[Federal Register Volume 86, Number 151 (Tuesday, August 10, 2021)]
[Proposed Rules]
[Pages 43814-43842]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-13889]



[[Page 43813]]

Vol. 86

Tuesday,

No. 151

August 10, 2021

Part III





Department of Transportation





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 Federal Motor Carrier Safety Administration





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49 CFR Parts 371 and 375





Implementation of Household Goods Working Group Recommendations; 
Proposed Rule

  Federal Register / Vol. 86 , No. 151 / Tuesday, August 10, 2021 / 
Proposed Rules  

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 371 and 375

[Docket No. FMCSA-2020-0205]
RIN 2126-AC35


Implementation of Household Goods Working Group Recommendations

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: FMCSA proposes to update the Transportation of Household Goods 
regulations to incorporate recommendations from the Household Goods 
Consumer Protection Working Group (Working Group) contained in the 
Recommendations to the U.S. Department of Transportation to Improve 
Household Goods Consumer Education, Simplify and Reduce Paperwork, and 
Condense FMCSA Publication ESA 03005 (Recommendations Report). The 
Agency proposes to update the regulations to reflect those aspects of 
the Recommendations Report which require a rulemaking to implement and 
are within the Agency's authority. The proposed updates based on these 
recommendations would result in an aggregate reduction in costs for 
household goods motor carriers and provide clarity for individual 
shippers.

DATES: Comments must be received on or before October 12, 2021. 
Comments on the information collection must be received on or before 
October 12, 2021.

ADDRESSES: You may submit comments identified by Docket Number FMCSA-
2020-0205 using any of the following methods:
     Go to https://www.regulations.gov/docket/FMCSA-2020-0205/document. Follow the online instructions for submitting comments.
     Mail: Dockets Operations, U.S. Department of 
Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, 
Room W12-140, Washington, DC 20590-0001.
     Hand Delivery or Courier: Dockets Operations, U.S. 
Department of Transportation, 1200 New Jersey Avenue SE, West Building, 
Ground Floor, Room W12-140, 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.
     Fax: (202) 493-2251.

FOR FURTHER INFORMATION CONTACT: Ms. Monique Riddick, Commercial 
Enforcement and Investigations Division, Office of Enforcement and 
Compliance, Federal Motor Carrier Safety Administration, 1200 New 
Jersey Avenue SE, Washington, DC 20590-0001; (202) 366-0073; 
Monique.riddick@dot.gov. If you have questions on viewing or submitting 
material to the docket, contact Dockets Operations, (202) 366-9826.

SUPPLEMENTARY INFORMATION: This notice of proposed rulemaking (NPRM) is 
organized as follows:

I. Public Participation and Request for Comments
    A. Submitting Comments
    B. Viewing Comments and Documents
    C. Privacy Act
    D. Advance Notice of Proposed Rulemaking Not Required
    E. Comments on the Information Collection
II. Executive Summary
    A. Purpose of the Amendments
    B. Summary of the Major Provisions
    C. Costs and Benefits
III. Abbreviations
IV. Legal Basis
V. Background
VI. Discussion of Proposed Rulemaking
VII. International Impacts
VIII. Section-by-Section Analysis
IX. Regulatory Analyses
    A. E.O. 12866 (Regulatory Planning and Review), E.O. 13563 
(Improving Regulation and Regulatory Review), and DOT Regulatory 
Policies and Procedures
    B. Congressional Review Act
    C. Regulatory Flexibility Act (Small Entities)
    D. Assistance for Small Entities
    E. Unfunded Mandates Reform Act of 1995
    F. Paperwork Reduction Act
    G. E.O. 13132 (Federalism)
    H. Privacy
    I. E.O. 13175 (Indian Tribal Governments)
    J. National Environmental Policy Act of 1969

I. Public Participation and Request for Comments

A. Submitting Comments

    If you submit a comment, please include the docket number for this 
NPRM (Docket No. FMCSA-2020-0205), 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 that FMCSA can contact you if there are questions 
regarding your submission.
    To submit your comment online, go to https://www.regulations.gov/docket/FMCSA-2020-0205/document, 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\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.
    FMCSA will consider all comments and material received during the 
comment period and may make changes based on your comments.
Confidential Business Information
    CBI is commercial or financial information that is both customarily 
and actually treated as private by its owner. Under the Freedom of 
Information Act (FOIA, 5 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 
this 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 FOIA, and they will not be placed in the public docket of the 
NPRM. Submissions containing CBI should be sent to Mr. Brian Dahlin, 
Chief, Regulatory Analysis Division, Office of Policy, Federal Motor 
Carrier Safety Administration, 1200 New Jersey Avenue SE, Washington, 
DC 20590-0001. Any comments FMCSA receives which are not specifically 
designated as CBI will be placed in the public docket for this 
rulemaking.
    FMCSA will consider all comments and material received during the 
comment period.

B. Viewing Comments and Documents

    To view any documents mentioned as being available in the docket, 
go to https://www.regulations.gov/docket/FMCSA-2020-0205/document and 
choose the document to review. To view comments, click this NPRM, and 
click ``Browse Comments.'' If you do not have access to the internet, 
you may view the docket online by visiting Dockets Operations in Room 
W12-140 on the ground floor of the DOT West Building, 1200 New Jersey 
Avenue SE, Washington, DC 20590-0001, between 9

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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.

C. 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.transportation.gov/privacy.

D. Advance Notice of Proposed Rulemaking Not Required

    This rulemaking is under the authority of several provisions in 
title 49 U.S.C., subtitle IV, part B and is not a safety rule under 
title 49 U.S.C., subtitle VI, part B. This rulemaking is therefore not 
subject to the requirement under 49 U.S.C. 31136(g) to publish an 
advance notice of proposed rulemaking or proceed with a negotiated 
rulemaking.

E. Comments on the Information Collection

    Written comments and recommendations for the information collection 
discussed in this NPRM should be sent to FMCSA within 60 days of 
publication using any of the methods described in ``Public 
Participation and Request for Comments'' above.

II. Executive Summary

A. Purpose of the Amendments

    FMCSA proposes to incorporate certain recommendations from the 
Working Group's Recommendations Report into the regulations at 49 CFR 
part 375. These recommendations, when implemented, would offer 
streamlined documentation requirements and provide opportunity for 
increased efficiency for the transportation of household goods for 
individual shippers by interstate household goods motor carriers and 
service by household goods brokers, improve consumer education and 
protection for individual shippers in need of their services, and 
combat fraud. The Working Group was established and provided 
recommendations pursuant to section 5503 of the Fixing America's 
Surface Transportation Act (FAST Act), Public Law 114-94, 129 Stat. 
1312, 1551 (Dec. 4, 2015).

B. Summary of the Major Provisions

    The proposed rule would implement the majority of the Working 
Group's recommendations that require a rulemaking. These 
recommendations would update a variety of regulatory requirements under 
49 CFR part 375.
    The first recommendation from the Working Group that is being 
proposed in this NPRM is to revise Appendix A to part 375 with an 
updated version of the Your Rights and Responsibilities When You Move 
booklet (Rights and Responsibilities). The updated Rights and 
Responsibilities booklet would contain the same information as the 2013 
version of the booklet with some modifications to conform with the 
other proposed changes in this NPRM, which are discussed below, and to 
increase clarity of the information contained in the booklet. 
Additionally, FMCSA is proposing to implement the Working Group's 
recommendation to require motor carriers to provide the Rights and 
Responsibilities booklet at the same time as the estimate instead of at 
the time of the order for service as currently required. These changes 
to Appendix A and the Rights and Responsibilities booklet would ensure 
that the appendix matches the information contained in the booklet and 
that the booklet presents individual shippers with clear and accurate 
information earlier in the moving process. FMCSA is also proposing to 
remove the requirement in section 375.213(e) for a waiver if the 
individual shipper accesses either Ready to Move? or the Rights and 
Responsibilities booklet via a hyperlink.
    The next recommendation from the Working Group that is being 
proposed in this NPRM is to remove the ability of the motor carrier or 
individual shipper to revise a binding estimate or a non-binding 
estimate. Instead, FMCSA would require the preparation of a new binding 
estimate or new non-binding estimate when the individual shipper 
tenders additional items or requests additional services. This would 
incorporate into the regulations certain provisions from the FMCSA 
guidance titled Regulatory Guidance Concerning Household Goods Carriers 
Requiring Shippers To Sign Blank or Incomplete Documents (76 FR 50537, 
Aug. 15, 2011) (2011 guidance). FMCSA is also proposing to incorporate 
other provisions from the 2011 guidance that clarify that an individual 
shipper may never be required to sign a blank document, and that the 
shipper may be required to sign an incomplete document only when it is 
missing certain information that cannot be determined before the 
document must be signed. These proposed changes would increase 
protection of individual shippers by ensuring that any documents they 
are required to sign be as accurate as possible at the time those 
documents are signed.
    This proposal would also implement the Working Group's 
recommendation to allow for virtual surveys of household goods. By 
updating the definition of physical survey to include virtual surveys, 
this proposed change would allow an option for motor carriers and 
individual shippers to use live video to conduct surveys, rather than 
requiring motor carriers to survey the household goods to be moved in-
person. A related recommendation to require motor carriers to conduct 
surveys beyond a 50-mile radius is also being proposed. Based on the 
availability of virtual surveys, this would ensure that every 
individual shipper has the option of a survey of their goods prior to 
the preparation of an estimate. The implementation of these two 
recommendations, as proposed, would reduce the burden on motor carriers 
for moves originating within 50 miles of the motor carrier agent's 
location by allowing them to conduct surveys remotely, while enhancing 
protection of individual shippers who are beyond 50 miles from the 
motor carrier agent's location by offering the option for a survey 
regardless of where the household goods are located.
    This proposal would also implement the Working Group's 
recommendations to remove the requirement for an order for service, 
update the requirements in the bill of lading, and require the bill of 
lading to be provided earlier in the moving process. This proposal 
incorporates all of the requirements that are currently part of the 
order for service into the bill of lading. FMCSA also proposes to 
require the bill of lading to be signed at least 3 days before the 
scheduled date of the move in order to ensure that the bill of lading 
is provided earlier in the moving process. This would reduce the 
paperwork burden on motor carriers while ensuring that individual 
shippers would be given the same level of protection as they are under 
the current regulations.
    FMCSA is also proposing to implement the Working Group's 
recommendation to replace the requirement for a freight bill with an 
invoice. This proposed change would increase clarity for individual 
shippers regarding any outstanding balances that must be paid while 
reducing repetitive paperwork for motor carriers.
    This proposal would implement the Working Group's recommendation to 
require all motor carriers who have a

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website to display prominently, at their option, a link to either Ready 
to Move? on the FMCSA website or to a true and accurate copy of Ready 
to Move? on their own websites. This would increase the opportunity for 
individual shippers to become aware of the information contained in 
Ready to Move? earlier in the moving process.
    In addition to proposing to implement the Working Group's 
recommendations, FMCSA is proposing additional minor changes to the 
regulations which are intended to increase clarity and consistency.

C. Benefits and Costs

    This proposed rule would affect household goods motor carriers and 
individual shippers. Some provisions in this rule would result in costs 
for motor carriers (i.e., providing the Rights and Responsibilities 
booklet earlier in the process, and providing either in-person or 
virtual surveys at locations beyond 50 miles from the motor carrier 
agent's location), and some provisions would result in negative costs, 
or cost savings (i.e., allowing virtual surveys in place of in-person 
surveys, and eliminating the order for service document and including 
its information in the bill of lading). The motor carrier efficiencies 
discussed would not negatively impact shippers, as the services and 
information received today would not change under the proposed rule. 
FMCSA does not anticipate that shippers would incur costs as a result 
of this proposed rule. FMCSA estimates the total 10-year costs of this 
rule, if finalized as proposed, at -$1.6 million (or $1.6 million in 
cost savings) discounted at 3 percent, and -$1.3 million (or $1.3 
million in cost savings) discounted at 7 percent. Expressed on an 
annualized basis, this equates to -$188,000 in costs (or $188,000 in 
cost savings) at both a 3 and 7 percent discount rate.
    FMCSA does not expect this rule to impact safety. FMCSA does expect 
that it would result in benefits related to consumer protection and 
potentially motor carrier fuel savings. The proposal would result in 
shippers receiving accurate and clear information earlier in the 
process, enabling them to make more informed and better decisions 
regarding which household goods motor carrier to hire. Additionally, 
the proposal would aid in obtaining more accurate estimates of moving 
fees based on physical surveys for those interstate moves that are 
beyond 50 miles from a motor carrier agent's location.

III. Abbreviations

AMSA American Moving and Storage Association
ATA American Trucking Associations
ATRI American Transportation Research Institute
CAGR Compound Average Growth rate
CE Categorical Exclusion
CFR Code of Federal Regulations
DOT Department of Transportation
E.O. Executive Order
FAST Act Fixing America's Surface Transportation Act
FMCSA Federal Motor Carrier Safety Administration
FOIA Freedom of Information Act
FR Federal Register
HHG Household goods
ICC Interstate Commerce Commission
MAP-21 Moving Ahead for Progress in the 21st Century Act
MCMIS Motor Carrier Management Information System
MCSAP Motor Carrier Safety Assistance Program
NAICS North American Industry Classification System
OMB Office of Management and Budget
PIA Privacy Impact Assessment
PII Personally Identifiable Information
PTA Privacy Threshold Assessment
SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users
Secretary Secretary of Transportation
STB Surface Transportation Board
U.S.C. United States Code

IV. Legal Basis for the Rulemaking

    The purpose of this rulemaking is to propose changes in the 
regulations in 49 CFR part 375 applicable to the transportation of 
household goods for individual shippers in interstate commerce. Most of 
the proposed changes involve FMCSA's implementation of the 
recommendations of the Working Group, which was established pursuant to 
section 5503 of the Fixing America's Surface Transportation Act (FAST 
Act), Public Law 114-94, 129 Stat. 1312, 1551 (Dec. 4, 2015). 
Additional changes are being proposed by FMCSA to update provisions in 
part 375 and its appendix A.
    FMCSA's authority to provide protection for individual shippers of 
household goods is found in several sections of 49 U.S.C. subtitle IV, 
part B. The sections primarily involved in this rulemaking are 49 
U.S.C. 13704, 13707, and 14104. They govern guaranteed service and 
charges for transportation, payment of rates, and surveys, estimates, 
and weighing of shipments, respectively. The Secretary of 
Transportation (the Secretary) has specific authority to issue 
regulations, including regulations protecting individual shippers, in 
order to carry out 49 U.S.C. subtitle IV, part B with respect to the 
transportation of household goods by motor carriers (49 U.S.C. 
14104(a)). The Secretary also has broad authority to prescribe 
regulations to carry out 49 U.S.C. subtitle IV, part B. 49 U.S.C. 
13301(a). This authority has been delegated by the Secretary to FMCSA 
(49 CFR 1.87(a)).

V. Background

    FMCSA is an operating administration of the United States 
Department of Transportation (USDOT). FMCSA's primary mission is to 
reduce crashes, injuries, and fatalities involving large trucks and 
buses.
    In addition to its primary safety mission, FMCSA is responsible for 
a national household goods transportation and consumer protection 
program that promotes increased compliance through data analysis, 
investigations, enforcement, and public education and outreach 
activities, and is responsible for licensing and regulating more than 
5,000 interstate household goods motor carriers, freight forwarders, 
and brokers.
    Historically, the Interstate Commerce Commission (ICC) regulated 
all aspects of the interstate moving process from assessing the need to 
permit entities to participate in the industry, to pricing, to 
establishing how claims would be handled. When Congress terminated the 
ICC in 1995 (ICC Termination Act of 1995, Pub. L. 104-88, 109 Stat. 803 
(Dec. 29, 1995)), it transferred household goods regulation to the 
USDOT. Congress established FMCSA in 2000 to carry out the regulation 
of commercial motor vehicles, specifically large trucks and buses. 
Congress also granted the Agency authority over consumer protection of 
individual household goods shippers.
    Since FMCSA's inception, Congress has addressed the regulation of 
household goods movers through legislation to improve consumer 
protection and regulatory authority to ensure compliance by motor 
carriers, brokers, and freight forwarders. The legislation is briefly 
outlined below:
     Sections 4201-4216 of the Safe, Accountable, Flexible, 
Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), 
Public Law 109-59, passed in 2005. These sections of SAFETEA-LU are 
also referred to as the ``Household Goods Mover Oversight Enforcement 
and Reform Act of 2005;''
     Sections 32921-32923 of the Moving Ahead for Progress in 
the 21st Century Act (MAP-21), Public Law 112-141, passed in 2012. MAP-
21 brought about significant updates to licensing requirements for 
household goods motor carriers; and

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     Section 5503 of the FAST Act, Public Law 114-94, passed in 
2015. The FAST Act called for the formation of the Working Group to 
develop recommendations on how best to convey relevant information to 
consumers with respect to Federal laws that pertain to the interstate 
transportation of household goods by motor carriers.
    The rationale for this rulemaking to update 49 CFR part 375 is that 
the rules contained therein are outdated. Additionally, Appendix A: 
Your Rights and Responsibilities When You Move is outdated. The Protect 
Your Move website (http://www.protectyourmove.gov) displays the 2013 
version of the Rights and Responsibilities booklet, which did not 
undergo change through the rulemaking process. The booklet was instead 
approved by the FMCSA Administrator for distribution to the household 
goods industry and their customers. The booklet was shortened in 2013 
to enhance readability and contained new regulatory language from the 
Surface Transportation Board (STB) regarding valuation and insurance 
and the placement of this language on FMCSA-required transportation 
documents.
    As stated above, the FAST Act required FMCSA to establish a working 
group to provide specific recommendations as outlined below. The 
Working Group was comprised of representatives of the Agency, consumer 
affairs experts, educators with expertise in how people learn most 
effectively, and representatives of the household goods moving 
industry. These members represented all facets of the household goods 
industry and worked vigorously to produce the Recommendations Report.
    Specifically, the FAST Act directed the Working Group to develop 
recommendations for FMCSA in the following areas:
    1. Condense FMCSA publication ESA 03005 (Ready to Move?) into a 
format more easily used by consumers;
    2. Use state-of-the-art education techniques and technologies, 
including optimizing the use of the internet as an educational tool; 
and
    3. Reduce and simplify the paperwork required of motor carriers and 
shippers in interstate transportation.
    The Working Group produced a Recommendations Report \1\ with 19 
recommendations for FMCSA, stating:
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    \1\ Available at https://www.fmcsa.dot.gov/fastact/fast-act-hhg-working-group-report-recommendations. The Recommendations Report is 
also in the docket for this rulemaking.
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    1. Develop and maintain modern communications tools, platforms, and 
partnerships to educate consumers.
    2. Develop online (and other) education modules that are short and 
easily understood, and aligned with the different phases of the moving 
process.
    3. Develop and maintain modern tools to assist the moving industry 
with its efforts to educate consumers.
    4. Provide additional funding for staff and resources dedicated to 
household goods consumer education. This funding would allow FMCSA to:
     Procure full time, year-round, dedicated resources and 
personnel (either Federal or contracted) with the expertise needed to 
implement state-of-the-art education utilizing the internet as a tool 
for the purpose of consumer protection education and outreach efforts.
     Collect data (such as intake interviews) to ensure that 
education and outreach efforts are effective and continuously 
improving.
     Collaborate and build partnerships with industry, the 
public, and other organizations.
     Develop content delivery and messaging tactics for 
consumer protection education and outreach.
    5. This Working Group recommends the following with regard to 
FMCSA-ESA-03-006, Your Rights and Responsibilities When You Move:
     The 2013 version should be formally adopted by rulemaking 
to officially replace the pre-2013 version which FMCSA currently 
permits movers to choose to use in lieu of the formally approved 
wording.
     FMCSA should look for opportunities to further condense 
and streamline this document.
     If applicable, and as other recommendations are adopted in 
the future, the contents of this document should be updated to reflect 
the changes that are implemented as a result of this Working Group's 
efforts.
     It should be acceptable for movers to provide this 
document electronically without requiring the shipper to provide 
written consent to waive their right to a hard copy.
     Movers should be required to provide this document earlier 
in the move process (along with the estimate instead of before the 
order for service).
    6. FMCSA's guidance should be formally adopted that if a consumer 
tenders additional items or requests additional services prior to load, 
and the mover agrees to such additions, the mover should prepare a 
completely new estimate (instead of amending the existing one). 
Additionally, the mover should maintain a record of the date, time, and 
manner that the new estimate was accepted by the shipper.
    7. Change the requirement for a ``physical'' survey to a ``visual'' 
survey. The term ``visual survey'' should include both physical and 
virtual surveys.
    8. Movers should be required to offer visual surveys for all 
household goods shipments, including those that are located over 50-
miles from the mover's location. Consumers should continue to have the 
option to waive in writing the visual survey if they choose, but movers 
must offer them the option of a visual survey regardless of distance.
    9. The requirement for an order for service should be eliminated, 
and the unique, critical items from the order for service should be 
moved to the bill of lading. (Note: The Working Group is recommending 
eliminating the order for service as a requirement of all movers, but 
movers that prefer to use an order for service should still be allowed 
to do so.)
    10. The following changes should be made to the bill of lading 
requirements:
     The carrier's physical address, telephone number, and DOT 
number should be added to the bill of lading requirements.
     The bill of lading should continue to require the 
carrier's name, and either the legal or trade name registered with 
FMCSA should be acceptable.
     The requirement to provide names, addresses, and telephone 
numbers of additional motor carriers involved in the move should be 
eliminated. (However, movers should still be allowed to provide this 
information if they choose to.)
     Any reference to the order for service should be removed 
from the bill of lading.
     Add ``Any identification or registration number you assign 
to the shipment'' to the bill of lading requirements (carried over from 
the current order for service requirements).
     A statement should be added that the bill of lading 
incorporates by reference all of the services and charges printed on 
the estimate.
    11. The bill of lading should be made available to consumers prior 
to the date of load, at least as early as the time when the order for 
service was previously provided (before a mover receives a shipment 
from an individual shipper).
    12. Remove the requirement for a freight bill, and the written 
notices for a freight bill should be transferred to an invoice.
    13. Finalize the proposed rulemaking published at 79 FR 23306 (4/
28/14) to

[[Page 43818]]

allow for electronic delivery of all required documents.
    14. Eliminate the current requirement for consumers to sign a 
written waiver in order to receive their documents electronically.
    15. Movers should be required to provide FMCSA publication ESA 
03005 (Ready to Move?) when the visual survey is either scheduled or 
waived by the consumer.
    16. The title of FMCSA publication ESA 03005 should be changed from 
Ready to Move? to Choose Your Mover.
    17. ESA 03005 should be made available electronically and should be 
printable. It should fit on a standard desktop or laptop screen without 
requiring scrolling, and it should also be mobile-friendly. 
Consideration should be given to how the brochure can be both visually 
appealing and also direct consumers' attention to the right places.
    18. All movers who have a website should be required to prominently 
display, at their option, either a link to the brochure (ESA 03005) on 
the FMCSA website or a true and accurate copy of ESA 03005 on their own 
websites.
    19. ESA 03005 should be condensed to include only the content found 
in Appendix H.
    The Recommendations Report includes a discussion of potential 
benefits to both motor carriers and consumers, which are attributed to 
the reduction in paperwork motor carriers are required to issue. The 
recommendations of the Working Group seek to provide clarity for 
consumers, allowing them to move with confidence and make their moves 
more successful. Finally, the Recommendations Report states that these 
updates would provide the opportunity for motor carriers to create a 
smooth moving experience for consumers.

VI. Discussion of Proposed Rulemaking

    FMCSA has reviewed the recommendations contained in the 
Recommendations Report and is now proposing changes to 49 CFR part 375 
to implement those recommendations that FMCSA believes require a 
rulemaking. After considering the recommendations, FMCSA found that 
recommendations 5, 6, 7, 8, 9, 10, 11, 12, 14, 15, and 18 would require 
a change to the regulations at 49 CFR part 375 to implement.\2\ Those 
11 recommendations are therefore considered in this proposed rule, 
including recommendation 15 discussed below, which FMCSA lacks 
statutory authority to implement. The Agency will address the remaining 
recommendations separate from this rulemaking.
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    \2\ See Household Goods Consumer Protection Working Group Report 
To Congress. Available at https://www.fmcsa.dot.gov/mission/policy/household-goods-consumer-protection-working-group-report-congress. 
The Household Goods Consumer Protection Working Group Report To 
Congress is also in the docket for this rulemaking.
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    The specific proposed changes based on the Recommendations Report 
are described below.

A. Recommendations 5 and 14--Appendix A and Electronic Documents

    Recommendation 5 suggests that FMCSA incorporate the 2013 version 
of the Rights and Responsibilities booklet into appendix A to part 375. 
Recommendation 5 also suggests that FMCSA look for ways to further 
condense and streamline the 2013 booklet, update the document with any 
changes to part 375 from the Recommendations Report, and require movers 
to provide this booklet earlier in the moving process.
    Under current guidance titled Guidance on FMCSA's Publication: Your 
Rights and Responsibilities When You Move, FMCSA permits distribution 
of both the 2013 and the pre-2013 version of the Rights and 
Responsibilities booklet (78 FR 25782, May 2, 2013). The Working Group 
noted that the 2013 version is much more streamlined than the pre-2013 
version, which the Working Group stated is long, cumbersome, and less 
helpful to consumers. The Working Group also determined that the 2013 
version can be further condensed and would need to be updated to 
conform with any changes to the regulations in 49 CFR part 375.
    FMCSA proposes to revise appendix A to part 375 to formally adopt 
an updated version of the Rights and Responsibilities booklet. Appendix 
A currently contains the contents of the pre-2013 version of the Rights 
and Responsibilities booklet. The updated version of the Rights and 
Responsibilities booklet that would be incorporated into appendix A 
would contain the same information as the 2013 version of the booklet, 
with further updates to reflect the changes to 49 CFR part 375 proposed 
by this rulemaking, as discussed below. These edits would ensure that 
the content of the booklet conforms with the updated regulations. The 
updated Rights and Responsibilities booklet, and therefore appendix A, 
would also include various minor changes intended to increase the 
clarity of the information in the booklet for individual shippers. 
These changes would ensure that the Rights and Responsibilities booklet 
and appendix A are consistent and contain the most up-to-date 
information for individual shippers.
    The updated Rights and Responsibilities booklet would contain the 
same information provided in the proposed contents of appendix A in 
this rulemaking. Any comments received on the proposed appendix A below 
which result in changes in a final rule would therefore be reflected in 
the final version of the updated Rights and Responsibilities booklet. 
If this NPRM is finalized, motor carriers would be required to provide 
the updated Rights and Responsibilities booklet in order to satisfy the 
requirements under 49 CFR 375.213. Accordingly, the Agency would 
rescind the guidance titled Guidance on FMCSA's Publication: Your 
Rights and Responsibilities When You Move (78 FR 25782, May 2, 2013) 
because the pre-2013 and 2013 versions of the Rights and 
Responsibilities booklet would be inaccurate due to the changes to 49 
CFR part 375 in this rulemaking, resulting in individual shipper being 
misinformed about their regulatory rights and responsibilities under 49 
CFR part 375.
    FMCSA proposes to amend 49 CFR 375.213 to require motor carriers to 
provide individual shippers with the Rights and Responsibilities 
booklet at the time the estimate is provided. The regulations at 49 CFR 
375.213 currently require the Rights and Responsibilities booklet to be 
provided along with the order for service. The statute at 49 U.S.C. 
14104(b)(2) states, in part:

    Before the execution of a contract for service, the motor 
carrier shall provide the shipper copy of the Department of 
Transportation publication OCE 100, entitled ``Your Rights and 
Responsibilities When You Move'' required by section 375.213 of 
title 49, Code of Federal Regulations (or any successor regulation).

FMCSA is proposing to require the Rights and Responsibilities booklet 
be provided along with the estimate, which is prior to the execution of 
a contract for service (the bill of lading under the proposed changes 
in this rulemaking). Motor carriers would likely see an increased 
burden under this proposed change because they would be required to 
provide the Rights and Responsibilities booklet earlier in the moving 
process and more often than they are currently required. This proposed 
change, however, would also increase the likelihood that individual 
shippers would become aware of the consumer protection information in 
the booklet earlier in the moving process, when it would be more 
helpful for them to understand their rights and responsibilities.

[[Page 43819]]

    The Working Group Report, in its Recommendations 5 and 14, also 
suggests that FMCSA should revise its regulations to make it acceptable 
for motor carriers to provide documents, including the Rights and 
Responsibilities booklet, electronically without requiring the shipper 
to provide written consent to waive their right to a hard copy. These 
recommendations were considered by FMCSA after the Working Group Report 
in the rulemaking titled ``Electronic Documents and Signatures'' (NPRM, 
79 FR 23306, (April 28, 2014), and final rule, 83 FR 16210 (April 17, 
2018)) which implemented provisions similar to the related 
recommendation 13 by ``eliminating the requirement in Sec.  375.213 for 
the Ready to Move brochure and Rights and Responsibilities booklet to 
be provided only in paper copy or retrieved at a URL.'' See 83 FR at 
16214.
    The Electronic Documents final rule retained the provisions of 49 
CFR 375.213(e), which provides that a shipper may elect to waive 
receipt of a copy of either Ready to Move? or the Rights and 
Responsibilities booklet and elect to access the same information via a 
hyperlink on the carrier's website to the FMCSA web page. 49 CFR 
375.213(a) and (b)(1). When the shipper elects to receive these 
documents via the hyperlink, the motor carrier is required to obtain a 
signed and dated receipt that includes ``verification of the shipper's 
agreement to access the Federal consumer protection information on the 
internet.'' 49 CFR 375.213(e)(2).
    FMCSA is proposing to remove the requirement in section 
375.213(e)(1) for a waiver in order for the individual shipper to have 
the option to access either Ready to Move? or the Rights and 
Responsibilities booklet via a hyperlink. FMCSA is not proposing to 
change the requirements of section 375.213(e)(2) and (3) for the motor 
carrier to obtain and retain proof that the shipper agreed to access 
one or both of these publications via the internet.\3\ The proposed 
change would no longer require a waiver for the individual shipper to 
access documents electronically through a hyperlink, but would still 
require the motor carrier to obtain a signed receipt as proof of the 
individual shipper's acknowledgment that they have received access to 
the electronic copies of these documents. These documents are important 
to educate individual shippers, and it is necessary ensure that the 
motor carrier's records are clear that the shipper was able to access 
to these documents through the provided hyperlink.
---------------------------------------------------------------------------

    \3\ Section 375.213(e) is proposed to be renumbered as section 
375.213(f) with substantive changes to allow the proposed insertion 
of a new paragraph (e).
---------------------------------------------------------------------------

B. Recommendation 6--Estimates

    Recommendation 6 from the Recommendations Report suggested that 
FMCSA eliminate the motor carrier's ability to revise a binding 
estimate or a non-binding estimate and, if additional items are 
tendered, require that a new binding estimate or new non-binding 
estimate be prepared. The Working Group explained that, while this 
practice has been adopted in FMCSA guidance titled, Regulatory Guidance 
Concerning Household Goods Carriers Requiring Shippers To Sign Blank or 
Incomplete Documents (76 FR 50537, Aug. 15, 2011) (2011 guidance), it 
should be formally adopted into the regulations.
    FMCSA proposes to amend 49 CFR 375.403(a)(6)(ii), (a)(9), and 49 
CFR 375.405(b)(7)(ii) to clarify that a motor carrier must prepare a 
new binding or non-binding estimate when an individual shipper tenders 
additional household goods or requests additional services. This 
proposed change would update the regulatory language for consistency 
with FMCSA's interpretation of the regulations issued in response to 
question 3 in the 2011 guidance.
    Additionally, FMCSA is proposing to incorporate the rest of the 
2011 guidance into the regulations in 49 CFR part 375. The 2011 
guidance refers to the regulations at Sec.  375.501(d) when discussing 
blank documents, incomplete documents, and revised estimates. As 
discussed in section VI.D. below, FMCSA is proposing to remove 49 CFR 
375.501 from the regulations and move certain items from 49 CFR 375.501 
to 49 CFR 375.505, including the requirements that are currently 
located at Sec.  375.501(d). Accordingly, the edits incorporating 
FMCSA's interpretation of Sec.  375.501(d) found in the 2011 guidance 
would be made to paragraph Sec.  375.505(g). FMCSA is proposing to add 
subparagraph (3) to proposed paragraph (g) of Sec.  375.505, which 
would prevent a motor carrier from requiring an individual shipper to 
sign a blank document. The Agency is also proposing an additional 
sentence to paragraph (g)(2) of Sec.  375.505 which would allow motor 
carriers to omit from documents only that information that cannot be 
determined before loading, such as actual shipment weight or unforeseen 
charges incurred in transit. These additional changes clarify how blank 
and incomplete documents may be involved in the moving process. Blank 
and incomplete documents may both be provided to the individual 
shippers for informational purposes. Motor carriers may never require 
an individual shipper to sign a blank document. Motor carriers may 
however require individual shippers to sign incomplete documents only 
when the information omitted from the documents cannot be determined 
before loading, such as actual shipment weight or unforeseen charges 
incurred in transit.
    These proposed changes fully incorporate FMCSA's interpretation of 
the regulations from the 2011 guidance into 49 CFR part 375. The 
proposed changes would protect individual shippers from motor carriers 
that attempt improperly to utilize blank documents, incomplete 
documents, or revised estimates when such use is a violation of the 
regulations in 49 CFR part 375 and would provide additional clarity to 
motor carriers regarding proper use of blank and incomplete documents. 
FMCSA would rescind the 2011 guidance if the proposed changes discussed 
above are finalized.

C. Recommendations 7 and 8--Surveys of Household Goods

    Recommendation 7 from the Recommendations Report suggested that 
FMCSA change the requirement for a physical survey to a visual survey. 
The Working Group stated that the term visual survey should include 
both physical and virtual surveys. The Working Group determined that 
the term visual survey was necessary to ensure that movers actually see 
what they would be moving before preparing an estimate, while 
recognizing that technological advances would allow remote surveys 
through the use of video capability in addition to physical surveys.
    FMCSA proposes to define the term physical survey to include both 
on-site and virtual surveys. The requirement for a physical survey 
originates in 49 U.S.C 14104(b)(1)(A), which states:

    Except as otherwise provided in this subsection, every motor 
carrier providing transportation of household goods described in 
section 13102(10)(A) as a household goods motor carrier and subject 
to jurisdiction under subchapter I of chapter 135 shall conduct a 
physical survey of the household goods to be transported on behalf 
of a prospective individual shipper and shall provide the shipper 
with a written estimate of charges for the transportation and all 
related services.

However, there is no definition for the term physical survey in the 
statute and FMCSA has not established a definition

[[Page 43820]]

of the term in the regulations under 49 CFR 375. FMCSA therefore 
proposes a reasonable interpretation of the statutory term physical 
survey in order to give a clear meaning to the term and to resolve any 
ambiguity. FMCSA would not change the term physical survey to visual 
survey as recommended by the Working Group because FMCSA does not 
believe that it can replace the statutory term with a new term. 
However, FMCSA has sufficient authority to propose a reasonable 
interpretation of the term which meets the functional intent of the 
Working Group's recommendation.
    FMCSA proposes to define physical survey in 49 CFR 375.103 as ``a 
survey which is conducted on-site or virtually. If the survey is 
performed virtually, the household goods motor carrier must be able to 
view the household goods through live video that allows it to clearly 
identify the household goods to be transported.'' The proposed 
definition of physical survey would allow for virtual surveys with a 
live video component that would permit motor carriers to see the 
household goods that are the subject of the survey as if the motor 
carrier were performing the survey on-site. Any survey conducted 
without a video component, such as verbally over the phone or through 
filling out a form, would not be acceptable under this proposed change. 
This definition requires both the motor carrier and the individual 
shipper to be physically present on a live video in order to perform a 
virtual survey.
    This proposed change recognizes the significant technological 
advances (e.g., use of smart phones, tablets, faster computers) that 
have occurred since the passage of SAFETEA-LU and its implementing 
regulations, which allow for clear live videos between motor carriers 
and individual shippers. Allowing motor carriers to use this technology 
to conduct remote surveys of household goods reduces the burden of 
those surveys on the motor carriers. Requiring a live visual component 
to the survey process ensures that motor carriers provide consumers 
with estimates that are as accurate as those prepared following an on-
site survey.
    Recommendation 8 from the Recommendations Report suggested that 
FMCSA require movers to offer visual surveys for all household goods 
shipments, including those that are located over 50 miles from the 
motor carrier agent's location. The Working Group determined that, with 
the availability of virtual surveys, consumers' ability to obtain a 
visual survey should no longer be limited because of distance.
    FMCSA proposes to remove the provision under 49 CFR 375.401(a)(1) 
that excepts from the physical survey requirement those surveys where 
the household goods are located more than 50 miles from the motor 
carrier agent's location. FMCSA also proposes to remove similar 
language from 49 CFR 371.113(a) to ensure consistency in the 
regulations relating to household goods brokers. The statutory language 
in 49 U.S.C. 14104(b)(1)(C) states that the written estimate given to 
an individual shipper shall be based on a physical survey of the 
household goods if the household goods are located within a 50-mile 
radius of the location of the carrier's agent preparing the estimate. 
Congress enacted this provision in section 4205 of SAFETEA-LU, Public 
Law 109-59, 119 Stat. 1144 at 1753-54 (Aug. 10, 2005). Both the statute 
and legislative history are silent on whether an estimate should be 
based on a physical survey when the household goods are located more 
than 50 miles from the location of the carrier's agent. (Id., see also 
Sen. Rep. 109-120 at 47-48 (July 29, 2005), and H. Conf. Rep. 109-203 
at 1009-1010 (July 28, 2005)). But the Senate report on SAFETEA-LU also 
noted that:

    Inaccurate estimates based on an inventory provided by a 
prospective customer over the telephone or the internet are the 
source of many complaints and disputes. It is hoped that requiring 
an estimate be based on a visual inspection of the goods to be moved 
prior to the execution of a contract will significantly reduce such 
disputes.

    In 2007, FMCSA adopted regulations to implement this statutory 
provision, among others, in Amendments To Implement Certain Provisions 
of the Safe, Accountable, Flexible, Efficient Transportation Equity 
Act: A Legacy for Users (SAFETEA-LU), 72 FR 36760. The Agency stated 
that:

    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.

72 FR at 36764. Because the statute permitted, but did not require, 
that estimates for household goods located more than 50 miles from the 
motor carrier agent's location be based on a physical survey, the 
implementing regulation, in Sec.  375.401(a)(1) provides:

    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.

See also 72 FR at 36766. Even though household goods carriers and their 
agents are not required to perform a physical survey on goods located 
more than 50 miles from the motor carrier agent's location, neither the 
statute nor the regulation precludes carriers from conducting a 
physical survey in such circumstances, if they choose to do so. For 
similar reasons, the statute also does not preclude the consideration 
of a regulatory requirement for physical inspection of household goods 
located beyond the 50-mile radius.
    Recommendation 8 in the Recommendations Report states:

    Movers should be required to offer visual surveys for all 
household goods shipments, including those that are located over 50-
miles from the mover's location. Consumers should continue to have 
the option to waive in writing the visual survey if they choose, but 
movers must offer them the option of a visual survey regardless of 
distance.

As the Recommendations Report explained:

    The Working Group also discussed the current exception to the 
survey requirements for consumers who are over 50 miles from the HHG 
carrier's agent. The reason for this exception is because consumers 
living in remote areas may not be able to obtain one or more 
estimates if movers were required to travel long distances to 
physically inspect shipments. The Working Group determined that 
since virtual surveys are a realistic possibility, that consumers' 
ability to obtain a visual survey should not now be waived 
automatically because of distance. Rather, if consumers' goods are 
located more than 50 miles from the mover's agent that is providing 
the estimate, they should be given the option of a visual survey. 
Consumers should continue to have the option to waive the visual 
survey if they choose, but movers must offer them the option of a 
visual survey regardless of distance. Movers will be required to 
perform a visual survey unless the consumer decides to voluntarily 
waive the right for such survey.

Report at 30-31 (emphasis in original). In the Report to Congress in 
response to the Working Group's recommendations (submitted in September 
2019 as required by section 5503 of the FAST Act), FMCSA addressed 
Recommendation 8 as follows:

    FMCSA is evaluating the working group's recommendation. If 
deemed appropriate by the Administrator/Secretary, FMCSA will 
develop proposed regulatory changes for notice and comment 
rulemaking. This recommendation would add a potential benefit to the 
consumer by preventing unexpected charges for additional household 
goods.

Report at 4.
    As recognized in the passage above from the Senate Report on 
SAFETEA-LU, a physical inspection of the

[[Page 43821]]

household goods to be moved is important because it provides an 
accurate inventory, permits the creation of a meaningful estimate 
(whether binding or non-binding), and minimizes the opportunity for 
both fraudulent actions by the carriers or their agents and/or disputes 
with consumers. The development of technology that allows virtual 
surveys to be conducted accurately and efficiently by remote electronic 
means that can be included within the scope of physical surveys (as 
proposed in the NPRM) enables the requirement to be extended to 
household goods shippers located more than 50 miles from the motor 
carrier agent's location. FMCSA is proposing to adopt this requirement 
because it has concluded that 49 U.S.C. 14104(b) does not preclude the 
application of a requirement of a physical survey (either on-site or 
virtual, as discussed earlier in this proposal). Even if the carrier 
would be required to offer a physical survey to all individual 
shippers, those individual shippers could still waive the physical 
survey, if desired.
    In addition, 49 U.S.C. 14104(a) includes a general delegation of 
authority to the Agency to adopt regulations for the protection of 
individual shippers of household goods. By expanding the required use 
of physical surveys (either on-site or virtual) to individual shippers 
located beyond 50 miles, the proposed amendment would provide more 
shippers with protections and increase the competitive alternatives 
available to them. Requiring a physical survey beyond 50 miles could 
result in motor carriers performing more surveys of household goods 
than they perform under the current regulations. FMCSA estimates 
however that all shippers located beyond 50 miles from the motor 
carrier agent's location would take advantage of the virtual survey 
option, as discussed in section IX.A.

D. Recommendations 9, 10, and 11--Order for Service and Bill of Lading

    Recommendation 9 from the Recommendations Report suggested that 
FMCSA should eliminate the order for service and add any items on the 
order for service that are not already on the bill of lading to that 
document. The Working Group explained that the requirement for an order 
for service results in an additional paperwork burden for motor 
carriers without providing any additional protection for individual 
shippers. The Working Group stated that the information required by the 
bill of lading and order for service is very similar, therefore they 
could be combined to reduce the paperwork burden for motor carriers.
    FMCSA proposes to remove the requirement for an order for service 
for the shipment of household goods under Part 375. This proposed 
change recognizes the significant overlaps in the current order for 
service requirements in Sec.  375.501 and the bill of lading 
requirements in Sec.  375.505. Additionally, FMCSA proposes to remove 
all references to the order for service from Part 375 and replace them 
with references to the bill of lading. FMCSA proposes to delete 49 CFR 
375.501 and, as discussed below, to update 49 CFR 375.505 with all of 
the requirements currently found in Sec.  375.501.
    Recommendation 10 from the Recommendations Report suggested that 
FMCSA make a variety of updates to the bill of lading requirements:
     Add the carrier's physical address, telephone number, DOT 
number, any identification or registration number assigned to the 
shipment, and a statement that the bill of lading incorporates by 
reference all of the services and charges printed on the estimate;
     Continue to require the carrier's name on the bill of 
lading, and provide that either the legal or trade name (i.e., doing 
business as name) registered with FMCSA is acceptable for use;
     Eliminate the requirement that names, addresses, and 
telephone numbers of additional motor carriers involved in the move be 
provided; and
     Remove references to the order for service;
    Recommendation 11 from the Recommendations Report suggested that 
FMCSA should require movers to provide the bill of lading to consumers 
prior to the date of loading.
    FMCSA proposes to update the requirements for a bill of lading 
under 49 CFR 375.505 to include requirements currently found in an 
order for service. The proposed bill of lading requirements would offer 
the same level of protection, but with a lesser paperwork burden. These 
updates to the bill of lading requirements include almost all of the 
recommended changes in recommendation 10. FMCSA is not proposing to 
eliminate the requirement to provide names, addresses, and telephone 
numbers of additional motor carriers involved in the move, because this 
requirement provides the individual shipper with information that is 
often necessary to understand which motor carriers are involved in the 
shipment of their household goods.
    FMCSA proposes to update Sec.  375.505(b) by adding the 
requirements currently found in Sec.  375.501(a) which are not already 
covered by Sec.  375.505(b). This proposed change ensures that Sec.  
375.505(b) would require the same information on a bill of lading 
currently required in an order for service. By ensuring that all the 
information from both documents would be included in the bill of 
lading, the proposed change would provide the same level of consumer 
protection while only requiring a single document and therefore 
reducing the burden on motor carriers.
    FMCSA also proposes to update 49 CFR 375.505 by adding the 
requirements that are currently in 49 CFR 375.501(b) through (e). Under 
the proposed change, these sections would be moved to Sec.  375.505(e) 
through (h). These sections would also be updated to replace references 
to an order for service with references to a bill of lading. FMCSA also 
proposes an additional update to the new Sec.  375.505(f) to clarify 
that the bill of lading must be signed at both the origin and the 
destination of the shipment by the motor carrier and the individual 
shipper. These proposed changes would ensure that the regulatory 
requirements that are currently in 49 CFR 375.501 are fully 
incorporated into 49 CFR 375.505 and would not be lost by removing the 
requirement for an order for service.
    Additionally, FMCSA proposes to add Sec.  375.505(h) to require 
movers to provide the bill of lading to consumers prior to the date of 
load. The Working Group recommended that the bill of lading be provided 
before the date of the load, at least as early as the order for service 
was provided. The current regulations do not have a specific 
requirement for when the order for service must be provided to an 
individual shipper. However, Sec.  375.501(e) mentions allowing for a 
3-day period, if possible, for the individual shipper to rescind the 
order for service after it is provided by the motor carrier. FMCSA 
proposes to require motor carriers to provide a bill of lading to 
individual shippers at least 3 days prior to the date the shipment is 
scheduled to be loaded. This proposed approach implements 
recommendation 11 and ensures that individual shippers will have 
sufficient time to fully read and understand the bill of lading and 
decide if they want to rescind it. FMCSA specifically requests public 
comment on whether the bill of lading should be provided more or fewer 
than 3 days before the date the shipment is scheduled to be loaded.

[[Page 43822]]

E. Recommendation 12--Invoice

    Recommendation 12 from the Recommendations Report suggested that 
FMCSA remove the requirement for a freight bill, and replace references 
in the Federal Motor Carrier Safety Regulations to a freight bill with 
references to an invoice. The Working Group stated that the freight 
bill requirement is repetitive and unnecessary, evidenced by the fact 
that movers typically combine it with the bill of lading. The Working 
Group explained that customers who have already paid in full for their 
charges find a freight bill confusing, while customers with a balance 
due after their deliveries better understand an invoice as a request 
for payment.
    FMCSA proposes to replace the requirement for a freight bill in 
Subpart H of 49 CFR part 375 with a requirement for an invoice. This 
proposed change would reduce the need for essentially duplicative 
documents, while increasing clarity regarding outstanding charges for 
individual shippers. Accordingly, FMCSA proposes to replace the term 
``freight bill'' with the word ``invoice'' throughout 49 CFR 375.

F. Recommendations 15 and 18--Ready To Move

    Recommendation 15 from the Recommendations Report suggested that 
FMCSA require movers to provide FMCSA publication ESA 03005 (Ready to 
Move?) when the physical survey is either scheduled or waived by the 
consumer. The Working Group determined that consumers are not currently 
receiving the brochure at the right time in the moving process, and 
that consumers should receive the information contained in the brochure 
earlier in the process, before picking a mover. The Working Group 
explained that the brochure provides critical information about how to 
select a mover and the best time for consumers to receive this 
information is during the very early stages of the process.
    FMCSA is not proposing to implement recommendation 15. FMCSA does 
not believe that the statute at 49 U.S.C. 14104(b)(2) allows Ready to 
Move? to be provided earlier than at the time the estimate is provided. 
That statutory provision states, in part:

    At the time that a motor carrier provides the written estimate 
required by paragraph (1), the motor carrier shall provide the 
shipper a copy of the Department of Transportation publication 
FMCSA-ESA-03-005 (or its successor publication) entitled ``Ready to 
Move?''.

FMCSA believes this language explicitly requires Ready to Move? to be 
provided when the motor carrier provides the estimate to the individual 
shipper. For this reason, FMCSA is not proposing to implement 
recommendation 15 at this time.
    Recommendation 18 from the Recommendations Report suggested that 
FMCSA should require all household goods motor carriers that have a 
website to display prominently, at their option, either a link to Ready 
to Move? on the FMCSA website or a true and accurate copy of Ready to 
Move? on their own websites. The Working Group determined that this 
requirement would allow consumers to have access to this information as 
soon as they start searching for movers and would ensure broader 
distribution.
    FMCSA proposes to update 49 CFR 375.213 to include a requirement 
for a motor carrier that has a website to display prominently either a 
link to Ready to Move? on the FMCSA website or a true and accurate copy 
of Ready to Move? on their own website. This proposed change would only 
apply to motor carriers that already have a website and does not impose 
any requirement for motor carriers to create a website. Requiring motor 
carriers to update their existing website including the hyperlink or 
electronic document ensures that individual shippers are more likely to 
become aware of Ready to Move? earlier in the process when they are 
initially looking for motor carriers to contact. The Agency 
specifically requests public comment on whether the term ``display 
prominently'' provides sufficient clarity to motor carriers regarding 
where to include either a link to Ready to Move? on the FMCSA website 
or a true and accurate copy of Ready to Move? on their own website. If 
the term does not provide sufficient clarity, the Agency specifically 
requests public comment on alternative language to ensure that 
individual shippers can easily find the required link to Ready to Move? 
on the FMCSA website or a true and accurate copy of Ready to Move? on a 
motor carrier's website.

G. Additional Proposed Changes

    FMCSA proposes to make clarifying changes to 49 CFR part 375 in 
addition to the recommendations from the Working Group. The Agency 
proposes to define bill of lading as ``both the receipt and the 
contract for the transportation of the individual shipper's household 
goods.'' This proposed definition would provide additional information 
regarding the role of the bill of lading in the household goods moving 
process in light of the removal of the order for service requirement.
    FMCSA proposes to update the definition of Surface Transportation 
Board in 49 CFR 375.103 to reflect that the STB is no longer an agency 
within DOT and is an independent establishment of the United States 
government. See 49 U.S.C. 1301.
    FMCSA proposes to require that motor carriers provide a direct 
hyperlink to Ready to Move? and the Rights and Responsibilities booklet 
on the Agency's website if they use a hyperlink to provide those 
documents to individual shippers under 49 CFR 375.213. This proposed 
revision would specify that the hyperlinks be direct to each document 
and not to FMCSA's website generally, in order to ensure that 
individual shippers who are provided with those hyperlinks are able to 
access the required documents without needing to search FMCSA's website 
for the required information. The Agency recognizes that the location 
of documents on its website may change as the website is updated and 
would ensure that their location is not affected by website updates or 
updates to the documents themselves.
    FMCSA proposes to revise the title of 49 CFR 375.801 to read ``What 
types of charges are subject to subpart H?'' instead of ``What types of 
charges apply to subpart H?'' This would clarify that 49 CFR 375.801 
discusses which types of charges are subject to the requirements of 
subpart H.
    Overall, the implementation of the proposed changes discussed in 
this NPRM are expected to reduce paperwork burden, save money on 
printing materials, and save time for regulated entities and 
stakeholders. Consumers would have fewer documents to review, approve, 
and sign and potentially experience less confusion in a stressful 
situation.

VII. International Impacts

    The regulations in 49 CFR parts 371 and 375 apply only within the 
United States (50 states and the District of Columbia). Motor carriers 
and drivers are subject to the laws and regulations of the countries in 
which they operate, unless an international agreement states otherwise. 
Drivers and carriers should be aware of the regulatory differences 
among nations.

VIII. Section-by-Section Analysis

    This section-by-section analysis describes the proposed changes in 
numerical order.

[[Page 43823]]

A. Section 371.113 May I provide individual shippers with a written 
estimate?

    Paragraph (a) of this section would be revised to remove the 
requirement for household goods to be within 50 miles of the motor 
carrier agent's location before a physical survey is required.

B. Section 375.103 What are the definitions of terms used in this part?

    In this section, a definition for bill of lading would be added to 
clarify the role of the bill of lading as both a contract and a receipt 
in the transportation of household goods. The current definition for 
order for service would be removed. A definition for physical survey 
would also be added, which would allow for virtual surveys. The current 
definition for reasonable dispatch would be revised to remove the 
reference to the order for service. The current definition for Surface 
Transportation Board would be updated to reflect that the STB is no 
longer an agency within DOT, but is instead an independent agency.

C. Section 375.211 Must I have an arbitration program?

    In paragraph (a) subparagraph (2), the term ``order for service'' 
would be removed and replaced with ``bill of lading.''

D. Section 375.213 What information must I provide to a prospective 
individual shipper?

    In this section, the introductory text of paragraph (a) would be 
revised and subparagraphs (1) and (2) would be added. The new paragraph 
(a) would require both Ready to Move? and the Rights and 
Responsibilities booklet to be provided to the individual shipper along 
with the estimate. Subparagraphs (1) and (2) would also include a 
requirement for motor carriers providing a hyperlink for either of the 
documents to the individual shipper to provide a hyperlink directly to 
those documents on the FMCSA website.
    In the introductory text of paragraph (b), the term ``order for 
service'' would be removed and replaced with ``bill of lading'' and the 
word ``five'' would be removed and replaced with ``four.'' Paragraph 
(b)(1) would be deleted and paragraphs (b)(2) through (b)(5) would be 
renumbered as (b)(1) through (b)(4).
    Paragraph (e) would be redesignated as paragraph (f) and a new 
paragraph (e) would be added, which would require motor carriers that 
have a website to display prominently either a link to the Ready to 
Move? document on the FMCSA website or a true and accurate copy of that 
document on their own websites.

E. Section 375.215 How must I collect charges?

    In this section, the requirement for a freight or expense bill in 
the first sentence would be replaced with a requirement for an invoice.

F. Section 375.217 How must I collect charges upon delivery?

    In paragraph (b), the language regarding an order for service would 
be removed.

G. Section 375.221 May I use a charge or credit card plan for payments?

    In paragraph (c), the phrase ``for a freight or expense bill'' 
would be removed and replaced with the phrase ``an invoice.''

H. Section 375.401 Must I estimate charges?

    In this section, the introductory text of paragraph (a) would be 
revised to require a physical survey for all shipments unless waived, 
and to state that the only way to waive the physical survey of 
household goods is through a written agreement between an individual 
and a motor carrier. Additionally, paragraph (a) would be further 
revised so that paragraphs (a)(2)(i) through (a)(2)(iii) would be 
redesignated as (a)(1) through (a)(3).
    Paragraph (b) would be revised by removing the phrase ``an order 
for service'' and replacing it with ``a bill of lading.'' In paragraph 
(f), the phrase ``the order for service and'' would be removed in both 
places it appears.

I. Section 375.403 How must I provide a binding estimate?

    In this section, paragraph (a)(1) would be revised to reflect that 
49 CFR 375.401(a) would allow for only one waiver procedure under the 
proposed changes discussed above. Paragraphs (a)(6)(ii) and (a)(9) 
would be revised to no longer allow for a revised binding estimate and 
instead require the preparation of a new binding estimate when an 
individual shipper tenders additional household goods or requires 
additional services related to the transportation of the household 
goods.

J. Section 375.405 How must I provide a non-binding estimate?

    In this section, paragraph (b)(7)(ii) would be revised to no longer 
allow for a revised non-binding estimate and would instead require the 
preparation of a new non-binding estimate when an individual shipper 
tenders additional household goods or requires additional services 
related to the transportation of the household goods.
    In paragraph (c) the language regarding an order for service would 
be removed.

K. Section 375.501 Must I write up an order for service?

    This section would be deleted in its entirety.

L. Section 375.505 Must I write up a bill of lading?

    In this section, paragraph (a) would be revised to clarify that a 
motor carrier must prepare and issue a bill of lading at least 3 days 
before receiving a shipment of household goods to transport for an 
individual shipper. Additionally, the last three sentences in the 
paragraph would be removed. Removing these sentences would delete a 
discussion of incomplete bills of lading, which would be addressed 
under paragraph (h), as well as a reference to an order for service.
    Paragraph (b) would be revised to require a bill of lading to 
contain 17 items, instead of the 14 items a bill of lading is currently 
required to contain. The additional three items, as well as updates to 
the other items listed in paragraph (b)(1) through (b)(17), incorporate 
requirements currently found in 49 CFR 375.501(a).
    In paragraph (d), the word ``bills'' would be removed and replaced 
with ``a bill of lading.''
    New paragraph (e), which would mirror current paragraph 49 CFR 
375.501(b), would be added to this section.
    New paragraph (f), which would mirror current paragraph 49 CFR 
375.501(c), would be added to this section with updates to replace all 
references to an order for service with language regarding a bill of 
lading.
    New paragraphs (g)(1) through (g)(3) would be added to this 
section. Paragraphs (g)(1) and (g)(2) would mirror current paragraphs 
49 CFR 375.501(d)(1) and (2) with updates to remove the reference to an 
order for service in subparagraph (1) and replacing ``at origin'' with 
``before the shipment is loaded'' in subparagraph (2). Subparagraph (3) 
would be added to state that a motor carrier cannot require an 
individual shipper to sign a blank document.
    A new paragraph (h) would be added to this section to require the 
motor carrier to provide the bill of lading at least 3 days before 
loading and provide the individual shipper a 3-day period after the 
individual shipper signs the bill of lading to rescind the bill of 
lading. It would also require a motor

[[Page 43824]]

carrier to provide the individual shipper with the opportunity to 
rescind the bill of lading without any penalty for a 3-day period after 
the individual shipper signs the bill of lading. Paragraph (h) would 
also state that, if a new estimate is prepared under Sec. Sec.  
375.403(a)(6)(ii) or 375.405(b)(7)(ii), ``the corresponding changes to 
the bill of lading from the new estimate do not require a new 3-day 
period as otherwise required in this paragraph (h).''

M. Section 375.605 How must I notify an individual shipper of any 
service delays?

    In paragraph (a), the term ``order for service'' would be removed 
and replaced with the term ``bill of lading.''

N. Section 375.801 What types of charges apply to subpart H?

    The title of this section would be changed to read ``What types of 
charges are subject to subpart H?'' to clarify that 49 CFR 375.801 
discusses which types of charges are subject to the requirements of 
subpart H. Additionally, the term ``invoice'' would replace the term 
``freight bill'' in paragraph (a).

O. Section 375.803 How must I present my freight or expense bill?

    In this section, the term ``invoice'' would replace the term 
``freight bill'' everywhere it appears, including in the section title. 
The new title would read ``How must I present my invoice?''

P. Section 375.805 If I am forced to relinquish a collect-on-delivery 
shipment before the payment of ALL charges, how do I collect the 
balance?

    The term ``invoice'' would replace the term ``freight bill.''

Q. Section 375.807 What actions may I take to collect the charges upon 
my freight bill?

    In this section, the term ``invoice'' would replace the term 
``freight bill'' everywhere it appears, including in the section title. 
The new title would read ``What actions may I take to collect the 
charges upon my invoice?''

R. Appendix A to Part 375--Your Rights and Responsibilities When You 
Move

    This appendix would be replaced in its entirety with the 
information contained in the updated Your Rights and Responsibilities 
When You Move booklet, which would conform with the other revisions to 
part 375 discussed in this proposal.

IX. Regulatory Analyses

A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O. 
13563 (Improving Regulation and Regulatory Review), and DOT Regulatory 
Policies and Procedures

    Under section 3(f) of E.O. 12866 (58 FR 51735, October 4, 1993), 
Regulatory Planning and Review, as supplemented by E.O. 13563 (76 FR 
3821, January 21, 2011), Improving Regulation and Regulatory Review, 
this NPRM does not require an assessment of potential costs and 
benefits under section 6(a)(3) of E.O. 12866. Accordingly, the Office 
of Management and Budget has not reviewed it under those Orders. In 
addition, this rule is not significant within the meaning of DOT 
regulatory policies and procedures.
Affected Entities
    This proposed rule affects household goods motor carriers covered 
by the 49 CFR part 375 regulations. These regulations are based on the 
commercial statutes with special provisions for household goods 
carriers that authorize States, at their discretion, to enforce Federal 
rules, but only for interstate household goods transportation. The 
motor carrier safety assistance program (MCSAP) statutes do not require 
MCSAP grant recipients to adopt compatible commercial regulations for 
intrastate transportation not related to safety.\4\ Therefore, FMCSA 
anticipates that this rule would affect interstate household goods 
motor carriers, and does not include intrastate household goods motor 
carriers in the counts of affected entities.
---------------------------------------------------------------------------

    \4\ See 49 U.S.C. 31102(c)(2)(Q).
---------------------------------------------------------------------------

    FMCSA obtained motor carrier count information from the Motor 
Carrier Management Information System (MCMIS), which includes 
information submitted to FMCSA by motor carriers the first time they 
apply for a DOT number, and then biennially thereafter. The table below 
shows the counts of household goods motor carriers in 2019 and 
estimates of the number of carriers that would be affected by this rule 
annually during the analysis period of 2022 to 2031.
    FMCSA estimated the future baseline number of motor carriers by 
developing a compound average growth rate (CAGR) using historical 
counts from 2014 through 2019. There were 3,472 active household goods 
motor carriers in 2014, and 4,297 active household goods motor carriers 
in 2019, resulting in a CAGR of 4.36 percent.
    This rule would also affect shippers, or consumers who hire 
household goods motor carriers. The U.S. Census Bureau estimates that 
approximately 7.4 million people moved interstate during 2018, and that 
the average household contained 2.63 people. Therefore, we can estimate 
that approximately 2.8 million households participated in interstate 
moves during 2018 (7,443,306 / 2.63 = 2,830,154).\5\ However, most 
interstate moves do not involve a for-hire mover, and thus would not be 
affected by this rule. As discussed below, the American Moving and 
Storage Association (AMSA) estimated that approximately 20 percent of 
interstate household good moves are completed by for-hire movers.\6\
---------------------------------------------------------------------------

    \5\ U.S. Census Bureau. 2018: ACS 5-Year Estimates Data 
Profiles. Available at: https://data.census.gov/cedsci/table?d=ACS%205-Year%20Estimates%20Data%20Profiles&table=DP02&tid=ACSDP5Y2018.DP02&vintage=2018&hidePreview=true (accessed October 6, 2020).
    \6\ The AMSA will become a conference of the ATA. AMSA to Become 
Conference of American Trucking Associations (Aug. 7, 2020), 
available at https://www.moving.org/amsa-to-become-conference-of-american-trucking-associations/.

        Table 1--Interstate Household Goods (HHG) Motor Carriers
------------------------------------------------------------------------
                                                          Interstate HHG
                          Year                            motor carriers
------------------------------------------------------------------------
2019....................................................           4,297
2020....................................................           4,484
2021....................................................           4,680
2022....................................................           4,884
2023....................................................           5,097
2024....................................................           5,319
2025....................................................           5,551
2026....................................................           5,793
2027....................................................           6,046
2028....................................................           6,309
2029....................................................           6,584
2030....................................................           6,871
2031....................................................           7,171
------------------------------------------------------------------------

Analysis Inputs
Motor Carrier Profit per Hour
    Broadly speaking, the opportunity cost to the motor carrier (the 
firm) of a given regulatory action is the value of the best alternative 
that the firm must forgo in order to comply with the regulatory action. 
In this analysis, FMCSA follows the methodology used in the Entry-Level 
Driver Training rulemakings published in 2016 and 2018 and values the 
change in time spent in nonproductive activity as the opportunity cost 
to the firm, which is represented by the now attainable profit, using 
three variables: The marginal cost of operating a CMV, an estimate of a 
typical average motor carrier profit margin, and the change in 
nonproductive time.
    The American Transportation Research Institute (ATRI) report, An

[[Page 43825]]

Analysis of the Operational Costs of Trucking: 2019 Update, found that 
marginal operating costs were $71.78 per hour in 2018.\7\ These 
marginal costs include vehicle-based costs (e.g., fuel costs, insurance 
premiums, etc.), and driver-based costs (i.e., wages and benefits).
---------------------------------------------------------------------------

    \7\ ATRI. An Analysis of the Operational Costs of Trucking: 2019 
Update. October 2019. Table 10, pg. 19. Available at: https://truckingresearch.org/wp-content/uploads/2019/11/ATRI-Operational-Costs-of-Trucking-2019-1.pdf (accessed December 11, 2019). Source 
data are assumed to be presented in 2018 dollar terms.
---------------------------------------------------------------------------

    Next, the Agency estimated the profit margin for motor carriers. 
Profit is a function of revenue and operating expenses, and the 
American Trucking Associations (ATA) defines the operating ratio of a 
motor carrier as a measure of profitability based on operating expenses 
as a percentage of gross revenues.\8\ Armstrong & Associates, Inc. 
(2009) states that trucking companies that cannot maintain a minimum 
operating ratio of 95% (calculated as operating costs / net revenue) 
will not have sufficient profitability to continue operations in the 
long run.\9\ Therefore, Armstrong & Associates states that trucking 
companies need a minimum profit margin of 5% of revenue to continue 
operating in the future. Transport Topics publishes data on the ``Top 
100'' for-hire carriers, ranked by revenue.\10\ For 2014, 39 of these 
Top 100 carriers also have net income information reported by Transport 
Topics. FMCSA estimates that the 39 carriers with both revenue and net 
income information have an average profit margin of approximately 4.3 
percent for 2014. For 2018, 33 of these Top 100 carriers have net 
income information reported by Transport Topics, with an average profit 
margin of approximately 6 percent for 2018.\11\ The higher profit 
margin experienced in 2018 is reinforced by a Forbes article that found 
net profit margin for freight trucking companies ``expanded to 6 
percent in 2018, compared with an annual average of between 2.5 percent 
and 4 percent each year since 2012.'' \12\ In 2019, the data provided 
by Transport Topics shows a similar pattern based on the 28 companies 
that provided net income information, with an average profit margin of 
5.8 percent.\13\ It is uncertain whether the recent surge in net profit 
margin will continue through the analysis period, so FMCSA assumes the 
lower profit margin of 5 percent for motor carriers for purposes of 
this analysis.
---------------------------------------------------------------------------

    \8\ ATA. American Trucking Trends 2015. Page 79.
    \9\ Armstrong & Associates, Inc. Carrier Procurement Insights. 
2009. Pages 4-5. Available at: https://www.3plogistics.com/product/carrier-procurement-insights-trucking-company-volume-cost-and-pricing-tradeoffs-2009/ (accessed January 5, 2016).
    \10\ Transport Topics. 2014. Top 100 For-Hire Carriers. 
Available at: http://ttnews.com/top100/for-hire/2014 (accessed 
November 19, 2018).
    \11\ Transport Topics. 2018. Top 100 For-Hire Carriers. 
Available at: https://www.ttnews.com/top100/for-hire/2018 (accessed 
November 19, 2018).
    \12\ Forbes. Trucking Companies Hauling in Higher Sales. 
Available at: https://www.forbes.com/sites/sageworks/2018/03/04/trucking-companies-hauling-in-higher-sales/#40e0012f3f27 (accessed 
November 19, 2018).
    \13\ Transport Topics. 2019. Top 100 For-Hire Carriers. 
Available at: https://www.ttnews.com/top100/for-hire/2019 (accessed 
October 14, 2020).
---------------------------------------------------------------------------

    Using the assumed profit margin of 5 percent for motor carriers, 
FMCSA estimated the revenue gained per hour for motor carriers by 
multiplying the marginal cost per hour by the profit margin. This 
calculation resulted in a profit per hour of $3.59.
Number of Interstate Moves per Year
    FMCSA estimates the number of interstate moves by for-hire movers 
using U.S. Census Bureau data based on the number of people moving 
interstate, the average number of people per household, and an AMSA 
estimate of the number of moves that involved for-hire moving services. 
The U.S. Census Bureau estimates that approximately 7.4 million people 
moved interstate during 2018, and that the average household contained 
2.63 people. Therefore, we can estimate that approximately 2.8 million 
households participated in interstate moves during 2018 (7,443,306 / 
2.63 = 2,830,154).\14\ FMCSA estimates the growth in interstate moves 
using the same Census data from 2010 through 2018, and finds an annual 
average growth rate of 0.08 percent.\15\ AMSA estimated that 550,000, 
or approximately 20 percent, of the interstate household goods moves in 
2017 were completed by for-hire movers.\16\
---------------------------------------------------------------------------

    \14\ U.S. Census Bureau. 2018: ACS 5-Year Estimates Data 
Profiles. Available at: https://data.census.gov/cedsci/table?d=ACS%205-Year%20Estimates%20Data%20Profiles&table=DP02&tid=ACSDP5Y2018.DP02&vintage=2018&hidePreview=true (accessed October 6, 2020).
    \15\ 0.08 percent = (average households that moved interstate in 
2018 / average household that moved interstate in 2010) (\1/8\)-
1[caret]..
    \16\ American Moving and Storage Association. Newsroom: About 
our Industry. https://www.moving.org/newsroom/data-research/about-our-industry/ (accessed December 29, 2020).
---------------------------------------------------------------------------

    Some impacts of the proposed rule would be based on the distance of 
the shipper's location from the motor carrier. For instance, moves that 
are within 50 miles of the motor carrier agent's location must receive 
a physical survey unless the shipper signs a waiver. The information 
collection request (ICR) supporting statement, published in November 
2019, estimated that the motor carrier agent is within 50 miles of the 
shipper's location for 95 percent of interstate moves, and beyond 50 
miles for 5 percent of moves. The table below shows the number of 
household interstate moves by for-hire movers, and those that are 
within and beyond 50 miles from the motor carrier agent's location.

  Table 2--Number of Interstate Moves by: Households, For-Hire Movers, Within and Beyond 50 Miles of the Motor
                                             Carrier Agent Location
----------------------------------------------------------------------------------------------------------------
                                                             Number of          Number of          Number of
                                       Total number of       household       interstate moves   interstate moves
                Year                  interstate  moves   interstate moves     by for-hire        by for-hire
                                        by  households      by for-hire     movers  within 50   movers beyond 50
                                                               movers             miles              miles
                                                      A        B = A x 20%        C = B x 95%         D = B x 5%
----------------------------------------------------------------------------------------------------------------
2018................................          2,830,154            556,621            528,784             27,837
2019................................          2,832,418            557,066            529,207             27,859
2020................................          2,834,684            557,512            529,630             27,882
2021................................          2,836,952            557,958            530,054             27,904
2022................................          2,839,221            558,404            530,478             27,926
2023................................          2,841,493            558,851            530,902             27,949
2024................................          2,843,766            559,298            531,327             27,971
2025................................          2,846,041            559,745            531,752             27,993
2026................................          2,848,318            560,193            532,177             28,016

[[Page 43826]]

 
2027................................          2,850,596            560,641            532,603             28,038
2028................................          2,852,877            561,090            533,029             28,061
2029................................          2,855,159            561,539            533,456             28,083
2030................................          2,857,443            561,988            533,882             28,106
2031................................          2,859,729            562,438            534,309             28,128
2032................................          2,862,017            562,888            534,737             28,151
----------------------------------------------------------------------------------------------------------------

Cost Impacts
Recommendation 5--Appendix A
    FMCSA is proposing to adopt the working group recommendation that 
would require the Rights and Responsibilities booklet to be provided 
earlier in the process--at the time the estimate is provided to the 
shipper. This document contains useful information to assist a shipper 
in making a determination regarding which household goods motor carrier 
to hire. However, requiring the document earlier in the process, prior 
to when a shipper has chosen a carrier, would result in providing an 
additional two documents per interstate move, as FMCSA estimates that 
shippers request an estimate from three household goods carriers and 
only contract with one. Therefore, while FMCSA considers it important 
to require this information early enough in the process for the 
information to inform the shipper's decision on which household goods 
carrier to choose, the proposed requirement would result in costs equal 
to the increase in the time required to print the additional hard-copy 
Rights and Responsibilities booklets provided.
    FMCSA estimated this cost by first determining the increase in the 
number of hard-copy Rights and Responsibilities booklets printed each 
year. This can be determined by subtracting the number of estimates 
provided from the number of orders for service provided, and adjusting 
for the preference to receive electronic documents. The number of 
orders for service provided is equal to the number of household 
interstate moves by for-hire movers from Table 2. The number of 
estimates provided is equal to the number of orders for service 
provided multiplied by three, accounting for the fact that shippers 
likely request estimates from more than one motor carrier. In the ICR 
supporting statement, FMCSA previously estimated that 40 percent of 
shippers prefer to receive information in hard copy form, and that 60 
percent prefer to receive electronic information.
    As shown in columns A and B of Table 3 below, FMCSA multiplied the 
number of interstate moves per year by 40 percent to estimate the 
number of hard-copy Rights and Responsibilities booklets provided to 
shippers under the existing requirements, and multiplied the number of 
orders for service where hard-copies are provided by three (to account 
for the assumption that shippers seek an estimate from three different 
household goods carriers) to estimate the number of hard-copy Rights 
and Responsibilities booklets that would be provided under the proposed 
rule. The difference between these two variables (column C) represents 
the increase in the number of hard-copy Rights and Responsibilities 
booklets that would be printed as a result of this rule.
    The ICR supporting statement estimated that a carrier could print 
roughly 1,600 pages per hour, and that each Rights and Responsibilities 
booklet consists of 25 pages. Thus, the increase in the number of hours 
needed to print hard-copy Rights and Responsibilities documents is 
equal to the number of Rights and Responsibilities documents from Table 
3, Column C, multiplied by 25 pages per document, and divided by 1,600 
pages per hour. Column D shows this maximum increase in hours spent 
printing.
    The time spent printing additional copies of the Rights and 
Responsibilities booklet is time not spent in other revenue producing 
activities. As shown in Table 3, Column E, FMCSA quantifies this 
opportunity cost of time using the previously discussed estimate of the 
motor carrier profit per hour, $3.59, resulting in total 10-year costs 
of $251,000, or $218,000 discounted at 3 percent, and $179,000 
discounted at 7 percent. On an annualized basis, the costs would be 
$26,000 discounted at 3 percent and $26,000 discounted at 7 percent.

         Table 3--Recommendation 5: Motor Carrier Opportunity Cost Resulting From Increased Printing of Your Rights and Responsibilities Booklet
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                            Number of orders      Number of                                              Motor carrier
                                                            for service with    estimates with    Maximum increase   Maximum increase   increase in cost
                           Year                            hard copy YRR \c\   hard copy of YRR  in number of hard    in total hours    for hours spent
                                                                provided           provided       copies provided     spent printing        printing
                                                              A = Interstate          B = A x 3          C = B - A         D = C x 25      E = D x $3.59
                                                               moves by for-                                                   / 1600
                                                                 hire movers
                                                                       x 40%
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022.....................................................            223,362            670,085            446,723              6,980            $25,051
2023.....................................................            223,540            670,621            447,081              6,986             25,071
2024.....................................................            223,719            671,158            447,438              6,991             25,092
2025.....................................................            223,898            671,695            447,796              6,997             25,112

[[Page 43827]]

 
2026.....................................................            224,077            672,232            448,155              7,002             25,132
2027.....................................................            224,257            672,770            448,513              7,008             25,152
2028.....................................................            224,436            673,308            448,872              7,014             25,172
2029.....................................................            224,616            673,847            449,231              7,019             25,192
2030.....................................................            224,795            674,386            449,590              7,025             25,212
2031.....................................................            224,975            674,925            449,950              7,030             25,232
                                                          ----------------------------------------------------------------------------------------------
    Total 10-Year Cost...................................  .................  .................  .................  .................            251,418
                                                          ----------------------------------------------------------------------------------------------
    Total Annualized Cost................................  .................  .................  .................  .................             25,142
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
  components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
\c\ The Rights and Responsibilities booklet is abbreviated as YRR for the purposes of the tables in this section.

    FMCSA also proposes to adopt the recommendation to make it 
acceptable for motor carriers to provide documents, including the 
Rights and Responsibilities booklet, electronically without requiring 
the motor carrier to include a waiver statement on the written 
estimate. Under the existing requirements, when the shipper elects to 
receive these documents via the hyperlink, the motor carrier is 
required to obtain a signed waiver of the shipper's right to a hard 
copy via a statement on the written estimate, as well as a signed and 
dated receipt that includes ``verification of the shipper's agreement 
to access the Federal consumer protection information on the 
internet.'' The proposal would remove the requirement in 49 CFR 
375.213(e)(1) for the shippers to include a waiver statement on the 
written estimate, but would retain the requirement to obtain a receipt. 
FMCSA expects that removing the waiver statement would be a de minimis 
one-time cost savings for motor carrier, but requests comment on the 
current process for obtaining the waiver statement and receipt required 
in 49 CFR 375.213(e), and whether removing the requirement to obtain a 
waiver would result in measurable cost savings.
Recommendation 7--Survey of Household Goods
    In agreement with the recommendations, FMCSA proposes to change the 
requirement to conduct a survey of the shipper's goods by redefining a 
``physical survey'' to include both an ``in person'' and a ``virtual'' 
survey. The physical survey would include in-person surveys and virtual 
surveys. This change does not require that shippers receive only 
virtual surveys, but it does provide the option and allows the shipper 
to determine whether a physical or virtual survey would better suit 
their needs.
    In the event of a virtual survey, the motor carrier would likely 
spend the same amount of time completing the survey but would not need 
to travel to and from the shipper's location. This reduction in travel 
would allow that time to be put to other productive uses, resulting in 
a motor carrier cost savings equal to the now attainable profit that 
can be earned during that time. FMCSA estimates this cost savings using 
three variables; the reduction in travel time per completed survey, the 
number of completed surveys that would now be virtual, and the motor 
carrier hourly profit. The distance and time required to travel to and 
from a move site varies with each survey. However, the survey 
requirement is in place for moves originating within 50 miles from the 
motor carrier agent's location. Therefore, we can estimate that the 
time savings would accrue to those moves originating within 50 miles. 
FMCSA estimated the average round-trip travel time for a move 
originating within 50 miles of the motor carrier agent would be 
approximately 1 hour.
    Under the current requirements, physical surveys must be completed 
for all moves originating within 50 miles of the motor carrier agent's 
location, unless the physical survey is waived by the individual 
shipper. FMCSA assumes that under the proposal, some portion of 
shippers would voluntarily request a virtual survey but is unable to 
estimate the exact number of virtual surveys that would be conducted 
under the proposal. FMCSA developed an estimate of the number of 
surveys that would be conducted virtually using a range from 25 percent 
to 75 percent, with a primary estimate of 50 percent. As shown in the 
table below, the motor carrier cost savings are estimated by 
multiplying the number of virtual surveys originating within 50 miles, 
by the 1 hour of time savings, and by the motor carrier profit per hour 
of $3.59. FMCSA estimates that providing virtual surveys would result 
in in costs of $9.6 million over 10 years (or $9.6 million in cost 
savings), $8.1 million (or $8.1 million in cost savings) discounted at 
3 percent, and $6.7 million (or $6.7 million in cost savings) 
discounted at 7 percent. On an annualized basis, the costs would be 
$955,000 (or $955,000 in cost savings) discounted at 3 percent and 
$955,000 (or $955,000 in cost savings) discounted at 7 percent.

[[Page 43828]]



                     Table 4--Recommendation 7: Motor Carrier Opportunity Cost Savings for Providing Virtual Surveys Within 50 Miles
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   Motor carrier      Motor carrier      Motor carrier
                 Year                   Number of virtual  Number of virtual  Number of virtual  opportunity  cost  opportunity  cost  opportunity  cost
                                          surveys (low)    surveys (primary)    surveys (high)         (low)            (primary)            (high)
                                                        A                  B                  C      D = A x $3.59      E = B x $3.59      F = C x $3.59
                                                                                                         x -1 hour          x -1 hour          x -1 hour
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022..................................            132,619            265,239            397,858         ($475,971)         ($951,942)       ($1,427,914)
2023..................................            132,726            265,451            398,177          (476,352)          (952,704)        (1,429,056)
2024..................................            132,832            265,663            398,495          (476,733)          (953,466)        (1,430,199)
2025..................................            132,938            265,876            398,814          (477,114)          (954,229)        (1,431,343)
2026..................................            133,044            266,089            399,133          (477,496)          (954,992)        (1,432,488)
2027..................................            133,151            266,302            399,452          (477,878)          (955,756)        (1,433,634)
2028..................................            133,257            266,515            399,772          (478,260)          (956,521)        (1,434,781)
2029..................................            133,364            266,728            400,092          (478,643)          (957,286)        (1,435,929)
2030..................................            133,471            266,941            400,412          (479,026)          (958,052)        (1,437,078)
2031..................................            133,577            267,155            400,732          (479,409)          (958,818)        (1,438,228)
                                       -----------------------------------------------------------------------------------------------------------------
    Total 10-Year Cost Savings........  .................  .................  .................        (4,776,884)        (9,553,767)       (14,330,651)
                                       -----------------------------------------------------------------------------------------------------------------
    Total Annualized Cost Savings.....  .................  .................  .................          (477,688)          (955,377)        (1,433,065)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
  components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.

Recommendation 8--Survey of Household Goods; beyond 50 miles
    In agreement with the recommendations, FMCSA is proposing to 
require that movers offer physical surveys for all household goods 
shipments, including those that are located over 50 miles from the 
motor carrier agent's location.
    Currently, motor carriers are not required to offer physical 
surveys for household goods shipments that are located beyond 50 miles 
from the motor carrier agent's location. Often, a consumer will discuss 
the shipment load and the mover will provide an estimate based on the 
discussion, without visually inspecting the amount or weight of goods 
for transport. The purpose of the survey is to develop a more accurate 
estimate of moving fees and to prevent unexpected charges from 
surfacing later in the move process. Because FMCSA lacks data on how 
behavior would change, FMCSA estimates that all shippers located beyond 
50 miles from the motor carrier agent's location would take advantage 
of the virtual survey option. These surveys would take about 1.5 hours 
each, and FMCSA monetizes this time using the motor carrier profit 
margin of $3.59 per hour. As shown below, FMCSA estimates the cost of 
providing virtual surveys to be approximately $1.5 million over 10 
years, $1.3 million at a 3 percent discount rate, and $1.1 million at a 
7 percent discount rate. On an annualized basis, the cost would be 
$151,000 annualized at both a 3 and 7 percent discount rate.

     Table 5--Recommendation 8: Motor Carrier Opportunity Cost for Providing Virtual Surveys Beyond 50 Miles
----------------------------------------------------------------------------------------------------------------
                                       Number of moves
                                       beyond 50 miles     Motor carrier      Motor carrier      Motor carrier
                Year                    with a virtual    opportunity cost   opportunity cost   opportunity cost
                                            survey                           3% discount rate   7% discount rate
                                                      A  A = B x 1.5 hours  .................  .................
                                                                   x $3.59
----------------------------------------------------------------------------------------------------------------
2022................................             27,926           $150,342           $145,963           $140,506
2023................................             27,949            150,462            141,825            131,419
2024................................             27,971            150,582            137,804            122,920
2025................................             27,993            150,703            133,898            114,971
2026................................             28,016            150,823            130,102            107,535
2027................................             28,038            150,944            126,413            100,580
2028................................             28,061            151,065            122,830             94,076
2029................................             28,083            151,186            119,347             87,991
2030................................             28,106            151,307            115,964             82,301
2031................................             28,128            151,428            112,676             76,978
                                     ---------------------------------------------------------------------------
    Total 10-Year Cost Savings......  .................  .................          1,286,822          1,059,278
                                     ---------------------------------------------------------------------------
    Total Annualized Cost Savings...  .................  .................            150,855            150,817
----------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column
  are the rounded sum of unrounded components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a
  cost savings.


[[Page 43829]]

Recommendation 9--Order for Service
    In agreement with the working group recommendation, FMCSA is 
proposing to eliminate the order for service. Much of the information 
provided on the order for service is also on the bill of lading, and is 
therefore duplicative.\17\ Eliminating the order for service would 
reduce the amount of paperwork consumers are required to review, but 
would not reduce the necessary information they are provided. 
Currently, each interstate move requires both an order for service and 
a bill of lading. Each document takes 30 minutes to prepare. Under the 
proposal, a motor carrier would be able to save 30 minutes of time for 
each interstate move by no longer drafting an order for service. FMCSA 
monetized this time using the motor carrier hourly profit margin of 
$3.59. As shown below, FMCSA estimates that eliminating the order for 
service would result in costs of -$10 million over 10 years (or cost 
savings of $10 million), -$8.6 million (or $8.6 million in cost 
savings) discounted at 3 percent, and -$7.1 million (or $7.1 million in 
cost savings) discounted at 7 percent. On an annualized basis, the 
costs would be -$1.0 million (or $1.0 million in cost savings) 
discounted at 3 percent and 7 percent.
---------------------------------------------------------------------------

    \17\ FMCSA is revising the requirements for a bill of lading to 
incorporate all of the requirements from an order for service, 
including non-duplicative information.

         Table 6--Recommendation 9: Motor Carrier Opportunity Cost for Eliminating the Order for Service
----------------------------------------------------------------------------------------------------------------
                                          Number of
                                       interstate moves    Motor carrier      Motor carrier      Motor carrier
                Year                     by for-hire      opportunity cost   opportunity cost   opportunity cost
                                            movers                           discounted at 3%   discounted at 7%
                                                      A       B = A x -0.5  .................  .................
                                                             hours x $3.59
----------------------------------------------------------------------------------------------------------------
2022................................            558,404       ($1,002,056)         ($972,870)         ($936,501)
2023................................            558,851        (1,002,858)          (945,290)          (875,935)
2024................................            559,298        (1,003,660)          (918,491)          (819,286)
2025................................            559,745        (1,004,463)          (892,453)          (766,300)
2026................................            560,193        (1,005,267)          (867,152)          (716,741)
2027................................            560,641        (1,006,071)          (842,569)          (670,388)
2028................................            561,090        (1,006,876)          (818,682)          (627,032)
2029................................            561,539        (1,007,681)          (795,473)          (586,480)
2030................................            561,988        (1,008,487)          (772,922)          (548,550)
2031................................            562,438        (1,009,294)          (751,010)          (513,074)
                                     ---------------------------------------------------------------------------
    Total 10- Year Cost Savings.....  .................  .................        (8,576,911)        (7,060,287)
                                     ---------------------------------------------------------------------------
    Total Annualized Cost Savings...  .................  .................        (1,005,476)        (1,005,226)
----------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column
  are the rounded sum of unrounded components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a
  cost savings.

Document Production Cost
    The ICR supporting statement also estimated printing costs of $0.15 
per page for both the Rights and Responsibilities booklet and the Order 
for Service. FMCSA estimates the change in the cost of materials for 
printing the Rights and Responsibilities booklet and the Orders for 
Service by multiplying the change in the number of pages by the $0.15 
cost per page. As shown in Table 7, FMCSA estimates a 10-year materials 
cost to total $16 million, or $13.6 million discounted at 3 percent, 
and $11.2 million discounted at 7 percent. On an annualized basis, the 
costs would be $1.6 million discounted at both 3 and 7 percent.

                                                            Table 7--Document Production Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                         Recommendation 9--
                                                                   Recommendation 5--      Eliminating the       Total change in       Total cost for
                              Year                                  Increase in pages    order  for service      number of pages     producing documents
                                                                   for  hard copy YRR   (reduction in pages)
                                                                                     A                     B             C = A + B         D = C x $0.15
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022............................................................            11,168,084              -558,404            10,609,680            $1,591,452
2023............................................................            11,177,018              -558,851            10,618,167             1,592,725
2024............................................................            11,185,960              -559,298            10,626,662             1,593,999
2025............................................................            11,194,909              -559,745            10,635,163             1,595,275
2026............................................................            11,203,865              -560,193            10,643,671             1,596,551
2027............................................................            11,212,828              -560,641            10,652,186             1,597,828
2028............................................................            11,221,798              -561,090            10,660,708             1,599,106
2029............................................................            11,230,775              -561,539            10,669,237             1,600,386
2030............................................................            11,239,760              -561,988            10,677,772             1,601,666
2031............................................................            11,248,752              -562,438            10,686,314             1,602,947
                                                                 ---------------------------------------------------------------------------------------

[[Page 43830]]

 
    Total 10-Year Cost Savings..................................  ....................  ....................  ....................            15,971,934
                                                                 ---------------------------------------------------------------------------------------
    Total Annualized Cost Savings...............................  ....................  ....................  ....................             1,597,193
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a\ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
  components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.

Total Costs
    As shown below, FMCSA estimates the total costs of this final rule 
at $1.6 million (or $1.6 million in cost savings) discounted at 3 
percent, and $1.3 million (or $1.3 million in cost savings) discounted 
at 7 percent. Expressed on an annualized basis, this equates to -
$188,000 in costs (or $188,000 in cost savings) at both a 3 and 7 
percent discount rate.

                                            Table 8--Total 10-Year and Annualized Costs of the Proposed Rule
                                                                  [Thousands of 2018$]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                        Rec. 7:
                                                                        Virtual     Rec. 8:     Rec. 9:
                                                            Rec. 5:   survey  of   Survey of   Order for   Document   Total cost  Total cost  Total cost
                          Year                            Appendix A      HHG     HHG beyond    service   production   (primary)  discounted  discounted
                                                              \c\      (primary)   50 miles       \f\         \g\                    at 3%       at 7%
                                                                          \d\         \e\
--------------------------------------------------------------------------------------------------------------------------------------------------------
2022....................................................       $25.1    ($951.9)       150.3   (1,002.1)     1,591.5     (187.2)     (181.7)     (174.9)
2023....................................................        25.1     (952.7)       150.5   (1,002.9)     1,592.7     (187.3)     (176.6)     (163.6)
2024....................................................        25.1     (953.5)       150.6   (1,003.7)     1,594.0     (187.5)     (171.5)     (153.0)
2025....................................................        25.1     (954.2)       150.7   (1,004.5)     1,595.3     (187.6)     (166.7)     (143.1)
2026....................................................        25.1     (955.0)       150.8   (1,005.3)     1,596.6     (187.8)     (162.0)     (133.9)
2027....................................................        25.2     (955.8)       150.9   (1,006.1)     1,597.8     (187.9)     (157.4)     (125.2)
2028....................................................        25.2     (956.5)       151.1   (1,006.9)     1,599.1     (188.1)     (152.9)     (117.1)
2029....................................................        25.2     (957.3)       151.2   (1,007.7)     1,600.4     (188.2)     (148.6)     (109.5)
2030....................................................        25.2     (958.1)       151.3   (1,008.5)     1,601.7     (188.4)     (144.4)     (102.5)
2031....................................................        25.2     (958.8)       151.4   (1,009.3)     1,602.9     (188.5)     (140.3)      (95.8)
    Total 10-Year Cost Savings..........................  ..........  ..........  ..........  ..........  ..........   (1,878.3)   (1,601.9)   (1,318.6)
                                                         -----------------------------------------------------------------------------------------------
    Total Annualized Cost Savings.......................  ..........  ..........  ..........  ..........  ..........     (187.8)     (187.8)     (187.8)
                                                         -----------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes:
\a \ Total cost values may not equal the sum of the components due to rounding. (The totals shown in this column are the rounded sum of unrounded
  components.)
\b\ Values shown in parentheses are negative values (i.e., less than zero) and represent a decrease in cost or a cost savings.
\c\ (Increase in Number of Hard Copy YRR Booklets Provided) x (25 / 1600) x ($3.59).
\d\ (Number of Virtual Surveys) x ($3.59) x (-1 hour).
\e\ (Interstate Moves beyond 50 miles by For-Hire Movers) x (-0.5 hours) x ($3.59).
\f\ (Interstate Moves by For-Hire Movers) x (-0.5 hours) x ($3.59).
\g\ ((Increase in Pages for YRR Booklet) + (Decrease in Pages for Elimination of Order for Service)) x $0.15.

Benefit Impacts
    FMCSA does not expect this rule to impact safety, but does expect 
that it would result in benefits related to consumer protection and 
fuel savings. Recommendation 5 would result in shippers receiving 
accurate and clear information earlier in the process, allowing them to 
make more informed and better decisions regarding which household goods 
motor carrier to hire, and would allow shippers to obtain more accurate 
estimates of moving fees based on physical surveys for those interstate 
moves beyond 50 miles from a motor carrier agent's location. The motor 
carrier efficiencies discussed above would not negatively impact 
shippers, as the services and information received today would not 
change under the proposed rule.
    FMCSA anticipates that providing virtual surveys for those moves 
within 50 miles of a motor carrier agent's location would not only 
result in motor carrier time savings quantified above, but could 
potentially result in fuel savings if motor carriers drive fewer miles, 
which could produce a small reduction in CO2 emissions. It is important 
to note that FMCSA is not anticipating a change in CMV vehicle miles 
traveled, as the rule does not affect the number of interstate moves 
occurring per year, but recognizes that motor carriers could reduce 
miles driven in light-duty vehicles used for providing estimates to 
shippers. The distance and fuel required to travel to and from a move 
site varies with each survey. However, the survey requirement is in 
place for moves within 50 miles from the motor carrier agent's 
location, and we can estimate that any potential fuel savings would 
only accrue to those moves. FMCSA assumes the average mileage for these 
moves would be approximately 25 miles, or 50 miles round-trip. Based on 
data provided by the Bureau of Transportation Statistics, light-duty 
vehicles averaged approximately 22 miles per gallon in 2017, resulting 
in just over 2 gallons saved per trip (22.27 miles per gallon / 50 
miles per trip = 2.24 gallons per trip).\18\ The U.S. Energy

[[Page 43831]]

Information Administration forecasts real petroleum prices for motor 
gasoline, and estimates an average price per gallon over the analysis 
period of $3.28 in 2018 dollars.\19\ Therefore, FMCSA estimates that 
each virtual survey could result in $7.37 in avoided fuel costs (2.24 
gallons per trip x $3.28 per gallon). Any potential fuel savings would 
result from a reduction in vehicle miles traveled in light-duty 
vehicles. The Agency is uncertain how motor carriers would respond to 
the proposed change allowing virtual surveys, and whether they would be 
involved in other driving-related activities which could diminish or 
negate any potential fuel savings. For these reasons, FMCSA is not 
quantifying any potential fuel impacts but requests comment on how 
motor carriers would adjust their operations in response to this 
proposed rule. Similarly, while these potential fuel savings, if 
realized, would result in a reduction of CO2 emissions that is directly 
proportional to the amount of fuel saved, the Agency is not quantifying 
those potential savings in this proposed rule due to the aforementioned 
uncertainty with respect to how motor carriers would adjust their 
operations. If FMCSA receives data that enables the quantification of 
fuel savings in the context of the development of a subsequent final 
rule, the Agency would monetize the commensurate reduction in CO2 
emissions consistent with the social cost of carbon values, as 
established by the White House and the Interagency Working Group on the 
Social Cost of Greenhouse Gases.
---------------------------------------------------------------------------

    \18\ U.S. Department of Transportation, Bureau of Transportation 
Statistics. Table 4-23: Average Fuel Efficiency of U.S. Light Duty 
Vehicles. Available at: https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicles
    \19\ U.S. Energy Information Administration. Petroleum and Other 
Liquids Prices, Transportation, Motor Gasoline: Reference Case, 
years 2022--2031, inflated to 2018$. Available at: https://
www.eia.gov/outlooks/aeo/data/browser/#/?id=12-AEO2015®ion=0-
0&cases=ref2015~highmacro~lowmacro~highprice~lowprice&start=2020&end=
2034&f=A&linechart=ref2015-d021915a.3-12-AEO2015~highmacro-
d021915a.3-12-AEO2015~lowmacro-d021915a.3-12-AEO2015~highprice-
d021915a.3-12-AEO2015~lowprice-d021915a.3-12-AEO2015&sourcekey=0 
(accessed October, 15 2020).
---------------------------------------------------------------------------

B. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.), 
the Office of Information and Regulatory Affairs designated this rule 
as not a ``major rule,'' as defined by 5 U.S.C. 804(2).\20\
---------------------------------------------------------------------------

    \20\ A ``major rule'' means any rule that the Administrator of 
Office of Information and Regulatory Affairs at the Office of 
Management and Budget finds has resulted in or is likely to result 
in (a) an annual effect on the economy of $100 million or more; (b) 
a major increase in costs or prices for consumers, individual 
industries, Federal agencies, State agencies, local government 
agencies, or geographic regions; or (c) significant adverse effects 
on competition, employment, investment, productivity, innovation, or 
on the ability of United States-based enterprises to compete with 
foreign-based enterprises in domestic and export markets (5 U.S.C. 
804(2)).
---------------------------------------------------------------------------

C. Regulatory Flexibility Act (Small Entities)

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601 et seq.) as 
amended by the Small Business Regulatory Enforcement Fairness Act of 
1996 (Pub. L. 104-121, 110 Stat. 857), requires Federal agencies to 
consider the effects of the regulatory action on small business and 
other small entities and to minimize any significant economic impact. 
The term ``small entities'' comprises small businesses and not-for-
profit organizations that are independently owned and operated and are 
not dominant in their fields, and governmental jurisdictions with 
populations of less than 50,000 (5 U.S.C. 601(6)). Accordingly, DOT 
policy requires an analysis of the impact of all regulations on small 
entities, and mandates that agencies strive to lessen any adverse 
effects on these businesses. Section 605 of the RFA allows an Agency to 
certify a rule, in lieu of preparing an analysis, if the rulemaking is 
not expected to have a significant economic impact on a substantial 
number of small entities.
    This rule affects shippers and household goods motor carriers. 
Shippers, or consumers that hire household good motor carriers, are not 
considered small entities because they do not meet the definition of a 
small entity in Section 601 of the RFA. Specifically, shippers are 
considered neither a small business under Section 601(3) of the RFA, 
nor are they considered a small organization under Section 601(4) of 
the RFA.
    The SBA defines the size standards used to classify entities as 
small. SBA establishes separate standards for each industry, as defined 
by the North American Industry Classification System (NAICS).\21\ 
Household goods motor carriers would fall under Subsector Industry 
48421, household good and office goods moving, which has an SBA size 
standard based on annual revenue of $30 million.
---------------------------------------------------------------------------

    \21\ Executive Office of the President, OMB. ``North American 
Industry Classification System.'' 2017. Available at: https://www.census.gov/eos/www/naics/2017NAICS/2017_NAICS_Manual.pdf 
(accessed January 15, 2020).
---------------------------------------------------------------------------

    FMCSA examined data from the U.S. Census Bureau to determine the 
number of small entities within the identified 5-digit NAICS industry 
group. The Census Bureau collects and publishes data on the number of 
firms, establishments, employment, annual payroll, and estimated 
receipts by revenue size of the firm. The most recent data available 
are from the 2012 County Business Patterns and the 2012 Economic 
Census.\22\ The revenue size categories used in the 2012 Economic 
Census do not exactly align with the SBA size standard, but they do 
allow FMCSA to develop a good estimate of the percentage of small 
entities within the NAICS industry group 48421. The 2012 Economic 
Census reported that there were 5,718 firms operating for the entire 
year within NAICS industry group 48421 (household goods and office 
goods moving). Of those firms that operated for the entire year, 5,663 
firms (99 percent), had annual revenues of less than $25 million, and 
5,692 firms (100 percent) had annual revenues less than $50 million. 
FMCSA concludes that this rule will impact a substantial number of 
small entities.
---------------------------------------------------------------------------

    \22\ U.S. Department of Commerce, U.S. Census Bureau. 
Establishment and Firm Size: Summary Statistics by Revenue Size of 
Firms for the U.S. Release date March, 2016. Available at: https://www2.census.gov/econ2012/EC/sector48/EC1248SSSZ4.zip (accessed 
September 18, 2020).
---------------------------------------------------------------------------

    The RFA does not define a threshold for determining whether a 
specific regulation results in a significant impact. However, the SBA, 
in guidance to government agencies, provides some objective measures of 
significance that the agencies can consider using.\23\ Revenue is one 
measure that could be used to illustrate a significant impact, 
specifically, if the cost of the regulation exceeds one percent of the 
average annual revenues of small entities in the sector.
---------------------------------------------------------------------------

    \23\ SBA, Office of Advocacy. ``A Guide for Government Agencies. 
How to Comply with the Regulatory Flexibility Act.'' 2017. Available 
at: https://www.sba.gov/sites/default/files/advocacy/How-to-Comply-with-the-RFA-WEB.pdf (accessed on December 30, 2020).
---------------------------------------------------------------------------

    Examining the 2012 Economic Census data discussed above, FMCSA 
found that affected entities had average revenues ranging from $55,000 
to $35 million. The cost of the regulation would thus need to exceed 
$550 per carrier in any one year in order to be considered a 
significant impact on the entities within the smallest revenue size 
category. The exact impact per motor carrier is dependent on many 
variables throughout the year (e.g., the number of hard-copy Rights and 
Responsibilities booklets provided, the number of virtual surveys 
provided for those moves within 50 miles of the motor carrier agents' 
locations, and the number of virtual surveys completed for moves beyond 
50 miles of the motor carrier agents' locations), and cannot be 
estimated with precision. While FMCSA cannot provide the exact impact 
per

[[Page 43832]]

motor carrier, it is possible to evenly distribute the total cost of 
the rule across all affected motor carriers to determine the average 
impact per motor carrier. As shown in the table below, the estimated 
impact per motor carrier does not exceed $550 in any year, and 
therefore is not a significant impact.

                                   Table 8--Estimated Impact per Motor Carrier
----------------------------------------------------------------------------------------------------------------
                                                                                Total cost
                          Year                            Household  goods    (discounted at    Estimated impact
                                                           motor carriers          7%)         per motor carrier
----------------------------------------------------------------------------------------------------------------
2022...................................................              4,884       ($174,909.9)            ($35.8)
2023...................................................              5,097        (163,597.9)             (32.1)
2024...................................................              5,319        (153,017.6)             (28.8)
2025...................................................              5,551        (143,121.5)             (25.8)
2026...................................................              5,793        (133,865.4)             (23.1)
2027...................................................              6,046        (125,208.0)             (20.7)
2028...................................................              6,309        (117,110.4)             (18.6)
2029...................................................              6,584        (109,536.5)             (16.6)
2030...................................................              6,871        (102,452.5)             (14.9)
2031...................................................              7,171         (95,826.6)             (13.4)
----------------------------------------------------------------------------------------------------------------

    Consequently, I certify that the proposed action would not have a 
significant economic impact on a substantial number of small entities.

D. Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996, FMCSA wants to assist small entities 
in understanding this NPRM so they can better evaluate its effects on 
themselves and participate in the rulemaking initiative. If the NPRM 
would affect your small business, organization, or governmental 
jurisdiction and you have questions concerning its provisions or 
options for compliance; please consult the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the Small Business Administration's Small Business and 
Agriculture Regulatory Enforcement Ombudsman and the Regional Small 
Business Regulatory Fairness Boards. The Ombudsman evaluates these 
actions annually and rates each agency's responsiveness to small 
business. If you wish to comment on actions by employees of FMCSA, call 
1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding the rights 
of small entities to regulatory enforcement fairness and an explicit 
policy against retaliation for exercising these rights.

E. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or Tribal government, in 
the aggregate, or by the private sector of $168 million (which is the 
value equivalent of $100 million in 1995, adjusted for inflation to 
2019 levels) or more in any one year. Though this NPRM would not result 
in such an expenditure, the Agency does discuss the effects of this 
rule elsewhere in this preamble.

F. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520) requires 
that an agency consider the impact of paperwork and other information 
collection burdens imposed on the public. An agency is prohibited from 
collecting or sponsoring an information collection, as well as imposing 
an information collection requirement, unless it displays a valid OMB 
control number (5 CFR 1320.8(b)(3)(vi)).
    This proposed rule would amend the existing approved information 
collection titled ``Transportation of Household Goods; Consumer 
Protection,'' OMB control number 2126-0025, which expires on November 
30, 2022. Specifically, FMCSA seeks approval for the revision of the 
information collection request (ICR) due to the Agency's development of 
this NPRM. In accordance with 44 U.S.C. 3507(d), FMCSA will submit the 
proposed information collection amendments to the Office of Information 
and Regulatory Affairs (OIRA) at OMB for its approval.
    Title: Transportation of Household Goods; Consumer Protection.
    OMB Control Number: 2126-0025.
    Type of Review: Revision of a currently-approved information 
collection.
    Summary: FMCSA is proposing to make various changes to the 
household goods regulations recommended by Household Goods Consumer 
Protection Working Group. These proposed changes include further 
revisions to streamline the Rights and Responsibilities booklet which 
would be incorporated in appendix A of the regulations, requiring new 
binding or non-binding estimates when an individual shipper tenders 
more goods or requests additional service instead of a revised 
estimate, allowing a motor carrier to provide a virtual survey, 
removing the exception from the survey requirement for moves where the 
household goods are located more than 50 miles from the motor carrier 
agent's location, eliminating the order for service and incorporating 
that document into the bill of lading, and making other minor updates 
to increase the clarity of the regulations. These proposed changes are 
intended to reduce the paperwork burden on household goods motor 
carriers and reduce confusion for individual shippers. FMCSA summarizes 
the resulting changes from the existing ICR below.
IC-1: Required Information for Prospective Individual Shippers
    FMCSA is proposing to require the Rights and Responsibilities 
booklet to be provided earlier in the process, when the estimate is 
provided to the shipper, which would result in providing an additional 
two documents per interstate move. This is because FMCSA estimates that 
shippers request an estimate from three household goods carriers but 
contract with only one. FMCSA multiplied the average number of 
interstate moves per year by 40 percent to estimate the number of hard-
copy Rights and Responsibilities booklets provided to shippers under 
the existing requirements (558,851 x 40 percent = 223,540 copies). 
FMCSA then multiplied the number of orders for

[[Page 43833]]

service where hard-copies are provided by three, to account for the 
assumption that shippers seek an estimate from three different 
household goods carriers, (223,540 x 3 = 670,621 copies). The number of 
additional hard copies that would be provided as a result of this rule 
is 447,081 (670,621-223,540 = 447,081 copies). It is estimated that a 
carrier could print roughly 1,600 pages per hour and each Rights and 
Responsibilities booklet consists of 25 pages. The increase in the 
number of hours needed to print hard-copy Rights and Responsibilities 
booklets would be the additional hard copies multiplied by 25 pages per 
document (447,081 x 25 = 11,177,021 pages) divided by 1,600 pages per 
hour (11,177,021/ 1,600 = 6,986 hours). The Agency assumes printing and 
storing these booklets would be completed by an office clerk with a 
loaded hourly wage of $33.31. Therefore, the increase in burden hours 
would be 6,986 and the increase in cost resulting from the proposed 
rule is $232,705, (6,986 burden hours x $33.31 = $232,693).
    Estimated Number of Respondents: 5,100.
    Estimated Responses: 447,081.
    Estimated Burden Hours: 6,986.
    Estimated Cost: $232,693.
IC-2: Estimating Charges
    The proposed rule would require that movers offer surveys for all 
household goods shipments, including those that are located over 50 
miles from the motor carrier agent's location. Currently, household 
goods motor carriers are not required to offer surveys for household 
goods shipments that are located beyond 50 miles from the motor carrier 
agent's location. FMCSA estimates that all shippers located beyond 50 
miles from the motor carrier agent's location would take advantage of 
the survey option. There is an annual average of 27,949 moves beyond 50 
miles, of those moves that currently receive non-binding surveys. These 
surveys would take about 1.5 hours each, and FMCSA assumes all tasks 
will be completed by a first line supervisor of a transportation and 
material moving worker with a loaded hourly wage of $44.11, resulting 
in an increase of 41,923 burden hours and an increased cost of 
$1,849,045 (27,959 x 1.5 hours x $44.11 = $1,849,045).
    Estimated Number of Respondents: 5,100.
    Estimated Responses: 27,949.
    Estimated Burden Hours: 41,923.
    Estimated Cost: $1,849,045.
IC-3: Pick Up of Shipments of Household Goods
    FMCSA is proposing to eliminate the order for service because much 
of the information provided on the order for service is also provided 
on the bill of lading. Currently, each interstate move requires both an 
order for service and a bill of lading and it takes 30 minutes to 
prepare each document. As such, removing the order for service form 
requirement would save 30 minutes per move. The Agency assumes all 
tasks would be completed by a cargo agent with a loaded hourly wage of 
$33.80. With the annual average of 558,851 total interstate moves and 
30 minute time savings, motor carriers would save 279,426 burden hours 
(558,851 interstate moves x -0.5 hours = -279,426 burden hours). The 
estimated cost savings would be $9,445,421 (-279,426 burden hours x 
$33.80 = -$9,445,421).
    Estimated Number of Respondents: 5,100.
    Estimated Responses: 558,851.
    Estimated Burden Hours: -279,426.
    Estimated Cost Savings: $9,445,421.
Document Production
    The estimates of the costs of producing required documents is based 
on the total number of pages movers would need to produce multiplied by 
a flat rate of $0.15 per page. With the estimated annual average of 
670,621 ``Your Rights and Responsibilities'' documents printed, there 
would be 16,765,531 total pages printed (670,621 documents printed x 25 
pages per document = 16,765,531 total pages printed). The estimated 
total annual printing cost to respondents is $2.5 million (16,765,531 
total pages printed x $0.15 per page = $2.5 million).
    In removing the order for service form, which is a one page 
document, the Agency estimates that there would be 558,851 fewer 
documents printed. This results in an estimated annual cost savings to 
respondents of $83,828 (558,851 documents printed x 1 page per document 
x $0.15 per page = $83,828).
    Estimated Number of Respondents: 5,100.
    Estimated Responses: 1,229,472.
    Estimated Cost: $2,431,002.
    FMCSA asks for comment on the information collection requirements 
of this proposed rule. Specifically, the Agency asks for comment on: 
(1) Whether the proposed information collection is necessary for FMCSA 
to perform its functions; (2) how the Agency can improve the quality, 
usefulness, and clarity of the information to be collected; (3) the 
accuracy of FMCSA's estimate of the burden of this information 
collection; and (4) how the Agency can minimize the burden of the 
information collection.
    If you have comments on the collection of information, you must 
send those comments to FMCSA as outlined under the PUBLIC PARTICIPATION 
AND REQUEST FOR COMMENTS section at the beginning of this NPRM.

G. E.O. 13132 (Federalism)

    A rule has implications for federalism under Section 1(a) of E.O. 
13132 if it has ``substantial direct effects on the States, on the 
relationship between the national government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government.''
    FMCSA has determined that this rule would not have substantial 
direct costs on or for States, nor would it limit the policymaking 
discretion of States. Nothing in this document preempts any State law 
or regulation. Therefore, this rule does not have sufficient federalism 
implications to warrant the preparation of a Federalism Impact 
Statement.

H. Privacy

    The Consolidated Appropriations Act, 2005,\24\ requires the Agency 
to conduct a privacy impact assessment (PIA) of a regulation that will 
affect the privacy of individuals. This NPRM would not require the 
collection of personally identifiable information (PII). The Agency 
will complete a Privacy Threshold Assessment (PTA) to evaluate the 
risks and effects the proposed rulemaking might have on collecting, 
storing, and sharing personally identifiable information. The PTA will 
be submitted to FMCSA's Privacy Officer for review and preliminary 
adjudication and to DOT's Privacy Officer for review and final 
adjudication.
---------------------------------------------------------------------------

    \24\ Public Law 108-447, 118 Stat. 2809, 3268, note following 5 
U.S.C. 552a (Dec. 4, 2014).
---------------------------------------------------------------------------

I. E.O. 13175 (Indian Tribal Governments)

    This rule does not have Tribal implications under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, because 
it does not have a substantial direct effect on one or more Indian 
Tribes, on the relationship between the Federal Government and Indian 
Tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian Tribes.

[[Page 43834]]

J. National Environmental Policy Act of 1969

    FMCSA analyzed this proposed rule for the purpose of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
determined this action is categorically excluded from further analysis 
and documentation in an environmental assessment or environmental 
impact statement under FMCSA Order 5610.1 (69 FR 9680, March 1, 2004), 
Appendix 2, paragraphs 6.m. and 6.l. The Categorical Exclusions (CEs) 
in paragraphs 6.m. and 6.l., respectively, cover regulations requiring 
every motor carrier to issue and keep a receipt or bill of lading (or 
record) for property tendered for transportation in interstate or 
foreign commerce, and regulations implementing procedures applicable to 
the operations of household good carriers engaged in the transportation 
of household goods. The proposed requirements in this rule are covered 
by these CEs, and the proposed rule would not have any effect on the 
quality of the environment. The CE determination is available for 
inspection or copying in the docket.

List of Subjects

49 CFR 371

    Brokers, Motor carriers, Reporting and recordkeeping requirements.

49 CFR 375

    Advertising, Consumer protection, Freight, Highways and roads, 
Insurance, Motor carriers, Moving of household goods, Reporting and 
recordkeeping requirements.

    Accordingly, FMCSA proposes to amend 49 CFR chapter 3, parts 371 
and 375 as follows:

PART 371--BROKERS OF PROPERTY

0
1. The authority citation for part 371 continues to read as follows:

    Authority:  49 U.S.C. 13301, 13501, and 14122; subtitle B, title 
IV of Pub. L. 109-59; and 49 CFR 1.87.

0
2. Amend Sec.  371.113 by revising paragraph (a) to read as follows:


Sec.  371.113  May I provide individual shippers with a written 
estimate?

    (a) You may provide each individual shipper with an estimate of 
transportation and accessorial charges. If you provide an estimate, it 
must be in writing and must be based on a physical survey of the 
household goods conducted by the authorized motor carrier on whose 
behalf the estimate is provided. The estimate must be prepared in 
accordance with a signed, written agreement, as specified in Sec.  
371.115 of this subpart.
* * * * *

PART 375--TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE; 
CONSUMER PROTECTION REGULATIONS

0
3. The authority citation for part 375 continues to read as follows:

    Authority:  49 U.S.C. 13102, 13301, 13501, 13704, 13707, 13902, 
14104, 14706, 14708; subtitle B, title IV of Pub. L. 109-59; and 49 
CFR 1.87.

0
4. Amend Sec.  375.103 by:
0
a. Adding, in alphabetical order, definitions for ``Bill of lading'' 
and ``Physical survey'';
0
b. Removing the definition for ``Order for service''; and
0
c. Revising the definitions for ``Reasonable dispatch'' and ``Surface 
Transportation Board''.
    The additions and revisions read as follows:


Sec.  375.103  What are the definitions of terms used in this part?

* * * * *
    Bill of lading means both the receipt and the contract for the 
transportation of the individual shipper's household goods.
* * * * *
    Physical survey means a survey which is conducted on-site or 
virtually. If the survey is performed virtually, the household goods 
motor carrier must be able to view the household goods through live 
video that allows it to clearly identify the household goods to be 
transported.
* * * * *
    Reasonable dispatch means the performance of transportation on the 
dates, or during the period, agreed upon by you and the individual 
shipper and shown on the bill of lading. For example, if you 
deliberately withhold any shipment from delivery after an individual 
shipper offers to pay the binding estimate or 110 percent of a non-
binding estimate, you have not transported the goods with reasonable 
dispatch. The term ``reasonable dispatch'' excludes transportation 
provided under your tariff provisions requiring guaranteed service 
dates. You will have the defenses of force majeure, i.e., superior or 
irresistible force, as construed by the courts.
* * * * *
    Surface Transportation Board means an independent agency of the 
United States that regulates household goods carrier tariffs, among 
other economic regulatory responsibilities.
* * * * *
0
5. Amend Sec.  375.211 by revising the introductory text of paragraph 
(a)(2) to read as follows:


Sec.  375.211  Must I have an arbitration program?

    (a) * * *
    (2) Before execution of the bill of lading, you must provide notice 
to the individual shipper of the availability of neutral arbitration, 
including all three of the following items:
* * * * *
0
6. Amend Sec.  375.213 by:
0
a. Revising paragraph (a);
0
b. Revising the introductory text of paragraph (b);
0
c. Removing paragraph (b)(1);
0
d. Redesignating paragraphs (b)(2) through (5) as paragraphs (b)(1) 
through (4);
0
e. Redesignating paragraph (e) as paragraph (f);
0
f. Adding new paragraph (e); and
0
g. Revising newly redesignated paragraph (f).
    The revisions and addition read as follows:


Sec.  375.213  What information must I provide to a prospective 
individual shipper?

    (a) When you provide the written estimate to a prospective 
individual shipper, you must also provide the individual shipper with 
the following documents:
    (1) The DOT publication titled ``Ready to Move?--Tips for a 
Successful Interstate Move'' (Department of Transportation publication 
FMCSA-ESA-03-005, or its successor publication). You must provide the 
individual shipper with either a copy or provide a hyperlink on your 
internet website to the web page on the FMCSA website containing that 
publication.
    (2) The contents of appendix A of this part, titled ``Your Rights 
and Responsibilities When You Move'' (Department of Transportation 
publication FMCSA-ESA-03-006, or its successor publication). You must 
provide the individual shipper with either a copy or provide a 
hyperlink on your internet website to the web page on the FMCSA website 
with the publication ``Your Rights and Responsibilities When You 
Move.''
    (b) Before you execute a bill of lading for a shipment of household 
goods, you must furnish to your prospective individual shipper all four 
of the following documents:
* * * * *
    (e) If you have a website, you are required to display prominently 
either a link to the DOT publication titled ``Ready to Move?--Tips for 
a Successful Interstate Move'' (Department of

[[Page 43835]]

Transportation publication FMCSA-ESA-03-005, or its successor 
publication) on the FMCSA website or a true and accurate copy of that 
document on your website.
    (f) If an individual shipper elects to access the Federal consumer 
protection information via the hyperlink on the internet as provided in 
paragraphs (a)(1) and (2) of this section:
    (1) You must obtain a signed, dated receipt showing the individual 
shipper has received either or both of the publications that includes 
verification of the shipper's agreement to access the Federal consumer 
protection information on the internet.
    (2) You must maintain the signed receipt required by paragraph 
(f)(1) of this section for one year from the date the individual 
shipper signs the receipt. You are not required to maintain the signed 
receipt when you do not actually transport household goods or perform 
related services for the individual shipper who signed the receipt.
0
7. Revise Sec.  375.215 to read as follows:


Sec.  375.215  How must I collect charges?

    You must issue an honest, truthful invoice that includes all the 
information required by subpart A of part 373 of this chapter. All 
rates and charges for the transportation and related services must be 
in accordance with your appropriately published tariff provisions in 
effect, including the method of payment.
0
8. Amend Sec.  375.217 by revising paragraph (b) to read as follows:


Sec.  375.217  How must I collect charges upon delivery?

* * * * *
    (b) You must specify the same form of payment provided in paragraph 
(a) of this section when you prepare the bill of lading.
* * * * *
0
9. Amend Sec.  375.221 by revising paragraph (c) to read as follows:


Sec.  375.221  May I use a charge or credit card plan for payments?

* * * * *
    (c) If you allow an individual shipper to pay an invoice by charge 
or credit card, you are deeming such payment to be the same as payment 
by cash, certified check, money order, or a cashier's check.
* * * * *
0
10. Amend Sec.  375.401 by revising paragraphs (a), (b) introductory 
text, and (f) to read as follows:


Sec.  375.401  Must I estimate 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. An individual shipper may 
elect to waive a physical survey. The waiver agreement is subject to 
the following requirements:
    (1) It must be in writing;
    (2) It must be signed by the shipper before the shipment is loaded; 
and
    (3) You must retain a copy of the waiver agreement as an addendum 
to the bill of lading with the understanding that the waiver agreement 
will be subject to the same record retention requirements that apply to 
bills of lading, as provided in Sec.  375.505(d).
    (b) Before you execute a bill of lading 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:
* * * * *
    (f) You must determine charges for any accessorial services such as 
elevators, long carries, etc., before preparing 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 
bill of lading, you must deliver the goods and bill the shipper after 
30 days for the additional charges.
* * * * *
0
11. Amend Sec.  375.403 by revising paragraphs (a)(1), (a)(6)(ii), and 
(a)(9) to read as follows:


Sec.  375.403  How must I provide a binding estimate?

    (a) * * *
    (1) You must base the binding estimate on the physical survey 
unless waived as provided in Sec.  375.401(a).
* * * * *
    (6) * * *
    (ii) Prepare a new binding estimate prior to loading. The new 
estimate must be signed by the individual shipper. You should maintain 
a record of the date, time, and manner that the new estimate was 
prepared.
* * * * *
    (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. The individual shipper must 
agree to the new charges. You must prepare a new binding estimate and 
have the new binding estimate signed by the individual shipper. 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.
* * * * *
0
12. Amend Sec.  375.405 by revising paragraphs (b)(7)(ii) and (c) to 
read as follows:


Sec.  375.405  How must I provide a non-binding estimate?

* * * * *
    (b) * * *
    (7) * * *
    (ii) Prepare a new non-binding estimate which must be signed by the 
individual shipper.
* * * * *
    (c) If you furnish a non-binding estimate, you must enter the 
estimated charges upon the bill of lading.
* * * * *


Sec.  375.501  [Removed and Reserved]

0
13. Remove and reserve Sec.  375.501.
0
14. Amend Sec.  375.505 by revising paragraphs (a), (b) introductory 
text, (b)(1), (6), and (14 through (17), and (d), and adding paragraphs 
(e) through (h) to read as follows:


Sec.  375.505  Must I write up a bill of lading?

    (a) Before you receive a shipment of household goods you will 
transport for an individual shipper, you must prepare and issue a bill 
of lading. The bill of lading must contain the terms and conditions of 
the contract.
    (b) On a bill of lading, you must include the following 17 items:
    (1) Your legal or trade name (i.e., doing business as name) as it 
is registered with FMCSA, to include your physical address.
    (2) The names, telephone numbers, addresses, and USDOT numbers of 
any motor carriers, when known, who will participate in transportation 
of the shipment.
    (3) The individual shipper's name, address, and, if available, 
telephone number(s).
* * * * *
    (6) For non-guaranteed service, the agreed date or period of time 
for pickup of the shipment and the agreed date or period of time for 
the delivery of the shipment.
* * * * *
    (14) A complete description of any special or accessorial services 
ordered and minimum weight or volume charges applicable to the 
shipment, subject to the following two conditions:

[[Page 43836]]

    (i) If you provide service for individual shippers on rates based 
upon the transportation of a minimum weight or volume, you must 
indicate on the bill of lading the minimum weight- or volume-based 
rates, and the minimum charges applicable to the shipment.
    (ii) If you do not indicate the minimum rates and charges, your 
tariff must provide how you will compute the final charges relating to 
such a shipment based upon the actual weight or volume of the shipment.
    (15) Each attachment to the bill of lading. Each attachment is an 
integral part of the bill of lading contract. If not provided elsewhere 
to the shipper, the following two items must be added as an attachment 
to the bill of lading.
    (i) The binding or non-binding estimate.
    (ii) The inventory.
    (16) Any identification or registration number you assign to the 
shipment.
    (17) A statement that the bill of lading incorporates by reference 
all the services included on the estimate.
* * * * *
    (d) You must retain a copy of the bill of lading for each move you 
perform for at least 1 year from the date you created the bill of 
lading.
    (e) You, your agent, or your driver must inform the individual 
shipper if you reasonably expect a special or accessorial service is 
necessary to safely transport a shipment. You must refuse to accept the 
shipment when you reasonably expect a special or accessorial service is 
necessary to safely transport a shipment and the individual shipper 
refuses to purchase the special or accessorial service. You must make a 
written note if the shipper refuses any special or accessorial services 
that you reasonably expect to be necessary.
    (f) You and the individual shipper must sign the bill of lading 
prior to the shipment being loaded. The bill of lading must be signed 
at both the origin and the destination. You must provide a dated copy 
of the bill of lading to the individual shipper at the time you sign 
the bill of lading.
    (g)(1) You may provide the individual shipper with blank or 
incomplete estimates, bills of lading, or any other blank or incomplete 
documents pertaining to the move.
    (2) You may require the individual shipper to sign an incomplete 
document prior to the shipment being loaded provided it contains all 
relevant shipping information except the actual shipment weight and any 
other information necessary to determine the final charges for all 
services performed. You may omit only that information that cannot be 
determined before loading, such as actual shipment weight in the case 
of shipments moved under non-binding estimates or unforeseen charges 
incurred in transit.
    (3) You may not require an individual shipper to sign a blank 
document.
    (h) The bill of lading must be provided to, signed, and dated by 
the individual shipper at least 3 days before the shipment is scheduled 
to be loaded. You must provide the individual shipper the opportunity 
to rescind the bill of lading without any penalty for a 3-day period 
after the individual shipper signs the bill of lading. If the 
individual shipper tenders additional items to be moved or requires 
additional services on the day of the move, resulting in a new binding 
estimate under Sec.  375.403(a)(6)(ii) or a new non-binding estimate 
under Sec.  375.405(b)(7)(ii), the corresponding changes to the bill of 
lading from the new estimate do not require a new 3-day period as 
otherwise required in this paragraph.
0
15. Amend Sec.  375.605 by revising paragraph (a) introductory text to 
read as follows:


Sec.  375.605  How must I notify an individual shipper of any service 
delays?

    (a) When you are unable to perform either the pickup or delivery of 
a shipment on the dates or during the periods specified in the bill of 
lading and as soon as the delay becomes apparent to you, you must 
notify the individual shipper of the delay, at your expense, in one of 
the following six ways:
* * * * *


Sec.  375.801  [Amended]

0
16. Amend Sec.  375.801 by removing the words ``freight or expense 
bill'' and adding, in their place, the word ``invoice''.


Sec.  375.803  [Amended]

0
17. Amend Sec.  375.803 by removing the words ``freight or expense 
bill'' and adding, in their place, the word ``invoice''.


Sec.  375.805  [Amended]

0
18. Amend Sec.  375.805 by removing the words ``freight bill'' and 
adding, in their place, the word ``invoice''.


Sec.  375.807   [Amended]

0
19. Amend Sec.  375.807 by removing the words ``freight bill'' and 
adding, in their place, the word ``invoice'' in the section heading and 
paragraphs (a) and (c)(1) through (4).
0
20. Revise appendix A to part 375 to read as follows:

Appendix A to Part 375--Your Rights and Responsibilities When You Move

General Requirements

    The Federal Motor Carrier Safety Administration's (FMCSA) 
regulations protect consumers of interstate moves and define the 
rights and responsibilities of consumers (shippers) and household 
goods motor carriers (movers).
    The household goods motor carrier gave you this booklet to 
provide information about your rights and responsibilities as an 
individual shipper of household goods. Your primary responsibilities 
are to ensure that you understand the terms and conditions of the 
moving contract (bill of lading), and know what to do in case 
problems arise.
    The primary responsibility for protecting your move lies with 
you in selecting a reputable household goods mover or household 
goods broker, and making sure you understand the terms and 
conditions of your contract and the remedies that are available to 
you in case problems arise.

Definitions and Common Terms

    Accessorial (Additional) Services--These are services such as 
packing, unpacking, appliance servicing, or piano carrying, that you 
request to be performed or are necessary because of landlord 
requirements or other special circumstances.
    Advanced Charges--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.
    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 transportation. Charges 
for these services may be in addition to the line-haul charges.
    Bill of Lading--The receipt for your shipment and the contract 
for its transportation.
    Broker--A company that arranges for the transportation of 
household goods by a registered moving company.
    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 semitrailers 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.
    Commercial Zone--A commercial zone is roughly equivalent to the 
local metropolitan area of a city or town. Moves that cross state 
lines within these zones are exempt from FMCSA's commercial 
jurisdiction and, therefore, the moves are not subject to FMCSA 
household goods regulations. For example, a move between Brooklyn, 
New York, and Hackensack, New Jersey, would be within the New York 
City commercial zone. Although it crossed states lines, this move 
would not be subject to FMCSA household goods regulations.

[[Page 43837]]

    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 
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--An agreement with the mover to perform 
transportation by a set date in exchange for an agreed upon 
additional charge.
    Flight Charge--An additional charge for carrying items up or 
down flights of stairs. Charges for these services may be in 
addition to the line-haul charges.
    Full Value Protection--The liability coverage option you are to 
receive for your shipment unless you waive this option in writing. 
It means your mover will process your loss and damage claim by 
replacing or repairing the item to restore its original like, kind, 
and quality.
    Guaranteed Pickup and/or Delivery Service--An additional level 
of service featuring guaranteed dates of service. Your mover will 
provide reimbursement to you for delays. This service may be subject 
to minimum weight requirements.
    High-Value Article--These are items valued at more than $100 per 
pound.
    Household Goods--As used in connection with transportation, 
household goods are the personal effects or property used, or to be 
used, in a dwelling, when part of the equipment or supplies of the 
dwelling belong to an individual shipper. Transporting of the 
household goods must be arranged for and paid by you or another 
individual on your behalf.
    Household Goods Motor Carrier--A motor carrier that, in the 
normal course of its business of providing transportation of 
household goods, offers some or all the following additional 
services: (1) Binding and non-binding estimates, (2) Inventorying, 
(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 household goods being transported; and
    4. Pays his or her own tariff transportation charges.
    Impracticable Operations--Conditions which make it physically 
impossible for the mover to perform pickup or delivery with its 
normally assigned road-haul equipment so that the mover is required 
to use specialized equipment and/or additional labor to complete 
pickup or delivery of your shipment. A mover may require payment of 
additional charges for services required due to 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 list of your household goods showing the 
quantity and condition of each item.
    Line-Haul Charges--The charges for the transportation portion of 
your move when a household goods mover transports your shipment.
    Household goods brokers or movers must provide you with basic 
information before you move. You should expect to receive the 
following information:
 A written estimate
 The ``Ready to Move'' Brochure (or a web link to access the 
document)
 Information about the mover's arbitration program
 Written notice about access to the mover's tariff
 The process for handling claims
 This booklet, ``Your Rights and Responsibilities When You 
Move'' (or a web link to access the document)
    You should avoid brokers and movers that are not registered with 
FMCSA or refuse to perform a physical survey of your household 
goods. If a broker or mover requires cash, FMCSA advises you to 
retain all receipts and supporting documents associated with the 
transaction.

Customer's Responsibilities

    As a customer, you have responsibilities both to your mover and 
to yourself. They include:
     Reading all moving documents issued by the mover or 
broker.
     Being available at the time of pickup and delivery of 
your shipment. If you are not available, you should appoint a 
representative to act on your behalf.
     Promptly notifying your mover if something has changed 
regarding your shipment (i.e., move dates, additional items).
     Making payment in the amount required and in the form 
agreed to with the mover based on the bill of lading document.
     Promptly filing claims for loss, damage, or delays with 
your mover, if necessary.

Estimates

    The two most important things to understand for your interstate 
move are: The types of estimates offered and the mover's liability 
in the event of loss or damage. As you read further, you will 
discover that movers offer two different types of estimates--binding 
and non-binding. The type of estimate you select determines how the 
charges for your shipment will be calculated. The estimate provided 
by your mover will notify you of the two liability coverage options: 
Option 1--Full Value Protection and Option 2--Waiver of Full Value 
Protection (60 cents per pound). The mover's liability is discussed 
in detail in the next section.
    FMCSA requires your mover to provide written estimates on every 
shipment transported for you. Your mover's verbal quote of charges 
is not an official estimate since it is not in writing. Your mover 
must provide you with a written estimate of all charges including 
transportation, and accessorial and advanced charges (defined at the 
end of this booklet). This written estimate must be dated and signed 
by you and the mover.
    The estimate your mover provides you will include a statement 
notifying you of two options of liability coverage for your 
shipment: Full Value Protection and Waiver of Full Value Protection, 
Released Value of 60 cents per pound per article.
    Your mover must provide an estimate based upon a physical survey 
of your household goods. A physical survey means a survey which is 
conducted on-site or virtually, that allows your mover to see the 
household goods to be transported. A physical survey must be 
performed unless you waive this requirement in writing.
    Please be aware that a household goods broker may only provide 
an estimate on a mover's behalf if the broker has a written 
agreement with the mover and uses the mover's published tariff.
    You and your mover may agree to change an estimate of charges 
based on changed circumstances, but only before your shipment is 
loaded. Your mover may not change an estimate after loading the 
shipment. There is more information about changes to estimates in 
the following sections.

Binding Estimates

    A binding estimate guarantees that you cannot be required to pay 
more than the amount on the estimate at the time of delivery. 
However, if you add additional items to your shipment or request 
additional services, you and your mover may:
     Agree to abide by the original binding estimate;
     prepare a new binding estimate; or
     agree to convert the binding estimate into a non-
binding estimate.
    If you and the mover do not agree to one of the three options 
listed above, the mover is not required to service the shipment. If 
the mover does not give you a new binding estimate in writing, or 
agree in writing to convert the binding estimate to a non-binding 
estimate before your goods are loaded, the original binding estimate 
is reaffirmed. Under these circumstances, your mover should not 
charge or collect more than the amount of the original binding 
estimate at delivery for the quantities and services included in the 
estimate.
    If there are unforeseen circumstances (such as elevators, 
stairs, or required parking permits) at the destination the mover 
can bill you for these additional expenses after 30 days from 
delivery. Charges for services required because of impracticable 
operations (defined at the end of this booklet) are due at delivery, 
but may not exceed 15 percent of all other charges due at delivery; 
any remaining charges will be billed to you with payment due in 30 
days from delivery.
    If you are unable to pay 100 percent of the charges on a binding 
estimate at delivery, your mover may place your shipment in

[[Page 43838]]

storage at your expense. In an effort to schedule delivery of your 
shipment from storage, you will have to pay the required charges and 
storage fees, if listed in the tariffs, after your shipment arrives 
at the residence.
    Your mover may charge a fee to prepare a binding estimate.

Non-Binding Estimates

    A non-binding estimate is intended to provide you with an 
estimate of the cost of your move. A non-binding estimate is not a 
guarantee of your final costs, but it should be reasonably accurate. 
The estimate must indicate that your final charges will be based 
upon the actual weight of your shipment, the services provided, and 
the mover's published tariff. Therefore, the amount of your mover's 
non-binding estimate may be different than the amount you ultimately 
must pay to receive your shipment.
    A non-binding estimate must be in writing and clearly describe 
the shipment and all services provided. Under a non-binding 
estimate, the mover cannot require you to pay more than 110 percent 
of the non-binding estimate at the time of delivery. This does not 
excuse you from paying all the charges due on your shipment. The 
mover will bill you for any remaining charges after 30 days from 
delivery.
    On the day of pick-up, if you have additional items to move, 
your mover must do one of two things prior to loading:
     Reaffirm your non-binding estimate; or
     prepare a new non-binding estimate to include all the 
items that are being moved.
    If you and the mover do not agree to one of the two options 
listed above, the mover is not required to service the shipment. If 
you are unable to pay 110 percent of the charges on a non-binding 
estimate at delivery, your mover may place your shipment in storage 
at your expense. In order to schedule delivery of your shipment from 
storage, you will likely have to agree to pay the required charges 
and storage fees, if listed in the tariffs, after your shipment 
arrives at the residence.
    Your mover must give you possession of your shipment if you pay 
110 percent of a non-binding estimate or 100 percent of a binding 
estimate, plus 15 percent of the impracticable operations charges 
(if applicable). If your mover does not relinquish possession, the 
mover is holding your shipment hostage in violation of Federal law.

Your Mover's Liability and Your Claims

    In general, your mover is legally liable for loss or damage that 
occurs during the transportation of your shipment and all related 
services identified on the bill of lading.
    The extent of your mover's liability is governed by the Surface 
Transportation Board's Released Rates Order. The Surface 
Transportation Board is an independent Federal agency that has 
jurisdiction over HHG motor carrier tariffs and valuation for lost 
or damaged goods. You may obtain a copy of the current Released 
Rates Order by visiting the Surface Transportation Board's website 
at: https://prod.stb.gov/wp-content/uploads/files/docs/householdGoodsMoving/41845.pdf. In addition, your mover may, but is 
not required to, offer to sell you separate third-party liability 
insurance.
    All moving companies are required to assume liability for the 
value of the household goods they transport. However, there are two 
different levels of liability that apply to interstate moves: Full 
Value Protection and Waiver of Full Value Protection--Released 
Value. It is important you understand the charges that apply and the 
amount of protection provided by each level.

Full Value Protection

    This is the most comprehensive option available to protect your 
household goods, but it will increase the cost of your move. The 
initial cost estimate of charges that you receive from your mover 
must include this level of protection. Your shipment will be 
transported at this level of liability unless you waive Full Value 
Protection. Under your mover's Full Value Protection level of 
liability, subject to the allowable exceptions in your mover's 
tariff, if any article is lost, destroyed, or damaged while in your 
mover's custody, your mover will, at its option, either (1) 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; or (2) replace the article with an article of 
like, kind and quality, or pay you for the cost to replace the 
items.
    The exact cost for your shipment, including Full Value 
Protection, may vary by mover and may be further subject to various 
deductible levels. Full Value Protection will increase the cost of 
your move above the basic transportation cost. The minimum valuation 
level for determining the cost of Full Value Protection of your 
shipment is $6.00 per pound times the weight of your shipment. Your 
mover may use a higher minimum value or you may declare a higher 
value for your shipment (at an additional cost). The charges that 
apply for providing Full Value Protection must be shown in your 
mover's tariff. Ask your mover for the details under its specific 
program.
    Under this option, movers are permitted to limit their liability 
for loss or damage to articles of extraordinary value, unless you 
specifically list these articles on the shipping documents. 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.

Waiver of Full Value Protection (Released Value of 60 Cents per Pound 
per Article)

    Released Value is minimal protection; however, it is the most 
economical protection available as there is no charge to you. Under 
this option, the mover assumes liability for no more than 60 cents 
per pound, per article. For example, if a 10-pound stereo component 
valued at $1,000 was lost or destroyed, the mover would be liable 
for no more than $6.00 (10 pounds x $ .60). Obviously, you should 
think carefully before agreeing to such an arrangement.

Third Party Insurance

    If you purchase separate third party cargo liability insurance 
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 is liable for any claim 
for loss or damage.
    Shipments transported under a mover's bill of lading may be 
subject to arbitration in the event of a dispute over loss or damage 
claims. However, disputes with third party insurance companies are 
not subject to FMCSA regulations.

Reducing Your Mover's Normal Liability

    The following are some actions that may limit or reduce your 
mover's liability for loss or damage to your household goods:
    1. Your acts or omissions cause the loss or damage to occur. For 
example, improper packing of containers you pack yourself do not 
provide sufficient protection or you include perishable, dangerous, 
or hazardous materials in your shipment without your mover's 
knowledge. Federal law forbids you to ship hazardous materials in 
your household goods boxes or luggage without informing your mover.
    2. You chose the Waiver of Full Value Protection--Released Value 
level of liability (60 cents per pound per article) but ship 
household goods valued at more than 60 cents per pound per article.
    3. You declare a value for your shipment which is less than the 
actual value of the articles in your shipment.
    4. You fail to notify your mover in writing of articles valued 
at more than $100 per pound. (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.)

Loss and Damage Claims

    Movers customarily take every precaution to make sure that, 
while your shipment is in their possession, no items are lost, 
damaged or destroyed. However, despite the precautions taken, 
articles are sometimes lost or destroyed during the move. You have 
the right to file a claim with your mover to be compensated for loss 
or damage.
    You have 9 months from the date of delivery (or in the event of 
loss for the entire shipment, from the date your shipment should 
have been delivered) to file your claim.
    The claim must be submitted in writing to your mover or to your 
mover's third party insurer for claim processing. After you submit 
your claim, your mover has 30 days to acknowledge receipt of it. The 
mover then has 120 days to provide you with a disposition. The mover 
might be entitled to 60-day extensions if the claim cannot be 
processed or disposed of within 120 days. If an extension is 
necessary, your mover must notify you in writing.

[[Page 43839]]

Delay Claims

    Delay claims are processed when you have contracted with your 
mover for guaranteed service for pickup and delivery. Your mover 
will outline on the bill of lading any penalty or per diem 
entitlements when there is a pickup delay and/or delivery delay.

Moving Paperwork

    Do not sign entirely blank documents. And only sign incomplete 
documents where the only incomplete sections are for information 
that cannot be determined prior to loading, specifically the actual 
weight of your shipment, in the case of a non-binding estimate, and 
unforeseen charges that occur in transit or at destination.

Inventory

    Your mover must prepare an inventory of your shipment. This is 
usually done at the time the mover loads your shipment. The mover is 
required to list any damage or unusual wear to any items. The 
purpose is to make a record of the existence and condition of each 
item before it is moved.
    After completing the inventory, both you and the mover must sign 
each page of the inventory. It is important that before signing you 
make sure the inventory lists every item in your shipment and that 
entries regarding the condition of each item are correct. You have 
the right to note any disagreement. When your shipment is delivered, 
if an item is missing or damaged, your ability to recover from the 
mover for any loss or damage may depend on the notations made on 
this form.
    The mover will give you a copy of each page of the inventory. 
Attach the complete inventory to your copy of the bill of lading. It 
is your receipt for the shipment.
    At the time your shipment is delivered, it is your 
responsibility to check the items delivered against the items listed 
on your inventory. If new damage is discovered, make a record of it 
on the inventory form. Call the damage to the attention of the mover 
and request that a record of the damage be made on the mover's copy 
of the inventory.
    After the complete shipment is unloaded, the mover will request 
that you sign the mover's copy of the inventory to show that you 
received the items listed. Do not sign until you have assured 
yourself that it is accurate and that proper notations have been 
entered regarding any missing or damaged items. Movers are 
prohibited from having you sign documents that release the mover 
from all liability for loss or damage to the shipment in exchange 
for delivery.

Bill of Lading

    Your mover is required by law to prepare a bill of lading for 
your shipment. The bill of lading is the contract between you and 
the mover for the transportation of your shipment. This document is 
issued at least 3 days prior to the pickup date. The information on 
the bill of lading is required to include all the information and 
charges associated with the transportation of your shipment. The 
driver who loads your shipment must give you a copy of the bill of 
lading before or at the time of loading your shipment. The bill of 
lading is an important document. Do not lose or misplace your copy. 
Keep it available until your shipment is delivered, all charges are 
paid, and all claims, if any, are settled.

IT IS YOUR RESPONSIBILITY TO READ THE BILL OF LADING BEFORE YOU 
ACCEPT IT

    The bill of lading requires the mover to provide the service you 
requested and requires you to pay the charges for the service. 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 serves to identify the mover and specifies 
when the transportation is to be performed. Be sure that the 
portions of the bill of lading that note the dates when pickup and 
delivery are to be performed are completed and that you agree with 
the dates. The bill of lading also specifies the terms and 
conditions for payment of the total charges and the maximum amount 
required to be paid at the time of delivery for shipments moving 
under a binding estimate. In the case of shipments moving under non-
binding estimates, the bill of lading will not include a final 
calculation of charges because that cannot be determined until the 
shipment is weighed. However, the bill of lading must contain all 
relevant shipment information--except the shipment weight that will 
be determined after the shipment has been weighed and any unforeseen 
charges that occur in transit or at destination.
    The bill of lading must include the following 17 items:
    1. The legal or trade name (i.e., doing business as name) of the 
mover as it is registered with FMCSA, to include its physical 
address.
    2. The names, telephone numbers, addresses, and USDOT Numbers of 
any motor carriers, when known, who will participate in 
transportation of the shipment.
    3. Your name, address, and, if available, telephone number(s).
    4. The form of payment the mover and its agents will honor at 
delivery. The payment information must be the same that was entered 
on the estimate.
    5. When transportation is on a collect-on-delivery basis, the 
name, address, and if furnished, the telephone number, facsimile 
number, or email address of a person to notify about the charges. 
The notification may also be made by overnight courier or certified 
mail, return receipt requested.
    6. For non-guaranteed service, the agreed date or period of time 
for pickup of the shipment and the agreed date or period of time for 
the delivery of the shipment.
    7. For guaranteed service, subject to tariff provisions, the 
dates for pickup and delivery, and any penalty or per diem 
entitlements due to you.
    8. The actual date of pickup.
    9. The company or motor carrier identification number of the 
vehicle(s) that will transport your shipment.
    10. The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    11. The maximum amount your mover will demand at the time of 
delivery in order for you to obtain possession of the shipment, when 
you transport under a collect-on-delivery basis.
    12. The valuation statements provided in the Surface 
Transportation Board (STB)'s released rates order. These statements 
require individual shippers either to accept Full Value Protection 
for their liability or to waive the Full Value Protection in favor 
of the STB's released rates. The released rates may be increased 
annually by the motor carrier based on the U.S. Department of 
Commerce's Cost of Living Adjustment. Contact the STB for a copy of 
the Released Rates of Motor Carrier Shipments of Household Goods. If 
the individual shipper waives your Full Value Protection in writing 
on the STB's valuation statement, you must include the charges, if 
any, for optional valuation coverage (other than Full Value 
Protection).
    13. Evidence of any insurance coverage sold to or procured for 
the individual shipper from an independent insurer, including the 
amount of the premium for such insurance.
    14. A complete description of any special or accessorial 
services ordered and minimum weight or volume charges applicable to 
the shipment, subject to the following two conditions:
    (i) If your mover provides service for you on rates based upon 
the transportation of a minimum weight or volume, your mover must 
indicate on the bill of lading the minimum weight- or volume-based 
rates, and the minimum charges applicable to the shipment.
    (ii) If your mover does not indicate the minimum rates and 
charges, your mover's tariff must provide information to compute the 
final charges relating to such a shipment based upon the actual 
weight or volume of the shipment.
    15. Each attachment to the bill of lading is an integral part of 
the contract. That includes the binding or non-binding estimate, 
inventory and any signed waiver documents associated with the 
shipment.
    16. Any identification or registration number assigned to the 
shipment.
    17. A statement that the bill of lading incorporates by 
reference all the services included on the estimate, including any 
new estimate prepared by the mover.
    The bill of lading must be signed and dated by you and your 
mover at origin and destination.

Invoice

    At the time of payment of transportation charges, your mover 
must give you an invoice 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 the invoice.
    Except in those instances where a shipment is moving on a 
binding estimate, the invoice 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 
invoice, do not accept or pay the invoice.
    Your mover must deliver your shipment upon payment of 100 
percent of a binding estimate or 110 percent of a non-binding 
estimate, plus the full cost of any additional services that you 
required after the contract was executed and any charges for

[[Page 43840]]

impracticable operation, not to exceed 15 percent of all other 
charges due at delivery. If you do not pay the transportation 
charges due at the time of delivery, your mover has the right, under 
the bill of lading, to refuse to deliver your shipment. The mover 
may place your shipment in storage, at your expense, until the 
charges are paid.
    On shipments paid in advance, your mover must present its 
invoice for all transportation charges within 15 days of the date 
your mover delivered the shipment. This period excludes Saturdays, 
Sundays, and Federal holidays.
    On shipments paid upon delivery, your mover must present its 
invoice 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 after 
30 days from delivery; charges for impracticable operations not paid 
at delivery are due within 30 days of the invoice.
    Your mover's invoice and accompanying written notices must state 
the following five items:

1. Penalties for late payment
2. The period of time for any credit extended
3. Service or finance charges
4. Collection expense charges
5. Any applicable discount terms

Weight Tickets

    Your mover must obtain weight tickets if your shipment is moving 
under a non- binding estimate. Each time your shipment is weighed, a 
separate weight ticket must be obtained and signed by the weigh 
master. If both weighings are performed on the same scale, one 
weight ticket may be used to record both weighings. The weight 
tickets must be presented with the invoice. Each weight ticket must 
contain the following six items:
    1. The complete name and location of the scale.
    2. The date of each weighing.
    3. The identification of the weight entries as being the tare, 
gross, or net weights.
    4. The company or mover identification of the vehicle.
    5. The last name of the individual shipper as it appears on the 
bill of lading.
    6. The mover's shipment registration or bill of lading number.
    Additional information regarding weighing shipments is located 
later in this booklet.

Collection of Charges

    Your mover must issue you an honest and truthful invoice for 
each shipment transported. When your shipment is delivered, you will 
be expected to pay either: (1) 100 percent of the charges on your 
binding estimate, or (2) 110 percent of the charges on your non-
binding estimate. You will also be requested to pay the charges for 
any services that you requested (for example, waiting time, an extra 
pickup or delivery, storage) after the contract with your mover was 
executed that were not included in the estimate, and any charges for 
services performed in conjunction with impracticable operations, not 
to exceed 15 percent of all other charges due at delivery. Your 
mover will bill you after your shipment is delivered for any 
remaining services.
    You should verify in advance what method of payment your mover 
will accept. Your mover must note in writing on the bill of lading 
the forms of payment it accepts at delivery. Do not assume your 
mover will accept payment by credit card unless it is clearly 
indicated on the bill of lading.
    If you do not pay the charges due at the time of delivery, the 
mover has the right to refuse to deliver your shipment and to place 
it into storage at your expense until the charges are paid. It is 
standard procedure for you to pay the charges due at delivery prior 
to the mover unloading the shipment at destination, in accordance 
with the terms specified on the bill of lading.
    If your shipment is transported by two or more trucks, the mover 
may require payment for each portion as it is delivered. You mover 
may delay the collection of all the charges until the entire 
shipment is delivered, at its discretion. When you confirm your 
shipment transportation with your mover, you should ask the mover 
about this policy.
    Your mover can only collect the charges on the percentage of the 
shipment that was successfully delivered. For example, if you 
receive a binding estimate of $1,000 to move 1,000 pounds of your 
goods, and 50 percent of that shipment is lost, then the mover can 
only collect 50 percent of the estimate or $500. If the estimate is 
non-binding then only 50 percent of the actual charges, not to 
exceed 110 percent of the estimate, can be collected, which would be 
$550.
    Your mover is forbidden from collecting, or requiring you to 
pay, any freight charges (including any charges for accessorial or 
terminal services) when your shipment is totally lost or destroyed 
in transit, unless the loss or destruction was due to an act or 
omission by you. However, if you receive Full Value Protection on 
your shipment, you will be required to pay the premium to process 
your claim for the total loss.

Transportation of Your Shipment

Pickup and Delivery

    Before you move, be sure to reach an agreement with your mover 
on the dates for pickup and delivery of your shipment. It is your 
responsibility to determine on what date your shipment will be 
picked up and the date or timeframe you require delivery. Once an 
agreement is reached, your mover must enter those dates on the bill 
of lading. Upon loading your shipment, your mover is contractually 
bound to provide the service described in the bill of lading.
    The mover might use the term ``delivery spread'' as the 
timeframe in which you can expect your shipment to be delivered. 
This means that your shipment could arrive anytime during the 
delivery spread. The mover is required to give you a 24-hour advance 
notice of when they plan to arrive with your shipment. At that time, 
you must be available to accept delivery or your shipment could be 
placed in storage at your expense.
    When you and the mover agree to a delivery date, or to a range 
of dates, it is your responsibility to be available to accept 
delivery on any of those dates. The same applies when you and the 
mover agree to alternate delivery dates.
    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.
    If you request the mover to change the dates for your shipment, 
most movers will agree to do so if the change will not result in 
unreasonable delay to their equipment or interfere with another 
customer's move. However, the mover is not required to change the 
dates and can place your shipment in storage at your expense if you 
are unwilling or unable to accept delivery on the agreed dates.
    The only reason your mover would be excused from providing a 
service as described in the bill of lading is because of ``force 
majeure.'' This is a legal term which means an unforeseen change of 
circumstances beyond the control of the mover. For example, if there 
were a major snow storm that prevented your mover from servicing 
your shipment as outlined in the bill of lading, your mover would 
not be responsible for damages resulting from its nonperformance.
    If your mover fails to pick up or deliver your shipment on the 
agreed date or during the delivery spread, and you have expenses 
that you otherwise would not have, you may be able to recover these 
expenses from the mover through a delay of shipment claim.
    Ask your mover before you move what payment or other 
arrangements you can expect if your shipment is delayed through the 
fault of the mover.
    Your mover must transport your household goods in a timely 
manner. This is also known as ``reasonable dispatch service.'' If 
you have arranged for a guaranteed delivery date, the terms of that 
agreement with your mover apply.
    When your mover is unable to meet either the pickup or delivery 
dates or provide service during the periods of time specified in the 
bill of lading, your mover must notify you of the delay. The mover 
must advise you of the dates or periods of time it may be able to 
pick up and/or deliver your shipment. Your mover must provide this 
information in writing.

Early Delivery

    If you are unable to accept delivery before the first day of the 
delivery spread, then your mover may place your shipment in storage 
in a warehouse located in proximity to the destination. 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 has full responsibility for the charges 
for re-delivery, handling, and storage until it makes the final 
delivery.

Storage in Transit

    You may request your mover to store your household goods before 
delivering them. Your mover must notify you in writing or in person 
at least 10 days before the expiration date of:
    1. The specified period of time when your mover is to hold your 
shipment in storage.

[[Page 43841]]

    2. The maximum period of time provided in its tariff for 
storage-in-transit.
    If your mover holds your household goods in storage-in-transit 
for less than 10 days, your mover must notify you, 1 day before the 
storage-in-transit period expires of the same information specified 
above.
    When the storage period is about to expire, your mover must 
notify you in writing about the following four items:
    1. The date when storage-in-transit will covert 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. When your mover's liability will end for loss and damage.
    4. When your shipment will become subject to the rules, 
regulations, and charges of the management of the storage facility.

Weighing Shipments

    If your mover transports your household goods on a non-binding 
estimate, your mover must determine the actual weight of your 
shipment on a certified scale in order to calculate its lawful 
tariff charge. If your mover provided a binding estimate, the weight 
of the shipment will not affect the charges you will pay, so there 
is no requirement to weigh shipments moving under binding estimates.
    Most movers have a minimum weight charge for transporting a 
shipment. If your shipment appears to weigh less than the mover's 
minimum weight, your mover must state the minimum cost on the bill 
of lading. 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.
    Usually, your shipment will be weighed in the city or local area 
where the shipment originates. The driver has the truck weighed 
before coming to your residence and then has it weighed again after 
your shipment has been loaded. The difference in these two weights 
is the weight of your shipment.
    The mover may also weigh your shipment at its destination when 
the shipment is delivered. The driver will have the truck weighed 
with your shipment on board and then weighed a second time after 
your shipment has been unloaded. Each time a weighing is performed, 
the driver is required to obtain an official weight ticket signed by 
the weigh master of a certified scale and a copy of the weight 
tickets must accompany your copy of the bill of lading. Shipments of 
less than 3,000 pounds may be weighed on a certified warehouse 
scale.
    You have the right, and your mover must inform you of your 
right, to observe all weighing 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 
weighing. You may waive your right to observe weighing; however, you 
must waive that right in writing.
    If your shipment is weighed at origin and you believe that the 
weight may not be accurate, you have the right to request that the 
shipment be reweighed before it is unloaded. The mover is not 
permitted to charge you for the reweighing, but the final charges 
due will be based on the reweigh weight, even if it is more than the 
initial weight.
    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 household goods on a collect-on-delivery basis. This 
requirement is conditioned upon you supplying your mover with 
contact information.

Notification of Delivery

    You must receive the mover's notification at least 24-hours 
before the 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 situations:
    1. When your mover weighs your shipment at destination.
    2. When pickup and delivery encompasses two consecutive 
weekdays, if you agree.
    3. When the maximum payment at time of delivery is 110 percent 
of the estimated charges, if you agree.

Resolving Disputes With Your Mover

    The FMCSA maintains regulations to govern the processing of loss 
and damage claims; however, we cannot resolve these claims on your 
behalf. If you cannot reach a settlement with your mover, you have 
the right to request arbitration from your mover. All movers are 
required to participate in an arbitration program, and your mover is 
required to provide you with a summary of its arbitration program 
before you sign the bill of lading.
    Arbitration gives you the opportunity to resolve loss or damage 
claims and certain types of disputed charges through a neutral 
arbitrator. You may find submitting your claim to arbitration is a 
less expensive and more convenient way to seek recovery of your 
claim than filing a lawsuit. You are not required to submit to 
arbitration in the event of a dispute. However, if you request 
arbitration for a claim for $10,000 or less, the mover must agree to 
arbitration and the arbitrator's decision is binding on the parties. 
Further, the mover is not required to agree to arbitration if the 
claim exceeds $10,000. If the mover does agree, the arbitrator's 
decision will be binding on both you and the mover.
    You may choose to pursue a civil action in a court of 
appropriate jurisdiction in lieu of arbitration. Legal action may be 
initiated by filing a claim in your State and serving papers on the 
mover's process agent in your State. You may file in State court or 
(if the amount of the claim is more than $10,000) in Federal court. 
You may obtain the mover's process agent information in your State 
by contacting FMCSA at (800) 832-5660. You may also obtain the name 
of the mover's process agent via the internet by following the 
instructions below.
    1. Go to http://li-public.fmcsa.dot.gov.
    2. Scroll to the bottom of the page and click on CONTINUE.
    3. At the top of the screen click on CHOOSE MENU OPTION, for the 
drop-down box and select CARRIER SEARCH, then press GO.
    4. Type in the USDOT or MC number for the motor carrier.
    5. Click on HTML.
    6. Scroll to the bottom of the page, see BLANKET COMPANY, and 
click on the link.
    7. You will see a list of process agents by State, locate the 
process agent for your State.
    The FMCSA cannot settle your dispute with your mover. You must 
resolve your own loss and damage and/or moving charge disputes with 
your mover.
    You entered into a contractual agreement with your mover. 
Therefore, you are bound by each of the following terms and 
conditions:
    1. The terms and conditions you accepted when you signed the 
bill of lading.
    2. The terms and conditions you accepted when you signed for 
delivery of your shipment.
    3. Any additional terms and conditions you agreed to with your 
mover.
    If your mover refuses to deliver your shipment unless you pay an 
amount the mover is not entitled to charge, contact FMCSA 
immediately at (888) 368-7238.

Important Points To Remember

    1. Movers must give written estimates. The estimates may be 
either binding or non-binding. Non-binding estimates are 
``approximations'' only, and the actual transportation charges you 
are eventually required to pay may be higher than the estimated 
price.
    2. Do not sign blank documents. Verify the document is complete 
before you sign. In limited situations, it may be appropriate to 
sign an incomplete document if the only information that does not 
appear in your moving paperwork is the actual weight of your 
shipment (in the case of a non- binding estimate) and unforeseen 
charges that occur in transit or at destination.
    3. Be sure you understand the mover's responsibility for loss or 
damage. For more information see FMCSA's brochure titled, 
``Understanding Valuation and Insurance Options'' https://www.fmcsa.dot.gov/protect-your-move/valuation-insurance.
    4. Understand the type of liability to which you agree. Ask 
yourself if 60 cents per pound is enough coverage for your household 
goods or whether you need to purchase additional valuation.
    5. Notify your mover if you have high value items. High value 
items are valued at more than $100 per pound.
    6. You have the right to be present each time your shipment is 
weighed. You also have the right to request a reweigh at no charge.
    7. Confirm with your mover the types of payment acceptable prior 
to the delivery of your shipment.
    8. Consider requesting arbitration to settle disputed claims 
with your mover.
    9. You should know if the company you are dealing with is a 
household goods motor carrier (mover) or household goods broker, and 
if they are registered with FMCSA. Go to www.protectyourmove.gov for 
this information.

[[Page 43842]]

    10. Do not sign the delivery receipt if it contains any language 
releasing or discharging your mover or its agents from liability. 
Strike out such language before signing, or refuse delivery if the 
mover refuses to provide a proper delivery receipt.

    Issued under authority delegated in 49 CFR 1.87.
Meera Joshi,
Deputy Administrator.
[FR Doc. 2021-13889 Filed 8-5-21; 4:15 pm]
BILLING CODE 4910-EX-P


