81 FR 24935 - Broker and Freight Forwarder Financial Responsibility Roundtable

DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration

Federal Register Volume 81, Issue 81 (April 27, 2016)

Page Range		24935-24937
FR Document		2016-09849

FMCSA announces that it will host an informal roundtable discussion pertaining to property broker and freight forwarder financial responsibility. The meeting will focus on the adequacy of existing trust fund industry practices, Federal requirements for such institutions, and the underlying instruments they issue for use by brokers and freight forwarders submitting the Broker's or Freight Forwarder's Trust Fund Agreement (FMCSA Form BMC-85) to satisfy the Agency's financial responsibility rules. The Agency seeks information from motor carriers and shippers that have experienced challenges receiving compensation for claims against freight forwarders and brokers due to insufficient funds. The meeting will be public. Individuals with diverse experience, expertise, and perspectives are encouraged to attend. This meeting does not pertain to increasing motor carrier, broker, or freight forwarder minimum financial responsibility limits. If all comments have been exhausted prior to the end of the session, the session may conclude early.

Federal Register, Volume 81 Issue 81 (Wednesday, April 27, 2016)

[Federal Register Volume 81, Number 81 (Wednesday, April 27, 2016)]
[Notices]
[Pages 24935-24937]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-09849]


-----------------------------------------------------------------------

DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

[Docket No. FMCSA-2016-0102]


Broker and Freight Forwarder Financial Responsibility Roundtable

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of meeting, request for public comment.

-----------------------------------------------------------------------

SUMMARY: FMCSA announces that it will host an informal roundtable 
discussion pertaining to property broker and freight forwarder 
financial responsibility. The meeting will focus on the adequacy of 
existing trust fund industry practices, Federal requirements for such 
institutions, and the underlying instruments they issue for use by 
brokers and freight forwarders submitting the Broker's or Freight 
Forwarder's Trust Fund Agreement (FMCSA Form BMC-85) to satisfy the

[[Page 24936]]

Agency's financial responsibility rules. The Agency seeks information 
from motor carriers and shippers that have experienced challenges 
receiving compensation for claims against freight forwarders and 
brokers due to insufficient funds. The meeting will be public. 
Individuals with diverse experience, expertise, and perspectives are 
encouraged to attend. This meeting does not pertain to increasing motor 
carrier, broker, or freight forwarder minimum financial responsibility 
limits. If all comments have been exhausted prior to the end of the 
session, the session may conclude early.

DATES: The roundtable discussion will be held on Friday, May 20, 2016, 
from 9:30 a.m. to 4:30 p.m., Eastern Time (ET) at the U. S. Department 
of Transportation, Media Center, 1200 New Jersey Avenue SE., Ground 
Floor, Washington, DC 20590. The entire proceedings will be public.

ADDRESSES: You may submit comments bearing the Federal Docket 
Management System Docket ID (FMCSA-2016-0102) using any of the 
following methods:
    Federal eRulemaking Portal: Go to http://www.regulations.gov. 
Follow the online instructions for submitting comments.
    Mail: Docket Management Facility: U.S. Department of 
Transportation, 1200 New Jersey Avenue SE., West Building Ground Floor, 
Room W12-140, Washington, DC 20590.
    Hand Delivery or Courier: West Building Ground Floor, Room W12-140, 
1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 
p.m., ET, Monday through Friday, except Federal holidays.
    Fax: 1-202-493-2251.
    Each submission must include the Agency name and the docket number 
for this notice. Note that DOT posts all comments received without 
change to www.regulations.gov, including any personal information 
included in a comment. Please see the Privacy Act heading below.
    Docket: For access to the docket to read background documents or 
comments, go to www.regulations.gov at any time or visit Room W12-140 
on the ground level of the West Building, 1200 New Jersey Avenue SE., 
Washington, DC 20590, between 9 a.m. and 5 p.m., Monday through Friday, 
except Federal holidays. The online Federal document management system 
is available 24 hours each day, 365 days each year. If you would like 
acknowledgment that the Agency received your comments, please include a 
self-addressed, stamped envelope or postcard or print the 
acknowledgement page that appears after submitting comments online. The 
docket FMCSA-2016-0102 will remain open indefinitely.
    Privacy Act: In accordance with 5 U.S.C. 553(c), DOT solicits 
comments from the public to better inform its rulemaking process. DOT 
posts these comments, without edit, including any personal information 
the commenter provides, to www.regulations.gov, as described in the 
system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.

FOR FURTHER INFORMATION CONTACT: For information concerning this 
notice, contact Dr. Gerald Folsom, Office of Registration and Safety 
Information, (202) 385-2405, or by email at [email protected].
    For information about the public meeting: Ms. Shannon L. Watson, 
Senior Policy Advisor, Federal Motor Carrier Safety Administration, 
1200 New Jersey Avenue SE., Washington, DC 20590, by telephone at 202-
366-2551, or by email at [email protected]. If you have questions 
on viewing or submitting material to the docket, contact Docket 
Services at 202-366-9826. Business hours are from 8:00 a.m. to 4:30 
p.m. ET, Monday through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: 

I. Public Participation and Request for Comments

    FMCSA encourages participation in the roundtable discussion and the 
submission of comments and related materials. Documents for discussion 
at the meeting should be submitted to the docket at least 7 business 
days in advance of the meeting.

A. Submitting Comments

    If you submit a comment, please include the docket number for this 
notice (FMCSA-2016-0102), indicate the specific section of this 
document to which each 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 methods. 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 that the Agency can contact you if it has questions 
regarding your submission.
    To submit your comment online, go to http://www.regulations.gov and 
put the docket number, ``FMCSA-2016-0102'' in the ``Keyword'' box and 
click ``Search.'' When the new screen appears, click on the ``Comment 
Now!''' button and type your comment into the text box in the following 
screen. Choose whether you are submitting your comment as an individual 
or on behalf of a third party and then submit. If you submit your 
comments by mail or hand delivery, submit them in an unbound format, no 
larger than 8\1/2\ by 11 inches, suitable for copying and electronic 
filing. If you submit comments by mail and would like to know that they 
reached the facility, please enclose a stamped, self-addressed postcard 
or envelope.
Confidential Business Information
    Confidential Business Information (CBI) is commercial or financial 
information that is customarily not made available to the general 
public by the submitter. Under the Freedom of Information Act, CBI is 
eligible for protection from public disclosure. If you have CBI that is 
relevant or responsive to this Notice, it is important that you clearly 
designate the submitted comments as CBI. Accordingly, please mark each 
page of your submission as ``confidential'' or ``CBI.'' Submissions 
designated as CBI and meeting the definition noted above will not be 
placed in the public docket of this Notice. Submissions containing CBI 
should be sent to Mr. Brian Dahlin, Chief, Regulatory Analysis 
Division, 1200 New Jersey Avenue SE., Washington, DC 20590. Any 
commentary that FMCSA receives which is not specifically designated as 
CBI will be placed in the public docket for this rulemaking.
    FMCSA will consider all comments and materials received during the 
comment period.

B. Viewing Comments and Documents

    To view comments, go to http://www.regulations.gov and insert the 
docket number, ``FMCSA-2016-0102'' in the ``Keyword'' box and click 
``Search.'' Next, click the ``Open Docket Folder'' button and choose 
the document listed to review. If you do not have access to the 
internet, you may view the docket by visiting the Docket Management 
Facility in Room W12-140 on the ground floor of the DOT West Building, 
1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.

II. Background

MAP-21 Section 32918

    In the Moving Ahead for Progress in the 21st Century Act (MAP-21) 
(Pub. L. 112-141), Congress enacted Section 32918, Financial Security 
of Brokers and Freight Forwarders. Section 32918

[[Page 24937]]

raised the financial security amount for brokers to $75,000 and 
extended the financial security requirement to freight forwarders for 
the first time. FMCSA implemented those requirements in a 2013 Omnibus 
rulemaking (78 FR 60226) (Oct. 1, 2013), codified at 49 CFR 387.307(a) 
(brokers) and 49 CFR 387.403(c) and 387.405 (freight forwarders). 
Brokers or Freight Forwarders are required to have either a BMC-84 
Surety Bond or BMC-85 trust fund on file with the Agency as a condition 
of obtaining FMCSA operating authority.
    MAP-21 added requirements pertaining to the composition of trust 
fund assets (49 U.S.C. 13906(b)(1)(C),(c)(1)(D)), the immediate 
suspension of broker or freight forwarder operating authority if their 
financial security falls below $75,000 (49 U.S.C. 13906(b)(5),(c)(6)), 
and the payment of claims in the event of financial failure or 
insolvency (49 U.S.C. 13906(b)(6),(c)(7)). Additionally, it gave FMCSA 
the authority to take direct enforcement action against surety 
providers, either through administrative proceedings, court action or 
suspending their ability to make financial security filings with the 
agency. (49 U.S.C. 13906(b)(7),(c)(8)).
    Since MAP-21's enactment, various parties have filed numerous 
complaints with the agency pertaining to BMC-85 trust fund providers. 
Multiple entities have sought guidance from the Agency, pertaining to 
the portions of section 32918 not covered in the omnibus rule, 
particularly regarding procedures to be followed in connection with the 
insolvency or financial failure of a broker.
    As an agency whose primary mission is to promote motor carrier 
safety, 49 U.S.C. 113(c), FMCSA requests additional input from 
stakeholders in connection with broker/freight forwarder financial 
security. The Agency seeks to ensure that shippers and motor carriers 
can collect on the required broker/freight forwarder financial 
instruments and that appropriate guidance on section 32918 is available 
to interested parties while avoiding the diversion of Agency resources 
from critical safety functions. The Agency believes that this 
roundtable discussion will help gather critical information on how to 
best meet its responsibilities pursuant to section 32918.
    FMCSA seeks attendance or participation by all interested parties 
at the roundtable discussion, including but not limited to, various 
aspects of the brokerage and freight forwarding industries (including 
small business segments of the industry and their representatives), 
motor carriers (including the household goods industry), shippers, 
owner-operators, the surety bond industry, BMC-85 trust fund filers, 
groups representing small businesses, state regulators of loan and 
finance companies and insurance companies, Federal surety bond 
regulators and all other interested parties.
    As a result of this roundtable discussion, FMCSA hopes to develop a 
clear path toward implementing fully section 32918 of MAP-21.

Topics for Roundtable Discussion

    FMCSA welcomes comments or questions before and during the 
roundtable discussion. The roundtable will center on the following 
questions but may be expanded as necessary for a full discussion of the 
relevant issues:
    (1) Which, if any, BMC-85 Trust Fund holders routinely deny claims 
made by shippers and motor carriers against those trust funds?
    (2) What is the nature of the assets that are being held in BMC-85 
trust funds and what is the most desirable composition of the assets? 
For example, should trust funds consist solely of cash or other highly 
liquid financial instruments? What types of instruments constitute 
``highly liquid?'' Aside from cash, what else can satisfy MAP-21's 
mandate that trust funds consist of ``readily available assets . . . 
?'' Should the Agency define the classes of investments held in trust 
relative to risk profile of the issuer and identify the relative 
liquidity of such assets or should it rely on other sources for such 
information?
    (3) Aside from FMCSA, are BMC-85 trust fund filers being regulated 
by any other governmental entity? If so, what is the nature of their 
regulation by state or other authorities?
    (4) What actions can FMCSA take to ensure that motor carriers and 
shippers are able to collect on BMC-85 trust funds where legitimate 
claims are filed with the financial institution?
    (5) Should the Agency act to address potential issues associated 
with the solvency of BMC-85 trust funds? If so, what type of action 
would be most appropriate? What type of FMCSA action pertaining to 49 
U.S.C. 13906(b)(6) and (c)(7)(payment in cases of financial failure or 
insolvency) is necessary? Would agency guidance, as opposed to 
rulemaking, be sufficient?
    (6) Should FMCSA require brokers and freight forwarders to 
demonstrate the creditworthiness of the entity with whom brokers or 
freight forwarders intend to execute a trust fund, based on a 
determination of creditworthiness by the applicable state regulatory 
authority or the Department of Treasury Financial Management Service?
    FMCSA will utilize the comments received in advance of the 
roundtable discussion to further frame the issues.

Accessibility Needs

    The U.S. Department of Transportation is committed to providing 
equal access to the roundtable discussion. If you need special 
accommodations for the roundtable, such as sign language 
interpretation, please contact Ms. Shannon L. Watson, Senior Policy 
Advisor, FMCSA, by telephone at 202-366-2551, at least one week prior 
to the event to allow us sufficient time to arrange for such services. 
We will make every attempt to fulfill requested accommodations.

    Issued on: April 21, 2016.
Larry W. Minor,
Associate Administrator for Policy.
[FR Doc. 2016-09849 Filed 4-26-16; 8:45 am]
 BILLING CODE 4910-EX-P

Federal Register / Vol. 81, No. 81 / Wednesday, April 27, 2016 / Notices 24935

Neither publication of this notice nor 91.109(a); 91.119; 91.121; 91.151(a); http://www.regulations.gov, as
the inclusion or omission of information 91.203(a) & (b); 91.405(a); 91.407(a)(1); described in the system of records
in the summary is intended to affect the 91.409(a)(2); 91.417(a). notice (DOT/ALL–14 FDMS), which can
legal status of the petition or its final Description of Relief Sought: The be reviewed at http://www.dot.gov/
disposition. petitioner is requesting to use the Vario privacy.
DATES: Comments on this petition must XLC V2 Helicopter, which is a turbine- Docket: Background documents or
identify the petition docket number and powered helicopter with a maximum comments received may be read at
must be received on or before May 17, takeoff weight of 32kg. http://www.regulations.gov at any time.
2016. [FR Doc. 2016–09777 Filed 4–26–16; 8:45 am] Follow the online instructions for
accessing the docket or go to the Docket
ADDRESSES: Send comments identified BILLING CODE 4910–13–P
Operations in Room W12–140 of the
by docket number FAA–2015–3133
West Building Ground Floor at 1200
using any of the following methods:
• Federal eRulemaking Portal: Go to DEPARTMENT OF TRANSPORTATION New Jersey Avenue SE., Washington,
http://www.regulations.gov and follow DC, between 9 a.m. and 5 p.m., Monday
Federal Aviation Administration through Friday, except Federal holidays.
the online instructions for sending your
comments electronically. [Summary Notice No. 2016–51] FOR FURTHER INFORMATION CONTACT: For
• Mail: Send comments to Docket technical questions concerning this
Operations, M–30; U.S. Department of Petition for Exemption; Summary of action, contact Nia Daniels, 800
Transportation (DOT), 1200 New Jersey Petition Received; Delta Air Lines, Inc. Independence Avenue SW.,
Avenue SE., Room W12–140, West Washington, DC 20519, (202) 267–7626.
AGENCY: Federal Aviation This notice is published pursuant to
Building Ground Floor, Washington, DC Administration (FAA), DOT.
20590–0001. 14 CFR 11.85.
• Hand Delivery or Courier: Take ACTION: Notice.
Issued in Washington, DC, on April 21,
comments to Docket Operations in SUMMARY: This notice contains a 2016.
Room W12–140 of the West Building summary of a petition seeking relief Jim Crotty,
Ground Floor at 1200 New Jersey from specified requirements of Title 14 Acting Director, Office of Rulemaking.
Avenue SE., Washington, DC, between 9 of the Code of Federal Regulations. The
a.m. and 5 p.m., Monday through Petition for Exemption
purpose of this notice is to improve the
Friday, except Federal holidays. public’s awareness of, and participation Docket No.: FAA–2016–5244.
• Fax: Fax comments to Docket Petitioner: Delta Air Lines, Inc.
in, the FAA’s exemption process.
Operations at 202–493–2251. Section of 14 CFR Affected:
Privacy: In accordance with 5 U.S.C. Neither publication of this notice nor
the inclusion or omission of information 121.339(c).
553(c), DOT solicits comments from the Description of Relief Sought: Delta Air
public to better inform its rulemaking in the summary is intended to affect the
legal status of the petition or its final Lines, Inc. petitioned for an exemption
process. DOT posts these comments, to operate the Airbus A319/A320/A321
without edit, including any personal disposition.
aircraft with the survival kits remotely
information the commenter provides, to DATES: Comments on this petition must stowed from the slide/rafts.
http://www.regulations.gov, as identify the petition docket number and
must be received on or before May 17, [FR Doc. 2016–09776 Filed 4–26–16; 8:45 am]
described in the system of records
2016. BILLING CODE 4910–13–P
notice (DOT/ALL–14 FDMS), which can
be reviewed at http://www.dot.gov/ ADDRESSES: Send comments identified
privacy. by docket number FAA–2016–5244
Docket: Background documents or DEPARTMENT OF TRANSPORTATION
using any of the following methods:
comments received may be read at • Federal eRulemaking Portal: Go to Federal Motor Carrier Safety
http://www.regulations.gov at any time. http://www.regulations.gov and follow Administration
Follow the online instructions for the online instructions for sending your
accessing the docket or go to the Docket comments electronically. [Docket No. FMCSA–2016–0102]
Operations in Room W12–140 of the • Mail: Send comments to Docket
West Building Ground Floor at 1200 Broker and Freight Forwarder
Operations, M–30; U.S. Department of
New Jersey Avenue SE., Washington, Financial Responsibility Roundtable
Transportation (DOT), 1200 New Jersey
DC, between 9 a.m. and 5 p.m., Monday Avenue SE., Room W12–140, West AGENCY: Federal Motor Carrier Safety
through Friday, except Federal holidays. Building Ground Floor, Washington, DC Administration (FMCSA), DOT.
FOR FURTHER INFORMATION CONTACT: Dan 20590–0001. ACTION: Notice of meeting, request for
Ngo, (202) 267–4264, 800 Independence • Hand Delivery or Courier: Take public comment.
Avenue SW., Washington, DC 20591. comments to Docket Operations in
This notice is published pursuant to Room W12–140 of the West Building SUMMARY: FMCSA announces that it will
14 CFR 11.85. Ground Floor at 1200 New Jersey host an informal roundtable discussion
Issued in Washington, DC, on April 21, Avenue SE., Washington, DC, between 9 pertaining to property broker and freight
2016. a.m. and 5 p.m., Monday through forwarder financial responsibility. The
Friday, except Federal holidays. meeting will focus on the adequacy of
asabaliauskas on DSK3SPTVN1PROD with NOTICES

James M. Crotty,
Acting Director, Office of Rulemaking. • Fax: Fax comments to Docket existing trust fund industry practices,
Operations at 202–493–2251. Federal requirements for such
Petition for Exemption Privacy: In accordance with 5 U.S.C. institutions, and the underlying
Docket No.: FAA–2015–3133. 553(c), DOT solicits comments from the instruments they issue for use by
Petitioner: Aerial Net. public to better inform its rulemaking brokers and freight forwarders
Section(s) of 14 CFR Affected: Part 21; process. DOT posts these comments, submitting the Broker’s or Freight
45.23(b); 61.113(a) & (b); 61.133(a); without edit, including any personal Forwarder’s Trust Fund Agreement
91.7(a); 91.9(b)(2) & (c); 91.103; information the commenter provides, to (FMCSA Form BMC–85) to satisfy the

VerDate Sep<11>2014 17:29 Apr 26, 2016 Jkt 238001 PO 00000 Frm 00153 Fmt 4703 Sfmt 4703 E:\FR\FM\27APN1.SGM 27APN1

Document Created: 2018-02-07 13:55:29
Document Modified: 2018-02-07 13:55:29

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of meeting, request for public comment.
Dates		The roundtable discussion will be held on Friday, May 20, 2016, from 9:30 a.m. to 4:30 p.m., Eastern Time (ET) at the U. S. Department of Transportation, Media Center, 1200 New Jersey Avenue SE., Ground Floor, Washington, DC 20590. The entire proceedings will be public.
Contact		For information concerning this notice, contact Dr. Gerald Folsom, Office of Registration and Safety Information, (202) 385-2405, or by email at [email protected]
FR Citation		81 FR 24935

81 FR 24935 - Broker and Freight Forwarder Financial Responsibility Roundtable

DEPARTMENT OF TRANSPORTATIONFederal Motor Carrier Safety Administration

Federal Register Volume 81, Issue 81 (April 27, 2016)

DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration