[Federal Register Volume 77, Number 107 (Monday, June 4, 2012)]
[Rules and Regulations]
[Pages 32901-32903]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-13530]
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DEPARTMENT OF TRANSPORTATION Federal Motor Carrier Safety Administration
49 CFR Parts 371, 375, 386, and 387
State Enforcement of Household Goods Consumer Protection
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Notice of enforcement.
SUMMARY: FMCSA provides an updated
list of statutory provisions and FMCSA
regulations that State household goods
regulatory authorities and State
attorneys general may enforce, reflecting
amendments to FMCSA's regulations
regarding brokers of household goods.
The Safe, Accountable, Flexible,
Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU) gives
State household goods regulatory
authorities and State attorneys general
the right to enforce certain consumer
protection provisions that apply to
individual shippers and are related to
interstate movement of the goods.
DATES: On November 17, 2006, FMCSA
published a list of the statutory and
regulatory provisions that State
attorneys general and household goods
regulators are allowed to enforce
pursuant to section 4206(b) of
SAFETEA-LU (71 FR 67009). That enforcement authority was retroactive to
August 10, 2005, the date of enactment
of SAFETEA-LU. The Agency amended
its household goods regulations on
November 29, 2010 (75 FR 72987).
States are now authorized to enforce
those regulations, retroactive to January
28, 2011, the effective date of the 2010
rule. However, the requirement for a
$25,000 surety bond or trust fund (49
CFR 387.307(a)(2)) had a delayed
compliance date of January 1, 2012, and
States may enforce that provision only
on or after that date.
FOR FURTHER INFORMATION CONTACT: Mr.
Brodie Mack, FMCSA Household Goods
Enforcement and Compliance Team
Leader, Federal Motor Carrier Safety
Administration, 1200 New Jersey Ave.
SE., Washington, DC 20590-0001, (202)
366-8045.
SUPPLEMENTARY INFORMATION: Section
4206(b) of SAFETEA-LU (Pub. L. 109-
59, 119 Stat. 1144, 1754, codified at 49
U.S.C. 14710 and 14711), provides that
State household goods regulatory
authorities and State attorneys general
may enforce certain consumer
protection provisions of Title 49 of the
United States Code (U.S.C.) and related
regulations applicable to the delivery
and transportation of household goods
in interstate or foreign commerce.
Section 14710 authorizes State agencies
that regulate the movement of intrastate
household goods to "enforce the
consumer protection provisions of this
title [Title 49] that apply to individual
shippers, as determined by the Secretary
[of the U.S. Department of
Transportation], and are related to the
delivery and transportation of
household goods in interstate
commerce." Section 14711 authorizes
State attorneys general to bring civil
actions in the U.S. district courts to
enforce the consumer protection
provisions that apply to individual
shippers and are related to the delivery
and transportation of household goods
in interstate or foreign commerce.
On November 17, 2006, FMCSA
issued a notice that specified which
statutory provisions and FMCSA
regulations State household goods
regulatory authorities and State
attorneys general are authorized to
enforce pursuant to 49 U.S.C. 14710-
14711 (71 FR 67009). In that notice,
FMCSA also stated that it was
developing a notice of proposed
rulemaking that would require brokers
of household goods to provide
individual shippers with specific
information required under section 4212
of SAFETEA-LU. The Agency stated
that it would add that rule, once it
became final, to the list of regulations that State household goods regulatory
authorities and State attorneys general
may enforce.
On November 29, 2010, FMCSA
issued that final rule (75 FR 72987). It
amended FMCSA's regulations and
imposed various requirements on both
household goods carriers and brokers as
follows.
- Special Rules for Household Goods
Brokers, 49 CFR part 371, subpart B.
Household goods brokers offering
services to individual shippers and
operating in interstate or foreign
commerce are subject to the
requirements of subpart B of part 371.
This subpart requires that brokers use
only motor carriers that are properly
licensed and authorized to operate (49
CFR 371.105); provide certain
disclosures in advertisements and
Internet Web homepages, and to
individual shippers (49 CFR 371.107
through 371.111, 371.117); provide
individual shippers with a written
estimate (49 CFR 371.115); and maintain
agreements with motor carriers before
providing written estimates on behalf of
these carriers (49 CFR 371.117). Subpart
B also establishes penalties for
violations (49 CFR 371.121).
- Transportation of Household Goods
in Interstate Commerce; Consumer
Protection Regulations, 49 CFR part 375.
Household goods carriers must provide
certain consumer protection information
to prospective individual shippers
unless the consumer expressly waives
physical receipt (49 CFR 375.213). A
household goods carrier permitting a
broker to provide estimates on its behalf
must enter into an agreement with the
broker adopting the broker's estimate as
its own (49 CFR 375.409).
- Penalty Schedule; Violations and
Monetary Penalties, 49 CFR part 386,
Appendix B. Household goods brokers
are subject to statutory penalties for
providing estimates without an
agreement with a household goods
motor carrier and for operating without
being registered with FMCSA (49 CFR
part 386, Appendix B(g)(22)-(23)).
- Minimum Levels of Financial
Responsibility for Motor Carriers, 49
CFR part 387. The current minimum
level of financial responsibility required
of household goods brokers is $25,000,
as of January 1, 2012 (49 CFR
387.307(a)(2)).
The provisions of FMCSA's November
29, 2010, final rule are now being
included in the list of regulations that
State household goods regulatory
authorities and State attorneys general
may enforce, effective as of January 28,
2011, except for 49 CFR 387.307(a)(2),
effective as of January 1, 2012. To assist
interested parties, the list of statutory and regulatory provisions that State
household goods regulatory authorities
and State attorneys general may enforce
pursuant to sections 14710 and 14711 of
SAFETEA-LU is provided in its entirety
below. The brief description
accompanying each item listed below is
for informational purposes only and is
not intended to be a definitive
interpretation of legal requirements.
Statutes
1. Tariff Requirement for Certain
Transportation, 49 U.S.C. 13702
Household goods carriers must have
tariffs covering transportation and
related services and must charge in
accordance with their tariffs. The carrier
must give notice of availability of the
tariff to individual shippers and must
make the tariff available for inspection
to shippers upon reasonable request.
2. Household Goods Rates—Estimates;
Guarantees of Service, 49 U.S.C. 13704
Rates for transportation of household
goods moving on a written binding
estimate must be available to shippers
on a non-preferential basis and must not
result in charges that are predatory.
3. Payment of Rates; Exceptions, 49
U.S.C. 13707(b)
Household goods carriers must give
up possession of a shipment upon
payment of 100 percent of a binding
estimate or 110 percent of a non-binding
estimate, but may collect all charges
related to post-contract services and
impracticable operations at delivery
(with some limitations as to the latter).
4. Requirement for Registration, 49
U.S.C. 13901; General Civil Penalties, 49
U.S.C. 14901(d)(3)
FMCSA registration is required to
provide transportation or brokerage
services subject to FMCSA jurisdiction.
Transportation or brokering of
household goods without FMCSA
registration is punishable by a minimum
civil penalty of $25,000 per violation.
5. Household Goods Carrier Operations;
Estimates, 49 U.S.C. 14104(b)
Household goods carriers must
comply with certain estimating
requirements and provide individual
shippers with prescribed informational
publications.
6. Liability of Carriers Under Receipts
and Bills of Lading; Limiting Liability of
Household Goods Carriers to Declared
Value; 49 U.S.C. 14706(f)
Household goods carriers are liable
for the replacement value of goods
unless the individual shipper waives
full value protection in writing.
7. Dispute Settlement Program for
Household Goods Carriers, 49 U.S.C.
14708
Household goods carriers must
provide binding arbitration upon a
shipper's request for disputes up to
$10,000 involving loss and damage and
payment of charges in addition to those
collected at delivery.
8. General Civil Penalties; Estimate of
Broker Without Carrier Agreement, 49
U.S.C. 14901(d)(2)
Household goods brokers making
estimates before entering into an
agreement with a carrier are liable for a
minimum civil penalty of $10,000 per
violation.
9. General Civil Penalties; Violation
Relating to Transportation of Household
Goods, 49 U.S.C. 14901(e)
Any person falsifying documents
relating to household goods shipment
weight or charging for accessorial
services that are not performed or are
not reasonably necessary for the safe
and adequate movement of the
shipment is subject to a minimum civil
penalty of $2,000 for the first violation
and $5,000 for each subsequent
violation.
10. Civil Penalty Procedures, 49 U.S.C.
14915
Holding an household goods
shipment hostage is punishable by a
minimum civil penalty of $10,000 per
violation.
Regulations
1. Designation of Process Agent;
Required States, 49 CFR 366.4
All carriers and brokers must
designate agents for service of court
process in States of operation.
2. Principles and Practices for the
Investigation and Voluntary Disposition
of Loss and Damage Claims, 49 CFR
370.3 Through 370.9
These sections contain regulations
governing voluntary disposition of loss
and damage claims. The regulations
protect individual shippers, as well as
business shippers, by ensuring that
motor carriers investigate claims and
process them in accordance with
prescribed procedures.
3. Records To Be Kept by Brokers; Right
of Review, 49 CFR 371.3(c)
Brokers must provide access to
transaction records by each party to a
brokered transaction.
4. Records To Be Kept by Brokers;
Misrepresentation, 49 CFR 371.7
Brokers must not misrepresent their
name or broker status.
5. Bills of Lading for Freight Forwarders,
49 CFR 373.201
All household goods freight
forwarders must issue a shipper a
thorough bill of lading covering
transportation from origin to
destination.
6. Transportation of Household Goods
in Interstate Commerce; Consumer
Protection Regulations, 49 CFR Part 375
This part contains consumer
protection regulations governing
transportation of household goods for
individual shippers in interstate
commerce. The regulations set forth the
rights and obligations of household
goods carriers and shippers with respect
to services provided; liability; estimates;
pick up, delivery and transportation of
shipments; payment; and penalties for
noncompliance.
7. Procedures Governing the Processing,
Investigation, and Disposition of
Overcharge, Duplicate Payment, or
Over-Collection Claims, 49 CFR 378.3
Through 378.9
These sections set forth the rights and
obligations of household goods carriers
and shippers with respect to the filing
and processing of claims for overcharge,
duplicate payment, and over collection
for the transportation of property,
including household goods.
8. Surety Bond, Certificate of Insurance,
or Other Securities; Cargo Insurance, 49
CFR 387.301(b)
Household goods carriers must obtain
cargo insurance in prescribed amounts
and file evidence of such insurance with
FMCSA.
9. Property Broker Surety Bond or Trust
Fund, 49 CFR 387.307
All brokers, including household
goods brokers, must obtain and file a
surety bond or trust fund to pay
shippers or motor carriers if the broker
fails to carry out its contracts for the
arrangement of transportation.
10. General Requirements, 49 CFR
387.403
Household goods freight forwarders
must obtain and file the same level of
cargo insurance required of household
goods motor carriers.
11. Special Rules for Household Goods
Brokers, 49 CFR Part 371, Subpart B
Household goods brokers offering
services to individual shippers and operating in interstate or foreign
commerce are subject to the
requirements of subpart B of part 371.
This subpart requires that brokers: use
only motor carriers that are properly
licensed and authorized to operate (49
CFR 371.105); provide certain
disclosures in advertisements and
Internet Web homepages, and to
individual shippers (49 CFR 371.107
through 371.111, 371.117); provide
individual shippers with a written
estimate (49 CFR 371.115); and maintain
agreements with motor carriers before
providing written estimates on behalf of
these carriers (49 CFR 371.117). Subpart
B also establishes penalties for
violations (49 CFR 371.121).
Issued on: May 16, 2012.
Anne S. Ferro,
Administrator.
[FR Doc. 2012-13530 Filed 6-1-12; 8:45 am]
BILLING CODE 4910-EX-P
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