Agency Moving Forward on Registration Process Overhaul & Broker Rulemaking
The FMCSA continues to expand the amount of information available to motor carriers, brokers, freight forwarders, insurance companies, financial institutions, process agents, blanket companies, and transportation service providers on the in-development registration system. New this month was the release of FMCSA’s release of a Resource Hub, which includes a recently expanded FAQ section.
This section covers the agency’s move from the legacy system, provides information for Login.Gov requirements, a review of the business verification process and financial security requirements moving ahead. Business verification and information edit checks will serve to validate key information, including principal place of business addresses.
The formal rulemaking process and release of the proposed rule governing many of these changes is set to be released by the agency later this year.
FMCSA Issues Proposed Rule for Broker Transparency Requirements
Proposed Rule, now out for comment issued in response to industry petitions
Earlier this month, the FMCSA issued a long awaited proposed rule covering broker transparency requirements for brokers of freight, including household goods. The proposed rule addresses topics raised in petitions to the agency from the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC) who had requested, among other items, that brokers provide documentation, costs and other information in a timely manner to all parties involved in the transaction.
The proposed rule revises the current regulatory text to make it more clear that brokers have a regulatory obligation to provide transaction records to the transacting parties at their request. The proposed language would also require the brokers’ records to be kept in electronic format, alongside a regulatory obligation to provide transaction records within 48 hours of request. The proposed rule does not prohibit brokers from seeking or obtaining disclosures waivers, which FMCSA stated is the right of the broker (and any other party) via statute.
With respect to household goods, the proposed rule asks commenters to provide input on the following two questions:
1. How common is electronic recordkeeping among household goods brokers? What burden, if any, would be imposed if electronic recordkeeping was required?
2. Should freight brokers and household goods brokers be subject to the same recordkeeping requirements under § 371.3? If your answer is ‘‘no,’’ why should they be subject to different requirements?
IAM is carefully reviewing the proposed rule now for impact on the broader IAM membership and broker community, and plans to submit comments prior to the January 21st, 2025 deadline.
If you have questions, please reach out to Bryan Vickers with IAM’s Legislative and Regulatory team, bvickers@pacellp.com, 703-403-2882