Transparency in Property Broker Transactions

DEPARTMENT OF TRANSPORTATION <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY> <CFR>49 CFR Part 371</CFR> <DEPDOC>[Docket No. FMCSA-2023-0257]</DEPDOC> <RIN>RIN 2126-AC63</RIN> <SUBJECT>Transparency in Property Broker Transactions</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT). <HD SOURCE="HED">ACTION:</HD> Notice of proposed rulemaking (NPRM). <SUM> <HD SOURCE="HED">SUMMARY:</HD> FMCSA proposes amendments to its property broker rules in response to petitions for rulemaking from the Owner-Operator Independent Drivers Association (OOIDA) and the Small Business in Transportation Coalition (SBTC). Under current regulations, the parties to a brokered freight transaction have a right to review the broker's record of the transaction, which stakeholders often refer to as “broker transparency.” Contracts between brokers and motor carriers frequently contain waivers of this right. OOIDA requested that FMCSA promulgate a requirement that property brokers provide an electronic copy of each transaction record automatically within 48 hours after the contractual service has been completed, and explicitly prohibit brokers from including any provision in their contracts that requires a motor carrier to waive its rights to access the transaction records. SBTC requested that FMCSA prohibit brokers of property from coercing or requiring parties to brokers' transactions to waive their right to review the record of the transaction as a condition for doing business and prohibit the use of clause(s) exempting the broker from having to comply with this transparency requirement. Though the proposed rule is responsive to the petitions in reinforcing the broker transparency requirement, the proposed provisions differ from those requested by OOIDA and SBTC. The proposed rule would revise the regulatory text to make clear that brokers have a regulatory obligation to provide transaction records to the transacting parties on request. The proposal would also make changes to the format and content of the records. </SUM> <EFFDATE> <HD SOURCE="HED">DATES:</HD> Comments must be received on or before January 21, 2025. </EFFDATE> <HD SOURCE="HED">ADDRESSES:</HD> You may submit comments identified by Docket Number FMCSA-2023-0257 using any of the following methods: • <E T="03">Federal eRulemaking Portal:</E> Go to <E T="03">https://www.regulations.gov/docket/FMCSA-2023-0257/document.</E> Follow the online instructions for submitting comments. • <E T="03">Mail:</E> Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001. • <E T="03">Hand Delivery or Courier:</E> Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations. • <E T="03">Fax:</E> (202) 493-2251. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Mr. Michael Evans, Transportation Specialist, Commercial Enforcement Division, Office of Safety, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001; (202) 568-0530; <E T="03">michael.evans@dot.gov.</E> If you have questions on viewing or submitting material to the docket, call Dockets Operations at (202) 366-9826. </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> FMCSA organizes this NPRM as follows: <EXTRACT> <FP SOURCE="FP-2">I. Public Participation and Request for Comments</FP> <FP SOURCE="FP1-2">A. Submitting Comments</FP> <FP SOURCE="FP1-2">B. Viewing Comments and Documents</FP> <FP SOURCE="FP1-2">C. Privacy</FP> <FP SOURCE="FP1-2">D. Comments on the Information Collection</FP> <FP SOURCE="FP-2">II. Executive Summary</FP> <FP SOURCE="FP1-2">A. Purpose and Summary of the Regulatory Action</FP> <FP SOURCE="FP1-2">B. Summary of Major Provisions</FP> <FP SOURCE="FP1-2">C. Costs and Benefits</FP> <FP SOURCE="FP-2">III. Abbreviations</FP> <FP SOURCE="FP-2">IV. Legal Basis</FP> <FP SOURCE="FP-2">V. Background</FP> <FP SOURCE="FP1-2">A. History of Property Broker Regulations</FP> <FP SOURCE="FP1-2">B. History of the Current Rulemaking</FP> <FP SOURCE="FP1-2">C. Related Actions</FP> <FP SOURCE="FP-2">VI. Discussion of Proposed Rulemaking and Comments</FP> <FP SOURCE="FP1-2">A. Proposed Rulemaking</FP> <FP SOURCE="FP1-2">B. Comments and Agency Responses</FP> <FP SOURCE="FP1-2">C. Issues on Which the Agency Seeks Further Comment</FP> <FP SOURCE="FP-2">VII. Section-by-Section Analysis</FP> <FP SOURCE="FP1-2">A. Section 371.2 Definitions.</FP> <FP SOURCE="FP1-2">B. Section 371.3 Records To Be Kept by Brokers</FP> <FP SOURCE="FP-2">VIII. Regulatory Analyses</FP> <FP SOURCE="FP1-2"> A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 (Improving Regulation and Regulatory Review), E.O. 14094 (Modernizing Regulatory Review), and DOT Regulatory Policies and Procedures </FP> <FP SOURCE="FP1-2">B. Advance Notice of Proposed Rulemaking</FP> <FP SOURCE="FP1-2">C. Regulatory Flexibility Act</FP> <FP SOURCE="FP1-2">D. Assistance for Small Entities</FP> <FP SOURCE="FP1-2">E. Unfunded Mandates Reform Act of 1995</FP> <FP SOURCE="FP1-2">F. Paperwork Reduction Act</FP> <FP SOURCE="FP1-2">G. E.O. 13132 (Federalism)</FP> <FP SOURCE="FP1-2">H. Privacy</FP> <FP SOURCE="FP1-2">I. E.O. 13175 (Indian Tribal Governments)</FP> <FP SOURCE="FP1-2">J. National Environmental Policy Act of 1969</FP> <FP SOURCE="FP1-2">K. Rulemaking Summary</FP> </EXTRACT> <HD SOURCE="HD1">I. Public Participation and Request for Comments</HD> <HD SOURCE="HD2">A. Submitting Comments </HD> If you submit a comment, please include the docket number for this NPRM (FMCSA-2023 <E T="03">-</E> 0257), indicate the specific section of this document to which your comment applies, and provide a reason for each suggestion or recommendation. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so FMCSA can contact you if there are questions regarding your submission. To submit your comment online, go to <E T="03">https://www.regulations.gov/docket/FMCSA-2023-0257/document,</E> click on this NPRM, click “Comment,” and type your comment into the text box on the following screen. If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8 <FR>1/2</FR> by 11 inches, suitable for copying and electronic filing. FMCSA will consider all comments and material received during the comment period. <HD SOURCE="HD3">Confidential Business Information (CBI)</HD> CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (5 United States Code (U.S.C.) 552), CBI is exempt from public disclosure. If your comments responsive to the NPRM contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to the NPRM, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission that constitutes CBI as “PROPIN” to indicate it contains proprietary information. FMCSA will treat such marked submissions as confidential under the Freedom of Information Act, and they will not be placed in the public docket of the NPRM. Submissions containing CBI should be sent to Brian Dahlin, Chief, Regulatory Evaluation Division, Office of Policy, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001 or via email at <E T="03">brian.g.dahlin@dot.gov.</E> At this time, you need not send a duplicate hardcopy of your electronic CBI submissions to FMCSA headquarters. Any comments FMCSA receives not specifically designated as CBI will be placed in the public docket for this rulemaking. <HD SOURCE="HD2">B. Viewing Comments and Documents</HD> To view any documents mentioned as being available in the docket, go to <E T="03">https://www.regulations.gov/docket/FMCSA-2023-0257/document</E> and choose the document to review. To view comments, click this NPRM, then click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations. <HD SOURCE="HD2">C. Privacy</HD> In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its regulatory process. DOT posts these comments, including any personal information the commenter provides, to <E T="03">www.regulations.gov</E> as described in the system of records notice DOT/ALL 14 (Federal Docket Management System (FDMS)), which can be reviewed at <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices.</E> The comments are posted without edit and are searchable by the name of the submitter. <HD SOURCE="HD2">D. Comments on the Information Collection</HD> Written comments and recommendations for the information collection discussed in this NPRM should be sent within 60 days of publication to <E T="03">www.reginfo.gov/public/do/PRAMain.</E> Find this information collection by clicking the link that reads “Currently under Review—Open for Public Comments.” ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 163k characters. 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