMCSA in 
developing a rulemaking proposal.

The Proposed Rule

    The Notice of Proposed Rulemaking (NPRM) (72 FR 5947, February 8, 
2007), addressed the problems and recommendations identified by AMSA in 
its petition, incorporated requirements mandated by SAFETEA-LU, and 
adopted some of the recommendations made by commenters to the ANPRM. 
FMCSA proposed to amend the current broker regulations in part 371 by 
adding a new subpart B specifically for household goods brokers; amend 
appendix B of part 386 to incorporate the civil penalties applicable to 
household goods brokers added by SAFETEA-LU; and amend part 387 to 
increase the amount of the surety bond or trust fund currently required 
for household goods brokers.
    The proposed rule consisted of five basic elements that are being 
made final in this rule:
     It would require household goods brokers to disclose to 
individual shippers critical information designed to educate the 
shipper and facilitate a satisfactory moving experience.
     It would require household goods brokers to use only 
household goods motor carriers that are properly licensed and insured.
     It would impose requirements governing estimates, 
consistent with those statutorily imposed on household goods motor 
carriers.
     It would incorporate new statutory penalties for providing 
estimates without an agreement with a household goods motor carrier and 
for operating without being registered with FMCSA.
     It would adjust for inflation the current minimum level of 
financial responsibility required of household goods brokers.

Discussion of Comments on the Proposed Rule

    FMCSA received 11 comments on the notice of proposed rulemaking 
(NPRM) (72 FR 5947, February 8, 2007). Several commenters expressed 
general support for the requirements imposed on household goods 
brokers. The following sections discuss comments on specific issues and 
FMCSA's responses to those comments.

Scope of Part 371, Subpart B

    Proposed Sec.  371.101 would require household goods brokers that 
operate in interstate or foreign commerce to comply with all of the 
provisions of subpart B. AMSA recommends adding a phrase to state that 
the rule applies to a broker offering services ``to individual 
shippers.''
    FMCSA response. FMCSA agrees with AMSA. The subpart's scope should 
be limited to only household goods brokers offering services to 
individual shippers. It should not include commercial and government 
shippers that are generally more knowledgeable of brokerage 
transactions. FMCSA will change the rule to the following. ``Yes, you 
must comply with all regulations in this subpart when you operate as a 
household goods broker offering services to individual shippers in 
interstate or foreign commerce. The regulations in this subpart do not 
apply to a household goods broker when providing services to commercial 
or government shippers in interstate or foreign commerce.''

Definitions of Terms

    Proposed Sec.  371.103 would define terms used in subpart B. FMCSA 
proposed definitions for the terms ``household goods,'' ``household 
goods broker,'' and ``individual shipper.'' The acronym ``FMCSA'' was 
used numerous times in the proposed rule, but the Agency does not show 
a definition of the term in part 371.The Agency will add the acronym 
``FMCSA'' in the final rule and define it to mean ``Federal Motor 
Carrier Safety Administration.''

Qualifications of Motor Carriers Used by the Broker

    Proposed Sec.  371.105 would make it clear that a household goods 
broker may only act as a household goods broker for a household goods 
motor carrier that has a valid, active U.S. DOT number and valid, 
active operating authority issued by FMCSA. This requirement was 
requested by AMSA in its Petition for Rulemaking and was suggested by 
some of the commenters to the ANPRM. The use of FMCSA-registered 
household goods motor carriers to provide the transportation will 
provide a greater level of assurance that the household goods motor 
carrier will comply with applicable FMCSA regulations. The Public 
Utilities Commission of Ohio (PUCO) believes it would be useful to keep 
a database of consumer complaints against each carrier so that 
potential shippers could identify potentially troublesome movers.
    FMCSA response. FMCSA maintains a consumer complaint database and 
allows public access to consumer complaint information regarding 
household goods carriers and brokers. This database can be accessed on 
the Internet by going to http://www.protectyourmove.gov and selecting 
the hyperlink ``Search for Moving Companies and View Complaint 
History'' which will lead to http://ai.volpe.dot.gov/hhg/search.asp. In 
a separate rulemaking (73 FR 9266,

[[Page 72989]]

February 20, 2008), FMCSA proposed that each household goods carrier 
must submit a statutorily-mandated quarterly report about consumer 
complaints it receives, which should assist individual shippers in 
evaluating their transportation options.

Information in Advertisements and Internet Web Sites

    FMCSA proposed (Sec.  371.107) implementing section 4212 of 
SAFETEA-LU by requiring that household goods brokers disclose to 
potential shippers their Department of Transportation registration 
number and that they are not motor carriers providing transportation of 
household goods. FMCSA also proposed that household goods brokers 
disclose certain information not required by SAFETEA-LU, but which 
FMCSA believes is necessary to assist individual shippers. The Agency 
proposed that household goods brokers prominently display in their 
advertisements and on their Web sites the following:
    1. The physical location of the business.
    2. Its ``MC'' operating authority number and U.S. DOT registration 
number.\2\
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    \2\ Brokers currently receive ``MC'' numbers, not U.S. DOT 
registration numbers. FMCSA proposed eliminating the ``MC'' 
operating authority number in its May 19, 2005 NPRM regarding the 
Unified Registration System (URS) mandated by 49 U.S.C. 13908 (70 FR 
28990). FMCSA intends to issue and notify each household goods 
broker of the U.S. DOT number FMCSA will assign to that active 
household goods broker before the URS final rule is published. The 
URS final rule will remove the requirements for household goods 
brokers to display their ``MC'' numbers in their advertisements, Web 
sites, and agreements with household goods motor carriers. Household 
goods brokers will only be required to display their assigned U.S. 
DOT number after the URS final rule becomes effective. Until FMCSA 
publishes a final rule in that proceeding, household goods brokers 
must display their ``MC'' numbers in their advertisements.
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    3. Its status as a household goods broker that does not transport 
household goods but that arranges for such transportation.
    AMSA urges FMCSA to monitor brokers' Web sites to ensure that 
unscrupulous brokers are not providing misleading information. The 
commenter also recommends an additional subparagraph in the rule to 
prohibit the broker from including the names or logos of motor carriers 
unless they are FMCSA-authorized household goods motor carriers with 
which the broker has a written agreement, as specified in Sec.  
371.115.
    FMCSA response. As a part of its enforcement program, FMCSA already 
monitors the Web sites of household goods brokers and carriers to 
determine if they are providing misleading information on the Internet. 
We conduct compliance reviews and initiate enforcement action when 
appropriate.
    We add a subparagraph in the final rule to provide more information 
to individual shippers receiving estimates prepared by brokers pursuant 
to Sec.  371.113(b). A household goods broker that provides an estimate 
on behalf of a motor carrier must state on the broker's Web site that 
any estimate must be based on the carrier's tariff and that the carrier 
is required to make the tariff available for public inspection upon a 
reasonable request. We add this requirement to better ensure that 
individual shippers understand their rights with respect to broker-
prepared estimates.
    We have adopted AMSA's suggestion to add a subparagraph in the 
final rule to prohibit household goods brokers from including the names 
or logos of motor carriers unless they are FMCSA-authorized household 
goods motor carriers with which the broker has a written agreement, as 
required by Sec.  371.115. We agree that brokers should not 
misrepresent to shippers that their shipments will be moved by specific 
moving companies, when the broker does not have agreements with those 
companies. The provision is intended to further full and honest 
disclosure to the shipper.

List of Motor Carriers

    FMCSA proposed (Sec.  371.109) that a household goods broker must 
provide to each potential individual shipper who has contact with the 
household goods broker a list of all household goods motor carriers 
used by the broker, to implement sec. 4212(3) of SAFETEA-LU. National 
Relocation Services and Pro Movers Network believe that the requirement 
is burdensome on the broker and does not serve a consumer protection 
purpose for the shipper.
    FMCSA response. Notwithstanding the commenters' concerns about 
burden, the carrier list requirement is mandated by SAFETEA-LU. To 
address concerns regarding potential burdens on household goods 
brokers, FMCSA revises its proposal to allow household goods brokers to 
provide the information required by Sec.  371.109 electronically either 
through a Web site or by electronic messaging (e-mail), as an 
alternative to a paper-based communication.

Consumer Protection Information

    FMCSA proposed (Sec.  371.111) requiring that each household goods 
broker provide potential shippers with one copy of each of the two 
FMCSA consumer pamphlets: ``Your Rights and Responsibilities When You 
Move,'' and ``Ready to Move?--Tips for a Successful Interstate Move.'' 
Section 4205 of SAFETEA-LU requires household goods motor carriers to 
distribute both pamphlets and the proposal would impose the same 
requirement on household goods brokers. Proposed paragraph (a) 
permitted the household goods broker to make the information available 
through its Web site or by distribution of paper copies to each 
potential shipper. PUCO supports the proposed requirement. AMSA 
suggests FMCSA's requirements for household goods motor carriers in 
part 375 should allow use of a hyperlink on the carrier's Web site to 
provide the required consumer protection information.
    FMCSA response. To better verify that shippers have been fully 
informed of their opportunity to access the consumer protection 
information via the broker's Web site, FMCSA has added a new paragraph 
(b) to Sec.  371.111 to provide that the broker must state on any 
written estimate provided pursuant to Sec.  371.113 that the individual 
shipper has expressly agreed to accept access to the information via 
the Web site in lieu of paper copies. FMCSA has also revised Sec.  
371.111 paragraph (c) to require written or electronic verification of 
the shipper's agreement to access the Federal consumer protection 
information via the Internet, instead of receiving the booklet copies 
in paper form.
    AMSA's suggested revision of part 375 has merit and FMCSA will make 
the change it requested. This change will allow household goods motor 
carriers also to use a hyperlink on the carrier's Web site to provide 
the required consumer protection information. FMCSA believes it is in 
the best interests of shippers, brokers, and carriers for the consumer 
protection information to be distributed electronically if consumers 
choose to receive the information in that format. A shipper's ability 
to receive consumer protection information in his/her preferred medium 
should not depend on whether he/she arranges for transportation through 
a broker or directly with a motor carrier.

Written Estimate Based on a Physical Survey

    Proposed Sec.  371.113(a) would require that, if the household 
goods broker provides an estimate, it must be in writing and must be 
based on a physical survey of the shipper's household goods, if the 
household goods are located within a 50 air-mile radius of the broker 
or its estimating agent. The

[[Page 72990]]

Owner Operator Independent Drivers Association (OOIDA) believes the 
household goods broker should be required to conduct a physical survey 
regardless of the distance from the broker's place of business, unless 
the shipper can provide the broker a weight by which to determine an 
estimate of charges.
    AMSA argues that proposed Sec.  371.113(a) does not adequately 
address the inaccurate, ``lowball'' broker estimating problems 
experienced by consumers who receive estimates over the telephone or 
Internet without a physical survey because, in most cases, brokers are 
not located anywhere near shipping sites. Accordingly, AMSA recommends 
that the Agency revise its proposal by requiring that estimates be 
based on a physical survey conducted by the authorized motor carrier on 
whose behalf the estimate is provided, if the goods are located within 
a 50-mile radius of the motor carrier or its agent. AMSA also proposes 
that 49 CFR 375.409(a) be revised to require that all estimates 
provided by the broker be based on physical surveys conducted by the 
motor carrier transporting the shipment.
    Pro Movers Network opposes the requirement for an in-home survey, 
because the provision is especially burdensome for consumers who are 
shipping a very small amount of goods. Pro Movers Network believes that 
if the list of goods provided by the shipper is complete, an accurate 
non-binding estimate based on weight does not require an in-home 
estimate. Also, Pro Movers Network commented that requiring in-home 
surveys limits a consumer's choices and the ability to receive a moving 
estimate remotely via the Internet.
    FMCSA response. In the NPRM, FMCSA expressly invited comment on the 
impact to shippers, brokers, and motor carriers of applying or removing 
the 50-mile requirement for household goods broker estimates based on 
physical surveys, and invited comments on alternatives to this 
requirement. The Agency agrees with AMSA that because household goods 
brokers are rarely located within 50 miles of the shippers to whom they 
provide estimates, it is likely that the 50-mile radius exception, if 
implemented as proposed, would become the standard practice. As a 
result, FMCSA revised Sec.  371.113(a) to require brokers to conduct or 
arrange for someone to conduct physical surveys of goods that are 
located within 50 miles of either the broker or the carrier on whose 
behalf the broker submits an estimate. As we stated in the NPRM, FMCSA 
recognizes that SAFETEA-LU did not prescribe estimating requirements 
for household goods brokers as it did for household goods motor 
carriers. Nevertheless, 49 U.S.C. 13904(c) grants FMCSA the authority 
to promulgate this requirement. The Agency believes that an individual 
shipper's protection against unreliable estimates should not depend 
upon whether the shipper uses a broker or carrier to provide the 
estimate. We believe AMSA's suggested revision to proposed Sec.  
371.113(a) accomplishes the goal more effectively than FMCSA's original 
proposal and we adopt that revision in the final rule, with a minor 
modification as described below.
    We decline to adopt AMSA's proposed revision to 49 CFR 375.409(a) 
requiring that all estimates be based on physical surveys conducted by 
motor carriers because it would essentially prevent household goods 
brokers from making estimates under any circumstances. Such a 
prohibition is inconsistent with section 4209 of SAFETEA-LU, which 
prohibits household good brokers from making estimates before entering 
into an agreement with a carrier to provide the transportation. Section 
4209, therefore, implicitly recognizes that brokers are permitted to 
make estimates after entering into agreements with carriers, and not 
simply to provide shippers with estimates prepared by motor carriers or 
their agents. However, we have revised Sec.  375.409(a) to make it 
consistent with revised Sec.  371.113(a).
    We also decline to adopt OOIDA's suggestion to require household 
goods brokers to perform a physical survey regardless of the distance 
from the broker's place of business. We do not require household goods 
motor carriers or their agents to perform a physical survey regardless 
of the distance from the motor carrier's or agent's place of business. 
We do not believe it would be appropriate to place this burden on 
brokers when we do not place it on motor carriers.
    FMCSA does not agree with the suggestion of Pro Movers Network that 
the requirement for a physical survey should be eliminated because it 
limits a consumer's choice to receive a remote estimate. Section 
371.113(c) expressly permits the individual shipper to waive the 
physical survey requirement.

Explanation of Waiving the Physical Survey

    PUCO states that estimates are most frequently a disputed issue and 
it is important that the broker be required to provide estimates in 
writing based on a survey of the property to be shipped. It believes 
the option of waiving the physical survey should be explained and 
should be printed in a required font size in a required location on a 
standard document to ensure that the shippers are fully informed.
    FMCSA response. We agree with PUCO that waiving the physical survey 
requirement, where it would otherwise apply, should be explained, 
printed on a standard document and printed with a minimum font size and 
font typeface. We have adopted PUCO's suggestion for the final rule. 
FMCSA will adopt in today's final rule the minimum font size and font 
typeface following the General Services Administration (GSA) guidelines 
in the ``Standard and Optional Forms Procedural Handbook.'' The GSA 
handbook requires the font typeface Universe and minimum font size of 7 
points for all standard Federal forms and documents.

Estimates Based on Published Tariffs

    FMCSA proposed (Sec.  371.113(b)) requiring household goods brokers 
to base their estimates upon the published tariffs (as defined in Sec.  
375.103) of the authorized household goods motor carriers they use. 
Nationwide Relocation Services believes the rule should require any 
motor carrier accepting jobs from a broker to adopt the broker's tariff 
as its own for all jobs secured from the broker. AMSA suggests that the 
rule should require the broker's fee or service charge to be separately 
stated in the estimate and not included in the motor carrier's estimate 
of transportation charges.
    FMCSA response. Household goods motor carriers are required to 
maintain tariffs under 49 U.S.C. 13702 and must charge individual 
shippers in accordance with those tariffs. Implementing regulations of 
the Surface Transportation Board (STB) governing household goods 
carrier tariffs, at 49 CFR 1310.3(a), require such tariffs to provide 
``the specific applicable rates, charges and service terms; and must be 
arranged in a way that allows for the determination of the exact rate, 
charges and service terms applicable to any given shipment.'' Section 
1310.3(b) permits use of multiple tariffs to determine applicable rates 
and charges, provided ``the tariff containing the rates must make 
specific reference to all other tariffs required to determine 
applicable rates, charges and service terms. The carrier(s) party to 
the rate(s) must participate in all of the tariffs so linked * * *''. A 
``carrier party to the rate'' means more than one carrier can use the 
same rates. A broker's rate schedule is not a tariff subject to 49 
U.S.C. 13702 and the STB regulations. There is no regulatory 
requirement that brokers adhere to such rate schedules, as there

[[Page 72991]]

is for household goods motor carriers to adhere to the terms of their 
tariffs. FMCSA believes Nationwide Relocation Services' suggestion 
would be inconsistent with 49 CFR 1310.3 and therefore, FMCSA will not 
adopt it.
    At this time, the Agency does not adopt AMSA's suggestion that the 
broker's fee or service charge be separately stated in the estimate. 
The Agency does not have sufficient information about how different 
brokers charge their fees and what affect this change would have.

Agreements With Motor Carriers

    Proposed Sec.  371.115(a) would require household goods brokers to 
maintain written agreements with authorized household goods motor 
carriers before providing estimates and lists the items that must be 
included in these agreements. Nationwide Relocation Services suggests 
all agreements should be submitted and filed with FMCSA. Paragraph 
(a)(6) would require the signatures on the agreement to be notarized. 
Pro Movers Network believes the requirement for a notarized agreement 
is unrealistic and would almost certainly be impossible to execute 
successfully. Because household goods carriers typically have working 
agreements with between 5 and 15 brokers, the commenter asserts, the 
notary requirement would have to be repeated many times for each 
carrier. The commenter believes the rule would ultimately be too 
stressful to the broker-carrier business relationships and 
transactions. The commenter argues that the potential of lost 
opportunity costs caused by strained business relationships between 
household goods brokers and carriers is a distinct possibility and 
FMCSA's cost and risk assessments did not take these lost opportunity 
costs into account.
    We also proposed changing Sec.  375.409 to state that the written 
agreement between the household goods broker and the household goods 
motor carrier must contain all of the items required in proposed Sec.  
371.115. AMSA recommends adding a sentence stating that the estimate is 
based on a physical survey of the goods conducted by the motor carrier.
    FMCSA response. We believe the filing requirement suggested by 
Nationwide Relocation Services would create an unnecessary burden for 
FMCSA, carriers, and brokers that would have little usefulness in 
protecting individual shippers. Based on comments received, we agree 
that the notarization requirement will be unduly burdensome and is 
unnecessary. We have removed the requirement that the agreements be 
notarized.
    We have also revised Sec.  375.409 to reflect the changes to Sec.  
371.113(a) discussed above (requiring a physical survey if the carrier 
on whose behalf the broker makes an estimate is within 50 miles of the 
household goods). However, as discussed earlier in this preamble, we 
are not adopting AMSA's suggested change to require that all estimates 
be based on physical surveys of the property conducted by household 
goods motor carriers, because it would prohibit anyone other than the 
authorized motor carrier from performing the estimate. As such, it 
would be inconsistent with SAFETEA-LU and would limit the flexibility 
FMCSA intends to afford household goods brokers and carriers to provide 
services to their individual shippers. Motor carriers can certainly 
provide additional restrictions in their agreements with household 
goods brokers beyond FMCSA's minimum requirements.

Verifying the Motor Carrier's Authority

    As proposed, Sec.  371.119 would have required that each household 
goods broker ``inspect, verify, and document'' the validity of the U.S. 
DOT registration and MC operating authority for each household goods 
motor carrier with which it arranges transportation each month. The 
household goods broker would comply with this requirement by using 
FMCSA's Web site (http://www.protectyourmove.gov) to check whether the 
motor carrier has active for-hire authority to transport household 
goods and evidence of the necessary financial responsibility on file 
with FMCSA. Nationwide Relocation Services suggests that monitoring the 
authority and licensing status of motor carriers is a role best suited 
for FMCSA, and a private broker should not be required to undertake the 
regulatory duty of FMCSA in policing the authority status of motor 
carriers. Pro Movers Network believes FMCSA should devise an e-mail 
notification system to register a broker's carriers and automatically 
e-mail the broker when one of its carrier's authorities is suspended or 
revoked. Manual checks by the broker of its entire network of carriers 
would be time- and resource-intensive, the commenter asserts, and a 
once per month check by the broker is not a fool-proof method of 
verification. The commenter believes the broker should only have to 
confirm whether the carrier is in ``Active'' or ``NonActive'' status in 
FMCSA's Safety and Fitness Electronic Records (SAFER) database. The 
commenter also states that it is not the broker's obligation and 
responsibility to report carrier non-compliance to FMCSA.
    FMCSA response. In response to comments and after further 
consideration, FMCSA has decided to eliminate proposed Sec.  371.119 
from the final rule. The intent of proposed Sec.  371.119 was to 
provide additional protection to shippers by requiring brokers to 
verify the validity of carriers' registration and operating authority 
on a monthly basis. However, proposed Sec.  371.105 independently 
prohibits anyone from acting as a household goods broker for household 
goods motor carriers that do not have valid U.S. DOT numbers and valid 
operating authority from FMCSA. Regardless of whether a broker complies 
with the monthly verification and recordkeeping requirements, it would 
nonetheless be bound by Sec.  371.105 and subject to penalties for 
arranging moves with unregistered or unauthorized carriers. Considering 
this redundancy, it is unclear what additional protections Sec.  
371.119 would provide to shippers. Because brokers would be required to 
comply with Sec.  371.105 under threat of penalty with or without Sec.  
371.119, the Agency does not believe that eliminating Sec.  371.119 
would diminish brokers' incentives to avoid doing business with 
unregistered or unauthorized carriers. Thus, the Agency believes that 
eliminating Sec.  371.119 would leave shippers with the same level of 
protection against unregistered or unauthorized carriers, while 
reducing the administrative burden on brokers. Furthermore, striking 
this provision would eliminate any confusion over whether compliance 
with Sec.  371.119 excuses or provides mitigating circumstances for 
failure to comply with Sec.  371.105. FMCSA is concerned that proposed 
Sec.  371.119, as written, could be interpreted as a safe haven for 
brokers who comply with the verification and recordkeeping 
requirements, but nonetheless arrange a move with an unregistered or 
unauthorized carrier. FMCSA never intended for proposed Sec.  371.119 
to be interpreted this way. As a result, FMCSA leaves it to the 
household goods brokers to determine the most effective and efficient 
manner in which to ensure compliance with Sec.  371.105.

Broker Surety Bond or Trust Fund

    FMCSA proposed to add specific language to Sec.  387.307(a) to 
require household goods brokers to have a surety bond or trust fund in 
effect for $25,000, based on adjustments for inflation. The former ICC 
increased the financial responsibility requirement for

[[Page 72992]]

brokers in 1979 from $5,000 to $10,000.\3\ See 44 FR 70167, December 6, 
1979. The NPRM proposed adjusting the $10,000 minimum figure for 
inflation as measured by the Consumer Price Index, which resulted in 
purchasing power of $24,490.29 in 2006. Because a final rule based on 
the NPRM would not be in effect until after the 2007's NPRM, FMCSA 
found it reasonable to round the minimum requirement up to $25,000. The 
requirement was raised to $10,000 to ensure shippers or motor carriers 
would be paid if the broker failed to carry out its contracts, 
agreements, or arrangements for the supplying of transportation by 
authorized motor carriers. Sandra Irwin supports raising the amount of 
the surety bond or trust fund, and AMSA, PUCO, and OOIDA believe an 
increase to $25,000 is inadequate. According to OOIDA, surety companies 
have reported an aggregate amount of outstanding claims against broker 
bonds of between $300,000 and $500,000 in response to OOIDA's efforts 
to submit claims by its members against broker bonds. Nationwide 
Relocation Services believes the amount of the surety bond or trust 
fund should be $50,000, and David Marsh suggests $100,000. Sandra 
Irwin, David Marsh, and the Transportation Intermediaries Association 
suggest the increase in the surety bond or trust fund should apply to 
all property brokers, not just household goods brokers.
---------------------------------------------------------------------------

    \3\ The ICC established the broker surety bond amount at $5,000 
in 1936, 1 FR 1156, August 20, 1936.
---------------------------------------------------------------------------

    On the other hand, Pro Movers Network points out that household 
goods brokers may incur a high cost of doing business, such as 
increased costs of advertising, and increasing the surety bond or trust 
fund requirement to $25,000 represents an unnecessary financial burden.
    FMCSA response. Commenters that favored increasing the amount of 
the surety bond or trust fund did not provide adequate justification 
for an increase above $25,000, especially in light of the number of 
small business household goods brokers and the potential impact of 
significantly increasing the amount of financial responsibility beyond 
a level adjusted for inflation. Inasmuch as OOIDA did not provide 
specific information regarding the number and amount of outstanding 
claims per broker, its argument that an aggregate amount of $300,000 to 
$500,000 in outstanding claims warrants an increase in the amount of 
the bond to that level is not justifiable.
    The surety bond and trust fund provisions apply only to household 
goods transportation. FMCSA may consider applying the increased surety 
bond and trust fund provisions to general freight brokers in the 
future. Finally, FMCSA acknowledges Pro Movers Network's comment about 
high costs of doing business, however, it did not provide sufficiently 
specific information to justify changing FMCSA's proposal to something 
other than an adjustment for inflation.

Implementation of the Household Goods Broker Surety Bond or Trust Fund 
Amount

    FMCSA did not propose how the Agency would implement the additional 
$15,000 increase in the amount of the surety bond or trust fund 
agreement. FMCSA believes it is necessary to provide household goods 
brokers a sufficient amount of time to acquire the additional $15,000 
for surety bonds and trust funds. The Agency will set one year from the 
date of the final rule as the date when all brokers of household goods 
must have filed new BMC-84s or BMC-85s, as appropriate, to prove they 
have the minimum $25,000 in effect. This should give sufficient time to 
household goods brokers, especially small entities, to find sureties 
willing to write $25,000 surety bonds to replace their $10,000 bonds. 
Likewise, for those household goods brokers using trust fund 
agreements, this should give sufficient time for these entities to 
raise the additional $15,000 of capital to place in escrow with their 
trust fund managers.

The Final Rule

    FMCSA adopts the proposed rule as final with minor changes in 
response to the comments. First, as discussed in the section on the 
``Scope of part 371, subpart B,'' at the suggestion of AMSA, we are 
limiting the scope of part 371, subpart B to only household goods 
brokers offering services to individual shippers. We have made the 
appropriate changes to Sec.  371.101 to limit the scope to individual 
shippers. Second, as discussed in the section of the ``Definitions,'' 
the Agency is adding the acronym ``FMCSA'' and the definition that it 
means the Federal Motor Carrier Safety Administration, an agency within 
the U.S. Department of Transportation. Third, as discussed in the 
section on ``information in advertisements and Internet Web 
homepages,'' we are adding Sec.  371.107(d) to require household goods 
brokers who provide estimates on behalf of household goods motor 
carriers, to state prominently on their Web site(s) that the estimates 
must be based on the carrier's tariff and that the carrier is required 
to make the tariff available for public inspection upon a reasonable 
request. Fourth, also as discussed in the section on ``information in 
advertisements and Internet Web homepages,'' at the suggestion of AMSA, 
we are adding Sec.  371.107(e) to prohibit the broker from including 
the names or logos of motor carriers unless they are FMCSA-authorized 
household goods motor carriers with which the broker has a written 
agreement as specified in Sec.  371.115. Fourth, as discussed in the 
section ``list of motor carriers,'' FMCSA will allow household goods 
brokers to provide the information required by Sec.  371.109 
electronically as an alternative to a paper-based communication.
    Fifth, as discussed in the section ``consumer protection 
information,'' FMCSA is adding Sec.  371.111(b) to require that, if a 
shipper elects to access the statutorily-mandated consumer information 
via the household goods broker's Web site, then the broker must state 
on the written estimate described in Sec.  371.113 that the individual 
shipper expressly agreed to access the consumer protection information 
via the Internet in lieu of a paper copy.
    Sixth, as discussed further in the section ``consumer protection 
information,'' FMCSA has also revised Sec.  371.111 paragraph (c) to 
require written or electronic verification of the shipper's agreement 
to access the Federal consumer protection information on the Internet, 
instead of receiving the booklet copies in paper form.
    Seventh, as discussed in the section ``Written estimate based on a 
physical survey,'' we are adopting one of AMSA's two suggestions to 
require in Sec.  371.113(a) that a physical survey of the household 
goods must be conducted by the authorized motor carrier on whose behalf 
the estimate is provided, if the shipment is located within a 50-mile 
radius of the carrier's ``household goods agent preparing the 
estimate,'' unless the physical survey requirement is waived by the 
shipper.
    Eighth, for Sec.  371.113(c)(2), as discussed in the section on 
``Explanation of waiving the physical survey,'' we are adopting PUCO's 
suggestion that the final rule require brokers to explain the physical 
survey and waiver requirement to individual shippers, print the waiver 
agreement on the written estimate, and print the agreement with a 
minimum font size and font typeface. Ninth, as discussed in the section 
``verifying the motor carrier's authority,'' FMCSA is eliminating 
proposed Sec.  371.119 from the final rule. Tenth, as discussed in the 
sections on ``Written estimate based on

[[Page 72993]]

a physical survey'' and ``Estimates provided by household goods 
brokers,'' we have revised the household goods motor carrier 
requirements applicable to household goods broker estimates in Sec.  
375.409(a) to make them consistent with our revised written estimate 
revisions in Sec.  371.113(a). Finally, we are adding a 1-year 
compliance date in Sec.  387.307(a)(2) for household goods brokers to 
obtain the additional $15,000 of financial responsibility over the 
current $10,000 requirement, and to file with FMCSA the required proof 
(Forms BMC-84 or BMC-85, as appropriate) of the total $25,000 minimum 
financial responsibility required by the 1-year compliance date.

Regulatory Analyses

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

    FMCSA has determined that this action is a not a significant 
regulatory action within the meaning of Executive Order 12866 and the 
U.S. Department of Transportation regulatory policies and procedures 
(44 FR 11034, February 26, 1979). The Agency received only 11 comments 
and the costs are minimal.
    The total cost of the final rule is approximately $5.543 million in 
the first year with annual, recurring costs of $1.776 million 
thereafter. As such, the costs of this final rule do not exceed the 
$100 million annual threshold as defined in Executive Order 12866. The 
ten-year costs and benefits of the final rule are shown in Table 1:

     Table 1--Summary of Ten-Year Costs and Benefits for Final Rule
                              [In millions]
------------------------------------------------------------------------
                   7% Discount Rate                         Option 3
------------------------------------------------------------------------
Costs.................................................            $17.11
Benefits..............................................             46.97
Net Benefits..........................................             32.25
------------------------------------------------------------------------
                   3% Discount Rate                         Option 3
------------------------------------------------------------------------
Costs.................................................             16.58
Benefits..............................................             54.91
Net Benefits..........................................             38.33
------------------------------------------------------------------------

    FMCSA's full Final Regulatory Evaluation is in the docket for this 
rule. It explains in detail how we estimated cost impacts for the final 
rule.
    This rule establishes additional consumer protection regulations 
specifically for household goods brokers to supplement the regulations 
at 49 CFR part 375, which apply to motor carriers transporting 
household goods by commercial motor vehicle in interstate and foreign 
commerce.
    FMCSA estimates these regulatory changes will produce three primary 
cost impacts on household goods brokers: (1) Costs of training certain 
employees on the proper application of the regulatory changes; (2) 
costs to revise broker marketing materials, forms, and orders for 
service, including technical writing, Web site editing, and printing 
costs associated with incorporating mandated consumer information; and 
(3) additional information collection burdens associated with the new 
regulations, including traveling to and performing on-site physical 
surveys for written estimates; making written agreements with household 
goods motor carriers, stating on the written estimate that the 
individual shipper expressly agreed to access the consumer protection 
information on the Internet; obtaining written or electronic 
verification of the shipper's agreement to access the Federal consumer 
protection information on the Internet; explaining the physical survey 
and waiver requirement to individual shippers; printing the waiver 
agreement on the written estimate; printing the agreement with a 
minimum font size and font typeface; and, finally, requiring household 
goods brokers to have their sureties or trust fund managers file proof 
of their $25,000 minimum financial responsibility on the Forms BMC-84 
or BMC-85, as appropriate.

Regulatory Flexibility Act, as Amended by the Small Business Regulatory 
Enforcement Fairness Act of 1996

    The Regulatory Flexibility Act (RFA) (5 U.S.C. 601-612), as amended 
by the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. 
L. 104-121, 110 Stat. 857), requires Federal agencies, as a part of 
each rulemaking, to consider regulatory alternatives that minimize the 
impact on small entities while achieving the objectives of the 
rulemaking. The Agency's Initial Regulatory Flexibility Analysis is 
available in docket FMCSA-2004-17008 at item 0018. FMCSA received no 
specific comments about its Initial Regulatory Flexibility Analysis. 
The Agency's Final Regulatory Flexibility Analysis (FRFA) for this 
final rule is discussed below.
    (1) A description of the reasons why action by the agency is being 
considered.
    The American Moving and Storage Association (AMSA) petitioned the 
DOT for a rulemaking in March 2003 that would amend the property broker 
regulations in part 371 to require brokers that arrange for household 
goods transportation by motor carrier (household goods brokers) to 
provide consumer information that only household-goods motor-carriers 
must now provide, as well as establish additional consumer protection 
requirements. Many of AMSA's concerns were addressed in the Safe 
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy 
For Users (SAFETEA-LU), Public Law 109-59, which was enacted into law 
on August 10, 2005. Specifically, section 4212 of SAFETEA-LU directs 
FMCSA to issue regulations requiring household goods brokers to provide 
this information to consumers.
    (2) Objectives of, and legal basis for, the final rule.
    This rulemaking is mandated by section 4212 of SAFETEA-LU. FMCSA's 
general authority to enact consumer protection regulations governing 
broker operations is contained in 49 U.S.C. 13904(c). The objective of 
this rule is to ensure that individual shippers of household goods that 
arrange for transportation through household goods brokers (rather than 
directly through motor carriers) receive necessary information 
regarding the parties with which they are dealing and their rights and 
responsibilities in connection with interstate household goods moves. 
It also is intended to ensure that household goods brokers deal only 
with properly registered and insured motor carriers and that estimates 
provided by household goods brokers be provided under specific 
circumstances designed to protect the shipper against abuse. Finally, 
it increases the level of financial responsibility required to ensure 
that household goods brokers perform their transportation contracts.
    (3) Significant issues raised by small entities' comments.
    A summary of the significant issues raised by the public in 
response to the NPRM and the assessment of each significant issue are 
discussed earlier in this final rule under the heading ``Discussion of 
Comments on the Proposed Rule.''
    FMCSA is adopting the proposed rule as final with the minor changes 
discussed above under the heading The Final Rule, based mainly on 
comments to the NPRM. FMCSA believes most household goods brokers that 
commented to the NPRM would meet the definition of a small business 
entity.
    (4) Description and estimate of the number of small entities to 
which the final rule will apply.
    There are currently 615 active, registered household goods brokers 
and another 394 registered household goods

[[Page 72994]]

brokers that are inactive.\4\ We do not know the number of unregistered 
household goods brokers, but we suspect that there are many. For the 
purposes of our analysis, we assume the number is 75--which would put 
the percentage of unregistered brokers at just over ten percent (75 is 
10.87% of (615 + 75)). The figure is based on conversations with 
industry experts and information from broker Web sites. We use 690, 
then, as the estimate of total active brokers--registered and (now) 
unregistered. Almost all are small entities according to the definition 
in Small Business Administration (SBA) regulations (13 CFR part 121) 
which defines a ``small entity'' in the North American Industrial 
Classification System (NAICS) Code 488510 ``Freight Transportation 
Arrangement'' industry by average annual receipts, which are currently 
set at $7 million per firm. The motor carriers with whom household 
goods brokers deal may also be indirectly affected.
---------------------------------------------------------------------------

    \4\ A broker generally becomes inactive after registering with 
FMCSA when its surety bond or trust fund is cancelled.
---------------------------------------------------------------------------

    (5) Description of the projected reporting, record-keeping and 
other compliance requirements for small entities.
    The final rule requires additional record-keeping on the part of 
household goods brokers to demonstrate compliance. The cost to the 
household goods broker industry of this additional record-keeping 
($5.543 million in the first year and $1.776 million annually to 
inform, display, and disclose information to shippers and maintain the 
files for three years) is reflected in our cost estimates. 
Additionally, the aggregate cost to the household goods broker industry 
of raising the financial responsibility requirement to $25,000 from 
$10,000 (approximately $50,000 annually) is also reflected in our cost 
estimates. The total cost has a present value of approximately $17.11 
million over ten years when discounted at 7 percent, and does not 
require any special skills that would be available to large entities 
any more than to small entities.
    (6) Duplication with other Federal rules.
    FMCSA is unaware of any other Federal rules which will duplicate, 
overlap, or conflict with this proposed rule except for the household 
goods carriers rule published on July 12, 2005.\5\ Because these rules 
apply only to household goods motor carriers, it was necessary to 
establish separate rules applicable to household goods brokers, even 
though they contain certain similarities. For example, SAFETEA-LU 
requires every shipper to receive the pamphlet ``Your Rights and 
Responsibilities When You Move.'' Household goods carriers are already 
required to make this pamphlet available to every shipper. This rule 
requires household goods brokers to make the same pamphlet available to 
shippers. There is no practical way around the duplication because some 
shippers do not use a household goods broker and those who do often do 
not have any direct contact with a household goods carrier early enough 
in the process to make effective use of the information contained in 
the pamphlet.
---------------------------------------------------------------------------

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

    (7) Description of any significant alternatives to the final rule.
    FMCSA believes that there are no significant alternatives to the 
final rule which would accomplish the stated objectives of the 
Household Goods Mover Oversight Enforcement and Reform Act of 2005, 
otherwise known as Title IV, Subtitle B of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users 
(SAFETEA-LU) (Pub. L.109-59) and which would minimize any significant 
economic impact of the final rule on small entities.
    The Agency did consider ways in which it could assist small 
household goods broker entities to mitigate the impact of increasing 
the trust fund resources to the new minimum requirement of $25,000. The 
Agency decided it could extend the compliance date regarding the 
financial responsibility requirement so that brokers will have a full 
year after publication of the final rule to come into compliance with 
the $25,000 requirement, increasing trust funds from the minimum of 
$10,000 to the final rule's minimum requirement of $25,000.
    Therefore, FMCSA is mitigating the impact of obtaining the 
additional $15,000 of financial responsibility over the current $10,000 
requirement by adding a 1-year compliance date in Sec.  387.307(a)(2). 
Thus, all household goods brokers will have one year from the date of 
publication of this final rule to obtain the additional $15,000 of 
financial responsibility over the current $10,000 requirement, and to 
have their sureties and trust fund managers file with FMCSA the 
required proof (Forms BMC-84 or BMC-85, as appropriate) of the total 
$25,000 minimum financial responsibility required by the compliance 
date for Sec.  387.307(a)(2).
    As we stated above, almost all of the 690 household goods brokers 
subject to this final rule meet the definition of a small business 
entity under the RFA. We have estimated this final rule will cause the 
average household goods broker to incur an estimated, additional $8,030 
in the first year of implementation and annual recurring costs of about 
$2,575. The Administrator of the FMCSA believes this final rule will 
have a significant economic impact on a substantial number of small 
entities (SEISONOSE).

Unfunded Mandates Reform Act

    This rule does not impose a Federal mandate resulting in the 
expenditure by State, local, or Tribal governments, in the aggregate, 
or by the private sector, of $140.3 million or more in any one year (2 
U.S.C. 1531 et seq.). The present value of the final rule is about 
$17.11 million.

National Environmental Policy Act

    The Agency analyzed this rule for the purpose of the National 
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.) and 
determined under our environmental procedures Order 5610.1 published 
March 1, 2004 (69 FR 9680), that this action is categorically excluded 
under Appendix 2, paragraphs 6.d, 6.m, and 6.q of the Order from 
further environmental documentation. These categorical exclusions 
relate to rulemaking actions affecting household goods brokers. In 
addition, the Agency believes that the action includes no extraordinary 
circumstances that would have any effect on the quality of the 
environment. Thus, the action does not require an environmental 
assessment or an environmental impact statement.
    We have also analyzed this rule under the Clean Air Act, as amended 
(CAA) section 176(c), (42 U.S.C. 7401 et seq.) and implementing 
regulations promulgated by the Environmental Protection Agency. 
Approval of this action is exempt from the CAA's general conformity 
requirement since it involves rulemaking and policy development and 
issuance. See 40 CFR 93.153(c)(2). It will not result in any emissions 
increase nor will it have any potential to result in emissions that are 
above the general conformity rule's de minimis emission threshold 
levels. Moreover, it is reasonably foreseeable that the rule will not 
increase total CMV mileage, or change the routing of CMVs, how CMVs 
operate, or the CMV fleet-mix of motor carriers. This action merely 
establishes regulations applicable to the business practices of 
household goods brokers, which do not operate CMVs. FMCSA received no 
comments to its NEPA and Clean Air Act analyses.

[[Page 72995]]

Privacy Impact Assessment

    FMCSA conducted a privacy impact assessment of this rule as 
required by section 522(a)(5) of the FY 2005 Omnibus Appropriations 
Act, Public Law 108-447, 118 Stat. 3268 (Dec. 8, 2004) [set out as a 
note to 5 U.S.C. 552a]. The assessment considers any impacts of the 
rule on the privacy of information in an identifiable form and related 
matters. FMCSA has determined this rule imposes no privacy impacts.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal agency must obtain approval from the Office of 
Management and Budget (OMB) for each collection of information it 
conducts, sponsors, or requires through regulations. FMCSA seeks 
approval of the information collection requirements in a new 
information collection to be entitled ``Practices of Household Goods 
Brokers.''
    The collected information encompasses that which is generated, 
maintained, retained, disclosed, and provided to, or for, the agency 
under 49 CFR part 371. It will assist shippers in their commercial 
dealings with interstate household goods brokers. The collection of 
information will be used by prospective shippers to make informed 
decisions about contracts and services to be ordered, executed, and 
settled within the interstate household goods motor carrier industry. 
Some of these information collection items were required by regulations 
issued by the former ICC; however, that agency was not required to 
comply with the PRA. When these items transferred from the ICC to the 
Federal Highway Administration, and ultimately to FMCSA, no OMB control 
number was assigned to cover this information collection transfer. It 
was therefore necessary to calculate the old information collection 
burden hours for these items approved under the ICC rules and to add 
the new burden that will be generated by this final rule.
    Assumptions used for calculation of the information collection 
burden include the following: (1) There are currently approximately 690 
active household goods brokers; (2) on average, each household goods 
broker will enter into written agreements to estimate shipment costs 
with about 31 motor carriers, (3) household goods brokers will 
eventually sever some of these written agreements and make agreements 
with new household goods motor carriers. We assume that an average 
agreement lasts for about six years, meaning that brokers will enter 
into about five new agreements each year, and (4) FMCSA estimates 
household goods brokers handle about 100,000 moves each year. The first 
two items result in 24,390 respondents subject to the information 
collection (690 x 31 = 24,390). The third item results in an additional 
3,450 respondents subject to the information collection (690 x 5 = 
3,450). Together with the fourth item, a total of about 127,900 
respondents (24,390 + 3,450 + 100,000) would be subject to the 
information collection.
    The PRA regulations at 5 CFR 1320.3(b)(2) allow FMCSA to calculate 
no burden when the agency demonstrates to OMB that the activity needed 
to comply with the specific regulation is usual and customary. FMCSA 
sought comment in the NPRM on whether setting up the first accounting 
system for a new business is a usual and customary business practice. 
FMCSA received no comments from the public about this accounting system 
issue. Thus, FMCSA concludes the public believes it is a usual and 
customary practice when starting a new business.
    Table 2 summarizes the information collection burden hours by the 
actions being taken in the final rule. See attachment S of the 
supporting statement for the Paperwork Reduction Act Submission in 
docket FMCSA-2004-17008 for the detailed FMCSA analysis.

                           Table 2--Annual Burden Hours Across the 127,900 Respondents
----------------------------------------------------------------------------------------------------------------
               Section                             Description                     Calculation       Total hours
----------------------------------------------------------------------------------------------------------------
371.3...............................  Transaction records..................  60hr x 690............       41,400
371.13..............................  Second accounting system.............  8hr x 125.............        1,000
371.107.............................  Web site/Ad Modification.............  20hr x 690............       13,800
371.109.............................  Create A List of Carriers............  10hr x 690............        6,900
371.111(a)..........................  Pamphlet Provision (One-Time)........  0.5hr x 690...........          345
371.111(c)..........................  Confirming Required Information......  0.5hr/month x 12 x 690        4,140
371.113.............................  Explanation of Waiver-Agreement......  (1/12)hr x 20,000.....        1,667
371.115.............................  Negotiation of Agreements (One-Time).  4hr x 31 agreements x        85,560
                                                                              690.
                                      Additional Agreements Through          4 hrs x 5 agreements x       13,800
                                       Turnover.                              690.
371.117.............................  Disclosure and Records...............  10hr x 690............        6,900
371.119.............................  Removed Verification Requirement.....  Removed...............            0
                                      Total First Year Hours...............  ......................      175,512

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

    We have rounded the estimates and have asked OMB for approval for 
first-year burden-hours of 175,500, and subsequent-year burden-hours of 
89,600. We particularly request your comments on whether the collection 
of information is necessary for FMCSA to meet the goal of 49 CFR part 
371 to protect consumers and household goods motor carriers, including: 
(1) Whether the information is useful to this goal; (2) the accuracy of 
the estimate of the burden of the information collection; (3) ways to 
enhance the quality, utility and clarity of the information collected; 
and (4) ways to minimize the burden of the collection of information on 
respondents, including the use of automated collection techniques or 
other forms of information technology.
    You must submit comments on the information collection burden 
addressed by this final rule to the Office of Management and Budget 
(OMB). The deadline for such submissions is December 29, 2010. 
Interested persons are invited to submit written comments on the 
proposed information collection to the Office of Information and 
Regulatory Affairs, Office of Management and Budget. Comments should be 
addressed to the attention of the Desk Officer, Department of 
Transportation/Federal Motor Carrier Safety Administration, and sent 
via electronic mail to oira_submission@omb.eop.gov, or faxed to (202) 
395-6974, or mailed to the Office of Information and Regulatory

[[Page 72996]]

Affairs, Office of Management and Budget, Docket Library, Room 10102, 
725 17th Street, NW., Washington, DC 20503.

Executive Order 12988 (Civil Justice Reform)

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

Executive Order 12630 (Taking of Private Property)

    This rule will not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, entitled 
``Governmental Actions and Interference with Constitutionally Protected 
Property Rights.''

Executive Order 13132 (Federalism)

    This action has been analyzed in accordance with the principles and 
criteria contained in Executive Order 13132. The FMCSA has determined 
that this rulemaking would not have a substantial direct effect on 
States, nor would it limit the policy-making discretion of the States.

Executive Order 13211 (Energy Effects)

    FMCSA has analyzed this action under Executive Order 13211, 
entitled ``Actions Concerning Regulations That Significantly Affect 
Energy Supply, Distribution, or Use.'' The Agency has determined that 
it is not a ``significant energy action'' under that order because it 
does not appear to be economically significant (i.e., imposing a cost 
of more than $100 million in a single year) based upon analyses 
performed at this stage of the rulemaking process, and is not likely to 
have a significant adverse effect on the supply, distribution, or use 
of energy.

Executive Order 12372 (Intergovernmental Review)

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

List of Subjects

49 CFR Part 371

    Brokers, Motor carriers, Reporting and recordkeeping requirements.

49 CFR Part 375

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

49 CFR Part 386

    Administrative practice and procedure, Brokers, Freight forwarders, 
Hazardous materials transportation, Highway safety, Motor carriers, 
Motor vehicle safety, Penalties.

49 CFR Part 387

    Buses, Freight, Freight forwarders, Hazardous materials 
transportation, Highway safety, Insurance, Intergovernmental relations, 
Motor carriers, Motor vehicle safety, Moving of household goods, 
Penalties, Reporting and recordkeeping requirements, Surety bonds.

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For the reasons discussed above, FMCSA is amending title 49, Code of 
Federal Regulations, chapter III, subchapter B, as set forth below:

PART 371--BROKERS OF PROPERTY

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1. Revise the authority citation for part 371 to read as follows:

    Authority:  49 U.S.C. 13301, 13501, and 14122; subtitle B, title 
IV of Pub. L. 109-59; and 49 CFR 1.73.

Subpart A--General Requirements

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2. Add a heading for subpart A to read as set forth above, and 
designate Sec. Sec.  371.1 through 371.13 under subpart A.
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3. Add a new subpart B to read as follows:

Subpart B--Special Rules for Household Goods Brokers
Sec.
371.101 If I operate as a household goods broker in interstate or 
foreign commerce, must I comply with subpart B of this part?
371.103 What are the definitions of terms used in this subpart?
371.105 Must I use a motor carrier that has a valid U.S. DOT number 
and valid operating authority issued by FMCSA to transport household 
goods in interstate or foreign commerce?
371.107 What information must I display in my advertisements and 
Internet Web homepage?
371.109 Must I inform individual shippers which motor carriers I 
use?
371.111 Must I provide individual shippers with Federal consumer 
protection information?
371.113 May I provide individual shippers with a written estimate?
371.115 Must I maintain agreements with motor carriers before 
providing written estimates on behalf of these carriers?
371.117 Must I provide individual shippers with my policies 
concerning cancellation, deposits, and refunds?
371.121 What penalties may FMCSA impose for violations of this part?

Subpart B--Special Rules for Household Goods Brokers

Sec.  371.101  If I operate as a household goods broker in interstate 
or foreign commerce, must I comply with subpart B of this part?

    Yes, you must comply with all regulations in this subpart when you 
operate as a household goods broker offering services to individual 
shippers in interstate or foreign commerce. The regulations in this 
subpart do not apply to a household goods broker when providing 
services to commercial or government shippers in interstate or foreign 
commerce.

Sec.  371.103  What are the definitions of terms used in this subpart?

    FMCSA means the Federal Motor Carrier Safety Administration within 
the U.S. Department of Transportation.
    Household goods has the same meaning as the term is defined in 
Sec.  375.103 of this subchapter.
    Household goods broker means a person, other than a motor carrier 
or an employee or bona fide agent of a motor carrier, that as a 
principal or agent sells, offers for sale, negotiates for, or holds 
itself out by solicitation, advertisement, or otherwise as selling, 
providing, or arranging for, transportation of household goods by motor 
carrier for compensation.
    Individual shipper has the same meaning as the term is defined in 
Sec.  375.103 of this subchapter.

Sec.  371.105  Must I use a motor carrier that has a valid U.S. DOT 
number and valid operating authority issued by FMCSA to transport 
household goods in interstate or foreign commerce?

    You may only act as a household goods broker for a motor carrier 
that has a valid, active U.S. DOT number and valid operating authority 
issued by FMCSA to transport household goods in interstate or foreign 
commerce.

Sec.  371.107  What information must I display in my advertisements and 
Internet Web homepage?

    (a) You must prominently display in your advertisements and 
Internet Web homepage(s) the physical location(s) (street or highway 
address, city, and State) where you conduct business.
    (b) You must prominently display your U.S. DOT registration 
number(s) and MC license number issued by the FMCSA in your 
advertisements and Internet Web homepage(s).
    (c) You must prominently display in your advertisements and 
Internet Web site(s) your status as a household goods broker and the 
statement that you will not transport an individual shipper's

[[Page 72997]]

household goods, but that you will arrange for the transportation of 
the household goods by an FMCSA-authorized household goods motor 
carrier, whose charges will be determined by its published tariff.
    (d) If you provide estimates on any carrier's behalf pursuant to 
Sec.  371.113(b), you must prominently display in your Internet Web 
site(s) that the estimate must be based on the carrier's tariff and 
that the carrier is required to make its tariff available for public 
inspection upon a reasonable request.
    (e) You may only include in your advertisements or Internet Web 
site(s) the names or logos of FMCSA-authorized household goods motor 
carriers with whom you have a written agreement as specified in Sec.  
371.115 of this part.

Sec.  371.109  Must I inform individual shippers which motor carriers I 
use?

    (a) You must provide to each potential individual shipper who 
contacts you a list of all authorized household goods motor carriers 
you use, including their U.S. DOT registration number(s) and MC license 
numbers. You may provide the list electronically or on paper.
    (b) You must provide to each potential individual shipper who 
contacts you a statement indicating that you are not a motor carrier 
authorized by the Federal Government to transport the individual 
shipper's household goods, and you are only arranging for an authorized 
household goods motor carrier to perform the transportation services 
and, if applicable, additional services. You may provide the statement 
electronically or on paper.

Sec.  371.111  Must I provide individual shippers with Federal consumer 
protection information?

    (a) You must provide potential individual shippers with Federal 
consumer protection information by one of the following three methods:
    (1) Provide a hyperlink on your Internet Web site to the FMCSA Web 
site containing the information in FMCSA's publications ``Ready to 
Move?--Tips for a Successful Interstate Move'' and ``Your Rights and 
Responsibilities When You Move.''
    (2) Distribute to each shipper and potential shipper at the time 
you provide an estimate, copies of FMCSA's publications ``Ready to 
Move?--Tips for a Successful Interstate Move'' and ``Your Rights and 
Responsibilities When You Move.''
    (3) Distribute to each shipper and potential shipper at the time 
you provide an estimate, copies of ``Ready to Move?--Tips for a 
Successful Interstate Move'' and ``Your Rights and Responsibilities 
When You Move'' as modified and produced by the authorized, lawful 
motor carrier to which you intend to provide the shipment under your 
written agreement required by Sec.  371.115.
    (b) If an individual shipper elects to waive physical receipt of 
the Federal consumer protection information by one of the methods 
described in paragraphs (a)(2) and (a)(3) of this section, and elects 
to access the same information via the hyperlink on the Internet as 
provided in paragraph (a)(1) of this section, you must include a clear 
and concise statement on the written estimate described in Sec.  
371.113 that the individual shipper expressly agreed to access the 
Federal consumer protection information on the Internet.
    (c) You must obtain a signed, dated, electronic or paper receipt 
showing the individual shipper has received both booklets that 
includes, if applicable, verification of the shipper's agreement to 
access the Federal consumer protection information on the Internet.
    (d) You must maintain the signed receipt required by paragraph (c) 
of this section for three years from the date the individual shipper 
signs the receipt.

Sec.  371.113  May I provide individual shippers with a written 
estimate?

    (a) You may provide each individual shipper with an estimate of 
transportation and accessorial charges. If you provide an estimate, it 
must be in writing and must be based on a physical survey of the 
household goods conducted by the authorized motor carrier on whose 
behalf the estimate is provided if the goods are located within a 50-
mile radius of the motor carrier's or its agent's location, whichever 
is closer. The estimate must be prepared in accordance with a signed, 
written agreement, as specified in Sec.  371.115 of this subpart.
    (b) You must base your estimate upon the published tariffs of the 
authorized motor carrier who will transport the shipper's household 
goods.
    (c)(1) A shipper may elect to waive the physical survey required in 
paragraph (a) of this section by written agreement signed by the 
shipper before the shipment is loaded.
    (2) The household goods broker must explain the physical survey 
waiver agreement to the individual shipper in plain English. The 
physical survey waiver agreement must be printed on the written 
estimate and must be printed at no less than 7-point font size and with 
the font typeface Universe.
    (3) A copy of the waiver agreement must be retained as an addendum 
to the bill of lading and is subject to the same record inspection and 
preservation requirements as are applicable to bills of lading.
    (d) You must keep the records required by this section for three 
years following the date you provide the written estimate for an 
individual shipper who accepts the estimate and has you procure the 
transportation.

Sec.  371.115  Must I maintain agreements with motor carriers before 
providing written estimates on behalf of these carriers?

    (a) In order to provide estimates of charges for the transportation 
of household goods, you must do so in accordance with the written 
agreement required by Sec.  375.409 of this subchapter. Your written 
agreement with the motor carrier(s) must include the following items:
    (1) Your broker name as shown on your FMCSA registration, your 
physical address, and your U.S. DOT registration number and MC license 
number;
    (2) The authorized motor carrier's name as shown on its FMCSA 
registration, its physical address, and its U.S. DOT registration 
number and MC license number;
    (3) A concise, easy to understand statement that your written 
estimate to the individual shipper:
    (i) Will be exclusively on behalf of the authorized household goods 
motor carrier;
    (ii) Will be based on the authorized household goods motor 
carrier's published tariff; and
    (iii) Will serve as the authorized household goods motor carrier's 
estimate for purposes of complying with the requirements of part 375 of 
this chapter, including the requirement that the authorized household 
goods motor carrier relinquishes possession of the shipment upon 
payment of no more than 110 percent of a non-binding estimate at the 
time of delivery;
    (4) Your owner's, corporate officer's, or corporate director's 
signature lawfully representing your household goods broker operation 
and the date;
    (5) The signature of the authorized household goods motor carrier's 
owner, corporate officer, or corporate director lawfully representing 
the household goods motor carrier's operation and the date; and
    (b) The signed written agreement required by this section is public 
information and you must produce it for review upon reasonable request 
by a member of the public.
    (c) You must keep copies of the agreements required by this section 
for as long as you provide estimates on behalf of the authorized 
household

[[Page 72998]]

goods motor carrier and for three years thereafter.

Sec.  371.117  Must I provide individual shippers with my policies 
concerning cancellation, deposits, and refunds?

    (a) You must disclose prominently on your Internet Web site and in 
your agreements with prospective shippers your cancellation policy, 
deposit policy, and policy for refunding deposited funds in the event 
the shipper cancels an order for service before the date an authorized 
household goods motor carrier has been scheduled to pick up the 
shipper's property.
    (b) You must maintain records showing each individual shipper's 
request to cancel a shipment and the disposition of each request for a 
period of three years after the date of a shipper's cancellation 
request. If you refunded a deposit, your records must include:
    (1) Proof that the individual shipper cashed or deposited the check 
or money order, if the financial institution provides documentary 
evidence; or
    (2) Proof that you delivered the refund check or money order to the 
individual shipper.

Sec.  371.121  What penalties may FMCSA impose for violations of this 
part?

    The penalty provisions of 49 U.S.C. chapter 149, Civil and Criminal 
Penalties apply to this subpart. These penalties do not overlap. 
Notwithstanding these civil penalties, nothing in this section deprives 
an individual shipper of any remedy or right of action under existing 
law.

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

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

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

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5. Amend Sec.  375.213 by revising paragraphs (a), (b)(1), and (d), and 
adding paragraph (e) to read as follows:

Sec.  375.213  What information must I provide to a prospective 
individual shipper?

    (a) When you provide the written estimate to a prospective 
individual shipper, you must also provide the individual shipper with a 
copy of Department of Transportation publication FMCSA-ESA-03-005 (or 
its successor publication) entitled ``Ready to Move?--Tips for a 
Successful Interstate Move.'' You may provide the individual shipper 
with a paper copy or you may provide a hyperlink on your Internet Web 
site to the FMCSA Web site containing the information in FMCSA's 
publication ``Ready to Move?--Tips for a Successful Interstate Move.''
    (b) * * *
    (1) The contents of appendix A of this part, entitled ``Your Rights 
and Responsibilities When You Move'' (Department of Transportation 
publication FMCSA-ESA-03-006, or its successor publication). You may 
provide the individual shipper with a paper copy or you may provide a 
hyperlink on your Internet Web site to the FMCSA Web site containing 
the information in FMCSA's publication ``Your Rights and 
Responsibilities When You Move.''
* * * * *
    (d) Paragraphs (c)(2) and (c)(3) of this section do not apply to 
exact copies of appendix A published in the Federal Register, the Code 
of Federal Regulations, or on FMCSA's Web site.
    (e) If an individual shipper elects to waive physical receipt of 
the Federal consumer protection information by one of the methods 
described in paragraphs (a) and (b)(1) of this section, and elects to 
access the same information via the hyperlink on the Internet as 
provided in paragraphs (a) and (b)(1) of this section:
    (1) You must include a clear and concise statement on the written 
estimate described in Sec.  375.401 that the individual shipper 
expressly agreed to access the Federal consumer protection information 
on the Internet.
    (2) You must obtain a signed, dated, electronic or paper receipt 
showing the individual shipper has received both booklets that 
includes, if applicable, verification of the shipper's agreement to 
access the Federal consumer protection information on the Internet.
    (3) You must maintain the signed receipt required by paragraph 
(e)(2) of this section for three years from the date the individual 
shipper signs the receipt.

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5. Revise Sec.  375.409 to read as follows:

Sec.  375.409  May household goods brokers provide estimates?

    (a) Subject to the limitations in Sec.  371.113(a) of this 
subchapter, household goods brokers may provide estimates to individual 
shippers provided there is a written agreement between the broker and 
you, the motor carrier, adopting the broker's estimate as your own 
estimate. If you, the motor carrier, make such an agreement with a 
household goods broker, you must ensure compliance with all 
requirements of this part pertaining to estimates, including the 
requirement that you must relinquish possession of the shipment if the 
shipper pays you no more than 110 percent of a non-binding estimate at 
the time of delivery.
    (b) Your written agreement with the household goods broker(s) must 
include the items required in Sec.  371.115(a) of this subchapter.

PART 386--RULES OF PRACTICE FOR MOTOR CARRIER, BROKER, FREIGHT 
FORWARDER, AND HAZARDOUS MATERIALS PROCEEDINGS

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6. Revise the authority citation for part 386 to read as follows:

    Authority:  49 U.S.C. 113, chapters 5, 51, 59, 131-141, 145-149, 
311, 313, and 315; Sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 
U.S.C. 701 note); Sec. 217, Pub. L. 105-159, 113 Stat. 1748, 1767; 
Sec. 206, Pub. L. 106-159, 113 Stat. 1763; subtitle B, title IV of 
Pub. L. 109-59; and 49 CFR 1.45 and 1.73.

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7. Amend appendix B to part 386 by revising the heading and by adding 
paragraphs (g)(22) and (23) to read as follows:

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

* * * * *
    (g) * * *
    (22) A broker for transportation of household goods who makes an 
estimate of the cost of transporting any such goods before entering 
into an agreement with a motor carrier to provide transportation of 
household goods subject to FMCSA jurisdiction is liable to the 
United States for a civil penalty of not less than $10,000 for each 
violation.

    (23) A person who provides transportation of household goods 
subject to jurisdiction under 49 U.S.C. chapter 135, subchapter I, 
or provides broker services for such transportation, without being 
registered under 49 U.S.C. chapter 139 to provide such 
transportation or services as a motor carrier or broker, as the case 
may be, is liable to the United States for a civil penalty of not 
less than $25,000 for each violation.
* * * * *

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

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

    Authority:  49 U.S.C. 13101, 13301, 13906, 14701, 31138, 31139, 
and 31144; and 49 CFR 1.73.
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9. Amend Sec.  387.307 by redesignating paragraph (a) as paragraph 
(a)(1) and adding new paragraph (a)(2) to read as follows:

Sec.  387.307  Property broker surety bond or trust fund.

    (a) Security. (1) * * *

[[Page 72999]]

    (2) A household goods broker must have a surety bond or trust fund 
in effect for $25,000 on and after January 1, 2012. The FMCSA will not 
issue a household goods broker license until a surety bond or trust 
fund for the full limits of liability prescribed herein is in effect. 
The household goods broker license remains valid or effective only as 
long as a surety bond or trust fund remains in effect and ensures the 
financial responsibility of the household goods broker. The compliance 
date for paragraph (a)(2) is January 1, 2012.
* * * * *

    Issued on: November 19, 2010.
Anne S. Ferro,
Administrator.
[FR Doc. 2010-29813 Filed 11-26-10; 8:45 am]
BILLING CODE 4910-EX-P