NPRM Proposal on Brokers has Tentative Support from Motor Carriers

In its ongoing investigation of truck brokers, the Federal Motor Carrier Safety Administration (FMCSA) recently announced it would extend the comment period for its notice of proposed rulemaking (NPRM) for rules to codify broker and freight forwarder financial requirements. Comments had been set to end in early March.

FMCSA also announced it will reopen comments for interim guidance that would clarify the definitions of “broker” and “bona fide agent.” The moves were in response to a public listening session which took place at the Mid-America Trucking Show in late March.

While the guidance on brokers and agents was effective on publication, FMCSA wanted further comments and will issue a final guidance on June 16. The comment period was reopened through April 6.

The agency said, “FMCSA believes it is in the interest of the public to reopen the comment period so FMCSA may consider comments on the guidance made at the [listening] session and for a short period thereafter.”

In its NPRM, the agency proposes to allow brokers and freight forwarders to meet the MAP-21 requirements to “assets readily available” when contracting with carriers. MAP-21 was signed into law in 2012, the Moving Ahead for Progress in the 21st Century sought to implement several new provisions for the trucking industry.

The NPRM proposes rules to regulate brokers and freight forwarder financial responsibility in five areas. According to the federal register, these five areas include, “Assets readily available; immediate suspension of broker/freight forwarder operating authority; surety or trust responsibilities in cases of broker/ freight forwarder financial failure or insolvency; enforcement authority; and entities eligible to provide trust funds for form BMC-85 trust fund filings.”

In the most recent comments, the majority of stakeholders favor the proposed rules. The American Trucking Associations agreed with much of the proposal but believes it could go further to ensure timely payment to carriers.

“Unfortunately, by taking a more permissive approach to what assets would be considered readily available, the agency risks opening the door to expanded—instead of restricted—use of broker-funded trust funds,” ATA said. ATA made it clear in the proposal there are several asset types that are not able to be liquidated within seven days but said “the proposal does not fully evaluate the more fundamental question of which asset types specifically meet a standard to serve as a financial guarantee.”

ATA commented that FMCSA should include a “prescriptive list,” which would “provide an answer to this question while also ensuring that the FMCSA is exercising its regulatory authority and responsibility to set financial responsibility policies that reduce unscrupulous brokers.” tr~k bRokrW dI c~l rhI jWc iv~c, PYfrl motr kYrIAr syPtI AYfiminstRySn

Other commenters seemed to agree the proposal was a move in the right direction.

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FMCSA ny ieh vI GoSxw kIqI ik ieh

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Awpxy NPRM iv~c, eyjMsI ny kYrIArW nwl smJOqw krn vyly dlwlW Aqy BwVy

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ATA ny it~pxI kIqI ik FMCSA ƒ ie~k "inrDwrq sUcI" Swml krnI cwhIdI hY, jo "ies svwl dw jvwb pRdwn krygI jdoN ik ieh XkInI bxwieAw jwvygw ik FMCSA iv~qI izMmyvwrI nIqIAW ƒ sY~t krn leI

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