[Federal Register: July 5, 2007 (Volume 72, Number 128)]
[Rules and Regulations]
[Page 36759-36791]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05jy07-16]
[[Page 36759]]
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Part II
Department of Transportation
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Federal Motor Carrier Safety Administration
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49 CFR Parts 350, 375, 383, et al.
Amendments To Implement Certain Provisions of the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU); Final Rule
[[Page 36760]]
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DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
49 CFR Parts 350, 375, 383, 384, 385, 386, 390, and 395
RIN 2126-AA96
Amendments To Implement Certain Provisions of the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users (SAFETEA-LU); Final Rule
AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.
ACTION: Final rule.
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SUMMARY: The Federal Motor Carrier Safety Administration (FMCSA) adopts
as final certain regulations required by the Safe, Accountable,
Flexible, Efficient Transportation Equity Act: A Legacy for Users
(SAFETEA-LU). These regulations govern State compliance plans under the
Motor Carrier Safety Assistance Program; withholding of Federal-aid
highway funds based on State noncompliance with the Commercial Driver's
License Program; intrastate operations of interstate motor carriers;
civil penalties and disqualifications for violations of out-of-service
orders; civil penalties for denial of access to records and property
and for violations of statutes and regulations governing hazardous
materials transportation; exemption from the Federal hours-of-service
regulations for operators of commercial motor vehicles engaged in
certain defined operations; exemption of drivers of propane service or
pipeline emergency vehicles during emergency conditions requiring
immediate response; and interstate transportation of household goods.
The SAFETEA-LU provisions requiring these rules became effective on
August 10, 2005. Adoption of the rules is a nondiscretionary
ministerial action that can be taken without issuing a notice of
proposed rulemaking and receiving public comment, in accordance with an
exception available to Federal agencies under the Administrative
Procedure Act.
EFFECTIVE DATE: September 4, 2007. Petitions for Reconsideration must
be received by the Agency not later than September 4, 2007.
FOR FURTHER INFORMATION CONTACT: Mr. Frederic L. Wood, Office of Chief
Counsel, Regulatory Affairs Division (MC-CCR), Federal Motor Carrier
Safety Administration, Room W61-307, 1200 New Jersey Avenue, SE.,
Washington, DC 20590; by telephone at (202) 366-0834, or by electronic
mail at frederic.wood@dot.gov.
SUPPLEMENTARY INFORMATION:
Legal Basis for the Rulemaking
This final rule is based on the authority of the Federal Motor
Carrier Safety Administration (FMCSA) to implement statutory directives
enacted by several provisions of the Safe Accountable, Flexible,
Efficient Transportation Equity Act: A Legacy for Users, Public Law
109-59, 119 Stat. 1144 (Aug. 10, 2005) (SAFETEA-LU). SAFETEA-LU enacted
a wide range of provisions modifying various regulatory programs
administered by FMCSA affecting motor carriers and related entities. A
number of statutory provisions made changes that were mandatory, and
their implementation does not require the exercise of discretion by
FMCSA.
These statutory changes went into effect upon enactment of SAFETEA-
LU on August 10, 2005. However, it is necessary to make conforming
changes in the regulations administered by FMCSA to ensure these rules
are consistent with the applicable statutes and can be applied and
enforced. The provisions enacted by SAFETEA-LU and implemented in this
final rule are as follows:
1. Section 4102 Increased penalties for out-of-service violations
and false records.
2. Section 4103 Penalty for denial of access to records.
3. Section 4106 Motor carrier safety grants.
4. Section 4107 High Priority Activities and New Entrant Audits.
5. Section 4114 Intrastate operations of interstate motor carriers.
6. Section 4124(c) Commercial driver's license improvements; amounts
withheld.
7. Section 4130 Operators of vehicles transporting agricultural
commodities and farm supplies.
8. Section 4132 Hours of service for operators of utility service
vehicles.
9. Section 4133 Hours-of-service rules for operators providing
transportation to movie production sites.
10. Section 4146 Exemption during harvest periods.
11. Section 4147 Emergency condition requiring immediate response.
12. Section 4202 Household goods carriers--Definitions; application
of provisions.
13. Section 4203 Household goods carriers--Payment of rates.
14. Section 4205 Household goods carrier operations.
15. Section 4207 Household goods carriers--Liability of carriers
under receipts and bills of lading.
16. Section 4208 Household goods carriers--Arbitration requirements.
17. Section 4210 Household goods carriers--Penalties for holding
household goods hostage.
18. Section 7112 Unsatisfactory safety ratings.
19. Section 7120 Civil penalty.
Each of the statutory provisions listed above may be incorporated
in regulations adopted by FMCSA under authority granted by one or more
of the following provisions: 49 U.S.C. 502, 13301, 31102, 31136, or
31317. FMCSA is authorized to implement these statutory provisions by
delegation from the Secretary of Transportation in 49 CFR 1.73.
As noted previously, Congress gave the Agency no discretion with
respect to implementation of these SAFETEA-LU provisions, and the
action taken in this final rule is necessary to conform the Agency's
regulations to the statutory directives. Therefore, the Agency may
adopt this rule without issuing a notice of proposed rulemaking and
receiving public comment, in accordance with an exception available to
Federal agencies under the Administrative Procedure Act. The Rulemaking
Analyses and Notices section of this preamble explains why notice and
comment is not required for this final rule.
The final rule adopts these nondiscretionary ministerial
regulations under title 49 of the Code of Federal Regulations. The
specific changes necessary to conform the regulations to the statutory
provisions are described in the next section.
SAFETEA-LU Provisions Implemented by the Final Rule
The Federal Motor Carrier Safety Regulations (FMCSRs) amended by
this final rule encompass diverse subject areas. These subject areas
include State compliance plans under the Motor Carrier Safety
Assistance Program; withholding of Federal-aid highway funds based on
State noncompliance with the Commercial Driver's License Program;
intrastate operations of interstate motor carriers; civil penalties and
disqualifications for violations of out-of-service (OOS) orders; civil
penalty assessments applicable to motor carriers, brokers, and freight
forwarders for denial of access to records and property; civil
penalties for violations of statutes and regulations governing
hazardous materials transportation; exemption from the Federal hours-
of-service regulations for operators of commercial motor vehicles
(CMVs) engaged in certain defined operations; exemption of drivers of
propane service or pipeline emergency vehicles during emergency
conditions requiring immediate response; and interstate
[[Page 36761]]
transportation of household goods.\1\ The following discussion
organizes by FMCSR subject area the SAFETEA-LU provisions implemented
by this final rule. Under Section-by-Section Discussion of Amendments
to the FMCSRs, we discuss in order of their appearance in the Code of
Federal Regulations the specific conforming amendments being adopted.
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\1\ These FMCSR sugject areas more precisely reflect the
regulatory topics affected by the SAFETEA-LU provisions than do the
SAFETEA-LU section titles listed in Legal Basis for the Rulemaking.
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Motor Carrier Safety Assistance Program (MCSAP) Grants--State
Compliance Plans
Sec. 4106 of SAFETEA-LU (119 Stat. 1717) amends 49 U.S.C.
31102(b)(1) to modify and augment the conditions a State must meet to
qualify for basic program funds under the MCSAP. The statute requires a
State to document in the State Commercial Vehicle Safety Plan (CVSP)
its commitment to meet the following seven additional conditions:
Deploy technology to enhance the efficiency and
effectiveness of CMV safety programs;
Establish a program to ensure that accurate, complete, and
timely motor carrier safety data are collected and reported to the
Secretary of Transportation (Secretary);
Participate in a national motor carrier safety data
correction system prescribed by the Secretary;
Include, in both the training manual for the licensing
examination to drive a non-CMV and the training manual for the
licensing examination to drive a CMV, information on best practices for
driving safely in the vicinity of noncommercial and commercial motor
vehicles;
Enforce the registration (operating authority)
requirements of 49 U.S.C. 13902 by prohibiting the operation of any
vehicle discovered to be operated by a motor carrier without the
required operating authority or beyond the scope of the motor carrier's
operating authority;
Conduct comprehensive and highly visible traffic
enforcement and CMV safety inspection programs in high-risk locations
and corridors; and
Except in the case of an imminent or obvious safety
hazard, ensure that an inspection of a vehicle transporting passengers
for a motor carrier of passengers is conducted at a station, terminal,
border crossing, maintenance facility, destination, or other location
where a motor carrier may make a planned stop.
Sec. 4106 also modifies the benchmark by which the State ensures
the continuity of annual State expenditures for CMV safety programs
documented in the CVSP. Prior to enactment of SAFETEA-LU, section
31102(b)(1)(E) required that the State's total annual expenditures for
CMV safety programs ``be maintained at a level at least equal to the
average level of such expenditures for fiscal years 1997, 1998, and
1999.'' Sec. 4106 updates and standardizes this benchmark by replacing
the words ``for fiscal years 1997, 1998, and 1999'' with the words ``3
full fiscal years beginning after October 1 of the year 5 years prior
to the beginning of each Government fiscal year.'' This new benchmark
ensures aggregate annual expenditures for CMV safety programs reflect
the States' previous levels of effort.
Additionally, sec. 4106 amends section 31102(c) to provide that a
State may use a portion of MCSAP grant funds to conduct documented
enforcement of State traffic laws--both laws and regulations designed
to promote the safe operation of CMVs and laws and regulations relating
to non-CMVs, when necessary to promote the safe operation of CMVs--
provided the State maintains a level of motor carrier safety activities
at least equal to its average level of such activities for fiscal years
2003, 2004, and 2005. However, the statute limits the portion of MCSAP
basic program funds a State may use for noncommercial motor vehicle-
related enforcement activities to no more than 5 percent, unless the
Secretary determines a higher percentage will result in significant
increases in CMV safety.
Sec. 4107(a) of SAFETEA-LU amends 49 U.S.C. 31104 to add a
provision specifying the safety performance criteria for distribution
of High Priority Activity funds as part of the MCSAP grants, as well as
the set-aside amounts and eligible grant recipients. Under the newly
enacted and currently effective provisions of section 31104(k)(2), the
Secretary may set aside up to $15,000,000 for each fiscal year through
2009 for States, local governments, and organizations representing
government agencies or officials that use and train qualified officers
and employees in coordination with State motor vehicle safety agencies.
Sec. 31104(k)(4) provides that at least 90 percent of the amounts set
aside shall be awarded in grants to State and local government
agencies.
Sec. 4107(b) amends section 31144 to add a similar provision
concerning New Entrant Funds. Under the newly enacted and currently
effective provisions of section 31144(f), the Secretary shall set aside
up to $29,000,000 from MCSAP grant funds per fiscal year and may make
grants from this amount to State and local governments for new entrant
motor carrier audits, without requiring a matching contribution from
such governments. In addition, if the Secretary determines that a State
or local government is not able to use government employees to conduct
new entrant motor carrier audits, the Secretary may use the funds set
aside to conduct such audits for the State or local government.
Withholding of Federal-Aid Highway Funds Based on State Noncompliance
With the Commercial Driver's License Program
Sec. 4124(c) of SAFETEA-LU (119 Stat. 1730) amends 49 U.S.C.
31314(a) and (b) by providing that the Secretary shall withhold from a
State, based on noncompliance with the Commercial Driver's License
(CDL) Program, ``up to'' a specified percentage (5 percent and 10
percent for the first and subsequent years, respectively) of Federal-
aid highway funds apportioned to the State under 23 U.S.C. 104(b)(1),
(3), and (4). As the Federal-aid withholding amounts previously were
fixed at the above-noted percentages, this provision allows FMCSA a
certain amount of discretion in determining the amount of Federal-aid
highway funds to be withheld from a given State.
Intrastate Operations of Interstate Motor Carriers
Sec. 4114 of SAFETEA-LU (119 Stat. 1725) amends 49 U.S.C. 31144 by
enhancing FMCSA's regulatory authority over the intrastate operations
of interstate motor carriers and by directing the Agency to consider,
as part of determining the safety ratings of interstate carriers that
also operate in Canada and Mexico, the carriers' safety records in
those countries. Specifically, Sec. 4114(a) amends section 31144(a) to
affirm the Agency's authority, for the purposes of determining safety
fitness ratings, to consider ``among other things the accident record''
(i.e., record of crashes) and safety inspection records of ``an owner
or operator operating in interstate commerce'' and also ``the accident
record and safety inspection record of such owner or operator * * * in
operations that affect interstate commerce.'' Motor carriers already
are required by 49 CFR 390.15 to record intrastate accidents on their
accident registers. See Accident Recordkeeping Requirements issued by
the Federal Highway Administration (FMCSA's predecessor organization
within the
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U.S. Department of Transportation), which clarified the definition of
``accident'' in 49 CFR 390.5 (60 FR 44439, Aug. 28, 1995). The
provisions of section 31144(a)(1)(A), as amended by SAFETEA-LU, remove
any uncertainty about the Agency's authority to utilize such data in
determining a carrier's safety fitness. Additionally, sec. 4114(a)
authorizes the Agency to consider such data from operations in Canada
and Mexico, if the owner or operator also conducts operations within
the United States.
Sec. 4114(b) provides that if FMCSA determines a motor carrier is
unfit and prohibits the carrier from operating in interstate commerce,
the Agency also must place out of service the carrier's operations
affecting interstate commerce.
Finally, section 4114(c) provides that, if a State receiving MCSAP
funds and using FMCSA's safety rating methodology prohibits the
intrastate operations of a carrier whose principal place of business is
in that State, FMCSA must take reciprocal action by prohibiting the
motor carrier from operating in interstate commerce.
It should be noted that section 4114(a) allows FMCSA to utilize,
for purposes of evaluating the safety fitness of motor carriers that
operate in the United States, data on ``the accident record and safety
inspection record * * * in operations in Canada and Mexico'' whether
the owner or operator is domiciled in Canada, Mexico, or the United
States. This amendment expands the scope of 49 U.S.C. 31144(a)(1), but
it is not an exercise of extraterritorial jurisdiction, because any
fitness determinations resulting from utilization of this additional
data would be effective only in the United States. Procedures for
conducting compliance reviews on Mexico-domiciled carriers are set
forth in part 385, subpart B; and FMCSA selectively conducts compliance
reviews on Canada-domiciled motor carriers as appropriate. Discussions
on harmonizing procedures for safety fitness determinations and
expanding data sharing efforts are currently in progress with Mexico
and Canada. Implementation of such agreements and procedures will be
necessary to make more Canadian and Mexican data available for this
purpose.
Civil Penalties and Disqualifications for Violations of Out-of-Service
Orders
Sec. 4102(b)(2)-(4) of SAFETEA-LU (119 Stat. 1715) amends 49 U.S.C.
31310(i)(2) by increasing minimum CDL disqualification periods and
civil penalty amounts applicable to drivers convicted of violating a
driver or vehicle OOS order. It also increases the maximum civil
penalty assessment applicable to employer violations of OOS orders.\2\
These changes are as follows:
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\2\ The changes in penalties made by sec. 4102(a) of SAFETEA-LU
(amending 49 U.S.C. 521(b)(2)(B) to increase the penalties for
recordkeeping and reporting violation) does not require any change
in the FMCSRs because they are automatically implemented by 49 CFR
386.81. The new criminal offense for knowing and willful violation
of an OOS order added to 49 U.S.C. Sec. 31310(i)(2)(D) by
4102(b)(5) of SAFETEA-LU also does not require any changes in the
FMCSRs because the general provisions of Title 18 U.S.C. referred to
provide for and implement penalties for violations of Federal
criminal statutes.
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Minimum CDL disqualification periods. Sec. 4102(b) increases the
minimum CDL disqualification periods applicable to drivers convicted of
violating a driver or vehicle OOS order while transporting nonhazardous
materials. Under previous 49 U.S.C. 31310(i)(2), such a driver must be
disqualified from operating a CMV for no less than 90 days for the
first conviction and at least 1 year for the second conviction.
Sections 4102(b)(2) and (3) amend section 31310(i)(2) by increasing
these minimum disqualification periods to 180 days for the first
conviction and 2 years for the second conviction.
SAFETEA-LU does not affect the maximum disqualification periods
prescribed in the FMCSRs for violating an OOS order. The minimum and
maximum disqualification periods in the FMCSRs for OOS violations while
transporting hazardous materials are also unchanged.
Minimum civil penalty assessments on drivers. Sec. 4102(b)
increases the minimum civil penalty assessments applicable to drivers
convicted of an OOS violation. Under previous 49 U.S.C. 31310(i)(2)(A)
and (B), such violations carried a minimum civil penalty of $1,000 for
both a first and second conviction. Sections 4102(b)(2) and (3) amend
section 31310(i)(2) by increasing the minimum penalty amount for the
first and second convictions to $2,500 and $5,000, respectively.
Maximum civil penalty assessments on employers. Under previous 49
U.S.C. 31310(i)(2)(C), an employer that knowingly allowed or required
an employee to operate a CMV in violation of an OOS order was liable
for a civil penalty of not more than $10,000. Sec. 4102(b)(4) amends
this section by increasing the maximum civil penalty assessment to
$25,000.
Transportation of Hazardous Materials--Civil Penalty For Violation of
Out-of-Service Order
Sec. 7112 of SAFETEA-LU (119 Stat. 1899) amends 49 U.S.C. 5113 and
31144 to provide that an interstate motor carrier owning or operating
CMVs designed or used to transport hazardous materials for which
placarding of a motor vehicle is required under chapter 51 of 49
U.S.C., that operates in interstate commerce after being placed out of
service because of a final ``unsatisfactory'' safety rating, is subject
to the civil and criminal penalties set forth in 49 U.S.C. 5123 and
5124. Those are penalties for violations of the Hazardous Materials
Regulations (HMRs) that are higher than those found in the general
civil and criminal penalty provisions under 49 U.S.C. 521 for
violations of the FMCSRs. The maximum penalties available are increased
to $100,000 per offense in cases where a violation results in death,
serious illness, or severe injury to any person or substantial
destruction of property.
Civil Penalties for Violations of Statutes and Regulations Governing
Hazardous Materials Transportation
Sec. 7120 of SAFETEA-LU (119 Stat. 1905) amends 49 U.S.C. 5123 and
5124 to revise the maximum and minimum civil penalties pertaining to
violations of the HMRs, including violations related to hazardous
materials training. The maximum penalties that may be applied are
increased to $100,000 per offense in cases where a violation results in
death, serious illness, or severe injury to any person or substantial
destruction of property. The amendments to the FMCSRs allow FMCSA, in
the exercise of its concurrent authority to enforce the HMRs, to apply
the penalties prescribed in the hazardous materials law.
Civil Penalties For Motor Carriers, Freight Forwarders, and Brokers
That Deny FMCSA the Right To Access Their Records and Facilities
Sec. 4103 of SAFETEA-LU (119 Stat. 1716) amends 49 U.S.C. 521 by
adding section 521(b)(2)(E), ``Copying of records and access to
equipment, lands, and building.'' This section establishes a civil
penalty applicable to a person subject to 49 U.S.C. chapter 51, or to a
motor carrier, broker, freight forwarder, or CMV owner or operator
subject to part B of subtitle VI, who does not allow, upon demand, the
Secretary (or an employee designated by the Secretary) to inspect and
copy any record or inspect and examine equipment, lands, buildings, and
other
[[Page 36763]]
property in accordance with 49 U.S.C. 504(c), 5121(c), and 14122(b).
Motor carriers and other entities or persons subject to FMCSA
regulations must promptly submit accounts, books, records, memoranda,
correspondence, and other documents for inspection and copying, as well
as make their lands, buildings, equipment, and other property available
for examination and inspection by FMCSA (or an employee designated by
FMCSA) upon demand and display of a proper credential. The civil
penalty established in sec. 4103 for violating this requirement is not
to exceed $1,000 for each offense. Each day that access is denied is
considered a separate offense; however the total penalty for all
offenses related to a single violation may not exceed $10,000.
The primary goal of sec. 4103 is to compel uncooperative parties
subject to the FMCSRs and/or the HMRs to promptly produce relevant
records and allow access to property upon demand by credentialed FMCSA
employees. As provided in the last sentence of section 521(b)(2)(E),
additional remedies under 49 U.S.C. 502(d) and 507(c) are available to
FMCSA to address situations not covered by the civil penalties added by
sec. 4103.
Exemptions From the Federal Hours-of-Service Rules for Operators of
CMVs Engaged in Certain Defined Operations
The statutory history of these provisions is complex. First, Sec.
4115 of SAFETEA-LU (119 Stat. 1726) amends title II of the Motor
Carrier Safety Improvement Act of 1999 (Public Law 106-159, 113 Stat.
1748-1773) (MCSIA) to add a new sec. 229, set out as a note to 49
U.S.C. 31136.\3\ Section 229 then was amended by subsequent sections of
SAFETEA-LU to revise or add exemptions from the Federal hours-of-
service regulations for drivers in certain defined operations. See 49
U.S.C. 31136 note. These exemptions are as follows:
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\3\ Section 229 was previously enacted as sec. 345 of Public Law
104-59, 109 Stat. 613 (November 28, 1995) and was also set out as a
note to 49 U.S.C. 31136.
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Drivers transporting agricultural commodities. Sec. 4130(a) of
SAFETEA-LU (119 Stat. 1743) amends the new sec. 229(a)(1) of MCSIA to
restate the previous exemption of certain drivers transporting
agricultural commodities or farm supplies for agricultural purposes
within a State from regulations regarding maximum driving and on-duty
time during planting and harvesting periods (as determined by the
State), provided the transportation is limited to an area within a 100
air-mile radius of the source of the commodities or the distribution
point for the farm supplies. Section 4130(c) added to section 229 of
MCSIA two definitions related to this exemption. Sec. 229(c)(7) defines
``agricultural commodity'' as ``any agricultural commodity, non-
processed food, feed, fiber, or livestock (including livestock as
defined in sec. 602 of the Emergency Livestock Feed Assistance Act of
1988 (7 U.S.C. 1471) and insects).'' Sec. 229(c)(8) defines ``farm
supplies for agricultural purposes'' as including ``products directly
related to the growing or harvesting of agricultural commodities during
the planting and harvesting seasons within each State, as determined by
the State, and livestock feed at any time of the year.''
Drivers of utility service vehicles. Sec. 4132 of SAFETEA-LU (119
Stat. 1744) further amends sec. 229(a) of MCSIA to add subsection
(a)(4), which exempts drivers of utility service vehicles from the
Federal hours-of-service regulations under the circumstances specified
in the definition in subsection 229(c)(6) and prohibits enactment of
similar regulations by States and other jurisdictions.
Drivers providing transportation to or from a motion picture
production site. Sec. 4133 of SAFETEA-LU (119 Stat. 1744) (set out as a
note to 49 U.S.C. 31136) provides that drivers transporting property or
passengers to or from a theatrical or television motion picture
production site located within a 100 air-mile radius of the driver's
work-reporting location are exempt from the regulations currently in
effect regarding maximum daily hours of service. Such drivers are
subject instead to the maximum daily hours-of-service regulations in
effect on April 27, 2003. At any time the driver operates beyond 100
air miles of the work-reporting location, this exception does not
apply.
Exemption for the transportation of grapes in the State of New York
during harvest periods. Sec. 4146 of SAFETEA-LU (119 Stat. 1749)
suspends through fiscal year 2009 the applicability of regulations
regarding maximum driving and on-duty time for drivers transporting
grapes west of Interstate 81 in New York State during harvest periods
(as determined by the State). This exception applies only if the
transportation is within a 150 air-mile radius of where the grapes are
picked and distributed.
Exemption of Drivers of Propane Service or Pipeline Emergency Vehicles
During Emergency Conditions Requiring Immediate Response
Section 4147 of SAFETEA-LU (119 Stat. 1749) added a new subsection
(f) to sec. 229 of MCSIA to provide an exception from regulations
prescribed under the authority of 49 U.S.C. 31136 or 49 U.S.C. 31502
for drivers of CMVs used primarily in the transportation of propane
winter heating fuel or used to respond to a pipeline emergency, if such
a regulation would prevent the driver from responding to an emergency
condition requiring immediate response. This exception applies to the
driver, not to the CMV. Therefore, the regulations from which these
drivers will be exempted while such emergency conditions prevail are
limited to those in 49 CFR parts 390-399 that apply to the driver. The
driver will not be exempted from the controlled substances and alcohol
use and testing regulations and the commercial driver's license
regulations in parts 382 and 383, respectively, because those
regulations are prescribed under 49 U.S.C. chapter 313 rather than
under sections 31136 or 31502 specified in section 4147. See also 49
CFR 382.103(a), 382.107 (definition of commercial motor vehicle),
383.3(a), and 383.5 (definition of commercial motor vehicle), which
continue to apply the controlled substance and alcohol use and testing
regulations and the CDL regulations to drivers who might be exempt from
other regulations under section 229(f) of MCSIA.
The exception applies only when an otherwise applicable regulation
in parts 390-399 would prevent the driver from responding to an
emergency condition requiring immediate response. The driver's
exemption from applicable regulations is not automatic or carte
blanche. Rather, the determination whether the exemption is applicable
must be made on a case-by-case basis after consideration of all facts
and circumstances related to the emergency condition. Further, the
circumstances that may constitute emergency conditions requiring
immediate response are not limited to those identified in the statute.
Any claim by the motor carrier or the driver that circumstances not
specified in the statute constitute such an emergency condition must be
evaluated by motor carrier enforcement personnel on a case-by-case
basis.
[[Page 36764]]
Interstate Transportation of Household Goods
This final rule amends certain FMCSRs governing elements of the
interstate transportation of household goods, as follows:
A. Definitions and Applicability
Sec. 4202(b) of SAFETEA-LU (119 Stat. 1751) amends 49 U.S.C. 13102
by adding the statutory definitions for ``household goods motor
carrier'' and ``individual shipper.'' The new statutory definition for
individual shipper modifies the existing definition in 49 CFR 375.103.
This final rule adds to Sec. 375.103 the statutory definition of a
household goods motor carrier. Under the definition, a motor carrier
that transports household goods is considered a household goods motor
carrier if it offers some or all of four additional services: (1)
Providing binding and nonbinding estimates; (2) inventorying; (3)
protective packing and unpacking of individual items at personal
residences; and (4) loading and unloading at personal residences. As
required by the statute, the definition excludes a motor carrier
transporting household goods in containers or trailers that are
entirely loaded and unloaded by an individual who is not employed by or
acting as an agent of the carrier. Only carriers that are considered
household goods motor carriers are subject to the provisions of 49 CFR
part 375.
Sec. 4202(c) of SAFETEA-LU provides that the statutes (and, by
extension, the implementing regulations) governing the transportation
of household goods apply only to household goods motor carriers, as now
defined in 49 U.S.C. 13102. Household goods motor carriers are subject
in addition to provisions of statutes and regulations applicable to all
motor carriers of property, unless specifically excluded.
B. Payment of Transportation Charges
Sec. 4203 of SAFETEA-LU amends 49 U.S.C. 13707(b) to limit the
transportation charges individual shippers must pay to household goods
motor carriers to obtain delivery of a shipment of household goods and
to regulate procedures concerning additional charges.
Estimated charges. The motor carrier is required to relinquish the
household goods at destination upon payment by the individual shipper
of either 100 percent of a binding estimate or not more than 110
percent of a non-binding estimate. However, if only partial delivery of
the goods is made, the carrier may not charge more than a prorated
percentage of either (1) the binding estimate or (2) up to 110 percent
of the non-binding estimate. The prorated amount must be based on the
percentage of the weight of that portion of household goods delivered
relative to the total weight of the shipment.
Additional charges. As applicable, the carrier also may require at
destination payment of charges for (1) additional services requested by
the shipper and not included in the estimate (post-contract services)
and (2) impracticable operations, as defined by the carrier's tariff.
Charges collected at delivery for impracticable operations must not
exceed 15 percent of all other charges due at delivery. However, the
individual shipper must pay any remaining impracticable operations
charges within 30 days after the carrier presents its freight bill.
C. Operations and Estimates
Sec. 4205 of SAFETEA-LU (119 Stat. 1753) amends 49 U.S.C. 14104(b)
by requiring the household goods motor carrier to conduct a physical
survey of the household goods to be transported on behalf of the
individual shipper. The carrier must then provide the shipper with a
written estimate, based on the physical survey, of charges for the
transportation and all related services. The statute permits two
exceptions to the requirement for a physical survey.
First, the motor carrier need not conduct a physical survey if the
household goods are located beyond a 50-mile radius of the location of
the carrier's household goods agent preparing the written estimate
provided to the individual shipper.
Second, the individual shipper may elect to waive a physical survey
of the household goods. Such a waiver agreement is subject to several
requirements. The waiver must be in writing; it must be signed by the
individual shipper before the household goods shipment is loaded; and
the motor carrier must retain a copy of the waiver as an addendum to
the bill of lading. The copy of the waiver agreement is subject to the
same record retention requirements that apply to the bill of lading, as
provided in Sec. 375.505(d).
Section 4205 also codified or added certain requirements for
household goods motor carriers to provide two informational
publications to individual shippers--``Ready to Move?'' and ``Your
Rights and Responsibilities When You Move'' or any successor
publications.
D. Limitations on Liability and Released Rates
Sec. 4207 of SAFETEA-LU (119 Stat. 1757) amends the liability
provisions in 49 U.S.C. 14706(f) to impose on the household goods motor
carrier a ``full value protection obligation'' with respect to the
individual shipper. The motor carrier is liable for the full value of
household goods that are lost, damaged, destroyed or otherwise not
delivered to the final destination unless the individual shipper waives
such liability in writing. The carrier's liability is equal to the
replacement value of the household goods, subject to a maximum amount
equal to the declared value of the shipment and to rules issued by the
Surface Transportation Board (STB) and applicable tariffs. If the
household goods motor carrier receives from the individual shipper a
written waiver of liability for full value protection, the released
rates established by the STB shall apply.
E. Arbitration Requirements
Sec. 4208 of SAFETEA-LU (119 Stat. 1757) amends the provisions
governing procedures for arbitration of disputes in 49 U.S.C. 14708 as
follows--
Sec. 14708(b), as amended by section 4208(b), increases from $5,000
to $10,000 the threshold amount at which the carrier must agree to
submit certain disputes to binding arbitration at the individual
shipper's request. If the dispute involves a claim of $10,000 or less
and the shipper requests arbitration, the arbitration shall be binding
on the parties. If a shipper requests arbitration involving a claim of
more than $10,000, the decision of the arbitrator shall be binding on
the parties only if the carrier agrees to the arbitration. Sec.
14708(b) is further amended by section 4208(c) to provide that the
arbitrator may, among other appropriate remedies listed in the statute,
order the shipper to pay additional carrier charges.
F. Penalties for Holding Household Goods Hostage
Sec. 4210 of SAFETEA-LU (119 Stat. 1758) amends chapter 149 of
title 49 U.S.C. to add section 14915, which makes household goods motor
carriers subject to civil and criminal penalties, as well as to
suspension of registration, for failure to give up possession of the
household goods upon tender of appropriate payment by the individual
shipper. The civil penalty shall be not less than $10,000 for each
violation, and each day the household goods are held hostage
constitutes a separate violation. A violation may additionally result
in the suspension of the household goods
[[Page 36765]]
motor carrier's registration under the provisions of 49 U.S.C. chapter
139. These penalties complement the provisions for payment of rates
added by sec. 4203 as discussed previously.
Section-by-Section Discussion of the FMCSR Amendments \4\
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\4\ To achieve a logical sequence of regulatory provisions,
certain of the amended FMCSR sections include paragraphs that are
redesignated (i.e., renumbered) but not otherwise revised.
---------------------------------------------------------------------------
A. Part 350--Commercial Motor Carrier Safety Assistance Program
In part 350, we revise Sec. Sec. 350.111, 350.201, 350.211, and
350.309 to implement the amended requirements in sec. 4106(c)(2) of
SAFETEA-LU concerning MCSAP-eligible funding for documented enforcement
of State and local traffic laws and regulations designed to promote the
safe operation of CMVs and non-CMVs. We further amend Sec. 350.201,
and amend Sec. 350.301, to align the qualifying conditions for MCSAP
Basic Program Funds and expenditure levels with those in sec.
4106(a)(1)(A), (a)(2)(E), (a)(3)(Q), (A)(3)(U), (A)(3)(V), and
(A)(3)(X). These expanded requirements are captured as well in amended
Sec. 350.211, which provides the required format of the certification
necessary for receipt of MCSAP Basic Program funding. The revisions to
Sec. 350.111 include minor editorial clarifications.
Changes to part 350 also are required by sec. 4107 of SAFETEA-LU,
which amends the provisions regarding High Priority Activity funds and
adds provisions for New Entrant Funds. In Sec. 350.105, we amend the
definition for High Priority Activity Funds and add a definition for
New Entrant Funds to implement sec. 4107(a) and (b), respectively. As
required by sec. 4107(a), High Priority funds are now to be allocated
only to ``State agencies, local governments, and organizations
representing government agencies or officials that use and train
qualified officers and employees in coordination with State motor
vehicle safety agencies,'' and used for ``carrying out high priority
activities and projects that improve commercial motor vehicle safety *
* *.'' Additionally, projects eligible for high priority funds include
demonstration of new technologies and public awareness and education.
We implement this heightened specificity regarding High Priority
grant recipients not only in the amended definition under Sec. 350.105
but also in Sec. 350.313(c). The set-asides for High Priority and New
Entrant grants provided in sec. 4107(a) and (b), respectively, are
implemented in Sec. 350.313(a). The High Priority annual set-aside
(which is up to $15,000,000 for fiscal years 2006 through 2009) is
implemented as well in Sec. 350.319(d).
Similarly, Sec. 350.321(d) provides that in each fiscal year the
Administrator shall set aside for New Entrant activities an amount of
MCSAP funding up to the maximum allowed by law. For each year, the
maximum allowable amount is $29,000,000. To allow for future
adjustments of the set-aside amounts by Congress, the regulatory text
does not specify the amounts and applicable fiscal years. Section
350.321 (whose heading is revised to read, ``What are permissible uses
of New Entrant Funds?'') provides in addition that FMCSA will allocate
New Entrant funds to State and local governments without requiring a
matching contribution.
We further implement sec. 4107 in Sec. 350.329, whose heading is
revised to read ``How may a State or local agency qualify for High
Priority or New Entrant Funds?''
Finally, we remove Sec. 350.217. This section concerns MCSAP grant
funds authorized under sec. 103(b)(1) of MCSIA, which is no longer in
effect.
B. Part 375--Transportation of Household Goods in Interstate Commerce;
Consumer Protection Regulations
We amend Sec. 375.103 to revise the definition of ``individual
shipper'', to add a definition for ``household goods motor carrier'',
as required by sec. 4202(b) of SAFETEA-LU, and to revise the related
definitions of ``you'' and ``your'' to reflect the new definition. As
sec. 4202(c) limits the applicability of the regulations governing
interstate transportation of household goods to household goods motor
carriers as defined in sec. 4202(b), we amend Sec. 375.101, entitled
``Who must follow these regulations?'', to replace the words ``for-hire
motor carrier'' with the words ``household goods motor carrier,''
consistent with the definition in Sec. 375.103.
To implement the sec. 4207 requirement that the motor carrier
provide the individual shipper with full value protection against loss
of, or damage to, household goods, unless the shipper waives the
carrier's full value liability in writing, we amend Sec. Sec.
375.201(b) and (c), 375.501(a)(10), 375.505(b)(12), and the sections
``What Is My Mover's Normal Liability for Loss or Damage When My Mover
Accepts Goods From Me?'' and ``What Actions by Me Limit or Reduce My
Mover's Normal Liability?'' in subpart B of appendix A to part 375.
We amend Sec. 375.211 to implement the sec. 4208 requirements
governing arbitration of disputes between the carrier and shipper
regarding loss of or damage to the household goods. The introductory
text to amended Sec. 375.211(a) implements the provision in section
4208(c) requiring arbitration on the issue of whether the individual
shipper must pay additional carrier charges not collected at delivery.
Sections 375.211(a)(7) and (8) implement the increased claim-amount
thresholds at which arbitration requested by the individual shipper
shall be binding, as provided in section 4208(b). Both provisions also
are described in subpart B of appendix A to part 375, under ``Must My
Mover Have an Arbitration Program?''. The section 4208(c) provision
concerning payment of additional carrier charges not collected at
delivery is described as well in the section ``Do I Have a Right To
File a Claim To Recover Money for Property My Mover Lost or Damaged?''
under subpart H of this appendix.
We amend Sec. 375.213 by revising paragraph (a) to implement the
sec. 4205 requirement that the carrier provide the shipper a copy of
the Department of Transportation publication FMCSA-ESA-03-005 entitled
``Ready to Move?'' (or its successor publication) \5\ when providing
the written estimate. We also make minor editorial revisions in Sec.
375.213(c). We inform the individual shipper of the mover's obligation
to provide him or her with a copy of ``Ready to Move?'' in ``What
Information Must My Mover Provide Me?'' under subpart B of appendix A
to part 375--the consumer pamphlet ``Your Rights and Responsibilities
When You Move.''
---------------------------------------------------------------------------
\5\ This publication is available on the FMCSA's Protect Your
Move Web site at http://www.protectyourmove.gov/documents/ReadyToMove-2006-april.pdf
.
---------------------------------------------------------------------------
The requirement in 49 U.S.C. 14104(b)(2) for the household goods
motor carrier to provide the shipper with a copy of the publication
``Your Rights and Responsibilities When You Move'' is already contained
in Sec. 375.213. The contents of this publication are specified in
Appendix A to part 375. The publication was reissued in 2006 (71 FR
17945, Apr. 7, 2006) to reflect most, but not all, of the statutory
changes implemented by regulations now adopted in this final rule.\6\
The revised publication, which also includes the remaining changes
required by SAFETEA-LU, together
[[Page 36766]]
with certain clarifying edits, is being published in this final rule.
---------------------------------------------------------------------------
\6\ The current version of this publication, No. FMCSA-ESA-03-
006, is also available on the same Web site at http://www.protectyourmove.gov/documents/moving-rights-v9-final.pdf
.
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We amend Sec. Sec. 375.401(a), 375.403(a), and 375.405(b)(1) to
implement the sec. 4205 requirement that the motor carrier's written
estimate (whether binding or non-binding) be based on a physical survey
of the household goods. The two exceptions to this requirement--the
physical survey is not required if the household goods are located
beyond a 50-mile radius of the carrier's agent preparing the estimate
or if the shipper waives the requirement in writing--are found in
amended Sec. Sec. 375.401(a)(1) and (2). Amended Sec. Sec. 375.403(a)
and 375.405(b) include minor editorial revisions. Corresponding
information is provided to the individual shipper in the section ``Must
My Mover Estimate the Transportation and Accessorial Charges for My
Move?'' under subpart D of Appendix A to part 375.
We further amend Sec. Sec. 375.401, 375.403, 375.405, and 375.407
to implement certain provisions of 49 U.S.C. 13707(b), as amended by
sec. 4203 of SAFETEA-LU. Under amended section 13707(b)(3)(C), the
motor carrier may charge the shipper at delivery for post-contract
services requested by the shipper. Post-contract services means
services requested by the individual shipper after the bill of lading,
which contains the terms and conditions of the contract between the
carrier and the individual shipper, has been issued as provided in 49
CFR 375.505(a). Under amended section 13707(b)(3)(D), the carrier may
require the shipper to pay charges at delivery for impracticable
operations, provided these charges do not exceed 15 percent of all
other charges due at delivery, and allow the shipper only a 30-day
credit period for the remaining charges. These rules are implemented in
Sec. Sec. 375.401(e), 375.403(a)(9) and (10); 375.405(b); 375.407(a),
(b), and (d); 375.703, 375.707(a)(2) and (3); 375.807(c)(1); and
appendix A to part 375. A minor, clarifying editorial revision is
included in Sec. 375.407(b).
The Appendix A revisions noted above are found in subparts D, G,
and H. See ``Must My Mover Estimate the Transportation and Accessorial
Charges for My Move?''; ``How Must My Mover Estimate Charges Under the
Regulations?''; and ``What Payment Arrangements Must My Mover Have in
Place To Secure Delivery of My Household Goods Shipment?'' in subpart
D; ``What Is the Maximum Collect-on-Delivery Amount My Mover May Demand
I Pay at the Time of Delivery?'' in subpart G; and ``How Must My Mover
Present Its Freight or Expense Bill to Me?''; ``If I Forced My Mover To
Relinquish a Collect-on-Delivery Shipment Before the Payment of ALL
Charges, How Must My Mover Collect the Balance?''; and ``What Actions
May My Mover Take To Collect From Me the Charges Upon Its Freight
Bill?'' in subpart H.
We implement in Sec. 375.707 the sec. 4203 prohibition (as
codified in amended 49 U.S.C. 13707(b)(3)(B)) against a motor carrier's
demanding full payment of freight charges at delivery after making only
partial delivery of a shipment. Corresponding information is provided
to individual shippers in the amended section ``If My Shipment Is
Partially Lost or Destroyed, What Charges May My Mover Collect at
Delivery?'' under subpart G of appendix A to part 375.
C. Part 383--Commercial Driver's License Standards; Requirements and
Penalties
In part 383, we implement the increased civil penalty assessments
against drivers and employers for violations of OOS orders (provided in
sec. 4102(b)(2)-(4) of SAFETEA-LU) by amending Sec. 383.53(b)(1) and
(2), respectively. The increased minimum disqualification periods for
drivers convicted of such violations are implemented in amended table 4
to Sec. 383.51 (Sec. 383.51(e)).
D. Part 384--State Compliance With Commercial Driver's License Program
We implement the sec. 4124(c) provision concerning Federal-aid
highway fund withholding amounts based on State noncompliance with the
CDL Program in amended Sec. 384.401(a) and (b), respectively (as
renumbered as a result of the change described in the next paragraph),
by replacing, in the phrase ``equal to 5 percent'' and the phrase
``equal to 10 percent,'' the words ``equal to'' with ``up to.'' We also
add Sec. 384.301(c), which allows States up to 3 years from the
effective date of the final rule to come into compliance with the newly
adopted requirements of subpart B to part 384. This provides sufficient
time for the States to revise State legislation and establish
procedures to incorporate the new requirements into existing systems.
In addition, this final rule makes a technical correction by
removing Sec. Sec. 384.401(a)(2) and (b)(2) and renumbers the
preceding paragraphs accordingly. Like the previously discussed Sec.
350.217, also being removed in this rule, Sec. Sec. 384.401(a)(2) and
(b)(2) refer to certain MCSAP grant funds authorized under sec.
103(b)(1) of MCSIA, which is no longer in effect.
E. Part 385--Safety Fitness Procedures
Sec. 4114 of SAFETEA-LU enhances FMCSA's regulatory authority over
the intrastate operations of interstate motor carriers (i.e., to
intrastate operations affecting interstate commerce) and allows the
Agency to consider, in determining the safety rating of an interstate
carrier that also operates in Canada and/or Mexico, the carrier's
safety records in those countries. We implement this requirement by
adding a definition for ``motor carrier operations in commerce'' in
Sec. 385.3, amending the part 385 provisions concerning determination
of motor carrier safety ratings, and amending the explanation of the
safety rating process in appendix B to part 385.
``Motor carrier operations in commerce'' are defined as including
both CMV transportation operations in interstate commerce and
operations affecting interstate commerce in conformity with the
statutory grant of authority. We use the term ``motor carrier
operations in commerce'' throughout amended part 385--specifically
Sec. Sec. 385.7, 385.13, 385.17(g), and appendix B to part 385 (in new
paragraph (f) and amended Sec. II(B)). Minor editorial revisions are
included in amended Sec. 385.17(g) and Sec. II(B) of appendix B to
part 385.
To implement sec. 4114(a), which allows FMCSA to utilize among
other things, for the purposes of safety ratings, the accident record
and safety inspection record of an owner or operator operating in
interstate commerce and the accident record and safety inspection
record of an owner or operator in operations that affect interstate
commerce, both within the United States and (as such data becomes
available) in operations in Canada and Mexico if the owner or operator
also operates within the United States, we amend Sec. Sec. 385.7(c),
(d), (f), and (g).
We amend Sec. 385.13(d)(1) to implement sec. 4114(b), which
provides that if FMCSA determines that a motor carrier is unfit and
then prohibits the carrier from operating in interstate commerce, the
Agency also must place out of service any operations by the carrier
that affect interstate commerce. Operations that affect interstate
commerce are essentially any intrastate operation. We implement in
Sec. 385.13(d)(2) and (3) the complementary provision under sec.
4114(c) which requires that if a State receiving MCSAP funds and using
FMCSA's safety rating methodology prohibits the intrastate operations
of a carrier whose principal place of business is in that State, FMCSA
must
[[Page 36767]]
take reciprocal action by prohibiting the motor carrier from operating
in interstate commerce.
F. Part 386--Rules of Practice for Motor Carrier, Broker, Freight
Forwarder, and Hazardous Materials Proceedings
In Appendix B to part 386, as required by sec. 7112 of SAFETEA-LU,
we implement the increased maximum civil penalties to which motor
carriers transporting hazardous materials in interstate commerce in
quantities requiring placarding (in accordance with 49 U.S.C. chapter
51) are subject following receipt of a final ``unsatisfactory'' safety
rating by revising paragraph (e)(1), revising and redesignating
paragraph (e)(3), and adding paragraphs (e)(4) and (f)(2). The
increased civil penalties in sec. 7120(a)(3) for violations of
training-related HMRs are implemented in amended paragraph (e)(2) and
new paragraph (f)(2) of this appendix B. New paragraphs (e)(5) and
(f)(2) implement the higher civil penalties in sec. 7120(a)(2) for
violations of statutes and regulations governing hazardous materials
transportation where the violation results in death, serious illness,
or severe injury to any person or in substantial destruction of
property.
New paragraph (g)(21) of this appendix B implements the civil
penalty established in sec. 4210 of SAFETEA-LU for failure by a
household goods motor carrier to relinquish a shipment for which the
individual shipper has tendered payment in accordance with part 375.
Lastly, we add paragraph (h) to this appendix B to implement the civil
penalty established in sec. 4103 for a motor carrier, broker, or
freight forwarder, or any person subject to 49 U.S.C. chapter 51, who
denies FMCSA the right to access the company's records and facilities.
G. Part 390--Federal Motor Carrier Safety Regulations; General
In part 390, we implement sec. 4147 of SAFETEA-LU by adding to the
existing exceptions in Sec. 390.3(f) the exception for drivers
responding to emergency conditions, and by adding in Sec. 390.5 a
definition for ``emergency condition requiring immediate response.'' As
provided in Sec. Sec. 382.103(c) and 383.3(b), the exceptions in Sec.
390.3(f) are not applicable to part 382, Controlled Substances and
Alcohol Use and Testing, and part 383, Commercial Driver's License
Standards; Requirements and Penalties.
H. Part 395--Hours of Service of Drivers
Sec. 4130, 4132, 4133, and 4146 of SAFETEA-LU provide specific
exceptions from the hours-of-service regulations for operators of
vehicles transporting agricultural commodities and farm supplies,
operators of utility service vehicles, transportation of property or
passengers to or from motion picture production sites, and operators of
CMVs transporting grapes west of Interstate 81 in the State of New York
during a harvesting period, respectively. We implement sec. 4130 and
4132 by amending Sec. Sec. 395.1(k)(2) and (n), respectively. Sec.
4133 is implemented by adding Sec. 395.1(p), while the sec. 4146
exemption concerning the transportation of grapes during the harvest
period in New York is implemented by adding Sec. 395.1(q).
Rulemaking Analyses and Notices
Administrative Procedure Act
Generally agencies may promulgate final rules only after issuing a
notice of proposed rulemaking and providing an opportunity for public
comment under procedures required by the Administrative Procedure Act
(APA), as provided in 5 U.S.C. 553(b) and (c). The APA, in 5 U.S.C.
553(b)(3)(B), provides a good cause exception from these requirements
when notice and an opportunity to comment would be unnecessary. FMCSA
finds that notice-and-comment is unnecessary prior to adoption of each
provision in this final rule because the changes to regulations are
statutorily mandated by Congress and the Agency is performing a
nondiscretionary ministerial act. Therefore, notice-and-comment
procedures under 5 U.S.C. 553 are not required by the APA and are not
otherwise required by law.
Executive Order 12866 (Regulatory Planning and Review) and DOT
Regulatory Policies and Procedures
FMCSA determined that this action does not meet the criteria for a
``significant regulatory action'' either as specified in Executive
Order 12866 or within the meaning of Department of Transportation
regulatory policies and procedures (44 FR 11034, Feb. 26, 1979).
Therefore, this rule has not been reviewed by the Office of Management
and Budget (OMB). We anticipate the economic impact of this rulemaking
will be so minimal that a full regulatory evaluation under paragraph
10e of the regulatory policies and procedures of DOT is unnecessary.
Costs and Benefits of Safety Regulations
Although a full regulatory evaluation is unnecessary because of the
low economic impact of this rulemaking, FMCSA prepared a cost-benefit
analysis of the impact of the various SAFETEA-LU provisions implemented
by this final rule. This economic analysis examined each provision to
determine whether it is economically significant, i.e., whether it is
likely to result in a cost of $100 million or more in any given year.
FMCSA determined that the rule provisions, considered both individually
and in the aggregate, will neither rise to the level of economic
significance nor significantly impact public safety. The details of
this cost-benefit analysis are provided in the Regulatory Evaluation
developed by the Agency, which is available in the docket for this
rulemaking.
Generally, the provisions of this final rule entail minor changes
to operating procedures in specific segments of the industry that will
have little if any impact on industry costs. Our analysis shows that
the sec. 4114 provisions governing the intrastate operations of
interstate carriers placed out of service as a result of an
``unsatisfactory'' safety rating, and the accident and safety records
of interstate carriers while operating in Canada and/or Mexico, will
negatively impact a small number of carriers. In addition, some motor
carriers who transport household goods will bear added costs due to
this rule. These provisions will not impose costs of $100 million or
more in any one year. Moreover, given the poor safety ratings of the
small number of motor carriers affected by the intrastate operations
provision, placing their intrastate operations out of service would
likely produce modest safety benefits. FMCSA believes, therefore, that
the collective impacts of provisions in this final rule will not be
economically significant.
Prior to prescribing any regulations under chapter 311 of title 49
U.S.C., FMCSA must consider their costs and benefits ``to the extent
practicable and consistent with the purposes of'' that chapter. 49
U.S.C. 31136(c)(2)(A). The changes in 49 U.S.C. 31144 made by sec. 4114
of SAFETEA-LU are subject to this requirement. As indicated in the
Regulatory Evaluation, these changes will result in a modest net safety
benefit each year.
Regulatory Flexibility Act
Under the Regulatory Flexibility Act (RFA), as amended by the Small
Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121,
110 Stat. 857), FMCSA is not required
[[Page 36768]]
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.
Unfunded Mandates Reform Act of 1995
The Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4, 2 U.S.C.
1532) requires Federal agencies to assess the effects of their
regulatory actions on State, local, and tribal governments and the
private sector. The regulations adopted in this final rule, taken
together, will not impose an unfunded Federal mandate resulting in the
expenditure by State, local, or tribal governments, in the aggregate,
or by the private sector, of $128.1 million or more (as adjusted for
inflation) in any one year. Therefore, FMCSA is not required either to
consult with elected State officials or to comply with other
requirements of this statute.
Executive Order 13132 (Federalism Assessment)
This final rule has been analyzed in accordance with the principles
and criteria contained in Executive Order 13132, dated August 4, 1999
(64 FR 43255, Aug. 10, 1999). The requirements being promulgated in
this final rule are required by statute. Although the regulation
implementing sec. 4114 of SAFETEA-LU may appear, from a technical
standpoint, to preempt State law, the Agency promulgates this rule
exercising no discretion, since the statutory provisions are self-
executing. Based on the preemptive effect of sec. 4114, FMCSA has
consulted with elected State officials regarding the effects of this
final rule. However, since this rule is not significant as defined by
Executive Order 12866, no Federalism Summary Impact statement is
required.
Executive Order 12372 (Intergovernmental Review)
The regulations implementing Executive Order 12372 regarding
intergovernmental consultation on Federal programs and activities do
not apply to the programs covered by this final rule.
Paperwork Reduction Act
Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal agency must obtain approval from OMB for each
collection of information it conducts, sponsors, or requires through
regulations. FMCSA analyzed each provision of this final rule and
determined that certain provisions require changes to existing
information collections (ICs). The IC revisions will require approval
by OMB before taking effect. The affected ICs are titled ``Motor
Carrier Safety Assistance Program'' (2126-0010), and ``Transportation
of Household Goods; Consumer Protection'' (2126-0025).
In November 2006, the Agency published a Federal Register notice
providing a 60-day comment period on its intent to request OMB approval
of the revised ICs (71 FR 67198, Nov. 20, 2006). This notice sought
comment on the revisions to the two ICs referred to above, as well as a
third--``Commercial Driver Licensing and Test Standards'' (2126-0011).
FMCSA has since determined that this final rule will not affect the
currently approved information collection in this third item.
These two ICs affected by this final rule, and the total annual
burden hours estimated by FMCSA, are as follows:
OMB Control Number: 2126-0010.
Title: Motor Carrier Safety Assistance Program.
Type of Review: Revision of a currently approved collection.
Respondents: State Grant Applicants.
Number of Respondents: 52 (per quarter).
Estimated Time per Response: 80 hours.
Expiration Date of OMB Approval: November 30, 2007.
Frequency: Quarterly (reports) and annually (grant application).
Total Annual Burden: 11,232 hours.
Form Numbers: MCSAP-1, MCSAP-2, and MCSAP-2A.
OMB Control Number: 2126-0025.
Title: Transportation of Household Goods; Consumer Protection.
Type of Review: Revision of a currently approved collection.
Respondents: Motor Carriers and Individual Shippers of Household
Goods.
Number of Respondents: 5,400.
Estimated Time per Response: Varies from 30 minutes to distribute
consumer publication to 150 minutes to conduct physical survey.
Expiration Date of OMB Approval: August 31, 2008.
Frequency: On occasion.
Total Annual Burden: 4,552,737 hours.
Form Number: MCSA-2P.
The Agency received one comment in response to the November notice,
which contained no substantive remarks pertaining to any of the
information collections, and consequently was not incorporated into the
supporting statement. Subsequently in April 2007, FMCSA published in
the Federal Register a notice requesting public comment to OMB within
30 days on the requested approval of the IC revisions (72 FR 20164,
April 23, 2007).
National Environmental Policy Act
The Agency analyzed this final rule for the purpose of the National
Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321 et seq.), and
determined under FMCSA environmental procedures Order 5610.1, published
March 1, 2004 (69 FR 9680), that all except two provisions of the rule
are categorically excluded (CE) based on Appendix 2 of the FMCSA Order.
Not categorically excluded from environmental analysis are (1) the
requirements in part 385 concerning the ``accident record and safety
inspection record'' of motor carrier operations in commerce and the
``accident record and safety inspection record'' of interstate carriers
while operating in Canada and/or Mexico (sec. 4114 of SAFETEA-LU) and
(2) the hours-of-service exemptions in part 395 for operators of CMVs
in certain defined operations (sec. 4130, 4132, 4133, and 4146 of
SAFETEA-LU).
FMCSA conducted an Environmental Assessment (EA) to analyze the
impacts of these two provisions. The Agency's EA finds that the
provisions collectively will have no significant environmental impacts.
It includes a chart indicating whether or not the provisions are
categorically excluded from environmental analysis and the CE for each,
where applicable.
Based upon the EA findings, no Environmental Impact Statement is
required for this rule. The Agency prepared a Finding of No Significant
Impact (FONSI) in accordance with the procedures in FMCSA Order 5610.1
and NEPA requirements and guidance.
We also analyzed this action under section 176(c) of the Clean Air
Act (CAA), as amended (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 implements an administrative action or
organizational change via the rulemaking process. See 40 CFR
93.153(c)(2). This action will not result in any significant emissions
increase, nor does 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 commercial motor vehicle mileage, change the routing of
commercial motor vehicles, change how commercial motor vehicles
operate, or change the commercial motor vehicle fleet-mix of motor
carriers. While the exemptions from the hours-of-service regulations in
part 395 for drivers in certain defined operations may slightly
[[Page 36769]]
increase overall commercial motor vehicle mileage, this change should
likewise be de minimis.
Executive Order 13211 (Energy Supply, Distribution, or Use)
FMCSA analyzed this action under Executive Order 13211, Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use. This action is not a significant energy action
within the meaning of section 4(b) of the Executive Order because as a
procedural action it is not economically significant and will not have
a significant adverse effect on the supply, distribution, or use of
energy.
Executive Order 12898 (Environmental Justice)
FMCSA evaluated the environmental effects of this final rule in
accordance with Executive Order 12898 and determined that there are no
environmental justice issues associated with its provisions nor any
collective environmental impact resulting from its promulgation.
Environmental justice issues would be raised if there were
``disproportionate'' and ``high and adverse impact'' on minority or
low-income populations. None of the alternatives analyzed in the
Agency's EA, discussed under National Environmental Policy Act, would
result in high and adverse environmental impacts.
Executive Order 13045 (Protection of Children)
FMCSA has analyzed this action under Executive Order 13045,
Protection of Children from Environmental Health Risks and Safety
Risks. This rule is not economically significant and does not create an
environmental risk to health or safety that would disproportionately
affect children. Therefore, we have determined the rule is not a
``covered regulatory action'' as defined under Executive Order 13045.
Executive Order 12988 (Civil Justice Reform)
This action 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.
Executive Order 12630 (Taking of Private Property)
This rule will not effect a taking of private property or otherwise
have takings implications under Executive Order 12630, Governmental
Actions and Interference with Constitutionally Protected Property
Rights.
List of Subjects
49 CFR Part 350
Grant programs--transportation, Highway safety, Motor carriers,
Motor vehicle safety, 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 383
Administrative practice and procedure, Commercial driver's license,
Commercial motor vehicles, Highway safety, Motor carriers.
49 CFR Part 384
Administrative practice and procedure, Commercial driver's license,
Commercial motor vehicles, Highway safety, Motor carriers.
49 CFR Part 385
Administrative practice and procedure, Highway safety, Mexico,
Motor carriers, Motor vehicle safety, 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 390
Highway safety, Intermodal transportation, Motor carriers, Motor
vehicle safety, Reporting and recordkeeping requirements.
49 CFR Part 395
Highway safety, Motor carriers, Reporting and recordkeeping
requirements.
0
In consideration of the foregoing, FMCSA amends 49 CFR parts 350, 375,
383, 384, 385, 386, 390, and 395 as set forth below:
PART 350--COMMERCIAL MOTOR CARRIER SAFETY ASSISTANCE PROGRAM
0
1. The authority citation for part 350 is revised to read as follows:
Authority: 49 U.S.C. 13902, 31100-31104, 31108, 31136, 31140-
31141, 31144, 31161, 31310-31311, 31502; and 49 CFR 1.73.
0
2. Amend Sec. 350.105 to revise the definition for ``High Priority
Activity Funds'' and to add, in correct alphabetical placement, a
definition for ``New Entrant Funds'' to read as follows:
Sec. 350.105 What definitions are used in this part?
* * * * *
High Priority Activity Funds means funds provided for carrying out
high-priority activities and projects that improve CMV safety and
compliance with CMV safety regulations (including activities and
projects that are national in scope), increase public awareness and
education, demonstrate new technologies, and reduce the number and rate
of accidents involving CMVs.
* * * * *
New Entrant Funds means funds provided to State and local
governments to conduct safety audits on New Entrant motor carriers
under the New Entrant Safety Assurance Program.
* * * * *
0
3. Revise Sec. 350.111 to read as follows:
Sec. 350.111 What constitutes traffic enforcement for the purpose of
the MCSAP?
Traffic enforcement means enforcement activities of State or local
officials, including the stopping of vehicles operating on highways,
streets, or roads for moving violations of State or local motor vehicle
or traffic laws (e.g., speeding, following too closely, reckless
driving, improper lane changes).
0
4. Amend Sec. 350.201 to revise paragraphs (b), (f), (s), and (t)(1)
and to add paragraphs (w), (x), and (y) to read as follows:
Sec. 350.201 What conditions must a State meet to qualify for Basic
Program Funds?
* * * * *
(b) Implement performance-based activities, including deployment of
technology to enhance the efficiency and effectiveness of CMV safety
programs.
* * * * *
(f) Maintain the aggregate expenditure of funds by the State and
its political subdivisions, exclusive of Federal funds, for CMV safety
programs eligible for funding under this part, at a level at least
equal to the average level of expenditure for the 3 full fiscal years
beginning after October 1 of the year 5 years prior to the beginning of
each Government fiscal year.
* * * * *
(s) Establish a program to ensure that accurate, complete, and
timely motor carrier safety data are collected and reported, and ensure
the State's participation in a national motor carrier
[[Page 36770]]
safety data correction system prescribed by FMCSA.
* * * * *
(t)(1) Enforce registration (i.e., operating authority)
requirements under 49 U.S.C. 13902, 49 CFR part 365, 49 CFR part 368,
and 49 CFR 392.9a by prohibiting the operation of (i.e., placing out of
service) any vehicle discovered to be operating without the required
operating authority or beyond the scope of the motor carrier's
operating authority.
* * * * *
(w) Include in the training manual for the licensing examination to
drive a CMV and the training manual for the licensing examination to
drive a non-CMV information on best practices for driving safely in the
vicinity of non-CMVs and CMVs.
(x) Conduct comprehensive and highly visible traffic enforcement
and CMV safety inspection programs in high-risk locations and
corridors.
(y) Except in the case of an imminent or obvious safety hazard,
ensure that an inspection of a vehicle transporting passengers for a
motor carrier of passengers is conducted at a station, terminal, border
maintenance facility, destination, or other location where a motor
carrier may make a planned stop.
0
5. Amend Sec. 350.211 to revise paragraphs 8., 11., and 13. through
17., and to add paragraphs 18., 19., 20., and 21. to read as follows:
Sec. 350.211 What is the format of the certification required by
Sec. 350.209?
* * * * *
8. The State must maintain the average aggregate expenditure of
the State and its political subdivisions, exclusive of Federal
assistance and State matching funds, for CMV safety programs
eligible for funding under the Basic program at a level at least
equal to the average level of expenditure for the 3 full fiscal
years beginning after October 1 of the year 5 years prior to the
beginning of each Government fiscal year. These expenditures must
cover at least the following four program areas, as applicable:
a. Motor carrier safety programs in accordance with 49 CFR
350.109.
b. Size and weight enforcement programs in accordance with 49
CFR 350.309(c)(1).
c. Drug interdiction enforcement programs in accordance with 49
CFR 350.309(c)(2).
d. Traffic safety programs in accordance with 49 CFR 350.309(d).
* * * * *
11. The State will establish a program to provide FMCSA with
accurate, complete, and timely reporting of motor carrier safety
information that includes documenting the effects of the State's CMV
safety programs; participate in a national motor carrier safety data
correction program (DataQs); participate in SAFETYNET; and ensure
information is exchanged in a timely manner with other States.
* * * * *
13. The State has undertaken efforts to emphasize and improve
enforcement of State and local traffic laws as they pertain to CMV
safety.
14. The State will ensure that MCSAP agencies have departmental
policies stipulating that roadside inspections will be conducted at
locations that are adequate to protect the safety of drivers and
enforcement personnel.
15. The State will ensure that requirements relating to the
licensing of CMV drivers are enforced, including checking the status
of CDLs.
16. The State will ensure that MCSAP-funded personnel, including
sub-grantees, meet the minimum Federal standards set forth in 49 CFR
part 385, subpart C for training and experience of employees
performing safety audits, compliance reviews, or driver/vehicle
roadside inspection.
17. The State will enforce operating authority requirements
under 49 CFR 392.9a by prohibiting the operation of any vehicle
discovered to be operating without the required operating authority
or beyond the scope of the motor carrier's operating authority.
18. The State will enforce the financial responsibility
requirements under 49 CFR part 387 as applicable to CMVs subject to
the provisions of 49 CFR 392.9a.
19. The State will include, in the training manual for the
licensing examination to drive a non-CMV and the training manual for
the licensing examination to drive a CMV, information on best
practices for safe driving in the vicinity of noncommercial and
commercial motor vehicles.
20. The State will conduct comprehensive and highly visible
traffic enforcement and CMV safety inspection programs in high-risk
locations and corridors.
21. The State will ensure that, except in the case of an
imminent or obvious safety hazard, an inspection of a vehicle
transporting passengers for a motor carrier of passengers is
conducted at a station, terminal, border crossing, maintenance
facility, destination, or other location where motor carriers may
make planned stops.
Date-------------------------------------------------------------------
Signature--------------------------------------------------------------
Sec. 350.217 [Removed]
0
6. Remove Sec. 350.217.
0
7. Amend Sec. 350.301 to revise paragraph (a) to read as follows:
Sec. 350.301 What level of effort must a State maintain to qualify
for MCSAP funding?
(a) The State must maintain the average aggregate expenditure of
the State and its political subdivisions, exclusive of Federal funds
and State matching funds, for CMV safety programs eligible for funding
under this part at a level at least equal to the average level of
expenditure for the 3 full fiscal years beginning after October 1 of
the year 5 years prior to the beginning of each Government fiscal year.
* * * * *
0
8. Amend Sec. 350.309 to revise paragraph (c) and to add paragraph (d)
to read as follows:
Sec. 350.309 What activities are eligible for reimbursement under the
MCSAP?
* * * * *
(c) The following two activities, when accompanied by an
appropriate North American Standard Inspection and inspection report:
(1) Enforcement of CMV size and weight limitations at locations
other than fixed weight facilities; at specific locations such as steep
grades or mountainous terrains where the weight of a CMV can
significantly affect the safe operation of the vehicle; or at ports
where intermodal shipping containers enter and leave the United States.
(2) Detection of the unlawful presence of a controlled substance in
a CMV or on the person of any occupant (including the operator) of the
vehicle.
(d) Documented enforcement of State traffic laws and regulations
designed to promote the safe operation of CMVs, including documented
enforcement of such laws and regulations relating to non-CMVs when
necessary to promote the safe operation of CMVs, if the number of motor
carrier safety activities (including roadside safety inspections)
conducted in the State is maintained at a level at least equal to the
average level of such activities conducted in the State in fiscal years
2003, 2004, and 2005. The State may not use more than 5 percent of its
MCSAP Basic Program funds for enforcement activities relating to non-
CMVs unless the Administrator determines that a higher percentage will
result in significant increases in CMV safety.
0
9. Amend Sec. 350.313 to revise paragraphs (a)(1), (a)(2), and (c) and
to add paragraph (d) to read as follows:
Sec. 350.313 How are MCSAP funds allocated?
(a) * * *
(1) An amount of the MCSAP funds appropriated for each fiscal year
up to the maximum allowed by law may be distributed for High Priority
Activities and Projects at the discretion of the Administrator.
(2) An amount of the MCSAP funds appropriated for each fiscal year
up to the maximum allowed by law may be distributed for safety audits
of New Entrant motor carriers under the New Entrant Safety Assurance
Program at the discretion of the Administrator.
* * * * *
[[Page 36771]]
(c) The funding provided under paragraph (a)(1) of this section may
be made available to State agencies, local governments, and
organizations representing government agencies or officials that use
and train qualified officers and employees in coordination with State
motor vehicle safety agencies. At least 90 percent of the amount set
aside in a fiscal year shall be awarded in grants to State agencies and
local government agencies.
(d) The funding provided under paragraph (a)(2) of this section may
be made available to State and local governments. If the Administrator
determines that a State or local government is not able to use
government employees to conduct New Entrant motor carrier audits, the
Administrator may use the funds under paragraph (a)(2) to conduct
audits for such State or local governments.
0
10. Amend Sec. 350.319 to revise paragraph (d) and to add paragraph
(e) to read as follows:
Sec. 350.319 What are permissible uses of High Priority Activity
Funds?
* * * * *
(d) The Administrator may set aside an amount of MCSAP funding up
to the maximum allowed by law for these projects and activities in each
fiscal year.
(e) FMCSA will reimburse up to 80 percent of the eligible costs in
the administration of an approved project plan, except that approved
public information and education activities may be reimbursed up to 100
percent of the eligible costs.
0
11. Revise Sec. 350.321 to read as follows:
Sec. 350.321 What are permissible uses of New Entrant Funds?
(a) These funds may be used to conduct safety audits on New Entrant
motor carriers under the New Entrant Safety Assurance Program.
(b) New Entrant funds will be allocated, at the discretion of
FMCSA, to State and local governments.
(c) FMCSA will notify States when such funds are available.
(d) The Administrator may designate up to the maximum amount
allowed by law of MCSAP funding for these projects in each fiscal year.
FMCSA will reimburse up to 100 percent of the eligible costs in the
administration of an approved project plan.
0
12. Amend Sec. 350.329 to revise the heading and republish paragraphs
(a) and (b) to read as follows:
Sec. 350.329 How may a State or local agency qualify for High
Priority or New Entrant Funds?
(a) States must meet the requirements of Sec. 350.201, as
applicable.
(b) Local agencies must meet the following nine conditions:
(1) Prepare a proposal in accordance with Sec. 350.213, as
applicable.
(2) Coordinate the proposal with the State lead MCSAP agency to
ensure the proposal is consistent with State and national CMV safety
program priorities.
(3) Certify that your local jurisdiction has the legal authority,
resources, and trained and qualified personnel necessary to perform the
functions specified in the proposal.
(4) Designate a person who will be responsible for implementation,
reporting, and administering the approved proposal and will be the
primary contact for the project.
(5) Agree to fund up to 20 percent of the proposed request.
(6) Agree to prepare and submit all reports required in connection
with the proposal or other conditions of the grant.
(7) Agree to use the forms and reporting criteria required by the
State lead MCSAP agency and/or the FMCSA to record work activities to
be performed under the proposal.
(8) Certify that the local agency will impose sanctions for
violations of CMV and driver laws and regulations that are consistent
with those of the State.
(9) Certify participation in national data bases appropriate to the
project.
PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE;
CONSUMER PROTECTION REGULATIONS
0
13. The authority citation for part 375 is revised to read as follows:
Authority: 5 U.S.C. 553; 49 U.S.C. 13102, 13301, 13704, 13707,
14104, 14706, 14708; and 49 CFR 1.73.
0
14. Revise Sec. 375.101 to read as follows:
Sec. 375.101 Who must follow the regulations in this part?
You, a household goods motor carrier engaged in the interstate
transportation of household goods, must follow the regulations in this
part when offering your services to individual shippers. You are
subject to this part only when you transport household goods for
individual shippers by motor vehicle in interstate commerce. Interstate
commerce is defined in Sec. 390.5 of this subchapter.
0
15. Amend Sec. 375.103 to revise the definitions of ``individual
shipper'' and ``you and your'' and to add, in correct alphabetical
placement, the definition for ``household goods motor carrier'' to read
as follows:
Sec. 375.103 What are the definitions of terms used in this part?
* * * * *
Household goods motor carrier means--
(1) In general, a motor carrier that, in the ordinary course of its
business of providing transportation of household goods, offers some or
all of the following additional services:
(i) Binding and nonbinding estimates;
(ii) Inventorying;
(iii) Protective packing and unpacking of individual items at
personal residences;
(iv) Loading and unloading at personal residences.
(2) The term includes any person considered to be a household goods
motor carrier under regulations, determinations, and decisions of the
Federal Motor Carrier Safety Administration in effect on the date of
enactment of the Household Goods Mover Oversight Enforcement and Reform
Act of 2005 (August 10, 2005).
(3) The term does not include any motor carrier providing
transportation of household goods in containers or trailers that are
entirely loaded and unloaded by an individual other than an employee or
agent of the motor carrier.
Individual shipper means any person who--
(1) Is the shipper, consignor, or consignee of a household goods
shipment;
(2) Is identified as the shipper, consignor, or consignee on the
face of the bill of lading;
(3) Owns the goods being transported; and
(4) Pays his or her own tariff transportation charges.
* * * * *
You and your means a household goods motor carrier engaged in the
interstate transportation of household goods and its household goods
agents.
0
16. Amend Sec. 375.201 to revise paragraph (b), to add paragraph (c),
to redesignate paragraphs (c) and (d) as paragraphs (d) and (e), and to
revise newly designated paragraph (d), to read as follows:
Sec. 375.201 What is my liability for loss and damage when I accept
goods from an individual shipper?
* * * * *
(b) Full Value Protection Obligation--In general, your liability is
for the household goods that are lost, damaged, destroyed, or otherwise
not delivered to
[[Page 36772]]
the final destination in an amount equal to the replacement value of
the household goods. The maximum amount is the declared value of the
shipment. The declared value is subject to rules issued by the Surface
Transportation Board (STB) and applicable tariffs.
(c) If the shipper waives, in writing, your liability for the full
value of the household goods, then you are liable for loss of, or
damage to, any household goods to the extent provided in the STB
released rates order. Contact the STB for a current copy of the
Released Rates of Motor Carrier Shipments of Household Goods. The rate
may be increased annually by the motor carrier based on the U.S.
Department of Commerce's Cost of Living Adjustment.
(d) As required by Sec. 375.303(g), you may have additional
liability if you sell liability insurance and fail to issue a copy of
the insurance policy or other appropriate evidence of insurance.
(e) You must, in a clear and concise manner, disclose to the
individual shipper the limits of your liability.
0
17. Amend Sec. 375.211 to revise the introductory text to paragraph
(a), paragraph (a)(7), and paragraph (a)(8) to read as follows:
Sec. 375.211 Must I have an arbitration program?
(a) You must have an arbitration program for individual shippers to
resolve disputes about property loss and damage and disputes about
whether carrier charges in addition to those collected at delivery must
be paid. You must establish and maintain an arbitration program with
the following 11 minimum elements:
* * * * *
(7) Arbitration must be binding for claims of $10,000 or less, if
the individual shipper requests arbitration.
(8) Arbitration must be binding for claims of more than $10,000, if
the individual shipper requests arbitration and the carrier agrees to
it.
* * * * *
0
18. Revise Sec. 375.213 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?''.
(b) Before you execute an order for service for a shipment of
household goods, you must furnish to your prospective individual
shipper all five of the following documents:
(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).
(2) A concise, easy-to-read, accurate estimate of your charges.
(3) A notice of the availability of the applicable sections of your
tariff for the estimate of charges, including an explanation that
individual shippers may examine these tariff sections or have copies
sent to them upon request.
(4) A concise, easy-to-read, accurate summary of your arbitration
program.
(5) A concise, easy-to-read, accurate summary of your customer
complaint and inquiry handling procedures. Included in this description
must be both of the following two items:
(i) The main telephone number the individual shipper may use to
communicate with you.
(ii) A clear and concise statement concerning who must pay for
telephone calls.
(c) To comply with paragraph (b)(1) of this section, you must
ensure that the text and general order of the document you produce and
distribute to prospective individual shippers are consistent with the
text and general order of appendix A to this part. The following three
items also apply:
(1) If we, the Federal Motor Carrier Safety Administration, choose
to modify the text or general order of appendix A, we will provide the
public appropriate notice in the Federal Register and an opportunity
for comment as required by part 389 of this chapter before making you
change anything.
(2) If you publish the document, you may choose the dimensions of
the publication as long as the type font size is 10 points or larger
and the size of the booklet is at least as large as 36 square inches
(232 square centimeters).
(3) If you publish the document, you may choose the color and
design of the front and back covers of the publication. The following
words must appear prominently on the front cover in 12-point or larger
bold or full-faced type: ``Your Rights and Responsibilities When You
Move. Furnished by Your Mover, as Required by Federal Law.'' You may
substitute your name or trade name in place of ``Your Mover'' if you
wish (for example, Furnished by XYZ Van Lines, as Required by Federal
Law).
(d) Paragraphs (c)(2) and (c)(3) of this section do not apply to
exact copies of appendix A published in the Federal Register or the
Code of Federal Regulations.
0
19. Amend Sec. 375.401 by redesignating paragraphs (a) through (g) as
paragraphs (b) through (h), adding paragraph (a), and revising
redesignated paragraphs (b) and (e) to read as follows:
Sec. 375.401 Must I conduct a physical survey and provide an estimate
of the charges?
(a) You must conduct a physical survey of the household goods to be
transported and provide the prospective individual shipper with a
written estimate, based on the physical survey, of the charges for the
transportation and all related services. There are two exceptions to
the requirement to conduct a physical survey:
(1) If the household goods are located beyond a 50-mile radius of
the location of the household goods motor carrier's agent preparing the
estimate, the requirement to base the estimate on a physical survey
does not apply.
(2) An individual shipper may elect to waive the physical survey.
The waiver agreement is subject to the following requirements:
(i) It must be in writing;
(ii) It must be signed by the shipper before the shipment is
loaded; and
(iii) The household goods motor carrier must retain a copy of the
waiver agreement as an addendum to the bill of lading with the
understanding that the waiver agreement will be subject to the same
record retention requirements that apply to bills of lading, as
provided in Sec. 375.505(d).
(b) Before you execute an order for service for a shipment of
household goods for an individual shipper, you must provide a written
estimate of the total charges and indicate whether it is a binding or a
non-binding estimate, as follows:
(1) A binding estimate is an agreement made in advance with your
individual shipper. It guarantees the total cost of the move based upon
the quantities and services shown on your estimate, which shall be
based on the physical survey of the household goods, if required. You
may impose a charge for providing a written binding estimate. The
binding estimate must indicate that you and the shipper are bound by
the charges.
(2) A non-binding estimate is what you believe the total cost will
be for the move, based upon both the estimated weight or volume of the
shipment and the accessorial services requested and the physical survey
of the household goods, if required. A non-binding estimate is not
binding on you. You will base the final charges upon the actual weight
of the individual shipper's shipment and the tariff provisions in
[[Page 36773]]
effect. You may not impose a charge for providing a non-binding
estimate.
* * * * *
(e) You must determine charges for any accessorial services such as
elevators, long carries, etc., before preparing the order for service
and the bill of lading for binding or non-binding estimates. If you
fail to ask the shipper about such charges and fail to determine such
charges before preparing the order for service and the bill of lading,
you must deliver the goods and bill the shipper after 30 days for the
additional charges, except that you may collect at delivery charges for
impracticable operations that do not exceed 15 percent of all other
charges due at delivery.
* * * * *
0
20. Amend Sec. 375.403 to revise paragraphs (a) and (b) to read as
follows:
Sec. 375.403 How must I provide a binding estimate?
(a) You may provide a guaranteed binding estimate of the total
shipment charges to the individual shipper, so long as it is provided
for in your tariff. The individual shipper must pay the amount for the
services included in your estimate. You must comply with the following
11 requirements:
(1) You must base the binding estimate on the physical survey
unless one of the exceptions provided in Sec. 375.401(a)(1) and (2)
applies.
(2) You must provide the binding estimate in writing to the
individual shipper or other person responsible for payment of the
freight charges.
(3) You must retain a copy of each binding estimate as an
attachment to be made an integral part of the bill of lading contract.
(4) You must clearly indicate upon each binding estimate's face
that the estimate is binding upon you and the individual shipper. Each
binding estimate must also clearly indicate on its face that the
charges shown apply only to those services specifically identified in
the estimate.
(5) You must clearly describe binding-estimate shipments and all
services you are providing.
(6) If it appears an individual shipper has tendered additional
household goods or requires additional services not identified in the
binding estimate, you are not required to honor the estimate. If an
agreement cannot be reached as to the price or service requirements for
the additional goods or services, you are not required to service the
shipment. However, if you do service the shipment, before loading the
shipment you must do one of the following three things:
(i) Reaffirm your binding estimate.
(ii) Negotiate a revised written binding estimate listing the
additional household goods or services.
(iii) Agree with the individual shipper, in writing, that both of
you will consider the original binding estimate as a non-binding
estimate subject to Sec. 375.405.
(7) Once you load a shipment, failure to execute a new binding
estimate or a non-binding estimate signifies you have reaffirmed the
original binding estimate. You may not collect more than the amount of
the original binding estimate, except as provided in paragraphs (a)(8)
and (9) of this section.
(8) If you believe additional services are necessary to properly
service a shipment after the bill of lading has been issued, you must
inform the individual shipper what the additional services are before
performing those services. You must allow the shipper at least one hour
to determine whether he or she wants the additional services performed.
If the individual shipper agrees to pay for the additional services,
you must execute a written attachment to be made an integral part of
the bill of lading contract and have the individual shipper sign the
written attachment. This may be done through fax transmissions; e-mail;
overnight courier; or certified mail, return receipt requested. You
must bill the individual shipper for the additional services after 30
days from delivery. If the individual shipper does not agree to pay the
additional services, the carrier should perform only those additional
services as are required to complete the delivery, and bill the
individual shipper for the additional services after 30 days from
delivery, except that you may collect at delivery charges for
impracticable operations that do not exceed 15 percent of all other
charges due at delivery.
(9) If the individual shipper requests additional services after
the bill of lading has been issued, you must inform the individual
shipper of the additional charges involved. You may require full
payment at destination for these additional services and for 100
percent of the original binding estimate. If applicable, you also may
require payment at delivery of charges for impracticable operations (as
defined in your carrier tariff) not to exceed 15 percent of all other
charges due at delivery. You must bill and collect from the individual
shipper any applicable charges not collected at delivery in accordance
with subpart H of this part.
(10) Failure to relinquish possession of a shipment upon the
individual shipper's offer to pay the binding estimate amount (or, in
the case of a partial delivery, a prorated percentage of the binding
estimate as set forth in paragraph (a)(11) of this section) plus
charges for any additional services requested by the shipper after the
bill of lading has been issued and charges, if applicable, for
impracticable operations (subject to a maximum amount as set forth in
paragraph 9 of this section), constitutes a failure to transport a
shipment with ``reasonable dispatch'' and subjects you to cargo delay
claims pursuant to part 370 of this chapter.
(11) If you make only a partial delivery of the shipment, you may
not demand upon delivery full payment of the binding estimate. You may
demand only a prorated percentage of the binding estimate. The prorated
percentage must be the percentage of the weight of that portion of the
shipment delivered relative to the total weight of the shipment. For
example, if you deliver only 2,500 pounds of a shipment weighing 5,000
pounds, you may demand payment at destination for only 50 percent of
the binding estimate.
(b) In accordance with Sec. 375.401(a), you may impose a charge
for providing a written binding estimate. If you do not provide a
binding estimate to an individual shipper, you must provide a non-
binding estimate in accordance with Sec. 375.405.
* * * * *
0
21. Amend Sec. 375.405 to revise paragraphs (b)(1), (b)(2), (b)(5),
(b)(8), (b)(9) and (b)(10) to read as follows:
Sec. 375.405 How must I provide a non-binding estimate?
* * * * *
(b) * * *
(1) You must provide reasonably accurate non-binding estimates
based upon both the estimated weight or volume of the shipment and
services required and the physical survey of the household goods, if
required. If you provide a shipper with an estimate based on volume
that will later be converted to a weight-based rate, you must provide
the shipper an explanation in writing of the formula used to calculate
the conversion to weight.
(2) You must explain to the individual shipper that final charges
calculated for shipments moved on non-binding estimates will be those
appearing in your tariffs applicable to the transportation. You must
explain that these final charges may exceed the approximate costs
appearing in your estimate.
* * * * *
(5) You must clearly indicate on the face of a non-binding estimate
that the
[[Page 36774]]
estimate is not binding upon you and the charges shown are the
approximate charges to be assessed for the service identified in the
estimate. The estimate must clearly state that the shipper will not be
required to pay more than 110 percent of the non-binding estimate at
the time of delivery.
* * * * *
(8) Once you load a shipment, failure to execute a new non-binding
estimate signifies you have reaffirmed the original non-binding
estimate. You may not collect more than 110 percent of the amount of
the original non-binding estimate at destination, except as provided in
paragraphs (b)(9) and (10) of this section.
(9) If you believe additional services are necessary to properly
service a shipment after the bill of lading has been issued, you must
inform the individual shipper what the additional services are before
performing those services. You must allow the shipper at least one hour
to determine whether he or she wants the additional services performed.
If the individual shipper agrees to pay for the additional services,
you must execute a written attachment to be made an integral part of
the bill of lading contract and have the individual shipper sign the
written attachment. This may be done through fax transmissions; e-mail;
overnight courier; or certified mail, return receipt requested. You
must bill the individual shipper for the additional services after 30
days from delivery. If the individual shipper does not agree to pay the
additional services, the carrier should perform only those additional
services as are required to complete the delivery, and bill the
individual shipper for the additional services after 30 days from
delivery, except that you may collect at delivery charges for
impracticable operations that do not exceed 15 percent of all other
charges due at delivery.
(10) If the individual shipper requests additional services after
the bill of lading has been issued, you must inform the individual
shipper of the additional charges involved. You may require full
payment at destination for these additional services and (unless you
make only a partial delivery, in which case you must collect a prorated
percentage of the original non-binding estimate as set forth in Sec.
375.407(c) of this part) for up to 110 percent of the original non-
binding estimate. If applicable, you also may require payment at
delivery of charges for impracticable operations (as defined in your
carrier tariff) not to exceed 15 percent of all other charges due at
delivery. You must bill and collect from the individual shipper any
applicable charges not collected at delivery in accordance with subpart
H of this part.
* * * * *
0
22. Revise Sec. 375.407 to read as follows:
Sec. 375.407 Under what circumstances must I relinquish possession of
a collect-on-delivery shipment transported under a non-binding
estimate?
(a) If an individual shipper pays you up to 110 percent of the non-
binding estimate on a collect-on-delivery shipment (or, in the case of
a partial delivery, a prorated percentage of the non-binding estimate
as set forth in paragraph (c) of this section), you must relinquish
possession of the shipment at the time of delivery. If there are either
charges for any additional services requested by the shipper after the
bill of lading has been issued and/or charges, if applicable, for
impracticable operations (subject to a maximum amount as set forth in
paragraph (d) of this section), and the shipper also pays you for such
charges, you must relinquish possession of the shipment at the time of
delivery. You must accept the form of payment agreed to at the time of
estimate, unless the shipper agrees in writing to a change in the form
of payment.
(b) Failure to relinquish possession of a shipment after the
individual shipper offers to pay you up to 110 percent of the
approximate costs of a non-binding estimate plus any additional charges
described in paragraph (a) of this section constitutes a failure to
transport a shipment with ``reasonable dispatch'' and subjects you to
cargo delay claims pursuant to part 370 of this chapter.
(c) If you make only a partial delivery of the shipment, you may
not demand full payment of the non-binding estimate. You may demand at
delivery only a prorated percentage of the non-binding estimate (or a
prorated percentage of an amount up to 110 percent of the non-binding
estimate). The prorated percentage must be the percentage of the weight
of that portion of the shipment delivered relative to the total weight
of the shipment. For example, if you deliver only 2,500 pounds of a
shipment weighing 5,000 pounds, you may demand payment of 50 percent of
not more than 110 percent of the non-binding estimate.
(d) You may not demand payment of charges for impracticable
operations, as defined in your tariff, of more than 15 percent of all
other charges due at delivery. You must bill and collect from the
individual shipper charges for impracticable operations not collected
at delivery in accordance with subpart H of this part.
0
23. Amend Sec. 375.501 to revise paragraph (a)(10) to read as follows:
Sec. 375.501 Must I write up an order for service?
(a) * * *
(10) A statement of the declared value of the shipment, which is
the maximum amount of your liability to the individual shipper under
your Full Value Protection for the replacement value of any household
goods that are lost, damaged, destroyed, or otherwise not delivered to
the final destination. If the individual shipper waives, in writing,
your Full Value Protection liability, you must include a copy of the
waiver; the Surface Transportation Board's required released rates
valuation statement; and the charges, if any, for optional valuation
coverage (other than Full Value Protection). The released rates may be
increased annually by the motor carrier based on the U.S. Department of
Commerce's Cost of Living Adjustment.
* * * * *
0
24. Amend Sec. 375.505 to revise paragraph (b)(12) to read as follows:
Sec. 375.505 Must I write up a bill of lading?
* * * * *
(b) * * *
(12) A statement of the declared value of the shipment, which is
the maximum amount of your liability to the individual shipper under
your Full Value Protection for the replacement value of any household
goods that are lost, damaged, destroyed, or otherwise not delivered to
the final destination. If the individual shipper waives, in writing,
your Full Value Protection liability for the declared value of the
household goods, you must include a copy of the waiver; the Surface
Transportation Board's required released rates valuation statement; and
the charges, if any, for optional valuation coverage (other than Full
Value Protection). The released rates may be increased annually by the
motor carrier based on the U.S. Department of Commerce's Cost of Living
Adjustment.
* * * * *
0
25. Revise Sec. 375.703 to read as follows:
Sec. 375.703 What is the maximum collect-on-delivery amount I may
demand at the time of delivery?
(a) On a binding estimate, the maximum amount is the exact estimate
of the charges, plus charges for any additional services requested by
the shipper after the bill of lading has been issued and charges, if
applicable, for
[[Page 36775]]
impracticable operations as defined in your carrier tariff. The maximum
amount of charges for impracticable operations you may collect on
delivery is an amount equal to 15 percent of all other charges due at
delivery.
(b) On a non-binding estimate, the maximum amount is 110 percent of
the non-binding estimate of the charges, plus charges for any
additional services requested by the shipper after the bill of lading
has been issued and charges, if applicable, for impracticable
operations as defined in your carrier tariff. The maximum amount of
charges for impracticable operations you may collect on delivery is an
amount equal to 15 percent of all other charges due at delivery.
0
26. Revise Sec. 375.707 to read as follows:
Sec. 375.707 If a shipment is partially lost or destroyed, what
charges may I collect at delivery?
(a) (1) If a shipment is partially lost or destroyed, you may
collect at delivery:
(i) A prorated percentage of the binding estimate or a prorated
percentage of up to 110 percent of the non-binding estimate. The
prorated percentage is equal to the percentage of the weight of that
portion of the shipment delivered relative to the total weight of the
shipment. For example, if you deliver only 2,500 pounds of a shipment
weighing 5,000 pounds, you may demand at destination, as applicable,
only 50 percent of a binding estimate or 50 percent of not more than
110 percent of a non-binding estimate;
(ii) Charges for any additional services requested by the shipper
after the bill of lading has been issued; and
(iii) Charges for impracticable operations, if applicable, except
that such charges must not exceed 15 percent of all other charges due
at delivery.
(iv) Any specific valuation charge due.
(2) You must bill and collect from the individual shipper any
remaining charges not collected at delivery in accordance with subpart
H of this part.
(b) You must determine, at your own expense, the proportion of the
shipment, based on actual or constructive weight, not lost or destroyed
in transit.
(c) You may disregard paragraph (a)(1) of this section if loss or
destruction was due to an act or omission of the individual shipper.
(d) The individual shipper's rights are in addition to, and not in
lieu of, any other rights the individual shipper may have with respect
to a shipment of household goods you or your agent(s) partially lost or
destroyed in transit. This applies whether or not the individual
shipper exercises any rights to obtain a refund of the portion of your
published freight charges corresponding to the portion of the lost or
destroyed shipment (including any charges for accessorial or terminal
services) at the time you dispose of claims for loss, damage, or injury
to articles in the shipment under part 370 of this chapter.
0
27. Amend Sec. 375.807 to revise paragraph (c)(1) to read as follows:
Sec. 375.807 What actions may I take to collect the charges upon my
freight bill?
* * * * *
(c) * * *
(1) You must automatically extend the credit period to a total of
30 calendar days for any shipper who has not paid your freight bill
within the 7-day period. However, for charges for impracticable
operations that are not collected at delivery, you may not extend the
credit period beyond 30 days after you present your freight bill.
* * * * *
0
28. Revise Appendix A to part 375 to read as follows:
Appendix A to Part 375--Your Rights and Responsibilities When You Move
OMB No. 2126-0025
Furnished by Your Mover, as Required by Federal Law
Authority: 49 U.S.C. 13301, 13704, 13707, and 14104; 49 CFR
1.73.
What Is Included in This Pamphlet?
In this pamphlet, you will find a discussion of each of these
topics:
Why Was I Given This Pamphlet?
What Are the Most Important Points I Should Remember From This
Pamphlet?
What If I Have More Questions?
Subpart A--General Requirements
Who must follow the regulations?
What definitions are used in this Pamphlet?
Subpart B--Before Requesting Services From Any Mover
What is my mover's normal liability for loss or damage when my mover
accepts goods from me?
What actions by me limit or reduce my mover's normal liability?
What are dangerous or hazardous materials that may limit or reduce
my mover's normal liability?
May my mover have agents?
What items must be in my mover's advertisements?
How must my mover handle complaints and inquiries?
Do I have the right to inspect my mover's tariffs (schedules of
charges) applicable to my move?
Must my mover have an arbitration program?
Must my mover inform me about my rights and responsibilities under
Federal Law?
What other information must my mover provide to me?
How must my mover collect charges?
May my mover collect charges upon delivery?
May my mover extend credit to me?
May my mover accept charge or credit cards for my payments?
Subpart C--Service Options Provided
What service options may my mover provide?
If my mover sells liability insurance coverage, what must my mover
do?
Subpart D--estimating charges
Must my mover estimate the transportation and accessorial charges
for my move?
How must my mover estimate charges under the regulations?
What payment arrangements must my mover have in place to secure
delivery of my household goods shipment?
Subpart E--Pickup of My Shipment of Household Goods
Must my mover write up an order for service?
Must my mover write up an inventory of the shipment?
Must my mover write up a bill of lading?
Should I reach an agreement with my mover about pickup and delivery
times?
Must my mover determine the weight of my shipment?
How must my mover determine the weight of my shipment?
What must my mover do if I want to know the actual weight or charges
for my shipment before delivery?
Subpart F--Transportation of My Shipment
Must my mover transport the shipment in a timely manner?
What must my mover do if it is able to deliver my shipment more than
24 hours before I am able to accept delivery?
What must my mover do for me when I store household goods in
transit?
Subpart G--Delivery of My Shipment
May my mover ask me to sign a delivery receipt releasing it from
liability?
What is the maximum collect-on-delivery amount my mover may demand I
pay at the time of delivery?
If my shipment is transported on more than one vehicle, what charges
may my mover collect at delivery?
If my shipment is partially or totally lost or destroyed, what
charges may my mover collect at delivery?
How must my mover calculate the charges applicable to the shipment
as delivered?
Subpart H--Collection of Charges
Does this subpart apply to most shipments?
How must my mover present its freight or expense bill to me?
[[Page 36776]]
If I forced my mover to relinquish a collect-on-delivery shipment
before the payment of ALL charges, how must my mover collect the
balance?
What actions may my mover take to collect from me the charges in its
freight bill?
Do I have a right to file a claim to recover money for property my
mover lost or damaged?
Subpart I--Resolving Disputes With My Mover
What may I do to resolve disputes with my mover?
Why Was I Given This Pamphlet?
The Federal Motor Carrier Safety Administration's (FMCSA)
regulations protect consumers on interstate moves and define the
rights and responsibilities of consumers and household goods
carriers.
The household goods carrier (mover) gave you this booklet to
provide information about your rights and responsibilities as an
individual shipper of household goods. Your primary responsibility
is to select a reputable household goods carrier, ensure that you
understand the terms and conditions of the contract, and understand
and pursue the remedies that are available to you in case problems
arise. You should talk to your mover if you have further questions.
The mover will also furnish you with additional written information
describing its procedure for handling your questions and complaints.
The additional written information will include a telephone number
you can call to obtain additional information about your move.
What Are the Most Important Points I Should Remember From This
Pamphlet?
1. Movers must give written estimates.
2. Movers may give binding estimates.
3. Non-binding estimates are not always accurate; actual charges
may exceed the estimate.
4. If your mover provides you (or someone representing you) with
any partially complete document for your signature, you should
verify the document is as complete as possible before signing it.
Make sure the document contains all relevant shipping information,
except the actual shipment weight and any other information
necessary to determine the final charges for all services performed.
5. You may request from your mover the availability of
guaranteed pickup and delivery dates.
6. Be sure you understand the mover's responsibility for loss or
damage, and request an explanation of the difference between
valuation and actual insurance.
7. You have the right to be present each time your shipment is
weighed.
8. You may request a reweigh of your shipment.
9. If you agree to move under a non-binding estimate, you should
confirm with your mover--in writing--the method of payment at
delivery as cash, certified check, cashier's check, money order, or
credit card.
10. Movers must offer a dispute settlement program as an
alternative means of settling loss or damage claims. Ask your mover
for details.
11. You should ask the person you speak to whether he or she
works for the actual mover or a household goods broker. A household
goods broker must not represent itself as a mover. The broker is
responsible only for arranging the transportation. It does not own
the trucks used to transport the shipment and is required to find an
authorized mover to provide the transportation. You should know that
a household goods broker generally has no authority to provide you
with an estimate for the move, unless the broker has a written
agreement with the household goods carrier. If a household goods
broker provides you with an estimate without a written agreement
with the carrier, the estimate may not be binding and you may
instead be required to pay the actual charges assessed by the mover.
A household goods broker is not responsible for loss or damage.
12. You may request complaint information about movers from the
Federal Motor Carrier Safety Administration under the Freedom of
Information Act. You may be assessed a fee to obtain this
information. See 49 CFR part 7 for the schedule of fees.
13. You should seek estimates from at least three different
movers. You should not disclose any information to the different
movers about their competitors, as it may affect the accuracy of
their estimates.
What if I Have More Questions?
If this pamphlet does not answer all of your questions about
your move, do not hesitate to ask for additional information from
your mover's representative who handled the arrangements for your
move, the driver who transports your shipment, or the mover's main
office.
Subpart A--General Requirements
The primary responsibility for your protection lies with you in
selecting a reputable household goods carrier, ensuring you
understand the terms and conditions of your contract with your
mover, and understanding and pursuing the remedies that are
available to you in case problems arise.
Who Must Follow the Regulations?
The regulations inform motor carriers engaged in the interstate
transportation of household goods (household goods motor carriers or
movers) what standards they must follow when offering services to
you. You, an individual shipper, are not directly subject to the
regulations. However, your mover may be required by the regulations
to demand that you pay on time. The regulations apply only to a
mover that both transports your household goods by motor vehicle in
interstate commerce--that is, when you are moving from one State to
another--and provides certain types of additional services. The
regulations do not apply when your interstate move takes place
within a single commercial zone. A commercial zone is roughly
equivalent to the local metropolitan area of a city or town. For
example, a move between Brooklyn, NY, and Hackensack, NJ, would be
considered within the New York City commercial zone and would not be
subject to these regulations. Commercial zones are defined in 49 CFR
part 372.
What Definitions Are Used in This Pamphlet?
Accessorial (Additional) Services--These are services such as
packing, appliance servicing, unpacking, or piano stair carries that
you request be performed (or that are necessary because of landlord
requirements or other special circumstances). Charges for these
services may be in addition to the line-haul charges.
Advanced Charges--These are charges for services performed by
someone other than the mover. A professional, craftsman, or other
third party may perform these services at your request. The mover
pays for these services and adds the charges to your bill of lading
charges.
Advertisement--This is any communication to the public in
connection with an offer or sale of any interstate household goods
transportation service. This will include written or electronic
database listings of your mover's name, address, and telephone
number in an online database. This excludes listings of your mover's
name, address, and telephone number in a telephone directory or
similar publication. However, Yellow Pages advertising is included
within the definition.
Agent--A local moving company authorized to act on behalf of a
larger, national company.
Appliance Service by Third Party--The preparation of major
electrical appliances to make them safe for shipment. Charges for
these services may be in addition to the line-haul charges.
Bill of Lading--The receipt for your goods and the contract for
their transportation.
Carrier--The mover transporting your household goods.
Collect on Delivery (COD)--This means payment is required at the
time of delivery at the destination residence (or warehouse).
Certified Scale--Any scale designed for weighing motor vehicles,
including trailers or semi-trailers not attached to a tractor, and
certified by an authorized scale inspection and licensing authority.
A certified scale may also be a platform or warehouse type scale
that is properly inspected and certified.
Estimate, Binding--This is a written agreement made in advance
with your mover. It guarantees the total cost of the move based upon
the quantities and services shown on the estimate.
Estimate, Non-Binding--This is what your mover believes the cost
will be, based upon the estimated weight of the shipment and the
accessorial services requested. A non-binding estimate is not
binding on the mover. The final charges will be based upon the
actual weight of your shipment, the services provided, and the
tariff provisions in effect.
Expedited Service--This is an agreement with the mover to
perform transportation by a set date in exchange for charges based
upon a higher minimum weight.
Flight Charge--A charge for carrying items up or down flights of
stairs. Charges for these services may be in addition to the line-
haul charges.
[[Page 36777]]
Guaranteed Pickup and Delivery Service--An additional level of
service featuring guaranteed dates of service. Your mover will
provide reimbursement to you for delays. This premium service is
often subject to minimum weight requirements.
High-Value Article--These are items included in a shipment
valued at more than $100 per pound ($220 per kilogram).
Household Goods, as used in connection with transportation,
means the personal effects or property used, or to be used, in a
dwelling, when part of the equipment or supplies of the dwelling.
Transportation of the household goods must be arranged and paid for
by you or by another individual on your behalf. This may include
items moving from a factory or store when you purchase them to use
in your dwelling. You must request that these items be transported,
and you (or another individual on your behalf) must pay the
transportation charges to the mover.
Household Goods Motor Carrier means a motor carrier that, in the
ordinary course of its business of providing transportation of
household goods, offers some or all of the following additional
services: (1) Binding and non-binding estimates, (2) Inventory, (3)
Protective packing and unpacking of individual items at personal
residences, and (4) Loading and unloading at personal residences.
The term does not include a motor carrier when the motor carrier
provides transportation of household goods in containers or trailers
that are entirely loaded and unloaded by an individual other than an
employee or agent of the motor carrier.
Individual Shipper--Any person who--
1. Is the shipper, consignor, or consignee of a household goods
shipment;
2. Is identified as the shipper, consignor, or consignee on the
face of the bill of lading;
3. Owns the goods being transported; and
4. Pays his or her own tariff transportation charges.
Impracticable Operations generally refer to services required
when operating conditions make it physically impossible for the
motor carrier to perform pickup or delivery with its normally
assigned road-haul equipment, so that the carrier must use smaller
equipment and/or additional labor to complete pickup or delivery of
the shipment. A mover may require payment of additional charges for
impracticable operations even if you do not request these services.
The specific services considered to be impracticable operations by
your mover are defined in your mover's tariff.
Inventory--The detailed descriptive list of your household goods
showing the number and condition of each item.
Line-Haul Charges--The charges for the vehicle transportation
portion of your move. These charges, if separately stated, apply in
addition to the accessorial service charges.
Long Carry--A charge for carrying articles excessive distances
between the mover's vehicle and your residence. Charges for these
services may be in addition to the line-haul charges.
May--An option. You or your mover may do something, but it is
not a requirement.
Mover--A household goods motor carrier and its household goods
agents.
Must--A legal obligation. You or your mover must do something.
Order for Service--The document authorizing the mover to
transport your household goods.
Order (Bill of Lading) Number--The number used to identify and
track your shipment.
Peak Season Rates--Higher line-haul charges applicable during
the summer months.
Pickup and Delivery Charges--Separate transportation charges
applicable to transporting your shipment between the storage-in-
transit warehouse and your residence.
Reasonable Dispatch--The performance of transportation on the
dates, or during the period of time, agreed upon by you and your
mover and shown on the Order for Service/Bill of Lading. For
example, if your mover deliberately withholds any shipment from
delivery after you offer to pay the binding estimate or up to 110
percent of a non-binding estimate, plus any charges for additional
services you requested that were not included in the estimate and/or
permissible charges for impracticable operations, your mover has not
transported the goods with reasonable dispatch. The term
''reasonable dispatch`` excludes transportation provided under your
mover's tariff provisions requiring guaranteed service dates. Your
mover will have the defense of force majeure, i.e., that the
contract cannot be performed owing to causes that are outside the
control of the parties and could not be avoided by exercise of due
care.
Should--A recommendation. We recommend you or your mover do
something, but it is not a requirement.
Shuttle Service--The use of a smaller vehicle to provide service
to residences not accessible to the mover's normal line-haul
vehicles.
Storage-In-Transit (SIT)--The temporary warehouse storage of
your shipment pending further transportation, with or without
notification to you. If you (or someone representing you) cannot
accept delivery on the agreed-upon date or within the agreed-upon
time period (for example, because your home is not quite ready to
occupy), your mover may place your shipment into SIT without
notifying you. In those circumstances, you will be responsible for
the added charges for SIT service, as well as the warehouse handling
and final delivery charges. However, your mover also may place your
shipment into SIT if your mover was able to make delivery before the
agreed-upon date (or before the first day of the agreed-upon
delivery period) but you did not concur with early delivery. In
those circumstances, your mover must notify you immediately of the
SIT, and your mover is fully responsible for redelivery charges,
handling charges, and storage charges.
Surface Transportation Board--An agency within the U.S.
Department of Transportation that regulates household goods carrier
tariffs, among other responsibilities. The Surface Transportation
Board's address is 395 E Street, SW., Washington, DC 20423-0001.
Tele. 202-245-0245.
Tariff--An issuance (in whole or in part) containing rates,
rules, regulations, classifications, or other provisions. The
Surface Transportation Board requires that a tariff contain three
specific items. First, an accurate description of the services the
mover offers to the public. Second, the specific applicable rates
(or the basis for calculating the specific applicable rates) and
service terms for services offered to the public. Third, the mover's
tariff must be arranged in a way that allows you to determine the
exact rate(s) and service terms applicable to your shipment.
Valuation--The degree of worth of the shipment. The valuation
charge compensates the mover for assuming a greater degree of
liability than is provided for in its base transportation charges.
Warehouse Handling--A charge may be applicable each time SIT
service is provided. Charges for these services may be in addition
to the line-haul charges. This charge compensates the mover for the
physical placement and removal of items within the warehouse.
We, Us, and Our--The Federal Motor Carrier Safety Administration
(FMCSA).
You and Your--You are an individual shipper of household goods.
You are a consignor or consignee of a household goods shipment and
your mover identifies you as such in the bill of lading contract.
You own the goods being transported and pay the transportation
charges to the mover.
Where may other terms used in this pamphlet be defined? You may
find other terms used in this pamphlet defined in 49 U.S.C. 13102.
The statute controls the definitions in this pamphlet. If terms are
used in this pamphlet and the terms are defined neither here nor in
49 U.S.C. 13102, the terms will have the ordinary practical meaning
of such terms.
Subpart B--Before Requesting Services From Any Mover
What Is My Mover's Normal Liability for Loss or Damage When My Mover
Accepts Goods From Me?
In general, your mover is legally liable for loss or damage that
occurs during performance of any transportation of household goods
and of all related services identified on your mover's lawful bill
of lading.
Your mover is liable for loss of, or damage to, any household
goods to the extent provided in the current Surface Transportation
Board's Released Rates Order. You may obtain a copy of the current
Released Rates Order by contacting the Surface Transportation Board
at the address provided under the definition of the Surface
Transportation Board. The rate may be increased annually by your
mover based on the U.S. Department of Commerce's Cost of Living
Adjustment. Your mover may have additional liability if your mover
sells liability insurance to you.
All moving companies are required to assume liability for the
value of the goods transported. However, there are different levels
of liability, and you should be aware of the amount of protection
provided and the charges for each option.
[[Page 36778]]
Basically, most movers offer two different levels of liability
under the terms of their tariffs and the Surface Transportation
Board's Released Rates Orders. These orders govern the moving
industry. The levels of liability are as follows:
(1) FULL VALUE PROTECTION (FVP). This is the most comprehensive
option available for the protection of your goods. Unless you waive
full-value protection in writing and agree to Release Value
Protection as described below, your shipment will be transported
under your mover's full (replacement) value level of liability. If
any article is lost, destroyed, or damaged while in your mover's
custody, your mover will, at its option, either: repair the article
to the extent necessary to restore it to the same condition as when
it was received by your mover, or pay you for the cost of such
repairs; replace the article with an article of like kind; or pay
you for the cost of a replacement article at the current market
replacement value, regardless of the age of the lost or damaged
article. Your mover will charge you for this level of protection, or
you may select the Alternative Level of Liability described below.
The cost for FVP is based on the value that you place on your
shipment. For example, the valuation charge for a shipment valued at
$25,000 would be about $250.00. However, the exact cost for full-
value protection may vary by mover and may be further subject to
various deductible levels of liability that could reduce your cost.
Ask your mover for the details and cost of its specific plan.
Under the FVP level of liability, movers are permitted to limit
their liability for loss of, or damage to, articles of extraordinary
value, unless you specifically list on the shipping documents such
articles for which you want liability coverage. An article of
extraordinary value is any item whose value exceeds $100 per pound
(for example, jewelry, silverware, china, furs, antiques, oriental
rugs and computer software). Ask your mover for a complete
explanation of this limitation before your move. It is your
responsibility to study this provision carefully and to make the
necessary declaration.
(2) RELEASED VALUE of 60 Cents Per Pound Per Article. This is
the most economical protection option available; however, this no-
cost option provides only minimal protection. Under this option, the
mover assumes liability for no more than 60 cents per pound per
article. Loss or damage claims are settled based on the weight of
the article multiplied by 60 cents per pound. For example, if a 10-
pound stereo component valued at $1,000 were lost or destroyed, the
mover would be liable for no more than $6.00 (10 pounds x 60 cents
per pound). Obviously, you should think carefully before agreeing to
such an arrangement. There is no extra charge for this minimal
protection, but you must sign a specific statement on the bill of
lading agreeing to it. If you do not select this Alternative Level
of Liability, your shipment will be transported at the Full
(Replacement) Value level of liability and you will be assessed the
applicable valuation charge.
These two levels of liability are not insurance agreements
governed by State insurance laws but instead are contractual tariff
levels of liability authorized under Released Rates Orders of the
Surface Transportation Board of the U.S. Department of
Transportation.
In addition to these options, some movers may also offer to
sell, or procure for you, separate liability insurance from a third-
party insurance company when you release your shipment for
transportation at the minimum released value (60 cents per pound
[$1.32 per kilogram] per article). This is not valuation coverage
governed by Federal law but optional insurance regulated under State
law. If you purchase this separate coverage and your mover is
responsible for loss or damage, the mover is liable only for an
amount not exceeding 60 cents per pound ($1.32 per kilogram) per
article, and the balance of the loss is recoverable from the
insurance company up to the amount of insurance purchased. The
mover's representative can advise you of the availability of such
liability insurance, and the cost.
If you purchase liability insurance from or through your mover,
the mover is required to issue a policy or other written record of
the purchase and to provide you with a copy of the policy or other
document at the time of purchase. If the mover fails to comply with
this requirement, the mover becomes fully liable for any claim for
loss or damage attributed to its negligence.
What Actions by Me Limit or Reduce My Mover's Normal Liability?
Your actions may limit or reduce your mover's normal liability
under the following three circumstances:
(1) You include perishable, dangerous, or hazardous materials in
your household goods without your mover's knowledge.
(2) You choose the alternative level of liability (60 cents per
pound per article) but ship household goods valued at more than 60
cents per pound ($1.32 per kilogram) per article.
(3) You fail to notify your mover in writing of articles valued
at more than $100 per pound ($220 per kilogram). (If you do notify
your mover, you will be entitled to full recovery up to the declared
value of the article or articles, not to exceed the declared value
of the entire shipment.)
What Are Dangerous or Hazardous Materials That May Limit or Reduce My
Mover's Normal Liability?
Federal law forbids you to ship hazardous materials in your
household goods boxes or luggage without informing your mover. A
violation can result in 5 years' imprisonment and penalties of
$250,000 or more (49 U.S.C. 5124). You could also lose or damage
your household goods by fire, explosion, or contamination.
If you offer hazardous materials to your mover, you are
considered a hazardous materials shipper and must comply with the
hazardous materials requirements in 49 CFR parts 171, 172, and 173,
including but not limited to package labeling and marking, shipping
papers, and emergency response information. Your mover must comply
with 49 CFR parts 171, 172, 173, and 177 as a hazardous materials
carrier.
Hazardous materials include explosives, compressed gases,
flammable liquids and solids, oxidizers, poisons, corrosives, and
radioactive materials. Examples: Nail polish remover, paints, paint
thinners, lighter fluid, gasoline, fireworks, oxygen bottles,
propane cylinders, automotive repair and maintenance chemicals, and
radio-pharmaceuticals.
There are special exceptions for small quantities (up to 70
ounces total) of medicinal and toilet articles carried in your
household goods and certain smoking materials carried on your
person. For further information, contact your mover.
May My Mover Have Agents?
Yes, your mover may have agents. If your mover has agents, your
mover must have written agreements with its prime agents. Your mover
and its retained prime agent must sign their agreements. Copies of
your mover's prime agent agreements must be in your mover's files
for a period of at least 24 months following the date of termination
of each agreement.
What Items Must Be in My Mover's Advertisements?
Your mover must publish and use only truthful, straightforward,
and honest advertisements. Your mover must include certain
information in all advertisements for all services (including any
accessorial services incidental to or part of interstate
transportation). Your mover must require each of its agents to
include the same information in its advertisements. The information
must include the following two pieces of information about your
mover:
(1) Name or trade name of the mover under whose U.S. DOT number
the advertised service will originate.
(2) U.S. DOT number assigned by FMCSA authorizing your mover to
operate. Your mover must display the information as: U.S. DOT No.
(assigned number).
You should compare the name or trade name of the mover and its
U.S. DOT number to the name and U.S. DOT number on the sides of the
truck(s) that arrive at your residence. The names and numbers should
be identical. If the names and numbers are not identical, you should
ask your mover immediately why they are not. You should not allow
the mover to load your household goods on its truck(s) until you
obtain a satisfactory response from the mover's local agent. The
discrepancies may warn of problems you will have later in your
business dealings with this mover.
How Must My Mover Handle Complaints and Inquiries?
All movers are expected to respond promptly to complaints or
inquiries from you, the customer. Should you have a complaint or
question about your move, you should first attempt to obtain a
satisfactory response from the mover's local agent, the sales
representative who handled the arrangements for your move, or the
driver assigned to your shipment.
If for any reason you are unable to obtain a satisfactory
response from one of these persons, you should then contact the
mover's principal office. When you make such a call, be sure to have
available your copies of all documents relating to your move.
[[Page 36779]]
Particularly important is the number assigned to your shipment by
your mover.
Interstate movers are also required to offer neutral arbitration
as a means of resolving consumer disputes involving loss of or
damage to your household goods shipment and disputes regarding
charges that your mover billed in addition to those collected at
delivery. Your mover is required to provide you with information
regarding its arbitration program. You have the right to pursue
court action under 49 U.S.C. 14706 to seek judicial redress directly
rather than participate in your mover's arbitration program.
All interstate moving companies are required to maintain a
complaint and inquiry procedure to assist their customers. At the
time you make the arrangements for your move, you should ask the
mover's representative for a description of the mover's procedure,
the telephone number to be used to contact the mover, and whether
the mover will pay for such telephone calls. Your mover's procedure
must include the following four things:
(1) A communications system allowing you to communicate with
your mover's principal place of business by telephone.
(2) A telephone number.
(3) A clear and concise statement about who must pay for
complaint and inquiry telephone calls.
(4) A written or electronic record system for recording all
inquiries and complaints received from you by any means of
communication.
Your mover must give you a clear and concise written description
of its procedure. You may want to be certain that the system is in
place.
Do I Have the Right to Inspect My Mover's Tariffs (Schedules of
Charges) Applicable to My Move?
Federal law requires your mover to advise you of your right to
inspect your mover's tariffs (its schedules of rates or charges)
governing your shipment. Movers' tariffs are made a part of the
contract of carriage (bill of lading) between you and the mover. You
may inspect the tariff at the mover's facility, or, upon request,
the mover will furnish you a free copy of any tariff provision
containing the mover's rates, rules, or charges governing your
shipment.
Tariffs may include provisions limiting the mover's liability.
This is generally described in a section on declaring value on the
bill of lading. A second tariff provision may set the periods for
filing claims. This is generally described in Section 6 on the
reverse side of a bill of lading. A third tariff provision may
reserve your mover's right to assess additional charges for
additional services performed. For non-binding estimates, another
tariff provision may base charges upon the exact weight of the goods
transported. Your mover's tariff may contain other provisions that
apply to your move. Ask your mover what they might be, and request a
copy.
Must My Mover Have an Arbitration Program?
Your mover must have an arbitration program for your use in
resolving disputes concerning loss of or damage to your household
goods and disputes regarding charges that were billed to you in
addition to those collected at delivery of your shipment. You have
the right not to participate in the arbitration program. You may
pursue court action under 49 U.S.C. 14706 to seek judicial remedies
directly. Your mover must establish and maintain an arbitration
program with the following 11 minimum elements:
(1) The arbitration program offered to you must prevent your
mover from having any special advantage because you live or work in
a place distant from the mover's principal or other place of
business.
(2) Before your household goods are tendered for transport, your
mover must provide notice to you of the availability of neutral
arbitration, including the following three things:
(a) A summary of the arbitration procedure.
(b) Any applicable costs.
(c) A disclosure of the legal effects of electing to use
arbitration.
(3) Upon your request, your mover must provide information and
forms it considers necessary for initiating an action to resolve a
dispute under arbitration.
(4) Each person authorized to arbitrate must be independent of
the parties to the dispute and capable of resolving such disputes
fairly and expeditiously. Your mover must ensure the arbitrator is
authorized and able to obtain from you or your mover any material or
relevant information to carry out a fair and expeditious decision-
making process.
(5) You must not be required to pay more than one-half of the
arbitration's cost. The arbitrator may determine the percentage of
payment of the costs for each party in the arbitration decision, but
must not make you pay more than half.
(6) Your mover must not require you to agree to use arbitration
before a dispute arises.
(7) You and your mover will be bound by arbitration for claims
of $10,000 or less if you request arbitration.
(8) You and your mover will be bound by arbitration for claims
of more than $10,000 only if you request arbitration and your mover
agrees to it.
(9) If you and your mover both agree, the arbitrator may provide
for an oral presentation of a dispute by a party or representative
of a party.
(10) The arbitrator must render a decision within 60 days of
receipt of written notification of the dispute, and a decision by an
arbitrator may include any remedies appropriate under the
circumstances.
(11) The 60-day period may be extended for a reasonable period
if either you or your mover fails to provide information in a timely
manner. Your mover must produce and distribute a concise, easy-to-
read, accurate summary of its arbitration program.
Must My Mover Inform Me About My Rights and Responsibilities Under
Federal Law?
Yes, your mover must inform you about your rights and
responsibilities under Federal law. Your mover must produce and
distribute this document. It should follow the general order and
contain the text of appendix A to 49 CFR part 375.
What Other Information Must My Mover Provide Me?
At the time your mover provides a written estimate, it must
provide you with a copy of the U.S. Department of Transportation
publication FMCSA-ESA-03-005 entitled ``Ready to Move?'' (or its
successor publication). Before your mover executes an order for
service for a shipment of household goods, your mover must furnish
you with the following four documents:
1. The contents of Appendix A, ''Your Rights and
Responsibilities When You Move''--this booklet.
2. A concise, easy-to-read, and accurate summary of your mover's
arbitration program.
3. A notice of availability of the applicable sections of your
mover's tariff for the estimate of charges, including an explanation
that you may examine the tariff sections or have copies sent to you
upon request.
4. A concise, easy-to-read, accurate summary of your mover's
customer complaint and inquiry handling procedures. Included in this
summary must be the following two items:
(a) The main telephone number you may use to communicate with
your mover.
(b) A clear and concise statement concerning who must pay for
telephone calls.
Your mover may, at its discretion, provide additional
information to you.
How Must My Mover Collect Charges?
Your mover must issue you an honest, truthful freight or expense
bill for each shipment transported. Your mover's freight or expense
bill must contain the following 17 items:
(1) Name of the consignor.
(2) Name of the consignees.
(3) Date of the shipment.
(4) Origin point.
(5) Destination points.
(6) Number of packages.
(7) Description of the freight.
(8) Weight of the freight (if your shipment is moved under a
non-binding estimate).
(9) Exact rate(s) assessed.
(10) Disclosure of the actual rates, charges, and allowances for
the transportation service, when your mover electronically presents
or transmits freight or expense bills to you. These rates must be in
accordance with the mover's applicable tariff.
(11) An indication of whether adjustments may apply to the bill.
(12) Total charges due and acceptable methods of payment.
(13) The nature and amount of any special service charges.
(14) The points where special services were rendered.
(15) Route of movement and name of each mover participating in
the transportation.
(16) Transfer points where shipments moved.
(17) Address where you must pay or address of bill issuer's
principal place of business.
Your mover must present its freight or expense bill to you
within 15 days of the date
[[Page 36780]]
of delivery of a shipment at its destination. The computation of
time excludes Saturdays, Sundays, and Federal holidays. If your
mover lacks sufficient information to compute its charges, your
mover must present its freight bill for payment within 15 days of
the date when sufficient information does become available.
May My Mover Collect Charges Upon Delivery?
Yes. Your mover must specify the form of payment acceptable at
delivery when the mover prepares an estimate and order for service.
The mover and its agents must honor the form of payment at delivery,
except when you mutually agree to a change in writing. The mover
must also specify the same form of payment when it prepares your
bill of lading, unless you agree to a change. See also ``May my
mover accept charge or credit cards for my payments?''
You must be prepared to pay 10 percent more than the estimated
amount, if your goods are moving under a non-binding estimate. Every
collect-on-delivery shipper must have available 110 percent of the
estimate at the time of delivery. In addition, your mover may also
collect at the time of delivery the charges for any additional
services you requested after the contract with your mover was
executed (charges therefore not included in the estimate) and any
charges for impracticable operations needed to accomplish delivery,
as defined by the carrier's tariff. Charges collected at the time of
delivery for impracticable operations must not exceed 15 percent of
all other charges due at the time of delivery. You must pay all
remaining charges for impracticable operations within 30 days after
you receive the mover's freight bill.
May My Mover Extend Credit to Me?
Extending credit to you is not the same as accepting your charge
or credit card(s) as payment. Your mover may extend credit to you in
the amount of the tariff charges. If your mover extends credit to
you, your mover becomes like a bank offering you a line of credit,
whose size and interest rate are determined by your ability to pay
its tariff charges within the credit period. Your mover must ensure
you will pay its tariff charges within the credit period. Your mover
may relinquish possession of freight before you pay its tariff
charges, at its discretion.
The credit period must begin on the day following presentation
of your mover's freight bill to you. Under Federal regulation, the
standard credit period is 7 days, excluding Saturdays, Sundays, and
Federal holidays. Your mover must also extend the credit period to a
total of 30 calendar days if the freight bill is not paid within the
7-day period. A service charge equal to one percent of the amount of
the freight bill, subject to a $20 minimum, will be assessed for
this extension and for each additional 30-day period the charges go
unpaid.
Your failure to pay within the credit period will require your
mover to determine whether you will comply with the Federal
household goods transportation credit regulations in good faith in
the future before extending credit again.
May My Mover Accept Charge or Credit Cards for My Payments?
Your mover may allow you to use a charge or credit card for
payment of the freight charges. Your mover may accept charge or
credit cards whenever you ship with it under an agreement and tariff
requiring payment by cash or cash equivalents. Cash equivalents are
a certified check, money order, or cashier's check (a check that a
financial institution--bank, credit union, savings and loan--draws
upon itself and that is signed by an officer of the financial
institution).
If your mover allows you to pay for a freight or expense bill by
charge or credit card, your mover deems such a payment to be
equivalent to payment by cash, certified check, or cashier's check.
It must note in writing on the order for service and the bill of
lading whether you may pay for the transportation and related
services using a charge or credit card. You should ask your mover at
the time the estimate is written whether it will accept charge or
credit cards at delivery.
The mover must specify what charge or credit cards it will
accept, such as American ExpressTM,
DiscoverTM, MasterCard TM, or
VisaTM. If your mover agrees to accept payment by charge
or credit card, you must arrange with your mover for the delivery
only at a time when your mover can obtain authorization for your
credit card transaction. If you cause a charge or credit card issuer
to reverse a transaction, your mover may consider your action
tantamount to forcing your mover to provide an involuntary extension
of its credit.
Subpart C--Service Options Provided
What Service Options May My Mover Provide?
Your mover may provide any service options it chooses. It is
customary for movers to offer several price and service options.
The total cost of your move may increase if you want additional
or special services. Before you agree to have your shipment moved
under a bill of lading providing special service, you should have a
clear understanding with your mover of what the additional cost will
be. You should always consider whether other movers might provide
the services you need without requiring you to pay the additional
charges.
One service option is a space reservation. If you agree to have
your shipment transported under a space reservation agreement, you
will pay for a minimum number of cubic feet of space in the moving
van regardless of how much space in the van your shipment actually
occupies.
A second option is expedited service. This aids you if you must
have your shipments transported on or between specific dates when
the mover could not ordinarily agree to do so in its normal
operations.
A third customary service option is exclusive use of a vehicle.
If for any reason you desire or require that your shipment be moved
by itself on the mover's truck or trailer, most movers will provide
such service.
Another service option is guaranteed service on or between
agreed dates. You enter into an agreement with the mover where the
mover provides for your shipment to be picked up, transported to
destination, and delivered on specific guaranteed dates. If the
mover fails to provide the service as agreed, you are entitled to be
compensated at a predetermined amount or a daily rate (per diem)
regardless of the expense you might actually have incurred as a
result of the mover's failure to perform.
Before requesting or agreeing to any of these price and service
options, be sure to ask the mover's representatives about the final
costs you will pay.
Transport of Shipments on Two or More Vehicles
Although all movers try to move each shipment on one truck, it
becomes necessary, at times, to divide a shipment among two or more
trucks. This may occur if your mover has underestimated the cubic
feet (meters) of space required for your shipment and it will not
all fit on the first truck. Your mover will pick up the remainder,
or ``leave behind,'' on a second truck at a later time, and this
part of your shipment may arrive at the destination later than the
first truck. When this occurs, your transportation charges will be
determined as if the entire shipment had moved on one truck.
If it is important for you to avoid this inconvenience of a
``leave behind,'' be sure your estimate includes an accurate
calculation of the cubic feet (meters) required for your shipment.
Ask your estimator to use a ``Table of Measurements'' form in making
this calculation. Consider asking for a binding estimate. A binding
estimate is more likely to be conservative with regard to cubic feet
(meters) than a non-binding estimate. If the mover offers space
reservation service, consider purchasing this service for the
necessary amount of space plus some margin for error. In any case,
you would be prudent to ``prioritize'' your goods in advance of the
move so the driver will load the more essential items on the first
truck if some are left behind.
If My Mover Sells Liability Insurance Coverage, What Must My Mover Do?
If your mover provides the service of selling additional
liability insurance, your mover must follow certain regulations.
Your mover, its employees, or its agents may sell, offer to
sell, or procure additional liability insurance coverage for you for
loss of or damage to your shipment if you release the shipment for
transportation at a value not exceeding 60 cents per pound ($1.32
per kilogram) per article.
Your mover may offer, sell, or procure any type of insurance
policy covering loss or damage in excess of its specified liability.
Your mover must issue you a policy or other appropriate evidence
of the insurance you purchased. Your mover must provide a copy of
the policy or other appropriate evidence to you at the time your
mover sells or procures the insurance. Your mover must issue
policies written in plain English.
Your mover must clearly specify the nature and extent of
coverage under the policy. Your mover's failure to issue you a
policy, or other appropriate evidence of insurance you
[[Page 36781]]
purchased, will subject your mover to full liability for any claims
to recover loss or damage attributed to it.
Your mover's tariff must provide for liability insurance
coverage. The tariff must also provide for the base transportation
charge, including its assumption of full liability for the value of
the shipment. This would offer you a degree of protection in the
event your mover fails to issue you a policy or other appropriate
evidence of insurance at the time of purchase.
Subpart D--Estimating Charges
Must My Mover Estimate the Transportation and Accessorial Charges for
My Move?
We require your mover to prepare a written estimate on every
shipment transported for you. You are entitled to a copy of the
written estimate when your mover prepares it. Your mover must
provide you a written estimate of all charges, including
transportation, accessorial, and advance charges. Your mover's
``rate quote'' is not an estimate. You and your mover must sign the
estimate of charges. Your mover must provide you with a dated copy
of the estimate of charges at the time you sign the estimate.
If the location you are moving from is within a 50-mile radius
of your mover's (or its agent's) place of business, the estimate
that your mover provides you must be based on a physical survey of
your goods. You have the right to waive the requirement for a
physical survey if you choose, but your waiver must be in the form
of a written agreement signed by you before your shipment is loaded.
You should be aware that if you receive an estimate from a
household goods broker, the mover may not be required to accept the
estimate. Be sure to obtain a written estimate from a mover who
tells you orally that it will accept the broker's estimate.
Your mover must specify the form of payment the mover and its
delivering agent will honor at delivery. Payment forms may include
but are not limited to cash, certified check, money order, cashier's
check, a specific charge card such as American ExpressTM,
a specific credit card such as VisaTM, and your mover's
own credit.
Before loading your household goods, and upon mutual agreement
between you and your mover, your mover may amend an estimate of
charges. Your mover may not amend the estimate after loading the
shipment.
A binding estimate is a written agreement made in advance with
your mover, indicating you and the mover are bound by the charges.
It guarantees the total cost of the move based upon the quantities
and services shown on your mover's estimate.
A non-binding estimate is what your mover believes the total
cost will be for the move, based upon the estimated weight of the
shipment and the accessorial services requested. A non-binding
estimate is not binding on your mover. Your mover will base the
final charges upon the actual weight of your shipment, the services
provided, and its tariff provisions in effect. You must be prepared
to pay 10 percent more than the estimated amount at delivery.
You must also be prepared to pay at delivery the charges for any
additional services you requested after the contract was executed
(charges therefore not included in the estimate) and any charges for
impracticable operations. Impracticable operations are defined in
your mover's tariff. You should ask to see the mover's tariff to
determine what services constitute impracticable operations. Charges
for impracticable operations due at delivery must not exceed 15
percent of all other charges due at delivery.
How Must My Mover Estimate Charges Under the Regulations?
Binding Estimates
Your mover may charge you for providing a binding estimate. The
binding estimate must clearly describe the shipment and all services
provided.
When you receive a binding estimate, you cannot be required to
pay any more than the estimated amount at delivery. If you have
requested the mover provide more services than those included in the
estimate, your mover will collect the charges for those services
when your shipment is delivered. However, charges for impracticable
operations due at delivery must not exceed 15 percent of all other
charges due at delivery.
A binding estimate must be in writing, and a copy must be made
available to you before you move.
If you agree to a binding estimate, you are responsible for
paying the charges due by cash, certified check, money order, or
cashier's check. The charges are due your mover at the time of
delivery unless your mover agrees, before you move, to extend credit
or to accept payment by a specific charge card such as American
ExpressTM or a specific credit card such as
VisaTM. If you are unable to pay at the time the shipment
is delivered, the mover may place your shipment in storage at your
expense until you pay the charges.
Other requirements of binding estimates include the following
eight elements:
(1) Your mover must retain a copy of each binding estimate as an
attachment to the bill of lading.
(2) Your mover must clearly indicate upon each binding
estimate's face that the estimate is binding upon you and your
mover. Each binding estimate must also clearly indicate on its face
that the charges shown are the charges to be assessed for only those
services specifically identified in the estimate.
(3) Your mover must clearly describe binding estimate shipments
and all services to be provided.
(4) If, before loading your shipment, your mover believes you
are tendering additional household goods or are requiring additional
services not identified in the binding estimate, and you and your
mover cannot reach an agreement, your mover may refuse to service
the shipment. If your mover agrees to service the shipment, your
mover must do one of the following three things:
(a) Reaffirm the binding estimate.
(b) Negotiate a revised written binding estimate listing the
additional household goods or services.
(c) Add an attachment to the contract, in writing, stating you
both will consider the original binding estimate as a non-binding
estimate. Before you agree to this option, read the information
about non-binding estimates in the next section of this pamphlet.
Accepting a non-binding estimate may seriously affect how much you
may pay for the entire move.
(5) Once your mover loads your shipment, your mover's failure to
execute a new binding estimate or to agree with you to treat the
original estimate as a non-binding estimate signifies it has
reaffirmed the original binding estimate. Your mover may not collect
more than the amount of the original binding estimate, except as
provided in the next two paragraphs.
(6) If you request additional services after the bill of lading
is executed, your mover will collect the charges for these
additional services when your shipment is delivered.
(7) If your mover must perform impracticable operations, as
defined in its tariff, to accomplish the delivery of your shipment,
your mover will collect the charges for these services when your
shipment is delivered. However, charges for impracticable operations
collected at delivery must not exceed 15 percent of all other
charges due at delivery. Any remaining impracticable operations
charges must be paid within 30 days after you receive the mover's
freight bill.
(8) Failure of your mover to relinquish possession of a shipment
upon your offer to pay the binding estimate amount plus the cost of
any additional services you requested after the bill of lading was
executed and any charges for impracticable operations (not to exceed
15 percent of all other charges due at delivery) constitutes your
mover's failure to transport a shipment with ``reasonable dispatch''
and subjects your mover to cargo delay claims pursuant to 49 CFR
part 370.
Non-Binding Estimates
Your mover is not permitted to charge you for giving a non-
binding estimate.
A non-binding estimate is not a bid or contract. Your mover
provides it to you to give you a general idea of the cost of the
move, but it does not bind your mover to the estimated cost. You
should expect the final cost to be more than the estimate. The
actual cost will be in accordance with your mover's tariffs. Federal
law requires your mover to collect the charges shown in its tariffs,
regardless of what your mover writes in its non-binding estimates.
That is why it is important to ask for copies of the applicable
portions of the mover's tariffs before deciding on a mover. The
charges contained in movers' tariffs are essentially the same for
shipments of equal weight moving equal distances. Even if you obtain
different non-binding estimates from different movers, you must pay
only the amount specified in your mover's tariff. Therefore, a non-
binding estimate may differ substantially from the amount that you
ultimately will pay.
You must be prepared to pay 10 percent more than the estimated
amount at the time
[[Page 36782]]
of delivery. Every collect-on-delivery shipper must have available
110 percent of the estimate at the time of delivery. If you order
additional services from your mover after the mover issues the bill
of lading, the mover will collect the charges for those additional
services when your shipment is delivered.
Non-binding estimates must be in writing and clearly describe
the shipment and all services provided. Any time a mover provides
such an estimate, the amount of the charges estimated must be on the
order for service and bill of lading related to your shipment. When
you are given a non-binding estimate, do not sign or accept the
order for service or bill of lading unless the mover enters the
amount estimated on each form it prepares.
Other requirements of non-binding estimates include the
following 10 elements:
(1) Your mover must provide reasonably accurate non-binding
estimates based upon the estimated weight of the shipment and
services required.
(2) Your mover must explain to you that all charges on shipments
moved under non-binding estimates will be those appearing in your
mover's tariffs applicable to the transportation. If your mover
provides a non-binding estimate of approximate costs, your mover is
not bound by such an estimate.
(3) Your mover must furnish non-binding estimates without charge
and in writing to you.
(4) Your mover must retain a copy of each non-binding estimate
as an attachment to the bill of lading.
(5) Your mover must clearly indicate on the face of a non-
binding estimate that the estimate is not binding upon your mover
and the charges shown are the approximate charges to be assessed for
the services identified in the estimate.
(6) Your mover must clearly describe on the face of a non-
binding estimate the entire shipment and all services to be
provided.
(7) If, before loading your shipment, your mover believes you
are tendering additional household goods or requiring additional
services not identified in the non-binding estimate, and you and
your mover cannot reach an agreement, your mover may refuse to
service the shipment. If your mover agrees to service the shipment,
your mover must do one of the following two things:
(a) Reaffirm the non-binding estimate.
(b) Negotiate a revised written non-binding estimate listing the
additional household goods or services.
(8) Once your mover loads your shipment, your mover's failure to
execute a new estimate signifies it has reaffirmed the original non-
binding estimate. Your mover may not collect more than 110 percent
of the amount of this estimate at destination for the services and
quantities shown on the estimate.
(9) If you request additional services after the bill of lading
is executed, your mover will collect the charges for these
additional services when your shipment is delivered.
(10) If your mover must perform impracticable operations, as
defined in its tariff, to accomplish the delivery of your shipment,
your mover will collect the charges for these services when your
shipment is delivered. However, charges for impracticable operations
collected at delivery must not exceed 15 percent of all other
charges due at delivery. Any remaining impracticable operations
charges must be paid within 30 days after you receive the mover's
freight bill.
If your mover furnishes a non-binding estimate, your mover must
enter the estimated charges upon the order for service and the bill
of lading. Your mover must retain a record of all estimates of
charges for each move performed for at least one year from the date
your mover made the estimate.
What Payment Arrangements Must My Mover Have in Place To Secure
Delivery of My Household Goods Shipment?
If your total bill is 110 percent or less of the non-binding
estimate, the mover can require payment in full upon delivery. If
the bill exceeds 110 percent of the non-binding estimate, your mover
must relinquish possession of the shipment at the time of delivery
upon payment of 110 percent of the estimated amount, and defer
billing for the remaining charges for at least 30 days.
There are two exceptions to this requirement. Your mover may
demand at the time of delivery payment of the charges for any
additional services you requested after the bill of lading was
executed (charges therefore not included in the estimate). Your
mover may also require you to pay charges for impracticable
operations at the time of delivery, provided these do not exceed 15
percent of all other charges due at delivery. Impracticable
operations charges that exceed 15 percent of all other charges due
at delivery are due within 30 days after you receive the mover's
freight bill. Your mover should have specified its acceptable form
of payment on the estimate, order for service, and bill of lading.
Your mover's failure to relinquish possession of a shipment
after you offer to pay 110 percent of the estimated charges, plus
the charges for any additional services you requested after the bill
of lading was executed (charges therefore not included in the
estimate) and any charges for impracticable operations (not to
exceed 15 percent of all other charges due at delivery), constitutes
its failure to transport the shipment with ``reasonable dispatch''
and subjects your mover to your cargo delay claims under 49 CFR part
370.
Subpart E--Pickup of My Shipment of Household Goods
Must My Mover Write Up an Order for Service?
We require your mover to prepare an order for service on every
shipment transported for you. You are entitled to a copy of the
order for service when your mover prepares it.
The order for service is not a contract. Should you cancel or
delay your move or decide not to use the mover, you should promptly
cancel the order.
If you or your mover change any agreed-upon dates for pickup or
delivery of your shipment, or agree to any change in the non-binding
estimate, your mover may prepare a written change to the order for
service. The written change must be attached to the order for
service.
The order for service must contain the following 15 elements:
(1) Your mover's name and address and the U.S. DOT number
assigned to your mover.
(2) Your name, address and, if available, telephone number(s).
(3) The name, address, and telephone number of the delivering
mover's office or agent at or nearest to the destination of your
shipment.
(4) A telephone number where you may contact your mover or its
designated agent.
(5) One of the following three dates and times:
(i) The agreed-upon pickup date and agreed delivery date of your
move.
(ii) The agreed-upon period(s) of the entire move.
(iii) If your mover is transporting the shipment on a guaranteed
service basis, the guaranteed dates or periods of time for pickup,
transportation, and delivery. Your mover must enter any penalty or
per diem requirements upon the agreement under this item.
(6) The names and addresses of any other motor carriers, when
known, that will participate in interline transportation of the
shipment.
(7) The form of payment your mover will honor at delivery. The
payment information must be the same as was entered on the estimate.
(8) The terms and conditions for payment of the total charges,
including notice of any minimum charges.
(9) The maximum amount your mover will demand, based on the
mover's estimate, for you to obtain possession of the shipment at
the time of delivery, when the household goods are transported on a
collect-on-delivery basis.
(10) If not provided in the Bill of Lading, the Surface
Transportation Board's required released rates valuation statement,
and the charges, if any, for optional valuation coverage. The STB's
required released rates may be increased annually by your mover
based on the U.S. Department of Commerce's Cost of Living
Adjustment.
(11) A complete description of any special or accessorial
services ordered and minimum weight or volume charges applicable to
the shipment.
(12) Any identification or registration number your mover
assigns to the shipment.
(13) For non-binding estimated charges, your mover's reasonably
accurate estimate of the amount of the charges, the method of
payment of total charges, and the maximum amount (110 percent of the
non-binding estimate) your mover will demand at the time of delivery
for you to obtain possession of the shipment.
(14) For binding estimated charges, the amount of charges your
mover will demand based upon the binding estimate and the terms of
payment under the estimate.
(15) An indication of whether you request notification of the
charges before delivery. You must provide your mover with the
telephone number(s) or address(es) where your mover will transmit
such communications.
[[Page 36783]]
You and your mover must sign the order for service. Your mover
must provide a dated copy of the order for service to you at the
time your mover signs the order. Your mover must provide you the
opportunity to rescind the order for service without any penalty for
a 3-day period after you sign the order for service, if you
scheduled the shipment to be loaded more than 3 days after you sign
the order.
Your mover should provide you with documents that are as
complete as possible, and with all charges clearly identified.
However, as a practical matter, your mover usually cannot give you a
complete bill of lading before transporting your goods. This is both
because the shipment cannot be weighed until it is in transit and
because other charges for service, such as unpacking, storage-in-
transit, and various destination charges, cannot be determined until
the shipment reaches its destination.
Therefore, your mover can require you to sign a partially
complete bill of lading if it contains all relevant information
except the actual shipment weight and any other information
necessary to determine the final charges for all services provided.
Signing the bill of lading allows you to choose the valuation
option, request special services, and/or acknowledge the terms and
conditions of released valuation.
Your mover also may provide you, strictly for informational
purposes, with blank or incomplete documents pertaining to the move.
Before loading your shipment, and upon mutual agreement between you
and your mover, your mover may amend an order for service. Your
mover must retain records of an order for service it transported for
at least one year from the date your mover wrote the order.
Your mover must inform you, before or at the time of loading, if
the mover reasonably expects a special or accessorial service is
necessary to transport a shipment safely. Your mover must refuse to
accept the shipment when your mover reasonably expects a special or
accessorial service is necessary to transport a shipment safely but
you refuse to purchase the special or accessorial service. Your
mover must make a written note if you refuse any special or
accessorial services that your mover reasonably expects to be
necessary.
Must My Mover Write Up an Inventory of the Shipment?
Yes. Your mover must prepare an inventory of your shipment
before or at the time of loading. If your mover's driver fails to
prepare an inventory, you should write a detailed inventory of your
shipment listing any damage or unusual wear to any items. The
purpose is to make a record of the existence and condition of each
item.
After completing the inventory, you should sign each page and
ask the mover's driver to sign each page. Before you sign it, it is
important you make sure that the inventory lists every item in the
shipment and that the entries regarding the condition of each item
are correct. You have the right to note any disagreement. If an item
is missing or damaged when your mover delivers the shipment, your
subsequent ability to dispute the items lost or damaged may depend
upon your notations.
You should retain a copy of the inventory. Your mover may keep
the original if the driver prepared it. If your mover's driver
completed an inventory, the mover must attach the complete inventory
to the bill of lading as an integral part of the bill of lading.
Must My Mover Write Up a Bill of Lading?
The bill of lading is the contract between you and the mover.
The mover is required by law to prepare a bill of lading for every
shipment it transports. The information on a bill of lading is
required to be the same information shown on the order for service.
The driver who loads your shipment must give you a copy of the bill
of lading before or at the time of loading your furniture and other
household goods.
It is your responsibility to read the bill of lading before you
accept it. It is your responsibility to understand the bill of
lading before you sign it. If you do not agree with something on the
bill of lading, do not sign it until you are satisfied it is
correct.
The bill of lading requires the mover to provide the service you
have requested. You must pay the charges set forth in the bill of
lading. The bill of lading is an important document. Do not lose or
misplace your copy. Have it available until your shipment is
delivered, all charges are paid, and all claims, if any, are
settled.
A bill of lading must include the following 14 elements:
(1) Your mover's name and address, or the name and address of
the motor carrier issuing the bill of lading.
(2) The names and addresses of any other motor carriers, when
known, who will participate in the transportation of the shipment.
(3) The name, address, and telephone number of the office of the
motor carrier you must contact in relation to the transportation of
the shipment.
(4) The form of payment your mover will honor at delivery. The
payment information must be the same that was entered on the
estimate and order for service.
(5) When your mover transports your shipment under a collect-on-
delivery basis, your name, address, and telephone number where the
mover will notify you about the charges.
(6) For non-guaranteed service, the agreed-upon date or period
of time for pickup of the shipment and the agreed-upon date or
period of time for the delivery of the shipment. The agreed-upon
dates or periods for pickup and delivery entered upon the bill of
lading must conform to the agreed-upon dates or periods of time for
pickup and delivery entered upon the order for service or a proper
amendment to the order for service.
(7) For guaranteed service, the dates for pickup and delivery
and any penalty or per diem entitlements due you under the
agreement.
(8) The actual date of pickup.
(9) The identification number(s) of the vehicle(s) in which your
mover loads your shipment.
(10) The terms and conditions for payment of the total charges
including notice of any minimum charges.
(11) The maximum amount your mover, based on the estimate, will
demand from you at the time of delivery for you to obtain possession
of your shipment, when your mover transports under a collect-on-
delivery basis.
(12) If not provided for in the Order for Service, the Surface
Transportation Board's required released rates valuation statement,
and the charges, if any, for optional valuation coverage. The
Board's required released rates may be increased annually by your
mover based on the U.S. Department of Commerce's Cost of Living
Adjustment.
(13) Evidence of any insurance coverage sold to or procured for
you from an independent insurer, including the amount of the premium
for such insurance.
(14) Each attachment to the bill of lading. Each attachment is
an integral part of the bill of lading contract. If not provided to
you elsewhere by the mover, the following three items must be added
as attachments:
(i) The binding or non-binding estimate.
(ii) The order for service.
(iii) The inventory.
A copy of the bill of lading must accompany your shipment at all
times while it is in the possession of your mover or its agent(s).
When your mover loads the shipment on a vehicle for transportation,
the bill of lading must be in the possession of the driver
responsible for the shipment. Your mover must retain bills of lading
for shipments it transported for at least one year from the date
your mover created the bill of lading.
Should I Reach an Agreement With My Mover About Pickup and Delivery
Times?
You and your mover should reach an agreement for pickup and
delivery times. It is your responsibility to determine on what date,
or between what dates, you need to have the shipment picked up and
on what date, or between what dates, you require delivery. It is
your mover's responsibility to tell you if it can provide service on
or between those dates, or, if not, on what other dates it can
provide the service.
In the process of reaching an agreement with your mover, you may
find it necessary to alter your moving and travel plans if no mover
can provide service on the specific dates you desire.
Do not agree to have your shipment picked up or delivered ''as
soon as possible.'' The dates or periods you and your mover agree
upon should be definite.
Once an agreement is reached, your mover must enter those dates
upon the order for service and the bill of lading.
Once your goods are loaded, your mover is contractually bound to
provide the service described in the bill of lading. Your mover's
only defense for not providing the service on the dates called for
is the defense of force majeure. This is a legal term. It means that
when circumstances change, were not foreseen, and are beyond the
control of your mover, preventing your mover from performing the
service agreed to in the bill of lading, your mover is not
responsible for damages resulting from its nonperformance.
This may occur when you do not inform your mover of the exact
delivery
[[Page 36784]]
requirements. For example, because of restrictions trucks must
follow at your new location, the mover may not be able to take its
truck down the street of your residence and may need to shuttle the
shipment using another type of vehicle.
Must My Mover Determine the Weight of My Shipment?
Generally, yes. If your mover transports your household goods on
a non-binding estimate, your mover must determine the actual weight
of the shipment in order to calculate its lawful tariff charge. If
your mover provided a binding estimate and has loaded your shipment
without claiming you have added additional items or services, the
weight of the shipment will not affect the charges you will pay.
Your mover must determine the weight of your shipment before
requesting you to pay for any charges dependent upon your shipment's
weight.
Most movers have a minimum weight charge for transporting a
shipment. Generally, the minimum is the charge for transporting a
shipment of at least 3,000 pounds (1,362 kilograms).
If your shipment appears to weigh less than the mover's minimum
weight, your mover must advise you on the order for service of the
minimum cost before transporting your shipment. Should your mover
fail to advise you of the minimum charges and your shipment is less
than the minimum weight, your mover must base your final charges
upon the actual weight, not upon the minimum weight.
How Must My Mover Determine the Weight of My Shipment?
Your mover must weigh your shipment upon a certified scale.
The weight of your shipment must be obtained by using one of two
methods:
Origin Weighing--Your mover may weigh your shipment in the city
or area where it loads your shipment. If it elects this option, the
driver must weigh the truck before coming to your residence. This is
called the tare weight. At the time of this first weighing, the
truck may already be partially loaded with another shipment(s). This
will not affect the weight of your shipment. The truck should also
contain the pads, dollies, hand trucks, ramps, and other equipment
normally used in the transportation of household goods shipments.
After loading, the driver will weigh the truck again to obtain
the loaded weight, called the gross weight. The net weight of your
shipment is then obtained by subtracting the tare weight before
loading from the gross weight.
Gross Weight less the Tare Weight Before Loading = Net Weight.
Destination Weighing (Also called Back Weighing)--The mover is
also permitted to determine the weight of your shipment at the
destination after it delivers your load. Weighing your shipment at
destination instead of at origin will not affect the accuracy of the
shipment weight. The most important difference is that your mover
will not determine the exact charges on your shipment before it is
unloaded.
Destination weighing is done in reverse of origin weighing.
After arriving in the city or area where you are moving, the driver
will weigh the truck. Your shipment will still be on the truck. Your
mover will determine the gross weight before coming to your new
residence to unload. After unloading your shipment, the driver will
again weigh the truck to obtain the tare weight. The net weight of
your shipment will then be obtained by subtracting the tare weight
after delivery from the gross weight.
Gross Weight less the Tare Weight After Delivery = Net Weight.
At the time of both weighings, your mover's truck must have
installed or loaded all pads, dollies, hand trucks, ramps, and other
equipment required in the transportation of your shipment. The
driver and other persons must be off the vehicle at the time of both
weighings. The fuel tanks on the vehicle must be full at the time of
each weighing; or, if the fuel tanks are not full, your mover must
not add fuel between the two weighings when the tare weighing is the
first weighing performed.
Your mover may detach the trailer of a tractor-trailer vehicle
combination from the tractor and have the trailer weighed separately
at each weighing, provided the length of the scale platform is
adequate to accommodate and support the entire trailer.
Your mover may use an alternative method to weigh your shipment
if it weighs 3,000 pounds (1,362 kilograms) or less. The only
alternative method allowed is weighing the shipment upon a platform
or warehouse certified scale before loading your shipment for
transportation or after unloading.
Your mover must use the net weight of shipments transported in
large containers, such as ocean or railroad containers. Your mover
will calculate the difference between the tare weight of the
container (including all pads, blocking and bracing used in the
transportation of your shipment) and the gross weight of the
container with your shipment loaded in the container.
You have the right, and your mover must inform you of your
right, to observe all weighings of your shipment. Your mover must
tell you where and when each weighing will occur. Your mover must
give you a reasonable opportunity to be present to observe the
weighings.
You may waive your right to observe any weighing or reweighing.
This does not affect any of your other rights under Federal law.
Your mover may request that you waive your right to have a
shipment weighed upon a certified scale. Your mover may want to
weigh the shipment upon a trailer's on-board, non-certified scale.
You should demand your right to have a certified scale used. The use
of a non-certified scale may cause you to pay a higher final bill
for your move, if the non-certified scale does not accurately weigh
your shipment. Remember that certified scales are inspected and
approved for accuracy by a government inspection or licensing
agency. Non-certified scales are not inspected and approved for
accuracy by a government inspection or licensing agency.
Your mover must obtain a separate weight ticket for each
weighing. The weigh master must sign each weight ticket. Each weight
ticket must contain the following six items:
(1) The complete name and location of the scale.
(2) The date of each weighing.
(3) Identification of the weight entries as being the tare,
gross, or net weights.
(4) The company or mover identification of the vehicle.
(5) Your last name as it appears on the Bill of Lading.
(6) Your mover's shipment registration or Bill of Lading number.
Your mover must retain the original weight ticket or tickets
relating to the determination of the weight of your shipment as part
of its file on your shipment. When both weighings are performed on
the same scale, one weight ticket may be used to record both
weighings.
Your mover must present all freight bills with true copies of
all weight tickets. If your mover does not present its freight bill
with all weight tickets, your mover is in violation of Federal law.
Before the driver actually begins unloading your shipment
weighed at origin and after your mover informs you of the billing
weight and total charges, you have the right to demand a reweigh of
your shipment. If you believe the weight is not accurate, you have
the right to request your mover reweigh your shipment before
unloading.
You have the right, and your mover must inform you of your
right, to observe all reweighings of your shipment. Your mover must
tell you where and when each reweighing will occur. Your mover must
give you a reasonable opportunity to be present to observe the
reweighing. You may waive your right to observe any reweighing;
however, you must waive that right in writing. You may send the
written waiver via fax or e-mail, as well as by overnight courier or
certified mail, return receipt requested. This does not affect any
of your other rights under Federal law.
Your mover is prohibited from charging you for the reweighing.
If the weight of your shipment at the time of the reweigh is
different from the weight determined at origin, your mover must
recompute the charges based upon the reweigh weight.
Before requesting a reweigh, you may find it to your advantage
to estimate the weight of your shipment using the following three-
step method:
1. Count the number of items in your shipment. Usually there
will be either 30 or 40 items listed on each page of the inventory.
For example, if there are 30 items per page and your inventory
consists of four complete pages and a fifth page with 15 items
listed, the total number of items will be 135. If an automobile is
listed on the inventory, do not include this item in the count of
the total items.
2. Subtract the weight of any automobile included in your
shipment from the total weight of the shipment. If the automobile
was not weighed separately, its weight can be found on its title or
license receipt.
3. Divide the number of items in your shipment into the weight.
If the average weight resulting from this exercise ranges between 35
and 45 pounds (16 and 20 kilograms) per article, it is unlikely a
reweigh will prove beneficial to you. In fact, it could result in
your paying higher charges.
[[Page 36785]]
Experience has shown that the average shipment of household
goods will weigh about 40 pounds (18 kilograms) per item. If a
shipment contains a large number of heavy items, such as cartons of
books, boxes of tools or heavier than average furniture, the average
weight per item may be 45 pounds or more (20 kilograms or more).
What Must My Mover Do if I Want To Know the Actual Weight or Charges
for My Shipment Before Delivery?
If you request notification of the actual weight and charges of
your shipment, your mover must comply with your request if it is
moving your goods on a collect-on-delivery basis. This requirement
is conditioned upon your supplying your mover with an address or
telephone number where you will receive the communication. Your
mover must make its notification by telephone; fax transmissions; e-
mail; overnight courier; certified mail, return receipt requested;
or in person.
You must receive the mover's notification at least one full 24-
hour day before its scheduled delivery, excluding Saturdays,
Sundays, and Federal holidays.
Your mover may disregard this 24-hour notification requirement
on shipments subject to one of the following three things:
(1) Back weigh (when your mover weighs your shipment at its
destination).
(2) Pickup and delivery encompassing two consecutive weekdays,
if you agree.
(3) Maximum payment amounts at time of delivery of 110 percent
of the estimated charges, if you agree.
Subpart F--Transportation of My Shipment
Must My Mover Transport the Shipment in a Timely Manner?
Yes, your mover must transport your household goods in a timely
manner. This is also known as ''reasonable dispatch service.'' Your
mover must provide reasonable dispatch service to you, except for
transportation on the basis of guaranteed delivery dates.
When your mover is unable to perform either the pickup or
delivery of your shipment on the dates or during the periods of time
specified in the order for service, your mover must notify you of
the delay, at the mover's expense. As soon as the delay becomes
apparent to your mover, it must give you notification it will be
unable to provide the service specified in the terms of the order
for service. Your mover may notify you of the delay in any of the
following ways: By telephone; fax transmissions; e-mail; overnight
courier; certified mail, return receipt requested; or in person.
When your mover notifies you of a delay, it also must advise you
of the dates or periods of time it may be able to pick up and/or
deliver the shipment. Your mover must consider your needs in its
advisement. Your mover must prepare a written record of the date,
time, and manner of its notification.
Your mover must prepare a written record of its amended date or
period for delivery. Your mover must retain these records as a part
of its file on your shipment. The retention period is one year from
the date of notification. Your mover must furnish a copy of the
notification to you either by first class mail or in person, if you
request a copy of the notice.
Your mover must tender your shipment for delivery on the agreed-
upon delivery date or within the period specified on the bill of
lading. Upon your request or concurrence, your mover may deliver
your shipment on another day.
The establishment of a delayed pickup or delivery date does not
relieve your mover from liability for damages resulting from your
mover's failure to provide service as agreed. However, when your
mover notifies you of alternate delivery dates, it is your
responsibility to be available to accept delivery on the dates
specified. If you are not available and are not willing to accept
delivery, your mover has the right to place your shipment in storage
at your expense or hold the shipment on its truck and assess
additional charges.
If after the pickup of your shipment, you request your mover to
change the delivery date, most movers will agree to do so provided
your request will not result in unreasonable delay to its equipment
or interfere with another customer's move. However, your mover is
under no obligation to consent to amended delivery dates. Your mover
has the right to place your shipment in storage at your expense if
you are unwilling or unable to accept delivery on the date agreed to
in the bill of lading.
If your mover fails to pick up and deliver your shipment on the
date entered on the bill of lading and you have expenses you
otherwise would not have had, you may be able to recover those
expenses from your mover. This is what is called an inconvenience or
delay claim. Should your mover refuse to honor such a claim and you
continue to believe you are entitled to be paid damages, you may
take your mover to court under 49 U.S.C. 14706. The Federal Motor
Carrier Safety Administration (FMCSA) has no authority to order your
mover to pay such claims.
While we hope your mover delivers your shipment in a timely
manner, you should consider the possibility your shipment may be
delayed, and find out what payment you can expect if a mover delays
service through its own fault, before you agree with the mover to
transport your shipment.
What Must My Mover Do if It Is Able To Deliver My Shipment More Than 24
Hours Before I Am Able To Accept Delivery?
At your mover's discretion, it may place your shipment in
storage. This will be under its own account and at its own expense
in a warehouse located in proximity to the destination of your
shipment. Your mover may do this if you fail to request or concur
with an early delivery date, and your mover is able to deliver your
shipment more than 24 hours before your specified date or the first
day of your specified period.
If your mover exercises this option, your mover must immediately
notify you of the name and address of the warehouse where your mover
places your shipment. Your mover must make and keep a record of its
notification as a part of its shipment records. Your mover has full
responsibility for the shipment under the terms and conditions of
the bill of lading. Your mover is responsible for the charges for
redelivery, handling, and storage until it makes final delivery.
Your mover may limit its responsibility to the agreed-upon delivery
date or the first day of the period of delivery as specified in the
bill of lading.
What Must My Mover Do for Me When I Store Household Goods in Transit?
If you request your mover to hold your household goods in
storage-in-transit and the storage period is about to expire, your
mover must notify you, in writing, about the four following items:
(1) The date when storage-in-transit will convert to permanent
storage.
(2) The existence of a 9-month period after the date of
conversion to permanent storage, during which you may file claims
against your mover for loss or damage occurring to your goods while
in transit or during the storage-in-transit period.
(3) The date your mover's liability will end.
(4) Your property will be subject to the rules, regulations, and
charges of the warehouseman.
Your mover must make this notification at least 10 days before
the expiration date of one of the following two periods of time:
(1) The specified period of time when your mover is to hold your
goods in storage.
(2) The maximum period of time provided in its tariff for
storage-in-transit.
Your mover must notify you by facsimile transmission; overnight
courier; e-mail; or certified mail, return receipt requested.
If your mover holds your household goods in storage-in-transit
for less than 10 days, your mover must notify you, one day before
the storage-in-transit period expires, of the same information
specified above.
Your mover must maintain a record of all notifications to you as
part of the records of your shipment. Under the applicable tariff
provisions regarding storage-in-transit, your mover's failure or
refusal to notify you will automatically extend your mover's
liability until the end of the day following the date when your
mover actually gives you notice.
Subpart G--Delivery of My Shipment
May My Mover Ask Me To Sign a Delivery Receipt Purporting To Release It
From Liability?
At the time of delivery, your mover will expect you to sign a
receipt for your shipment. Normally, you will sign each page of your
mover's copy of the inventory.
Your mover's delivery receipt or shipping document must not
contain any language purporting to release or discharge it or its
agents from liability.
Your mover may include a statement about your receipt of your
property in apparent good condition, except as noted on the shipping
documents.
Do not sign the delivery receipt if it contains any language
purporting to release or discharge your mover or its agents from
liability. Strike out such language before
[[Page 36786]]
signing, or refuse delivery if the driver or mover refuses to
provide a proper delivery receipt.
What Is the Maximum Collect-on-Delivery Amount My Mover May Demand I
Pay at the Time of Delivery?
On a binding estimate, the maximum amount is the exact estimate
of the charges, plus the charges for any additional services you
requested after the bill of lading was executed (charges therefore
not included in the estimate) and any charges for impracticable
operations (not to exceed 15 percent of all other charges due at
delivery). Your mover must specify on the estimate, order for
service, and bill of lading the form of payment acceptable to it
(for example, a certified check).
On a non-binding estimate, the maximum amount is 110 percent of
the approximate costs, plus the charges for any additional services
you requested after the bill of lading was executed (charges
therefore not included in the estimate) and any charges for
impracticable operations (not to exceed 15 percent of all other
charges due at delivery). Your mover must specify on the estimate,
order for service, and bill of lading the form of payment acceptable
to it (for example, cash).
If My Shipment Is Transported on More Than One Vehicle, What Charges
May My Mover Collect at Delivery?
Although all movers try to move each shipment on one truck, it
becomes necessary at times to divide a shipment among two or more
trucks. This frequently occurs when an automobile is included in the
shipment and transported on a specially designed vehicle. When this
occurs, your transportation charges are the same as if the entire
shipment moved on one truck.
If your shipment is divided for transportation on two or more
trucks, the mover may require payment for each portion as it is
delivered.
Your mover may delay the collection of all the charges until the
entire shipment is delivered, at its discretion, not yours. When you
order your move, you should ask the mover about its policies in this
regard.
If My Shipment Is Partially Lost or Destroyed, What Charges May My
Mover Collect at Delivery?
Movers customarily make every effort to avoid losing, damaging,
or destroying any of your items while your shipment is in their
possession for transportation. However, despite the precautions
taken, articles are sometimes lost or destroyed during the move.
In addition to any money you may recover from your mover to
compensate for lost or destroyed articles, you also may recover the
transportation charges represented by the portion of the shipment
lost or destroyed. Your mover may apply this paragraph only to the
transportation of household goods. Your mover may disregard this
paragraph if loss or destruction was due to an act or omission by
you. Your mover must require you to pay any specific valuation
charge due.
For example, if you pack a hazardous material (i.e., gasoline,
aerosol cans, motor oil, etc.) and your shipment is partially lost
or destroyed by fire in storage or in the mover's trailer, your
mover may require you to pay for the full cost of transportation.
If your shipment is partially lost or destroyed, your mover is
permitted to collect at delivery only a prorated percentage based on
the freight charges for the goods actually delivered, plus the
charges for any additional services you requested after the bill of
lading was executed and any charges for impracticable operations.
Charges for impracticable operations collected at delivery must not
exceed 15 percent of the total charges your mover collects at
delivery.
Your mover is forbidden from collecting, or requiring you to
pay, any freight charges (including any charges for accessorial or
terminal services) when your household goods shipment is totally
lost or destroyed in transit, unless the loss or destruction was due
to an act or omission by you.
How Must My Mover Calculate the Charges Applicable to the Shipment as
Delivered?
Your mover must multiply the percentage equal to the weight of
the portion of the shipment delivered to the total weight of the
shipment times the total charges applicable to the shipment tendered
by you to obtain the total charges it must collect from you.
If your mover's computed charges exceed the charges otherwise
applicable to the shipment as delivered, the lesser of those charges
must apply. This will apply only to the transportation of your
household goods.
Your mover must require you to pay any specific valuation charge
due.
Your mover may not refund the freight charges if the loss or
destruction was due to an act or omission by you. For example, you
fail to disclose to your mover that your shipment contains
perishable live plants. Your mover may disregard its loss or
destruction of your plants because you failed to inform your mover
you were transporting live plants.
Your mover must determine, at its own expense, the proportion of
the shipment, based on actual or constructive weight, not lost or
destroyed in transit.
Your rights are in addition to, and not in lieu of, any other
rights you may have with respect to your shipment of household goods
your mover lost or destroyed, or partially lost or destroyed, in
transit. This applies whether or not you have exercised your rights
provided above.
Subpart H--Collection of Charges
Does This Subpart Apply to Most Shipments?
It applies to all shipments of household goods that involve a
balance due freight or expense bill or are shipped on credit.
How Must My Mover Present Its Freight or Expense Bill to Me?
At the time of payment of transportation charges, your mover
must give you a freight bill identifying the service provided and
the charge for each service. It is customary for most movers to use
a copy of the bill of lading as a freight bill; however, some movers
use an entirely separate document for this purpose.
Except in those instances where a shipment is moving on a
binding estimate, the freight bill must specifically identify each
service performed, the rate or charge per service performed, and the
total charges for each service. If this information is not on the
freight bill, do not accept or pay the freight bill.
Movers' tariffs customarily specify that freight charges must be
paid in cash, by certified check, or by cashier's check. When this
requirement exists, the mover will not accept personal checks. At
the time you order your move, you should ask your mover about the
form of payment your mover requires.
Some movers permit payment of freight charges by use of a charge
or credit card. However, do not assume your nationally recognized
charge, credit, or debit card will be acceptable for payment. Ask
your mover at the time you request an estimate. Your mover must
specify the form of payment it will accept at delivery.
If you do not pay the transportation charges at the time of
delivery, your mover has the right, under the bill of lading, to
refuse to deliver your goods. The mover may place them in storage,
at your expense, until the charges are paid. However, the mover must
deliver your goods upon payment of 100 percent of a binding
estimate, plus the charges for any additional services you requested
after the bill of lading was executed (charges therefore not
included in the estimate) and any charges for impracticable
operations (not to exceed 15 percent of all other charges due at
delivery).
If, before payment of the transportation charges, you discover
an error in the charges, you should attempt to correct the error
with the driver or the mover's local agent, or by contacting the
mover's main office. If an error is discovered after payment, you
should write the mover (the address will be on the freight bill)
explaining the error, and request a refund.
Movers customarily check all shipment files and freight bills
after a move has been completed to make sure the charges were
accurate. If an overcharge is found, you should be notified and a
refund should be made. If an undercharge occurred, you may be billed
for the additional charges due.
On ``to be prepaid'' shipments, your mover must present its
freight bill for all transportation charges within 15 days of the
date your mover received the shipment. This period excludes
Saturdays, Sundays, and Federal holidays.
On ``collect'' shipments, your mover must present its freight
bill for all transportation charges on the date of delivery, or, at
its discretion, within 15 days, calculated from the date the
shipment was delivered at your destination. This period excludes
Saturdays, Sundays, and Federal holidays. (Bills for additional
charges based on the weight of the shipment will be presented 30
days after delivery; charges for impracticable operations not paid
at delivery are due within 30 days of the invoice.) Your mover's
freight bills and accompanying written notices must state the
following five items:
(1) Penalties for late payment.
(2) Credit time limits.
(3) Service or finance charges.
[[Page 36787]]
(4) Collection expense charges.
(5) Discount terms.
If your mover extends credit to you, freight bills or a separate
written notice accompanying a freight bill or a group of freight
bills presented at one time must state, ``You may be subject to
tariff penalties for failure to timely pay freight charges,'' or a
similar statement. Your mover must state on its freight bills or
other notices when it expects payment and any applicable service
charges, collection expense charges, and discount terms.
When your mover lacks sufficient information to compute its
tariff charges at the time of billing, your mover must present its
freight bill for payment within 15 days following the day when
sufficient information becomes available. This period excludes
Saturdays, Sundays, and Federal holidays.
Your mover must not extend additional credit to you if you fail
to furnish sufficient information to your mover. Your mover must
have sufficient information to render a freight bill within a
reasonable time after shipment.
When your mover presents freight bills by mail, it must deem the
time of mailing to be the time of presentation of the bills. The
term ``freight bills,'' as used in this paragraph, includes both
paper documents and billing by use of electronic media such as
computer tapes, disks, or the Internet (e-mail).
When you mail acceptable checks or drafts in payment of freight
charges, your mover must deem the act of mailing the payment within
the credit period to be the proper collection of the tariff charges
within the credit period for the purposes of Federal law. In case of
a dispute as to the date of mailing, your mover must accept the
postmark as the date of mailing.
If I Forced My Mover To Relinquish a Collect-on-Delivery Shipment
Before the Payment of ALL Charges, How Must My Mover Collect the
Balance?
On ``collect-on-delivery'' shipments, your mover must present
its freight bill for transportation charges within 15 days,
calculated from the date the shipment was delivered at your
destination. This period excludes Saturdays, Sundays, and Federal
holidays. (Bills for additional charges based on the weight of the
shipment will be presented 30 days after delivery; charges for
impracticable operations not paid at delivery are due within 30 days
of the invoice.)
What Actions May My Mover Take To Collect From Me the Charges in Its
Freight Bill?
Your mover must present a freight bill within 15 days (excluding
Saturdays, Sundays, and Federal holidays) of the date of delivery of
a shipment at your destination. (Bills for additional charges based
on the weight of the shipment will be presented 30 days after
delivery; charges for impracticable operations not paid at delivery
are due within 30 days of the invoice.)
Your mover must provide in its tariffs the following three
things:
(1) A provision indicating its credit period is a total of 30
calendar days.
(2) A provision indicating you will be assessed a service charge
by your mover equal to one percent of the amount of the freight
bill, subject to a $20 minimum charge, for the extension of the
credit period. The mover will assess the service charge for each 30-
day extension that the charges go unpaid.
(3) A provision that your mover must deny credit to you if you
fail to pay a duly presented freight bill within the 30-day period.
Your mover may grant credit to you, at its discretion, when you
satisfy your mover's condition that you will pay all future freight
bills duly presented. Your mover must ensure all your payments of
freight bills are strictly in accordance with Federal rules and
regulations for the settlement of its rates and charges.
Do I Have a Right To File a Claim To Recover Money for Property My
Mover Lost or Damaged?
Should your move result in the loss of or damage to any of your
property, you have the right to file a claim with your mover to
recover money for such loss or damage.
You should file a claim as soon as possible. If you fail to file
a claim within 9 months, your mover may not be required to accept
your claim. If you institute a court action and win, you may be
entitled to attorney's fees if you submitted your claim to the
carrier within 120 days after delivery or the scheduled date of
delivery (whichever is later), and (1) the mover did not advise you
during the claim settlement process of the availability of
arbitration as a means for resolving the dispute; (2) a decision was
not rendered through arbitration within the time required by law; or
(3) you are instituting a court action to enforce an arbitration
decision with which the mover has not complied.
While the Federal Government maintains regulations governing the
processing of loss and damage claims (49 CFR part 370), it cannot
resolve those claims. If you cannot settle a claim with the mover,
you may file a civil action to recover your claim in court under 49
U.S.C. 14706. You may obtain the name and address of the mover's
agent for service of legal process in your State by contacting the
Federal Motor Carrier Safety Administration. You may also obtain the
name of a process agent via the Internet. Go to http://www.fmcsa.dot.gov then click on Licensing and Insurance (L&I)
section.
In addition, your mover must participate in an arbitration
program. As described earlier in this pamphlet, an arbitration
program gives you the opportunity to settle, through a neutral
arbitrator, certain types of unresolved loss or damage claims and
disputes regarding charges that were billed to you by your mover
after your shipment was delivered. You may find submitting your
claim to arbitration under such a program to be a less expensive and
more convenient way to seek recovery of your claim. Your mover is
required to provide you with information about its arbitration
program before you move. If your mover fails to do so, ask the mover
for details of its program.
Subpart I--Resolving Disputes With My Mover
What May I Do To Resolve Disputes With My Mover?
The Federal Motor Carrier Safety Administration Does Not Help You
Settle Your Dispute With Your Mover
Generally, you must resolve your own loss and damage disputes
with your mover. You enter a contractual arrangement with your
mover. You are bound by each of the following three things:
(1) The terms and conditions you negotiated before your move.
(2) The terms and conditions you accepted when you signed the
bill of lading.
(3) The terms and conditions you accepted when you signed for
delivery of your goods.
You have the right to take your mover to court. We require your
mover to offer you arbitration to settle your disputes with it.
PART 383--COMMERCIAL DRIVER'S LICENSE STANDARDS; REQUIREMENTS AND
PENALTIES
0
29. The authority citation for part 383 continues to read as follows:
Authority: 49 U.S.C. 521, 31136, 31301 et seq., 31502; Sec. 214
of Pub. L. 106-159, 113 Stat. 1766; Sec. 1012(b) of Pub. L. 107-56,
115 Stat. 397; and 49 CFR 1.73.
0
30. Amend Sec. 383.51 to revise table 4 of paragraph (e) to read as
follows:
Sec. 383.51 Disqualification of drivers.
* * * * *
(e) * * *
[[Page 36788]]
TABLE 4 TO Sec. 383.51
----------------------------------------------------------------------------------------------------------------
For a second conviction For a third or
in a separate incident subsequent conviction
For a first conviction within a 10-year period in a separate incident
while operating a CMV, while operating a CMV, within a 10-year period
a person required to a person required to while operating a CMV,
If a driver operates a CMV and is have a CDL and a CDL have a CDL and a CDL a person required to
convicted of . . . holder must be holder must be have a CDL and a CDL
disqualified from disqualified from holder must be
operating a CMV for . . operating a CMV for . . disqualified from
. . operating a CMV for .
. .
----------------------------------------------------------------------------------------------------------------
(1) Violating a driver or vehicle out- No less than 180 days No less than 2 years or No less than 3 years or
of-service order while transporting or more than 1 year. more than 5 years. more than 5 years.
nonhazardous materials.
(2) Violating a driver or vehicle out- No less than 180 days No less than 3 years or No less than 3 years or
of-service order while transporting or more than 2 years. more than 5 years. more than 5 years.
hazardous materials required to be
placarded under part 172, subpart F
of this title, or while operating a
vehicle designed to transport 16 or
more passengers, including the
driver.
----------------------------------------------------------------------------------------------------------------
0
31. Amend Sec. 383.53 to revise paragraph (b) to read as follows:
Sec. 383.53 Penalties.
* * * * *
(b) Special penalties pertaining to violation of out-of-service
orders--(1) Driver violations. A driver who is convicted of violating
an out-of-service order shall be subject to a civil penalty of not less
than $2,500 for a first conviction and not less than $5,000 for a
second or subsequent conviction, in addition to disqualification under
Sec. 383.51(e).
(2) Employer violations. An employer who is convicted of a
violation of Sec. 383.37(c) shall be subject to a civil penalty of not
less than $2,750 nor more than $25,000.
* * * * *
PART 384--STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM
0
32. The authority citation for part 384 continues to read as follows:
Authority: 49 U.S.C. 31136, 31301 et seq., 31502; Sec. 103 of
Pub. L. 106-159, 113 Stat. 1753, 1767; Sec. 4140 of Pub. L. 109-59,
119 Stat. 1144; and 49 CFR 1.73.
0
33. Amend Sec. 384.301 to add paragraph (c) to read as follows:
Sec. 384.301 Substantial compliance--general requirements.
* * * * *
(c) A State must come into substantial compliance with the
requirements of subpart B of this part in effect as of September 4,
2007 as soon as practical but, unless otherwise specifically provided
in this part, not later than September 4, 2010.
0
34. Revise Sec. 384.401 to read as follows:
Sec. 384.401 Withholding of funds based on noncompliance.
(a) Following the first year of noncompliance. An amount up to 5
percent of the Federal-aid highway funds required to be apportioned to
any State under each of sections 104(b)(1), (b)(3), and (b)(4) of title
23 U.S.C. shall be withheld from a State on the first day of the fiscal
year following such State's first year of noncompliance under this
part.
(b) Following second and subsequent year(s) of noncompliance. An
amount up to 10 percent of the Federal-aid highway funds required to be
apportioned to any State under each of sections 104(b)(1), (b)(3), and
(b)(4) of title 23 U.S.C. shall be withheld from a State on the first
day of the fiscal year following such State's second or subsequent
year(s) of noncompliance under this part.
PART 385--SAFETY FITNESS PROCEDURES [AMENDED]
0
35. The authority citation for part 385 continues to read as follows:
Authority: 49 U.S.C 113, 504, 521(b), 5105(e), 5109, 5113,
13901-13905, 31136, 31144, 31148, 31502; Sec. 350 of Pub. L. 107-87;
and 49 CFR 1.73.
0
36. Amend Sec. 385.3 to add, in correct alphabetical placement, a
definition for ``motor carrier operations in commerce'' to read as
follows:
Sec. 385.3 Definitions and acronyms.
* * * * *
Motor carrier operations in commerce means commercial motor vehicle
transportation operations either--
(1) In interstate commerce, or
(2) Affecting interstate commerce.
* * * * *
0
37. Amend Sec. 385.7 to revise paragraphs (c), (d), (f), and (g) to
read as follows:
Sec. 385.7 Factors to be considered in determining a safety rating.
* * * * *
(c) Frequency and severity of driver/vehicle regulatory violations
identified during roadside inspections of motor carrier operations in
commerce and, if the motor carrier operates in the United States, of
operations in Canada and Mexico.
(d) Number and frequency of out-of-service driver/vehicle
violations of motor carrier operations in commerce and, if the motor
carrier operates in the United States, of operations in Canada and
Mexico.
* * * * *
(f) For motor carrier operations in commerce and (if the motor
carrier operates in the United States) in Canada and Mexico: Frequency
of accidents; hazardous materials incidents; accident rate per million
miles; indicators of preventable accidents; and whether such accidents,
hazardous materials incidents, and preventable accident indicators have
increased or declined over time.
(g) Number and severity of violations of CMV and motor carrier
safety rules, regulations, standards, and orders that are both issued
by a State, Canada, or Mexico and compatible with Federal rules,
regulations, standards, and orders.
0
38. Amend Sec. 385.13 to revise paragraphs (a)(1), (a)(2), and (d) to
read as follows:
Sec. 385.13 Unsatisfactory rated motor carriers; prohibition on
transportation; ineligibility for Federal contracts.
(a) * * *
(1) Motor carriers transporting hazardous materials in quantities
requiring placarding, and motor carriers transporting passengers in a
CMV, are prohibited from operating a CMV in motor carrier operations in
commerce beginning on the 46th day after the date
[[Page 36789]]
of the FMCSA notice of proposed ``unsatisfactory'' rating.
(2) All other motor carriers rated as a result of reviews completed
on or after November 20, 2000, are prohibited from operating a CMV in
motor carrier operations in commerce beginning on the 61st day after
the date of the FMCSA notice of proposed ``unsatisfactory'' rating. If
FMCSA determines that the motor carrier is making a good-faith effort
to improve its safety fitness, FMCSA may allow the motor carrier to
operate for up to 60 additional days.
* * * * *
(d) Penalties. (1) If a proposed ``unsatisfactory'' safety rating
becomes final, FMCSA will issue an order placing out of service the
company's motor carrier operations in commerce. The out-of-service
order shall apply both to the motor carrier's operations in interstate
commerce and to its operations affecting interstate commerce.
(2) If a motor carrier's intrastate operations are declared out of
service by a State, FMCSA must issue an order placing out of service
the carrier's operations in interstate commerce, provided the following
two conditions apply:
(i) The State that issued the intrastate out-of-service order
participates in the Motor Carrier Safety Assistance Program and uses
the FMCSA safety rating methodology provided in this part; and
(ii) The motor carrier has its principal place of business in the
State that issued the out-of-service order.
(3) FMCSA shall prohibit the owner or operator from operating such
vehicle in interstate commerce until the State determines that the
owner or operator is fit.
(4) Any motor carrier that operates CMVs in violation of this
section is subject to the penalty provisions of 49 U.S.C. 521(b) and
appendix B to part 386 of this chapter.
0
39. Amend Sec. 385.17 to revise paragraph (g) to read as follows:
Sec. 385.17 Change to safety rating based upon corrective actions.
* * * * *
(g) FMCSA may allow a motor carrier (except a motor carrier
transporting passengers or a motor carrier transporting hazardous
materials in quantities requiring placarding) with a proposed rating of
``unsatisfactory'' to continue its motor carrier operations in commerce
for up to 60 days beyond the 60 days specified in the proposed rating,
if FMCSA determines that the motor carrier is making a good faith
effort to improve its safety status. This additional period would begin
on the 61st day after the date of the notice of proposed
``unsatisfactory'' rating.
* * * * *
0
40. Amend appendix B to part 385 to add paragraph (f) preceding section
I and to amend section II(B) by republishing its heading and revising
paragraph (a), to read as follows:
Appendix B to Part 385--Explanation of Safety Rating Process
* * * * *
(f) The safety rating will be determined by applying the SFRM
equally to all of a company's motor carrier operations in commerce,
including if applicable its operations in Canada and/or Mexico.
* * * * *
II. * * *
B. Accident Factor
(a) In addition to the five regulatory rating factors, a sixth
factor is included in the process to address the accident history of
the motor carrier. This factor is the recordable accident rate for
the past 12 months. A recordable accident, consistent with the
definition for ``accident'' in 49 CFR 390.5, means an occurrence
involving a commercial motor vehicle on a highway in motor carrier
operations in commerce or within Canada or Mexico (if the motor
carrier also operates in the United States) that results in a
fatality; in bodily injury to a person who, as a result of the
injury, immediately receives medical treatment away from the scene
of the accident; or in one or more motor vehicles incurring
disabling damage that requires the motor vehicle to be transported
away from the scene by a tow truck or other motor vehicle.
PART 386--RULES OF PRACTICE FOR MOTOR CARRIER, BROKER, FREIGHT
FORWARDER, AND HAZARDOUS MATERIALS PROCEEDINGS
0
41. The authority citation for part 386 is revised to read as follows:
Authority: 49 U.S.C. 521, 5123, 13301, 13902, 14915, 31132-
31133, 31136, 31144, 31502, 31504; 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; and 49 CFR 1.73.
0
42. Amend Appendix B to part 386 by revising paragraphs (e)(1) through
(3), adding paragraphs (e)(4) and (5), revising paragraph (f), and
adding paragraphs (g)(21) and (h), to read as follows:
Appendix B to Part 386--Penalty Schedule; Violations and Maximum Civil
Penalties
* * * * *
(e) * * *
(1) All knowing violations of 49 U.S.C. chapter 51 or orders or
regulations issued under the authority of that chapter applicable to
the transportation or shipment of hazardous materials by commercial
motor vehicle on highways are subject to a civil penalty of not less
than $250 and not more than $50,000 for each violation. Each day of
a continuing violation constitutes a separate offense.
(2) All knowing violations of 49 U.S.C. chapter 51 or orders or
regulations issued under the authority of that chapter applicable to
training related to the transportation or shipment of hazardous
materials by commercial motor vehicle on highways are subject to a
civil penalty of not less than $450 and not more than $50,000 for
each violation.
(3) All knowing violations of 49 U.S.C. chapter 51 or orders,
regulations, or exemptions issued under the authority of that
chapter applicable to the manufacture, fabrication, marking,
maintenance, reconditioning, repair, or testing of a packaging or
container that is represented, marked, certified, or sold as being
qualified for use in the transportation or shipment of hazardous
materials by commercial motor vehicle on highways are subject to a
civil penalty of not less than $250 and not more than $50,000 for
each violation.
(4) Whenever regulations issued under the authority of 49 U.S.C.
chapter 51 require compliance with the FMCSRs while transporting
hazardous materials, any violations of the FMCSRs will be considered
a violation of the HMRs and subject to a civil penalty of not less
than $250 and not more than $50,000.
(5) If any violation subject to the civil penalties set out in
paragraphs (e)(1) through (4) of this appendix results in death,
serious illness, or severe injury to any person or in substantial
destruction of property, the civil penalty may be increased to not
more than $100,000 for each offense.
(f) Operating after being declared unfit by assignment of a
final ``unsatisfactory'' safety rating. (1) A motor carrier
operating a commercial motor vehicle in interstate commerce (except
owners or operators of commercial motor vehicles designed or used to
transport hazardous materials for which placarding of a motor
vehicle is required under regulations prescribed under 49 U.S.C.
chapter 51) is subject, after being placed out of service because of
receiving a final ``unsatisfactory'' safety rating, to a civil
penalty of not more than $11,000 (49 CFR 385.13). Each day the
transportation continues in violation of a final ``unsatisfactory''
safety rating constitutes a separate offense.
(2) A motor carrier operating a commercial motor vehicle
designed or used to transport hazardous materials for which
placarding of a motor vehicle is required under regulations
prescribed under 49 U.S.C. chapter 51 is subject, after being placed
out of service because of receiving a final ``unsatisfactory''
safety rating, to a civil penalty of not less than $250 and not more
than $50,000 for each offense. If the violation results in death,
serious illness, or severe injury to any person or in substantial
destruction of property, the civil penalty may be increased to not
more than $100,000 for each offense. Each day the transportation
continues in violation of a final ``unsatisfactory'' safety rating
constitutes a separate offense.
(g) * * *
[[Page 36790]]
(21) A person--
(i) Who knowingly and willfully fails, in violation of a
contract, to deliver to, or unload at, the destination of a shipment
of household goods in interstate commerce for which charges have
been estimated by the motor carrier transporting such goods, and for
which the shipper has tendered a payment in accordance with part
375, subpart G of this chapter, is liable for a civil penalty of not
less than $10,000 for each violation. Each day of a continuing
violation constitutes a separate offense.
(ii) Who is a carrier or broker and is found to be subject to
the civil penalties in paragraph (i) of this appendix may also have
his or her carrier and/or broker registration suspended for not less
than 12 months and not more than 36 months under 49 U.S.C. chapter
139. Such suspension of a carrier or broker shall extend to and
include any carrier or broker having the same ownership or
operational control as the suspended carrier or broker.
(h) Copying of records and access to equipment, lands, and
buildings. A person subject to 49 U.S.C. chapter 51 or a motor
carrier, broker, freight forwarder, or owner or operator of a
commercial motor vehicle subject to part B of subtitle VI of title
49 U.S.C. who fails to allow promptly, upon demand, the Federal
Motor Carrier Safety Administration or an employee designated by the
Federal Motor Carrier Safety Administration to inspect and copy any
record or inspect and examine equipment, lands, buildings, and other
property, in accordance with 49 U.S.C. 504(c), 5121(c), and
14122(b), is subject to a civil penalty of not more than $1,000 for
each offense. Each day of a continuing violation constitutes a
separate offense, except that the total of all civil penalties
against any violator for all offenses related to a single violation
shall not exceed $10,000.
PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL
43. The authority citation for part 390 is revised to read as follows:
Authority: 49 U.S.C. 508, 13301, 13902, 31133, 31136, 31502,
31504; Sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 U.S.C. 701
note); Sec. 114, Pub. L. 103-311, 108 Stat. 1673, 1677; Sec. 217,
229, Pub. L. 106-159, 113 Stat. 1748, 1767; and 49 CFR 1.73.
44. Amend Sec. 390.3 to add paragraph (f)(7) to read as follows:
Sec. 390.3 General applicability.
* * * * *
(f) * * *
(7) Either a driver of a commercial motor vehicle used primarily in
the transportation of propane winter heating fuel or a driver of a
motor vehicle used to respond to a pipeline emergency, if such
regulations would prevent the driver from responding to an emergency
condition requiring immediate response as defined in Sec. 390.5.
45. Amend Sec. 390.5 to add, in correct alphabetical placement, a
definition for "Emergency condition requiring immediate response" to
read as follows:
Sec. 390.5 Definitions.
* * * * *
Emergency condition requiring immediate response means any
condition that, if left unattended, is reasonably likely to result in
immediate serious bodily harm, death, or substantial damage to
property. In the case of transportation of propane winter heating fuel,
such conditions shall include (but are not limited to) the detection of
gas odor, the activation of carbon monoxide alarms, the detection of
carbon monoxide poisoning, and any real or suspected damage to a
propane gas system following a severe storm or flooding. An ``emergency
condition requiring immediate response'' does not include requests to
refill empty gas tanks. In the case of a pipeline emergency, such
conditions include (but are not limited to) indication of an abnormal
pressure event, leak, release or rupture.
* * * * *
PART 395--HOURS OF SERVICE OF DRIVERS
46. The authority citation for part 395 is revised to read as follows:
Authority: 49 U.S.C. 504, 14122, 31133, 31136, 31502; Sec. 229,
Pub. L. 106-159, 113 Stat. 1748; Sec. 113, Pub. L. 103-311, 108
Stat. 1673, 1676; and 49 CFR 1.73.
47. Amend Sec. 395.1 to revise paragraphs (a), (k)(2), and (n) and to
add paragraphs (p) and (q), to read as follows:
Sec. 395.1 Scope of rules in this part.
(a) General. (1) The rules in this part apply to all motor carriers
and drivers, except as provided in paragraphs (b) through (q) of this
section.
(2) The exceptions from Federal requirements contained in
paragraphs (l) and (m) of this section do not preempt State laws and
regulations governing the safe operation of commercial motor vehicles.
* * * * *
(k) * * *
(2) Is conducted (except in the case of livestock feed
transporters) during the planting and harvesting seasons within such
State, as determined by the State.
* * * * *
(n) Utility service vehicles. The provisions of this part shall not
apply to a driver of a utility service vehicle as defined in Sec.
395.2.
* * * * *
(p) Commercial motor vehicle transportation to or from a motion
picture production site. A driver of a commercial motor vehicle
providing transportation of property or passengers to or from a
theatrical or television motion picture production site is exempt from
the requirements of Sec. 395.3(a) if the driver operates within a 100
air-mile radius of the location where the driver reports to and is
released from work, i.e., the normal work-reporting location. With
respect to the maximum daily hours of service, such a driver may not
drive--
(1) More than 10 hours following 8 consecutive hours off duty;
(2) For any period after having been on duty 15 hours following 8
consecutive hours off duty.
(3) If a driver of a commercial motor vehicle providing
transportation of property or passengers to or from a theatrical or
television motion picture production site operates beyond a 100 air-
mile radius of the normal work-reporting location, the driver is
subject to Sec. 395.3(a), and paragraphs (p)(1) and (2) of this
section do not apply.
(q) Transporters of grapes during harvest period in the State of
New York. The provisions of this part shall not apply to drivers
transporting grapes if such transportation:
(1) Is within the State of New York;
(2) Is west of Interstate 81;
(3) Is within a 150 air-mile radius of where the grapes were picked
or distributed; and
(4) Is during the harvest period as defined by the State of New
York. This provision expires September 30, 2009.
48. Amend Sec. 395.2 to add, in correct alphabetical placement, the
definitions for ``agricultural commodity'' and ``farm supplies for
agricultural purposes'' to read as follows:
Sec. 395.2 Definitions.
* * * * *
Agricultural commodity means any agricultural commodity,
nonprocessed food, feed, fiber, or livestock (including livestock as
defined in sec. 602 of the Emergency Livestock Feed Assistance Act of
1988 [7 U.S.C. 1471] and insects).
* * * * *
Farm supplies for agricultural purposes means products directly
related to the growing or harvesting of agricultural commodities during
the planting and harvesting seasons within each State, as determined by
the State, and livestock feed at any time of the year.
* * * * *
[[Page 36791]]
Issued on: June 11, 2007.
John H. Hill,
Administrator.
[FR Doc. E7-11717 Filed 7-3-07; 8:45 am]
BILLING CODE 4910-EX-P
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