Comment Period Extended to April 6
The Federal Motor Carrier Safety Administration (FMCSA) has issued a Notice of Proposed Rulemaking (NPRM) to change the financial responsibility requirements of brokers and freight forwarders. The changes are intended to benefit motor carriers.
Current federal law requires brokers and freight forwarders to maintain “assets readily available” in the amount of $75,000 to meet obligations to motor carriers. Brokers and freight forwarders often meet the financial responsibility requirement through surety bonds or trust funds administered by others, known as “financial responsibility providers.”
When a broker or freight forwarder improperly withholds payment for services from a motor carrier, the trucking company can submit claims to the financial responsibility provider backing the surety or trust fund. If the total claims from all carriers exceed the $75,000 figure, the financial responsibility provider may seek assistance from a court, which would decide the amount of the $75,000 each claimant receives.
FMCSA maintains that the percentage of unscrupulous brokers is small but acknowledges that legal action is slow and tedious. To minimize claims and expedite the process, the NPRM would:
The NPRM would allow three years for brokers, freight forwarders and their financial backers to make the proposed changes. Comments on the NPRM were due by March 6, 2023. However, as noted below, the comment period has been extended to April 6, 2023. ICSA will report on the comments and direction of the rulemaking in an upcoming Regulatory Roundup.
The Federal Motor Carrier Safety Administration (FMCSA) has just updated the notifications sent to carriers when there is a change in the information received by the FMCSA Drug and Alcohol Clearinghouse about truck drivers employed by carriers.
The National Highway Traffic Safety Administration (NHTSA) recently sent an advance notice of proposed rulemaking (ANPRM) on side underride guards to the White House Office of Management and Budget. OMB must approve it before the ANPRM is published in the Federal Register and available for public comment.
Punxsutawney Phil Says Winter’s Not Over! ICSA safety consultants have been seeing far too many weather-related crashes this year! However, just because it’s late February doesn’t mean the danger is over. After all, Punxsutawney Phil, the ever-reliable groundhog, predicted just a few days ago that we’re in for another six weeks of winter!