[Federal Register Volume 77, Number 83 (Monday, April 30, 2012)]
[Rules and Regulations]
[Pages 25371-25374]
From the Federal Register Online via the Government Printing Office [http://www.gpo.gov/]
[FR Doc No: 2012-9865]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Part 375
[Docket No. FMCSA-2012-0101]
RIN 2126-AB51
Transportation of Household Goods in Interstate Commerce;
Consumer Protection Regulations: Released Rates of Motor Carriers of
Household Goods
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Final rule.
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SUMMARY: FMCSA harmonizes its
regulations with a recent Surface
Transportation Board (STB) order that
requires certain information about
household goods motor carrier liability
to appear on the estimates and bills of
lading that carriers must provide to
individual shippers.
DATES: This final rule is effective May
15, 2012.
ADDRESSES: Documents mentioned in
this rule are available for inspection or
copying in the docket, Docket No.
FMCSA-2012-0101 available at
www.regulations.gov, and at the Docket
Management Facility, U.S. Department
of Transportation, Ground floor, Room
W12-140, 1200 New Jersey Avenue SE.,
Washington, DC, between 9 a.m. and
5 p.m., e.t., Monday through Friday,
except Federal holidays.
FOR FURTHER INFORMATION CONTACT: Mr.
Brodie Mack, FMCSA Household Goods
Enforcement and Compliance Team
Leader, (202) 385-2400, email:
Brodie.Mack@dot.gov.
SUPPLEMENTARY INFORMATION: I. Legal Basis for the Rulemaking
The Secretary of Transportation's
(Secretary) general jurisdiction to
establish regulations over transportation
of property by motor carrier is found at
49 U.S.C. 13501. Household goods
motor carriers are a subset of all
property motor carriers and are required
by 49 U.S.C. 13902 to register with
FMCSA as household goods motor
carriers.
The ICC Termination Act of 1995
(Pub. L. 104-88, 109 Stat. 803, Dec. 29,
1995) abolished the Interstate
Commerce Commission (ICC), which
previously had jurisdiction over the
commercial activities of household
goods motor carriers. Its functions
relating to household goods carriers
were split between the STB and the
Secretary. The STB was given
jurisdiction over most tariff issues,
while the Secretary was given
jurisdiction over consumer protection
matters.
The Secretary has delegated these
authorities to the FMCSA Administrator
(49 CFR 1.73(a)). This rulemaking
applies only to household goods motor
carriers that provide for-hire
transportation in interstate or foreign
commerce.
FMCSA implements this final rule
without notice and comment pursuant
to 5 U.S.C. 553(b)(B). While the
Administrative Procedure Act (APA)
normally requires issuance of a notice of
proposed rulemaking and an
opportunity for public comment, the
APA provides an exception when an
agency "for good cause finds * * * that
notice and public procedure * * * are
impracticable, unnecessary, or contrary
to the public interest." 5 U.S.C.
553(b)(B). This final rule updates 49
CFR part 375 to reflect recent changes
the STB made to its requirements after
engaging in notice and comment rulemaking. See Released Rates of
Motor Common Carriers of Household
Goods, Surface Transportation Board,
Docket No. RR 999 (Amendment No. 5),
Order, Jan. 10, 2012 (Released Rates
Order). These changes fall within the
STB's jurisdiction and FMCSA does not
have authority to exercise discretion in
implementing them. Therefore, FMCSA
finds that the opportunity for notice and
public comment is unnecessary and
contrary to the public interest under the
APA.
II. Background
STB is charged with the oversight of
household goods motor carriers' tariffs.
Tariffs include the rates and terms
under which household goods carriers
may provide transportation services. In
accordance with 49 U.S.C. 14706(f)(3),
the Board authorizes household goods
carriers to set "released rates," which
are lower rates for transportation
services when the shipper agrees to
release the carrier from full liability for
potential loss and damage to the
shipper's cargo. There are currently two
generally applicable liability options for
interstate household goods moves. The
first reimburses the shipper for the
replacement value of his or her goods,
referred to as the full value option. The
second reimburses the shipper at a
lower rate, currently 60 cents per
pound, and is referred to as the released
rate option. The Board's rules provide
that any rate a carrier charges for
transportation services, whether under
the full liability option or the released
rate option, must be published in the
carrier's tariff.
In a decision served January 21, 2011,
the STB implemented a congressional
directive to enhance consumer
protection in cases of loss or damage
that occur during interstate moves. See
Safe, Accountable, Flexible, Efficient
Transportation Act: A Legacy for Users
(SAFETEA-LU), § 4215, Public Law
109-59, 119 Stat. 1144, 1760 (2005).
That decision required household goods
motor carriers to provide certain
information concerning the two
available cargo liability options to
shippers on written estimates for
household goods transportation. On
January 12, 2012, STB served another
decision clarifying and modifying
certain aspects of the January 2011
decision. STB modified the order to
require household goods movers to
place the following liability election
notice on the estimates they provide to
prospective shippers:
WARNING: If a moving company loses or
damages your goods, there are 2 different
standards for the company's liability based
on the types of rates you pay. BY FEDERAL LAW, THIS FORM MUST CONTAIN A
FILLED-IN ESTIMATE OF THE COST OF A
MOVE FOR WHICH THE MOVING
COMPANY IS LIABLE FOR THE FULL
(REPLACEMENT) VALUE OF YOUR GOODS
in the event of loss of, or damage to, the
goods. This form may also contain an
estimate of the cost of a move in which the
moving company is liable for FAR LESS than
the replacement value of your goods,
typically at a lower cost to you. You will
select the liability level later, on the bill of
lading (contract) for your move. Before
selecting a liability level, please read "Your
Rights and Responsibilities When You
Move," provided by the moving company,
and seek further information at the
government Web site
www.protectyourmove.gov.
Released Rates Order, Appendix 1.
That decision also directed household
goods motor carriers to provide the
STB's required valuation statement on
the shipper's bill of lading. The
valuation statement includes specific
language that requires the consumer
either to choose the replacement value
option and declare a total value for the
shipment, or choose the released rate
option. This statement is much lengthier
than the notice carriers must include in
the estimate and contains specific
information about the cost to the
shipper. Released Rates Order,
Appendix 2. These requirements go into
effect May 15, 2012. See Released Rates
of Motor Common Carriers of Household
Goods, Surface Transportation Board,
Docket No. RR 999 (Amendment No. 5),
Order, Mar. 8, 2012 (extending
compliance date) (77 FR 15187).
FMCSA is charged with overseeing
consumer protection matters related to
the transportation of household goods.
In this capacity, FMCSA administers
regulations requiring household goods
motor carriers to provide estimates and
certain shipping documents to
individual shippers and establishes the
terms and conditions under which those
documents must be provided
.
STB's January 2012 order affects
FMCSA's regulations because it
mandates that specific language
regarding carriers' rates and liability be
placed on the estimates and bills of
lading that FMCSA requires carriers to
provide to prospective shippers. As a
result, FMCSA amends its regulations
governing those documents to reflect the
STB's new requirements.
III. Discussion of the Rule
FMCSA amends 49 CFR 375.401 and
375.505 to eliminate inconsistencies
resulting from the STB's recent
publication of its Released Rates Order.
These changes incorporate the STB's
new requirements into FMCSA's
regulations governing estimates and
bills of lading.
FMCSA amends § 375.401 by adding
a new paragraph (g) which states that
household goods motor carriers must
include STB's liability election notice
on all written estimates. This notice is
a brief statement advising prospective
shippers that they will have to select
one of two options that govern the
extent of the carrier's liability for
damage to their cargo. New paragraph
(g) directs household goods motor
carriers to use the language set forth in
the STB Released Rates Order. FMCSA
redesignates old paragraphs (g) and (h)
as new paragraphs (h) and (i)
respectively.
FMCSA also amends § 375.505 to
make it clear that the STB's valuation
statement, a lengthier statement which
requires shippers to select one of the
two levels of liability, must appear on
the shipper's bill of lading. Previously,
§ 375.505(e) permitted carriers to
provide the valuation statement on
either the bill of lading or the order for
service. FMCSA removes paragraph (e)
and revises subparagraph (b)(12) to
make conforming changes to remove
any ambiguity about where the
valuation statement must appear.
IV. Regulatory Analyses A. Regulatory Planning and Review
FMCSA has determined that this
action does not meet the criteria for a
"significant regulatory action," either as
specified in Executive Order 12866 as
supplemented by Executive Order
13563 (76 FR 3821, January 18, 2011),
or within the meaning of the DOT
regulatory policies and procedures (44
FR 1103, February 26, 1979). The
estimated economic costs of the rule do
not exceed the $100 million annual
threshold and the Agency does not
expect the rule to have substantial
congressional or public interest.
Therefore, this rule has not been
formally reviewed by the Office of
Management and Budget.
B. Regulatory Flexibility Act
Under the Regulatory Flexibility Act,
as amended by the Small Business
Regulatory Enforcement Fairness Act of
1996 (Pub. L. 104-121, 110 Stat. 857),
FMCSA is not required to prepare a
final regulatory flexibility analysis
under 5 U.S.C. 604(a) for this final rule
because the Agency has not issued a
notice of proposed rulemaking prior to
this action.
C. Federalism (Executive Order 13132)
A rule has federalism implications if
the rule has a substantial direct effect on
State or local governments and would
either preempt State law or impose a substantial direct cost of compliance on
the States. FMCSA analyzed this rule
under E.O. 13132 and has determined
that it does not have federalism
implications.
D. Unfunded Mandates Reform Act of
1995
This final rule does not impose an
unfunded Federal mandate, as defined
by the Unfunded Mandates Reform Act
of 1995 (2 U.S.C. 1532 et seq.), that will
result in the expenditure by State, local,
and tribal governments, in the aggregate,
or by the private sector, of $143.1
million (which is the value of $100
million in 2010 after adjusting for
inflation) or more in any 1 year.
E. Executive Order 12988 (Civil Justice
Reform)
This final rule meets applicable
standards in sections 3(a) and 3(b)(2) of
Executive Order 12988, Civil Justice
Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden.
F. Executive Order 13045 (Protection of
Children)
FMCSA analyzed this action under
Executive Order 13045, Protection of
Children from Environmental Health
Risks and Safety Risks. The Agency
determined that this rule will not create
an environmental risk to health or safety
that may disproportionately affect
children.
G. Executive Order 12630 (Taking of
Private Property)
FMCSA reviewed this final rule in
accordance with Executive Order 12630,
Governmental Actions and Interference
with Constitutionally Protected Property
Rights, and has determined it will not
affect a taking of private property or
otherwise have taking implications.
H. Privacy Impact Assessment
Section 522 of title I of division H of
the Consolidated Appropriations Act,
2005, enacted December 8, 2004 (Pub. L.
108-447, 118 Stat. 2809, 3268, 5 U.S.C.
552a note), requires the Agency to
conduct a privacy impact assessment
(PIA) of a regulation that will affect the
privacy of individuals. This rule does
not require the collection of any
personally identifiable information.
The Privacy Act (5 U.S.C. 552a)
applies only to Federal agencies and any
non-Federal agency which receives
records contained in a system of records
from a Federal agency for use in a
matching program. FMCSA has
determined this rule will not result in
a new or revised Privacy Act System of
Records for FMCSA.
I. Executive Order 12372
(Intergovernmental Review)
The regulations implementing
Executive Order 12372 regarding
intergovernmental consultation on
Federal programs and activities do not
apply to this program.
J. Paperwork Reduction Act
Under the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), Federal
agencies must obtain approval from the
Office of Management and Budget for
each collection of information they
conduct, sponsor, or require through
regulations. The changes in this rule are
mandated by the STB, exercising its
authority over household goods motor
carriers' tariffs. Any change to the
paperwork burden associated with these
requirements is required to be
accounted for by the STB in connection
with its Released Rates Order. As this
rule merely incorporates the STB's
requirements, FMCSA does not conduct,
sponsor or require any additional
information collection through this rule.
K. National Environmental Policy Act
and Clean Air Act
FMCSA analyzed this rule in
accordance with the National
Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.). The Agency has
determined under its environmental
procedures Order 5610.1, published in
the Federal Register March 1, 2004 (69
FR 9680), that this action is
categorically excluded from further
environmental documentation under
Appendix 2, Paragraph 6(b) of the Order
(69 FR 9702). This categorical exclusion
(CE) relates to regulations that are
editorial in nature making technical
corrections and minor amendments,
which applies to this rule as FMCSA is
simply aligning its regulations with the
STB's regulations. Environmental
impacts, if any, would have been
analyzed during the rulemaking by STB.
In addition, the Agency believes this
rule presents no extraordinary
circumstances that will have any effect
on the quality of the environment. Thus,
the action does not require an
environmental assessment or an
environmental impact statement.
FMCSA also analyzed this rule under
the Clean Air Act, as amended (CAA),
section 176(c) (42 U.S.C. 7401 et seq.),
and implementing regulations
promulgated by the Environmental
Protection Agency. Approval of this
action is exempt from the CAA's general
conformity requirement since it does
not affect direct or indirect emissions of
criteria pollutants.
L. Executive Order 13211 (Energy
Effects)
FMCSA has analyzed this rule under
Executive Order 13211, Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution or Use. The Agency has
determined that it is not a "significant
energy action" under that Executive
Order because it is not economically
significant and is not likely to have a
significant adverse effect on the supply,
distribution, or use of energy.
List of Subjects in 49 CFR Part 375
Advertising, Arbitration, Consumer
protection, Freight, Highways and
roads, Insurance, Motor carriers, Moving
of household goods, Reporting and
recordkeeping requirements
. V. The Final Rule
For the reasons stated in the
preamble, FMCSA amends 49 CFR part
375 in title 49, Code of Federal
Regulations, chapter III, subchapter B,
as follows:
PART 375—TRANSPORTATION OF
HOUSEHOLD GOODS IN INTERSTATE
COMMERCE; CONSUMER
PROTECTION REGULATIONS
1. The authority citation for part 375
is revised to read as follows:
Authority: 5 U.S.C. 553; 49 U.S.C. 13102,
13301, 13501, 13704, 13707, 13902, 14104,
14706, 14708; subtitle B, title IV of Pub. L.
109-59; and 49 CFR 1.73.
2. In § 375.401, redesignate
paragraphs (g) and (h) as paragraphs (h)
and (i), and add new paragraph (g) to
read as follows:
§ 375.401 Must I estimate charges?
* * * * * (g) You must include as a part of your
estimate the liability election notice
provided in the Surface Transportation
Board's released rates order. Contact the
STB for a copy of the Released Rates of
Motor Carrier Shipments of Household
Goods. * * * * *
3. In § 375.505, revise paragraph
(b)(12) and remove paragraph (e) to read
as follows:
§ 375.505 Must I write up a bill of lading? * * * * *
(b)(12) The valuation statement
provided in the Surface Transportation
Board's released rates order requires
individual shippers either to choose
Full Value Protection for your liability
or waive the Full Value Protection in
favor of the STB's released rates. The
released rates may be increased annually by the motor carrier based on
the U.S. Department of Commerce's Cost
of Living Adjustment. Contact the STB
for a copy of the Released Rates of
Motor Carrier Shipments of Household
Goods. If the individual shipper waives your Full Value Protection in writing on
the STB's valuation statement, you must
include the charges, if any, for optional
valuation coverage (other than Full
Value Protection).
Issued on: April 17, 2012.
Anne S. Ferro,
Administrator.
[FR Doc. 2012-9865 Filed 4-27-12; 8:45 am]
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