Download:
pdf |
pdfThursday,
July 5, 2007
Part II
Department of
Transportation
Federal Motor Carrier Safety
Administration
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
PO 00000
Frm 00001
Fmt 4717
Sfmt 4717
E:\FR\FM\05JYR2.SGM
05JYR2
36760
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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
Federal Motor Carrier Safety
Administration (FMCSA), DOT.
ACTION: Final rule.
AGENCY:
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-ofservice 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.
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–
jlentini on PROD1PC65 with RULES2
EFFECTIVE DATE:
VerDate Aug<31>2005
19:08 Jul 03, 2007
Jkt 211001
0834, or by electronic mail at
[email protected].
SUPPLEMENTARY INFORMATION:
18. Section 7112
ratings.
19. Section 7120
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:
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.
1. Section 4102 Increased penalties for outof-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.
PO 00000
Frm 00002
Fmt 4701
Sfmt 4700
Unsatisfactory safety
Civil penalty.
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-ofservice 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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
Motor Carrier Safety Assistance
Program (MCSAP) Grants—State
Compliance Plans
jlentini on PROD1PC65 with RULES2
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.
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.
VerDate Aug<31>2005
19:08 Jul 03, 2007
Jkt 211001
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 nonCMVs, 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
PO 00000
Frm 00003
Fmt 4701
Sfmt 4700
36761
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 abovenoted percentages, this provision allows
FMCSA a certain amount of discretion
in determining the amount of Federalaid 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
E:\FR\FM\05JYR2.SGM
05JYR2
36762
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
jlentini on PROD1PC65 with RULES2
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 Canadadomiciled 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
OOS order. It also increases the
maximum civil penalty assessment
applicable to employer violations of
OOS orders.2 These changes are as
follows:
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.
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. § 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.
PO 00000
Frm 00004
Fmt 4701
Sfmt 4700
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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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, 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).’’ 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.
Exemptions From the Federal Hours-ofDrivers providing transportation to or
Service Rules for Operators of CMVs
from a motion picture production site.
Engaged in Certain Defined Operations
Sec. 4133 of SAFETEA–LU (119 Stat.
The statutory history of these
1744) (set out as a note to 49 U.S.C.
provisions is complex. First, Sec. 4115
31136) provides that drivers
of SAFETEA–LU (119 Stat. 1726)
transporting property or passengers to or
amends title II of the Motor Carrier
from a theatrical or television motion
Safety Improvement Act of 1999 (Public picture production site located within a
Law 106–159, 113 Stat. 1748–1773)
100 air-mile radius of the driver’s work(MCSIA) to add a new sec. 229, set out
reporting location are exempt from the
3
as a note to 49 U.S.C. 31136. Section
regulations currently in effect regarding
229 then was amended by subsequent
maximum daily hours of service. Such
sections of SAFETEA–LU to revise or
drivers are subject instead to the
add exemptions from the Federal hoursmaximum daily hours-of-service
of-service regulations for drivers in
regulations in effect on April 27, 2003.
certain defined operations. See 49
At any time the driver operates beyond
U.S.C. 31136 note. These exemptions
100 air miles of the work-reporting
are as follows:
location, this exception does not apply.
Drivers transporting agricultural
Exemption for the transportation of
commodities. Sec. 4130(a) of SAFETEA–
LU (119 Stat. 1743) amends the new sec. grapes in the State of New York during
229(a)(1) of MCSIA to restate the
harvest periods. Sec. 4146 of SAFETEA–
previous exemption of certain drivers
LU (119 Stat. 1749) suspends through
transporting agricultural commodities or fiscal year 2009 the applicability of
farm supplies for agricultural purposes
regulations regarding maximum driving
within a State from regulations
and on-duty time for drivers
regarding maximum driving and ontransporting grapes west of Interstate 81
duty time during planting and
in New York State during harvest
harvesting periods (as determined by
periods (as determined by the State).
the State), provided the transportation is This exception applies only if the
transportation is within a 150 air-mile
3 Section 229 was previously enacted as sec. 345
radius of where the grapes are picked
of Public Law 104–59, 109 Stat. 613 (November 28,
and distributed.
1995) and was also set out as a note to 49 U.S.C.
jlentini on PROD1PC65 with RULES2
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.
31136.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
PO 00000
Frm 00005
Fmt 4701
Sfmt 4700
36763
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 caseby-case basis.
E:\FR\FM\05JYR2.SGM
05JYR2
36764
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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
§ 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.
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 (postcontract 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
§ 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.
PO 00000
Frm 00006
Fmt 4701
Sfmt 4700
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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
jlentini on PROD1PC65 with RULES2
Section-by-Section Discussion of the
FMCSR Amendments 4
A. Part 350—Commercial Motor Carrier
Safety Assistance Program
In part 350, we revise §§ 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 § 350.201, and amend § 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 § 350.211, which
provides the required format of the
certification necessary for receipt of
MCSAP Basic Program funding. The
revisions to § 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
§ 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 § 350.105 but also in
§ 350.313(c). The set-asides for High
Priority and New Entrant grants
provided in sec. 4107(a) and (b),
respectively, are implemented in
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.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
§ 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 § 350.319(d).
Similarly, § 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
§ 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 § 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 § 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
§ 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
§ 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
§§ 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.
PO 00000
Frm 00007
Fmt 4701
Sfmt 4700
36765
We amend § 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
§ 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 § 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 § 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.’’
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
§ 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
5 This publication is available on the FMCSA’s
Protect Your Move Web site at http://
www.protectyourmove.gov/documents/
ReadyToMove-2006-april.pdf.
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.
E:\FR\FM\05JYR2.SGM
05JYR2
jlentini on PROD1PC65 with RULES2
36766
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
with certain clarifying edits, is being
published in this final rule.
We amend §§ 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
§§ 375.401(a)(1) and (2). Amended
§§ 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 §§ 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 §§ 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 § 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
Expense Bill to Me?’’; ‘‘If I Forced My
Mover To Relinquish a Collect-onDelivery 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 § 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 § 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
§ 383.51 (§ 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 § 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
§ 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
§§ 384.401(a)(2) and (b)(2) and
renumbers the preceding paragraphs
accordingly. Like the previously
discussed § 350.217, also being removed
in this rule, §§ 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.
PO 00000
Frm 00008
Fmt 4701
Sfmt 4700
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 § 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 §§ 385.7, 385.13, 385.17(g),
and appendix B to part 385 (in new
paragraph (f) and amended § II(B)).
Minor editorial revisions are included
in amended § 385.17(g) and § 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 §§ 385.7(c), (d), (f), and (g).
We amend § 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
§ 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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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 trainingrelated 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.
jlentini on PROD1PC65 with RULES2
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 § 390.3(f) the
exception for drivers responding to
emergency conditions, and by adding in
§ 390.5 a definition for ‘‘emergency
condition requiring immediate
response.’’ As provided in §§ 382.103(c)
and 383.3(b), the exceptions in § 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.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
36767
H. Part 395—Hours of Service of Drivers
Costs and Benefits of Safety Regulations
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 §§ 395.1(k)(2)
and (n), respectively. Sec. 4133 is
implemented by adding § 395.1(p),
while the sec. 4146 exemption
concerning the transportation of grapes
during the harvest period in New York
is implemented by adding § 395.1(q).
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 costbenefit 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.
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 noticeand-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.
PO 00000
Frm 00009
Fmt 4701
Sfmt 4700
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
E:\FR\FM\05JYR2.SGM
05JYR2
36768
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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).
PO 00000
Frm 00010
Fmt 4701
Sfmt 4700
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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
Interference with Constitutionally
Protected Property Rights.
increase overall commercial motor
vehicle mileage, this change should
likewise be de minimis.
List of Subjects
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 lowincome 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.
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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.
■ 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
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.
2. Amend § 350.105 to revise the
definition for ‘‘High Priority Activity
■
PO 00000
Frm 00011
Fmt 4701
Sfmt 4700
36769
Funds’’ and to add, in correct
alphabetical placement, a definition for
‘‘New Entrant Funds’’ to read as follows:
§ 350.105
part?
What definitions are used in this
*
*
*
*
*
High Priority Activity Funds means
funds provided for carrying out highpriority 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.
*
*
*
*
*
■ 3. Revise § 350.111 to read as follows:
§ 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).
■ 4. Amend § 350.201 to revise
paragraphs (b), (f), (s), and (t)(1) and to
add paragraphs (w), (x), and (y) to read
as follows:
§ 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
E:\FR\FM\05JYR2.SGM
05JYR2
36770
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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 nonCMV information on best practices for
driving safely in the vicinity of nonCMVs 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.
■ 5. Amend § 350.211 to revise
paragraphs 8., 11., and 13. through 17.,
and to add paragraphs 18., 19., 20., and
21. to read as follows:
§ 350.211 What is the format of the
certification required by § 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).
jlentini on PROD1PC65 with RULES2
*
*
*
*
*
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 MCSAPfunded 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 llllllllllllllllll
Signature llllllllllllllll
§ 350.217
[Removed]
6. Remove § 350.217.
■ 7. Amend § 350.301 to revise
paragraph (a) to read as follows:
■
§ 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
PO 00000
Frm 00012
Fmt 4701
Sfmt 4700
1 of the year 5 years prior to the
beginning of each Government fiscal
year.
*
*
*
*
*
■ 8. Amend § 350.309 to revise
paragraph (c) and to add paragraph (d)
to read as follows:
§ 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.
■ 9. Amend § 350.313 to revise
paragraphs (a)(1), (a)(2), and (c) and to
add paragraph (d) to read as follows:
§ 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.
*
*
*
*
*
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
(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.
10. Amend § 350.319 to revise
paragraph (d) and to add paragraph (e)
to read as follows:
■
§ 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.
11. Revise § 350.321 to read as
follows:
■
jlentini on PROD1PC65 with RULES2
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
PART 375—TRANSPORTATION OF
HOUSEHOLD GOODS IN INTERSTATE
COMMERCE; CONSUMER
PROTECTION REGULATIONS
13. The authority citation for part 375
is revised to read as follows:
(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.
12. Amend § 350.329 to revise the
heading and republish paragraphs (a)
and (b) to read as follows:
(a) States must meet the requirements
of § 350.201, as applicable.
(b) Local agencies must meet the
following nine conditions:
(1) Prepare a proposal in accordance
with § 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.
■
§ 350.321 What are permissible uses of
New Entrant Funds?
■
§ 350.329 How may a State or local agency
qualify for High Priority or New Entrant
Funds?
Authority: 5 U.S.C. 553; 49 U.S.C. 13102,
13301, 13704, 13707, 14104, 14706, 14708;
and 49 CFR 1.73.
14. Revise § 375.101 to read as
follows:
■
§ 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 § 390.5 of this
subchapter.
■ 15. Amend § 375.103 to revise the
definitions of ‘‘individual shipper’’ and
PO 00000
Frm 00013
Fmt 4701
Sfmt 4700
36771
‘‘you and your’’ and to add, in correct
alphabetical placement, the definition
for ‘‘household goods motor carrier’’ to
read as follows:
§ 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.
■ 16. Amend § 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:
§ 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
E:\FR\FM\05JYR2.SGM
05JYR2
36772
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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 § 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.
■ 17. Amend § 375.211 to revise the
introductory text to paragraph (a),
paragraph (a)(7), and paragraph (a)(8) to
read as follows:
§ 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.
*
*
*
*
*
■ 18. Revise § 375.213 to read as
follows:
jlentini on PROD1PC65 with RULES2
§ 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 12point 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
PO 00000
Frm 00014
Fmt 4701
Sfmt 4700
Register or the Code of Federal
Regulations.
■ 19. Amend § 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:
§ 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
§ 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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
*
*
*
*
*
■ 20. Amend § 375.403 to revise
paragraphs (a) and (b) to read as follows:
jlentini on PROD1PC65 with RULES2
§ 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
§ 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 bindingestimate 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:
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
(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
§ 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
PO 00000
Frm 00015
Fmt 4701
Sfmt 4700
36773
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 § 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 § 375.405.
*
*
*
*
*
■ 21. Amend § 375.405 to revise
paragraphs (b)(1), (b)(2), (b)(5), (b)(8),
(b)(9) and (b)(10) to read as follows:
§ 375.405 How must I provide a nonbinding 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
E:\FR\FM\05JYR2.SGM
05JYR2
jlentini on PROD1PC65 with RULES2
36774
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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 § 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
the individual shipper any applicable
charges not collected at delivery in
accordance with subpart H of this part.
*
*
*
*
*
■ 22. Revise § 375.407 to read as
follows:
§ 375.407 Under what circumstances must
I relinquish possession of a collect-ondelivery shipment transported under a nonbinding 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 nonbinding 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
PO 00000
Frm 00016
Fmt 4701
Sfmt 4700
at delivery in accordance with subpart
H of this part.
■ 23. Amend § 375.501 to revise
paragraph (a)(10) to read as follows:
§ 375.501
service?
Must I write up an order for
(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.
*
*
*
*
*
■ 24. Amend § 375.505 to revise
paragraph (b)(12) to read as follows:
§ 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.
*
*
*
*
*
■ 25. Revise § 375.703 to read as
follows:
§ 375.703 What is the maximum collect-ondelivery 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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
■ 26. Revise § 375.707 to read as
follows:
jlentini on PROD1PC65 with RULES2
§ 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)
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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.
■ 27. Amend § 375.807 to revise
paragraph (c)(1) to read as follows:
§ 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.
*
*
*
*
*
■ 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?
PO 00000
Frm 00017
Fmt 4701
Sfmt 4700
36775
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?
E:\FR\FM\05JYR2.SGM
05JYR2
36776
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
If I forced my mover to relinquish a collecton-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?
jlentini on PROD1PC65 with RULES2
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 nonbinding 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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
PO 00000
Frm 00018
Fmt 4701
Sfmt 4700
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 linehaul 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 linehaul 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.
E:\FR\FM\05JYR2.SGM
05JYR2
jlentini on PROD1PC65 with RULES2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 nonbinding 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 agreedupon 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 agreedupon 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,
PO 00000
Frm 00019
Fmt 4701
Sfmt 4700
36777
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.
E:\FR\FM\05JYR2.SGM
05JYR2
jlentini on PROD1PC65 with RULES2
36778
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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 × 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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
PO 00000
Frm 00020
Fmt 4701
Sfmt 4700
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 radiopharmaceuticals.
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.
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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
PO 00000
Frm 00021
Fmt 4701
Sfmt 4700
36779
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
E:\FR\FM\05JYR2.SGM
05JYR2
36780
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
jlentini on PROD1PC65 with RULES2
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.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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
PO 00000
Frm 00022
Fmt 4701
Sfmt 4700
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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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
jlentini on PROD1PC65 with RULES2
Must My Mover Estimate the
Transportation and Accessorial
Charges for My Move?
How Must My Mover Estimate Charges
Under the Regulations?
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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.
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.
PO 00000
Frm 00023
Fmt 4701
Sfmt 4700
36781
(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 nonbinding 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
E:\FR\FM\05JYR2.SGM
05JYR2
jlentini on PROD1PC65 with RULES2
36782
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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 nonbinding estimates will be those appearing in
your mover’s tariffs applicable to the
transportation. If your mover provides a nonbinding 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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 agreedupon dates for pickup or delivery of your
shipment, or agree to any change in the nonbinding estimate, your mover may prepare a
written change to the order for service. The
PO 00000
Frm 00024
Fmt 4701
Sfmt 4700
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-ondelivery 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.
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 agreedupon 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.
PO 00000
Frm 00025
Fmt 4701
Sfmt 4700
36783
(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
E:\FR\FM\05JYR2.SGM
05JYR2
36784
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
jlentini on PROD1PC65 with RULES2
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.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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 noncertified 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:
PO 00000
Frm 00026
Fmt 4701
Sfmt 4700
(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 email, 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 threestep 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.
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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
PO 00000
Frm 00027
Fmt 4701
Sfmt 4700
36785
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
E:\FR\FM\05JYR2.SGM
05JYR2
36786
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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).
jlentini on PROD1PC65 with RULES2
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
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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.
PO 00000
Frm 00028
Fmt 4701
Sfmt 4700
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.
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
(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.)
jlentini on PROD1PC65 with RULES2
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,
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
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
PO 00000
Frm 00029
Fmt 4701
Sfmt 4700
36787
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
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.
30. Amend § 383.51 to revise table 4
of paragraph (e) to read as follows:
■
§ 383.51
*
Disqualification of drivers.
*
*
(e) * * *
E:\FR\FM\05JYR2.SGM
05JYR2
*
*
36788
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
TABLE 4 TO § 383.51
If a driver operates a CMV and is convicted of . . .
(1) Violating a driver or vehicle out-of-service order
while transporting nonhazardous materials.
(2) Violating a driver or vehicle out-of-service order
while transporting 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.
31. Amend § 383.53 to revise
paragraph (b) to read as follows:
■
§ 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
§ 383.51(e).
(2) Employer violations. An employer
who is convicted of a violation of
§ 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
For a second conviction in
a separate incident within
a 10-year period while operating a CMV, a person
required to have a CDL
and a CDL holder must be
disqualified from operating
a CMV for . . .
For a third or subsequent
conviction in a separate incident within a 10-year period while operating a
CMV, a person required to
have a CDL and a CDL
holder must be disqualified
from operating a CMV
for . . .
No less than 180 days or
more than 1 year.
No less than 180 days or
more than 2 years.
No less than 2 years or
more than 5 years.
No less than 3 years or
more than 5 years.
No less than 3 years or
more than 5 years.
No less than 3 years or
more than 5 years.
§ 384.401 Withholding of funds based on
noncompliance.
§ 385.7 Factors to be considered in
determining a safety rating.
(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]
35. The authority citation for part 385
continues to read as follows:
■
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.
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.
33. Amend § 384.301 to add paragraph
(c) to read as follows:
■
§ 384.301 Substantial compliance—
general requirements.
*
jlentini on PROD1PC65 with RULES2
For a first conviction while
operating a CMV, a person
required to have a CDL
and a CDL holder must be
disqualified from operating
a CMV for . . .
*
*
*
*
(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.
34. Revise § 384.401 to read as
follows:
■
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
36. Amend § 385.3 to add, in correct
alphabetical placement, a definition for
‘‘motor carrier operations in commerce’’
to read as follows:
■
§ 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.
*
*
*
*
*
■ 37. Amend § 385.7 to revise
paragraphs (c), (d), (f), and (g) to read as
follows:
PO 00000
Frm 00030
Fmt 4701
Sfmt 4700
*
*
*
*
(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-ofservice 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.
■ 38. Amend § 385.13 to revise
paragraphs (a)(1), (a)(2), and (d) to read
as follows:
§ 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
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
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.
■ 39. Amend § 385.17 to revise
paragraph (g) to read as follows:
jlentini on PROD1PC65 with RULES2
*
*
*
*
(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
VerDate Aug<31>2005
19:08 Jul 03, 2007
Jkt 211001
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
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.
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:
■
§ 385.17 Change to safety rating based
upon corrective actions.
*
61st day after the date of the notice of
proposed ‘‘unsatisfactory’’ rating.
*
*
*
*
*
■ 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 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
PO 00000
Frm 00031
Fmt 4701
Sfmt 4700
36789
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) * * *
E:\FR\FM\05JYR2.SGM
05JYR2
36790
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
(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 § 390.3 to add paragraph
(f)(7) to read as follows:
■
§ 390.3
General applicability.
jlentini on PROD1PC65 with RULES2
*
*
*
*
*
(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 § 390.5.
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
45. Amend § 390.5 to add, in correct
alphabetical placement, a definition for
‘‘Emergency condition requiring
immediate response’’ to read as follows:
■
§ 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 § 395.1 to revise
paragraphs (a), (k)(2), and (n) and to add
paragraphs (p) and (q), to read as
follows:
■
§ 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 § 395.2.
*
*
*
*
*
PO 00000
Frm 00032
Fmt 4701
Sfmt 4700
(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
§ 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 workreporting location, the driver is subject
to § 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 § 395.2 to add, in correct
alphabetical placement, the definitions
for ‘‘agricultural commodity’’ and ‘‘farm
supplies for agricultural purposes’’ to
read as follows:
■
§ 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.
*
*
*
*
*
E:\FR\FM\05JYR2.SGM
05JYR2
Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations
Issued on: June 11, 2007.
John H. Hill,
Administrator.
[FR Doc. E7–11717 Filed 7–3–07; 8:45 am]
jlentini on PROD1PC65 with RULES2
BILLING CODE 4910–EX–P
VerDate Aug<31>2005
18:29 Jul 03, 2007
Jkt 211001
PO 00000
Frm 00033
Fmt 4701
Sfmt 4700
E:\FR\FM\05JYR2.SGM
05JYR2
36791
| File Type | application/pdf |
| File Modified | 2016-02-10 |
| File Created | 2016-02-10 |