[Federal Register Volume 87, Number 80 (Tuesday, April 26, 2022)]
[Rules and Regulations]
[Pages 24431-24454]
[FR Doc No: 2022-08808]

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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), Department
of Transportation (DOT).

ACTION: Final rule.

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SUMMARY: FMCSA amends 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 amends the regulations to reflect those aspects of the
Recommendations Report which require a rulemaking to implement and are
within the Agency's authority. The Agency is also making additional
minor changes to the Transportation of Household Goods regulations and
the Brokers of Property regulations which are intended to increase
clarity and consistency. The updates will result in an aggregate
reduction in costs for household goods motor carriers and provide
clarity for individual shippers.

DATES: This final rule is effective June 27, 2022.
    The guidance documents published at 76 FR 50537, Aug. 15, 2011, and
78 FR 25782, May 2, 2013, are rescinded as of June 27, 2022.
    Comments on the information collection must be received on or
before May 26, 2022.
    Petitions for Reconsideration of this final rule must be submitted
to the FMCSA Administrator no later than May 26, 2022.

FOR FURTHER INFORMATION CONTACT: Ms. Monique Riddick, Commercial
Enforcement Division, Office of Safety, FMCSA, 1200 New Jersey Avenue
SE, Washington, DC 20590-0001;<PHONE_NUMBER>; [email protected].

SUPPLEMENTARY INFORMATION: This final rule is organized as follows:

I. Availability of Rulemaking Documents
II. Comments on the Information Collection
III. Executive Summary
    A. Purpose of the Amendments
    B. Summary of the Major Provisions
    C. Costs and Benefits
IV. Abbreviations
V. Legal Basis
VI. Discussion of Proposed Rulemaking and Comments
VII. Changes from the NPRM
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. Availability of Rulemaking 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 final rule,
then click ``Browse Comments.'' If you do not have access to the
internet, you may view the docket online by visiting Dockets Operations
at U.S. Department of Transportation, Room W12-140, 1200 New Jersey
Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays. To be sure someone is there to
help you, please call<PHONE_NUMBER> or<PHONE_NUMBER> before visiting
Dockets Operations.

II. Comments on the Information Collection

    Written comments and recommendations for the information collection
discussed in this final rule should be sent within 30 days of
publication to www.reginfo.gov/public/do/PRAMain. Find this information
collection by clicking the link that reads ``Currently under Review--
Open for Public Comments'' or by entering OMB control number 2126-0025
in the search bar and clicking on the last entry to reach the
``comment'' button.

III. Executive Summary

A. Purpose of the Amendments

    FMCSA incorporates certain recommendations from the Working Group's
Recommendations Report into the regulations at 49 CFR part 375 and
makes additional minor changes to the regulations in 49 CFR parts 371
and 375. These changes will streamline documentation requirements,
increase efficiency for the transportation of household goods by
interstate household goods motor carriers improve consumer education
and protection for individual shippers, 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

    This rule implements 10 of the Working Group's 11 recommendations
that require a rulemaking.\1\ These recommendations update a variety of
regulatory requirements under 49 CFR part 375. This final rule
implements the recommendations to revise appendix A to part 375 with an
updated version of the Your Rights and Responsibilities When You Move
booklet (Rights and Responsibilities) and 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 previously
required.
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    \1\ The Recommendations Report contained 19 recommendations, but
only 11 of those recommendations require a rulemaking. As discussed
in the notice of proposed rulemaking (NPRM), FMCSA is not
implementing recommendation 15 from the Recommendations Report.
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. FMCSA did not include that recommendation in the NPRM
because it exceeds the Agency's statutory authority (86 FR 43822,
Aug. 10, 2021).
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    This rule also implements the recommendation to 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 incorporates 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
incorporating 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.
    The other Working Group recommendations being implemented in this
final rule include: Allowing for virtual surveys of household goods;
requiring motor carriers to conduct surveys beyond a 50-mile radius;
removing the requirement for an order for service; updating the
requirements in the bill of lading; requiring the bill of lading to be
provided earlier in the moving process; replacing the requirement for a
freight bill with an invoice; and requiring all motor carriers that
have a website to display prominently 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. In addition to implementing the Working Group's
recommendations, FMCSA is making additional minor changes to the
regulations in 49 CFR parts 371 and 375 which are intended to increase
clarity and consistency. The recommendations and changes made in this
rulemaking are discussed in greater detail in the NPRM (86 FR 43818,
Aug. 10, 2021).

C. Costs and Benefits

    This final rule affects household goods motor carriers and
individual shippers. Some provisions in this rule will 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 will 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 by including
its information in the bill of lading). The motor carrier efficiencies
discussed will not negatively impact shippers, as the services and
information received today would not change under the final rule. FMCSA
does not anticipate that shippers will incur costs as a result of this
final rule. FMCSA estimates the total 10-year costs of this 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.
    FMCSA does not expect this rule to impact safety. FMCSA does expect
that it will result in benefits related to consumer protection and
potentially motor carrier fuel savings. The final rule will 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 final rule will 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.

IV. 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
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
RFA Regulatory Flexibility Act
SAFETEA-LU Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users
SBA Small Business Association
SBREFA Small Business Regulatory Enforcement Fairness Act of 1996
Secretary Secretary of Transportation
STB Surface Transportation Board
U.S.C. United States Code

V. Legal Basis for the Rulemaking

    The purpose of this rulemaking is to amend in the regulations in 49
CFR parts 371 and 375 applicable to the transportation of household
goods for

individual shippers in interstate commerce. Most of the changes involve
FMCSA's implementation of the recommendations of the Working Group,
which was established pursuant to section 5503 of the FAST Act, Public
Law 114-94, 129 Stat. 1312, 1551 (Dec. 4, 2015). Additional changes are
being made 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)).

VI. Discussion of Proposed Rulemaking and Comments

A. Proposed Rulemaking

    On August 10, 2021, FMCSA published in the Federal Register (Docket
No. FMCSA-2020-0205, 86 FR 43814) an NPRM titled ``Implementation of
Household Goods Working Group Recommendations.'' The NPRM proposed to
revise 49 CFR part 375 to implement the 10 recommendations contained in
the Recommendations Report that required a rulemaking and FMCSA had
authority to implement. In addition to proposing to implement the
Working Group's recommendations, FMCSA proposed additional minor
changes to the regulations which are intended to increase clarity and
consistency. The proposed changes affected multiple sections of 49 CFR
parts 371 and 375 and are discussed in detail in the NPRM (86 FR
43818).
    Issuance of the NPRM and this final rule satisfies the requirements
of Section 23013 of the Infrastructure Investment and Jobs Act, Public
Law 117-58, 135 Stat. 429 (H.R. 3684, Nov. 15, 2021) (IIJA). Section
23013(b) directed the Agency within 1 year after the date of enactment
to ``issue a notice of proposed rulemaking to amend, as the Secretary
determines to be appropriate, regulations relating to the interstate
transportation of household goods.'' Because FMCSA issued an NPRM
satisfying all the subsequent statutory requirements before the
enactment of the IIJA, it is not necessary to issue a new NPRM. Section
23013(c)(1)-(7) directed the Secretary to consider, in the NPRM
required by paragraph (b), amendments to the regulations in 49 CFR part
375 in accordance with several recommendations set out in the statute.
All seven of the recommendations listed in the statute in paragraph (c)
were among the recommendations made by the Working Group's
Recommendations Report. They were set out in the NPRM, public comment
was sought, and the agency considered the amendments recommended. In
some cases, as explained in this preamble and final rule, the
recommendations were appropriately modified either to conform to the
controlling statutory language or for policy reasons.
    FMCSA is rescinding the guidance documents titled Guidance on
FMCSA's Publication: Your Rights and Responsibilities When You Move (78
FR 25782, May 2, 2013) and Regulatory Guidance Concerning Household
Goods Carriers Requiring Shippers To Sign Blank or Incomplete Documents
(76 FR 50537, Aug. 15, 2011) for the reasons discussed in the NPRM (86
FR 43818-19). The rescission will take effect on the effective date of
this final rule.

B. Comments and Responses

    FMCSA solicited comments concerning the NPRM for 60 days ending
October 12, 2021. By that date, four comments were received from the
following parties: American Trucking Associations, Inc. Moving and
Storage Conference; International Association of Movers; MoveRescue/
Mayflower Transit LLC (Mayflower)/United Van Lines LLC (United); and
one private citizen.
    All commenters were generally supportive of the NPRM.
    The Moving and Storage Conference and MoveRescue/Mayflower/United
stated that the Rights and Responsibilities booklet and appendix A to
part 375 can be further condensed and streamlined to reduce the length
of the booklet and remove information that is not relevant for
consumers. MoveRescue/Mayflower/United stated that the proposed
requirement for 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 should also apply to brokers.
    The Moving and Storage Conference and MoveRescue/Mayflower/United
stated the proposed update to the definition of physical survey to
include live video surveys was too limited. These commenters stated
that the Working Group did not have a requirement for live video in
their recommendations to FMCSA and FMCSA should revise the definition
to reflect the Working Group's initial recommendation for a definition
of visual survey and to allow for pre-recorded visual surveys that
allow for follow-up discussion between the mover and customer.
MoveRescue/Mayflower/United stated that FMCSA should add a definition
of physical survey to 49 CFR 371.103 that mirrors the definition in
Sec.  375.103 to ensure consistency between the requirements for motor
carriers and brokers.
    The Moving and Storage Conference and MoveRescue/Mayflower/United
stated that FMCSA should remove the requirement that the bill of lading
include information about additional motor carriers involved in the
move. These commenters explained that this change would remove
confusion about who is actually performing the move and whom to contact
with complaints. These commenters also stated that there is confusion
about who is a broker and who is a mover and that removing the
additional motor carriers' information from the bill of lading and
issuing clear guidance on what a household goods broker is would
eliminate this confusion.
    The Moving and Storage Conference and MoveRescue/Mayflower/United
stated that there should be an exception to the requirement to provide
the bill of lading 3 days prior to the move in a situation where the
move is scheduled less than 3 days in advance.
    MoveRescue/Mayflower/United stated that the proposed revision to
Sec.  375.403(a)(6)(ii) requiring shippers to ``maintain a record of
the date, time, and manner that the new [binding] estimate was
prepared'' should also be added to Sec.  375.405(b)(7)(ii) for
consistency between binding and nonbinding estimates. MoveRescue/
Mayflower/United also stated that Sec. Sec.  375.403 and 375.405 should
be revised to distinguish between changes requested before loading
commences and those requested after loading commences. The commenters
questioned whether Sec.  375.403(a)(9) should be revised to explicitly
state that its provisions apply after loading has commenced and if
similar revisions should be made to Sec. Sec.  375.403(a)(8) and
375.405(b)(9) and (10) to distinguish between those requirements
necessary prior to loading

and those necessary after loading commences.
    One private citizen stated that the requirement to prepare a new
estimate every time there is a change could result in mistakes stemming
from constant preparation of new documents. The commenter stated that
allowing revisions on one estimate would reduce this risk and
questioned whether there are policies in place to maintain oversight of
requests for new estimates.
    MoveRescue/Mayflower/United questioned whether the Agency's
proposal to replace a freight bill with an invoice was inconsistent
with the Working Group's recommendations. These commenters stated that
the requirements would be the same, and only the title of the document
would change.
    MoveRescue/Mayflower/United stated that any remaining requirement
that the motor carrier receive a consumer's written agreement to
receive electronic documents should be removed and requested that FMCSA
complete a further review of the regulations in part 375 to remove any
additional requirements that prevent use of electronic documents.
FMCSA Response
    The Rights and Responsibilities booklet and appendix A to part 375
have already been significantly condensed due to the edits made in
preparing the NPRM. Commenters requesting further edits to the booklet
and appendix did not provide specific recommendations on how to further
condense the material. Accordingly, FMCSA is not making further
revisions to the Rights and Responsibilities booklet or appendix A to
part 375 in this final rule.
    FMCSA is updating the requirements in 49 CFR 371.111 in response to
the comment from MoveRescue, Mayflower, and United recommending that
brokers with a website be required 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. The Agency adds a new paragraph (e) to
Sec.  371.111 which mirrors the language in Sec.  375.213(e). This
change ensures that individual shippers have the same opportunity to
access to the Ready to Move? document through the websites of brokers
and motor carriers.
    In response to commenters stating that the live video requirement
in the proposed definition of physical survey would be too limited,
FMCSA revises the definition in this final rule. The definition is
revised to allow for either live or pre-recorded video. As discussed in
the NPRM (86 FR 43819-21), the intention behind the live video
component was to allow the individual shipper and motor carrier to
interact and address any questions regarding the household goods to be
moved in a way that is similar to how an in-person survey would be
conducted. Therefore, any physical survey that utilizes pre-recorded
video should include an opportunity for follow-up to address any
questions about the goods to be moved to ensure that the prepared
estimate is as accurate as one that would be prepared following an in-
person physical survey. FMCSA also adds a definition of physical survey
to Sec.  371.103 referencing the definition in Sec.  375.103, in
response to commenters stating that the definition should be
incorporated into part 371 to ensure consistency between the
requirements for motor carriers and brokers.
    Retaining the requirement for the bill of lading to include the
information about additional motor carriers involved in the move
provides the individual shipper with information that is necessary to
understand which motor carriers are involved in the shipment of their
household goods. This information also allows individual shippers to
know the identity of the motor carrier they may bring a legal action
against in the event of damage to, delay of, or loss of the shipment,
since they may bring a civil suit to hold liable any motor carrier
involved in a move that causes such loss, delay, or damage to the
shipment (49 U.S.C. 14706(a)(1) and (d)). For these reasons, FMCSA
finalizes the updates to the bill of lading requirements as proposed.
    At this time, FMCSA finds that the requirement to provide the bill
of lading 3 days prior to the move does not need an exception in a
situation where the move is scheduled less than 3 days in advance.
Interstate moves are very rarely scheduled within 3 days of the move
date, and an exception from the 3-day requirement may allow for bad
faith efforts to get around the requirement altogether.
    FMCSA agrees with the comment that the language in Sec.
375.403(a)(6)(ii) stating, ``You should maintain a record of the date,
time, and manner that the new estimate was prepared'' should also be
added to Sec.  375.405(b)(7)(ii) for consistency between binding and
nonbinding estimates and makes that change in this final rule.
    FMCSA finds that Sec. Sec.  375.403 and 375.405 are clear and do
not need to be revised to distinguish between changes requested before
loading commences and those requested after loading commences. Sections
375.403(a)(8) and (9) and 375.405(b)(9) and (10) apply to additional
services after the bill of lading has been issued.
    FMCSA does not believe there is any increased risk of mistakes
being made when preparing a new estimate instead of revising an
estimate. It is still the responsibility of both the motor carrier and
the individual shipper to verify that the new estimate is accurate
before signing it.
    FMCSA is implementing recommendation 12 from the Working Group
which requests that FMCSA replace the term ``freight bill'' in 49 CFR
part 375, subpart G, with the term ``invoice.'' The Working Group did
not detail any other changes to the requirements of subpart G be made
with respect to this recommendation.
    As stated in the NPRM (86 FR 43819), in a separate rulemaking FMCSA
has already removed requirements that a motor carrier obtain a
consumer's written agreement to receive electronic documents. This
rulemaking removes the remaining related requirement in 49 CFR part 375
by no longer requiring that a motor carrier obtain a waiver to send
electronic consumer protection documents to an individual shipper under
Sec.  375.213.

VII. Changes From the NPRM

    The Agency is making four changes to this final rule from the NPRM,
in response to the comments. First, the Agency adds a definition of
physical survey to Sec.  371.103, which references the definition in
Sec.  375.103.
    Second, the Agency adds paragraph (e) to Sec.  371.111, which
requires brokers 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.
    Third, the Agency revises the definition of physical survey in
Sec.  375.103 to allow for virtual surveys through live and pre-
recorded video.
    Finally, the Agency adds ``You should maintain a record of the
date, time, and manner that the new estimate was prepared'' to Sec.
375.405(b)(7)(ii).

VIII. Section-by-Section Analysis

    This section-by-section analysis describes the changes to the
regulatory text in numerical order.

A. Section 371.103 What are the definitions of terms used in this
subpart?

    In this section, a definition for physical survey is added to
reference the definition in Sec.  375.103.

B. Section 371.111 Must I provide individual shippers with Federal
consumer protection information?

    A new paragraph (e) is added, which requires brokers 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.

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

    Paragraph (a) of this section is 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.

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

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

E. Section 375.211 Must I have an arbitration program?

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

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

    In this section, the introductory text of paragraph (a) is revised
and paragraphs (a)(1) and (2) are added. The new paragraph (a) requires
both Ready to Move? and the Rights and Responsibilities booklet to be
provided to the individual shipper along with the estimate. Paragraphs
(a)(1) and (2) 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'' is removed and replaced with ``bill of lading'' and the word
``five'' is removed and replaced with ``four.'' Paragraph (b)(1) is
deleted and paragraphs (b)(2) through (5) are renumbered as paragraphs
(b)(1) through (4).
    Paragraph (e) is redesignated as paragraph (f) and a new paragraph
(e) is added, which requires 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.

G. Section 375.215 How must I collect charges?

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

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

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

I. 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'' is
removed and replaced with the phrase ``an invoice.''

J. Section 375.401 Must I estimate charges?

    In this section, the introductory text of paragraph (a) is 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) is further revised by
redesignating paragraphs (a)(2)(i) through (iii) as paragraphs (a)(1)
through (3).
    Paragraph (b) is 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'' is removed in both places it
appears.

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

    In this section, paragraph (a)(1) is revised to reflect that 49 CFR
375.401(a) will allow for only one waiver procedure under the changes
discussed above. Paragraphs (a)(6)(ii) and (a)(9) are 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.

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

    In this section, paragraph (b)(7)(ii) is revised to no longer allow
for a revised non-binding estimate and instead requires 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 is
removed.

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

    This section is deleted in its entirety.

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

    In this section, paragraph (a) is 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. In addition, the last three sentences in the paragraph are
removed. Removing these sentences will delete a discussion of
incomplete bills of lading, which will be addressed under paragraph
(h), as well as a reference to an order for service.
    Paragraph (b) is 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 (17), incorporate requirements
currently found in 49 CFR 375.501(a).
    In paragraph (d), the word ``bills'' is removed and replaced with
``a bill of lading.''
    New paragraph (e), which mirrors current 49 CFR 375.501(b), is
added to this section.
    New paragraph (f), which mirrors current 49 CFR 375.501(c), is
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 (3) are added to this section.
Paragraphs (g)(1) and (2) mirror current 49 CFR 375.501(d)(1) and (2)
with updates to remove the reference to an order for service in
paragraph (g)(1) and replacing ``at origin'' with ``before the shipment
is loaded'' in paragraph (g)(2). Paragraph (g)(3) is added to state
that a motor carrier cannot require an individual shipper to sign a
blank document.
    A new paragraph (h) is added to this section to require the motor
carrier to provide the bill of lading to the individual shipper at
least 3 days before loading and 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) also states that, if a new estimate is prepared under

Sec.  375.403(a)(6)(ii) or 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 (h).''

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

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

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

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

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

    In this section, the term ``invoice'' replaces the term ``freight
bill'' everywhere it appears, including in the section heading. The new
heading reads ``How must I present my invoice?''

R. 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'' replaces the term ``freight bill.''

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

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

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

    This appendix is replaced in its entirety with the text of the
updated Your Rights and Responsibilities When You Move booklet, which
conforms 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 final rule 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 (OMB) has not reviewed it under those orders.
Affected Entities
    This final 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.\2\ Therefore, FMCSA
anticipates that this rule will affect interstate household goods motor
carriers, and does not include intrastate household goods motor
carriers in the counts of affected entities.
---------------------------------------------------------------------------

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

    FMCSA obtained motor carrier count information from the Motor
Carrier Management Information System, which includes information
submitted to FMCSA by motor carriers the first time they apply for a
USDOT 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 will 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 will also affect shippers, or consumers who hire
household goods motor carriers which, as described below, is estimated
to be 20 percent of all interstate moves. 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).\3\
However, most interstate moves do not involve a for-hire mover, and
thus will 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.\4\
---------------------------------------------------------------------------

    \3\ 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 Oct. 6, 2020).
    \4\ The AMSA has become a conference of the ATA. ATA, AMSA Join
Forces for Conference, New Council (Dec. 13, 2021), available at
https://www.truckinginfo.com/10123193/ata-amsa-join-forces-for-conference-new-council.

        Table 1--Interstate Household Goods (HHG) Motor Carriers
------------------------------------------------------------------------
                                                              Interstate
                            Year                              HHG 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
Analysis of the Operational Costs of Trucking: 2019 Update, found that
marginal operating costs were $71.78 per hour in 2018.\5\ These
marginal costs

include vehicle-based costs (e.g., fuel costs, insurance premiums,
etc.), and driver-based costs (i.e., wages and benefits).
---------------------------------------------------------------------------

    \5\ 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 Dec. 14, 2021). 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.\6\ Armstrong & Associates, Inc.
(2009) states that trucking companies that cannot maintain a minimum
operating ratio of 95 percent (calculated as operating costs / net
revenue) will not have sufficient profitability to continue operations
in the long run.\7\ Therefore, Armstrong & Associates states that
trucking companies need a minimum profit margin of 5 percent of revenue
to continue operating in the future. Transport Topics publishes data on
the ``Top 100'' for-hire carriers, ranked by revenue.\8\ 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.\9\ 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.'' \10\ 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.\11\ However, in 2020 the 30 companies
that provided income information had an average profit margin of 4.0
percent.\12\ Due to uncertainty around the impacts of the COVID-19
pandemic and its effect on trucking operations, FMCSA continues to
assume a profit margin of 5 percent for motor carriers for purposes of
this analysis.
---------------------------------------------------------------------------

    \6\ ATA. American Trucking Trends 2015. Page 79.
    \7\ 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 Dec. 14, 2021).
    \8\ Transport Topics. 2014. Top 100 For-Hire Carriers. Available
at: http://ttnews.com/top100/for-hire/2014 (accessed Dec. 14, 2021).
    \9\ Transport Topics. 2018. Top 100 For-Hire Carriers. Available
at: https://www.ttnews.com/top100/for-hire/2018 (accessed Dec. 14,
2021).
    \10\ 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
Nov. 19, 2018).
    \11\ Transport Topics. 2019. Top 100 For-Hire Carriers.
Available at: https://www.ttnews.com/top100/for-hire/2019 (accessed
Oct. 14, 2020).
    \12\ Transport Topics. 2020. Top 100 For-Hire Carriers.
Available at: https://www.ttnews.com/top100/for-hire/2020 (accessed
Dec. 13, 2021).
---------------------------------------------------------------------------

    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).\13\ 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.\14\ AMSA estimated that 550,000,
or approximately 20 percent, of the interstate household goods moves in
2017 were completed by for-hire movers.\15\
---------------------------------------------------------------------------

    \13\ 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 Oct. 6, 2020).
    \14\ 0.08 percent = (average households that moved interstate in
2018 / average household that moved interstate in 2010)[supcaret]
(\1/8\)-1.
    \15\ American Moving and Storage Association. Newsroom: About
our Industry. https://www.moving.org/newsroom/data-research/about-our-industry/ (accessed Dec. 29, 2020).
---------------------------------------------------------------------------

    Some impacts of the final rule will 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 of 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

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 adopting 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, will result in providing an additional
two documents per interstate move, as FMCSA estimates that shippers
request an estimate from three household goods carriers and contract
with only 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 requirement will 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 will be provided under the final
rule. The difference between these two variables (column C) represents
the increase in the number of hard copy Rights and Responsibilities
booklets that will 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 will 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 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     hard copy of YRR  in number of hard    in total hours    for hours spent
                                                             \(c)\ 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

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 adopts 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 rule
removes the requirement in 49 CFR 375.213(e)(1) for the shippers to
include a waiver statement on the written estimate but retains 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.
Recommendation 7--Survey of Household Goods
    In agreement with the recommendations, FMCSA changes 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 will likely
spend the same amount of time completing the survey but will not need
to travel to and from the shipper's location. This reduction in travel
will 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 will 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 will 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 final rule, some portion of
shippers will voluntarily request a virtual survey but is unable to
estimate the exact number of virtual surveys that will be conducted
under the final rule. FMCSA developed an estimate of the number of
surveys that will 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 will 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 will 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.

                     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 requiring 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 of the motor carrier agent's location will 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 will 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.

Recommendation 9--Order for Service
    In agreement with the working group recommendation, FMCSA is
eliminating 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.\16\ Eliminating the order for service will reduce the
amount of paperwork consumers are required to review, but will 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 final
rule, a motor carrier will 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 will 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 will be -$1.0 million (or $1.0 million in cost savings)
discounted at 3 percent and 7 percent.
---------------------------------------------------------------------------

    \16\ 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                           3% discount rate   7% discount rate
                                                      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
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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 Final Rule
                                                                                [Thousands of 2018$]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Rec. 7:
                                                                      Rec. 5:     Virtual survey  Rec. 8: Survey   Rec. 9: Order     Document       Total cost     Total cost 3%   Total cost 7%
                              Year                                Appendix A \c\      of HHG       of HHG beyond    for service   production \g\     (primary)     discount rate   discount rate
                                                                                (primary) \d\   50 miles \e\         \f\
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
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 will result in benefits related to consumer protection and fuel
savings. Recommendation 5 will 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 will 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 will not negatively impact
shippers, as the services and information they currently receive will
not change under the final rule.
    FMCSA anticipates that providing virtual surveys for those moves
within 50 miles of a motor carrier agent's location will 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 (VMT), 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 of the motor carrier
agent's location, and we can estimate that any potential fuel savings
will only accrue to those moves. FMCSA assumes the average mileage for
these moves will 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 2019,
resulting in just over 2 gallons saved per trip (22.2 miles per gallon
/ 50 miles per trip = 2.25 gallons per trip).\17\ The U.S. Energy
Information

Administration forecasts real petroleum prices for motor gasoline, and
estimates an average price per gallon over the analysis period of $2.58
in 2020 dollars.\18\ Therefore, FMCSA estimates that each virtual
survey could result in $5.78 in avoided fuel costs (2.2 gallons per
trip x $2.58 per gallon). Any potential fuel savings would result from
a reduction in VMT in light-duty vehicles. The Agency is uncertain how
motor carriers will respond to the proposed change allowing virtual
surveys, and whether they will 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.
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 final rule due to the aforementioned
uncertainty with respect to how motor carriers will adjust their
operations.
---------------------------------------------------------------------------

    \17\ U.S. Department of Transportation, Bureau of Transportation
Statistics. Table 4-23: Average Fuel Efficiency of U.S. Light Duty
Vehicles. https://www.bts.gov/content/average-fuel-efficiency-us-light-duty-vehicles (Accessed Dec. 9, 2021).
    \18\ U.S. Energy Information Administration. Petroleum and Other
Liquids Prices, Transportation, Motor Gasoline: Reference Case,
years 2022-2031, 2020$. Available at: https://www.eia.gov/outlooks/aeo/tables_side.php (accessed Dec. 14, 2021).
---------------------------------------------------------------------------

B. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801, et seq.),
the Office of Information and Regulatory Affairs (OIRA) designated this
rule as not a major rule, as defined by 5 U.S.C. 804(2).\19\
---------------------------------------------------------------------------

    \19\ A ``major rule'' means any rule that the OIRA Administrator
at OMB 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.) (RFA)
as amended by the Small Business Regulatory Enforcement Fairness Act of
1996 (Pub. L. 104-121, 110 Stat. 857) (SBREFA), 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 Small Business Association (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).\20\ Household goods motor carriers fall
under Subsector Industry 48421, used household good and office goods
moving, which has an SBA size standard based on annual revenue of $30
million.
---------------------------------------------------------------------------

    \20\ Executive Office of the President, OMB. ``North American
Industry Classification System.'' 2017. https://www.census.gov/library/publications/2017/econ/2017-naics-manual.html (accessed Dec.
14, 2021).
---------------------------------------------------------------------------

    FMCSA examined data from the U.S. Census Bureau to determine the
number of small entities within the identified five-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 is from the 2017 Economic Census.\21\ The revenue size
categories used in the 2017 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 2017 Economic Census reported that there were 6,097
firms operating for the entire year within NAICS industry group 48421
(used household goods and office goods moving). Of those firms that
operated for the entire year, 6,041 firms (99 percent), had annual
revenues of less than $25 million. FMCSA concludes that this rule will
impact a substantial number of small entities.
---------------------------------------------------------------------------

    \21\ U.S. Department of Commerce, U.S. Census Bureau.
Establishment and Firm Size: Summary Statistics by Revenue Size of
Firms for the U.S. Last edited October 8, 2021. Available at:
https://www.census.gov/data/tables/2017/econ/economiccensus/naics-sector-48-49.html (accessed Dec. 14, 2021).
---------------------------------------------------------------------------

    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.\22\ 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.
---------------------------------------------------------------------------

    \22\ 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 Dec. 30, 2020).
---------------------------------------------------------------------------

    Examining the 2017 Economic Census data discussed above, FMCSA
found that affected entities had average revenues ranging from $56,000
to $15.2 million.\23\ The cost of the regulation would thus need to
exceed $560 per carrier in any 1 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 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.
---------------------------------------------------------------------------

    \23\ The 2017 Economic Census does not include a category for
firm size between $25 million and $100 million. As such, FMCSA based
these calculations off of firms below the $25 million threshold.

                                   Table 8--Estimated Impact per Motor Carrier
----------------------------------------------------------------------------------------------------------------
                                                                     Household                       Estimated
                              Year                                  goods motor    Total cost 7%    impact per
                                                                     carriers      discount rate   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 rule will 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 SBREFA, FMCSA wants to assist
small entities in understanding this final rule so they can better
evaluate its effects on themselves and participate in the rulemaking
initiative. If the final rule will 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 SBA'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 $170 million (which is the
value equivalent of $100 million in 1995, adjusted for inflation to
2020 levels) or more in any one year. Though this final rule will 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 final rule will 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
ICR due to the Agency's issuance of this final rule. In accordance with
44 U.S.C. 3507(d), FMCSA will submit the proposed information
collection amendments to the 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 makes various changes to the household goods
regulations recommended by the Household Goods Consumer Protection
Working Group. These changes include further revisions to streamline
the Rights and Responsibilities booklet which are incorporated in
appendix A to 49 CFR part 375, require new binding or non-binding
estimates when an individual shipper tenders more goods or requests
additional service instead of a revised estimate, allow a motor carrier
to provide a virtual survey, remove 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, eliminate the order
for service and incorporate that document into the bill of lading, and
make other minor updates to increase the clarity of the regulations.
These 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 requires the Rights and Responsibilities booklet to be
provided earlier in the process, when the estimate is provided to the
shipper, which will 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 previous
requirements (558,851 x 40 percent = 223,540 copies). FMCSA then
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, (223,540 x 3 =
670,621 copies). The number of additional hard copies that will be
provided as a result of this rule is 447,081 (670,621-223,540 = 447,081
copies). It is estimated that a carrier can 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 will 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 will be completed by
an office clerk with a loaded hourly wage of $33.31. Therefore, the
increase in burden hours will 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 rule requires that movers offer surveys for all household goods
shipments, including those that are located over 50 miles from the
motor carrier agent's location. Previously, household goods motor
carriers were not required to offer surveys for household goods
shipments 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 will 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 will 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 eliminates the order for service because much of the
information provided on the order for service is also provided on the
bill of lading. Previously, each interstate move required both an order
for service and a bill of lading and it took 30 minutes to prepare each
document. As such, removing the order for service form requirement will
save 30 minutes per move. The Agency assumes all tasks will 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 will save 279,426 burden hours (558,851
interstate moves x -0.5 hours =-279,426 burden hours). The estimated
cost savings is $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 will 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 When You Move documents
printed, there will 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 will 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 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 information collection, you must send
those comments to OMB as outlined under the COMMENTS ON THE INFORMATION
COLLECTION section at the beginning of this final rule.

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 rule does not require the
collection of personally identifiable information (PII). In addition,
the Agency submitted a Privacy Threshold Assessment (PTA) to evaluate
the risks and effects the rulemaking might have on collecting, storing,
and sharing personally identifiable information. The DOT Privacy Office
has determined that this rulemaking does not create privacy risk.
---------------------------------------------------------------------------

    \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.

J. National Environmental Policy Act of 1969

    FMCSA analyzed this 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 requirements in this rule are covered by these
CEs.

List of Subjects

49 CFR Part 371

    Brokers, Motor carriers, Reporting and recordkeeping requirements.

49 CFR Part 375

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

    Accordingly, FMCSA amends 49 CFR chapter III, 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.  371.103 by adding, in alphabetical order, a definition
for Physical survey to read as follows:

Sec.  371.103  What are the definitions of terms used in this subpart?

* * * * *
    Physical survey has the same meaning as the term is defined in
Sec.  375.103 of this subchapter.

0
3. Amend Sec.  371.111 by adding paragraph (e) to read as follows:

Sec.  371.111  Must I provide individual shippers with Federal consumer
protection information?

* * * * *
    (e) If you have a website, you are required to display prominently
either a link to the Department of Transportation (DOT) publication
titled ``Ready to Move?--Tips for a Successful Interstate Move'' (DOT
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.

0
4. 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.
* * * * *

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

0
5. 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
6. Amend Sec.  375.103 by:
0
a. Adding, in alphabetical order, definition for Bill of lading;
0
b. Removing the definition for Order for service; and
0
c. Adding, in alphabetical order, definition for Physical survey;
0
d. 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 or
pre-recorded 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
7. 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
8. Amend Sec.  375.213 by:
0
a. Revising paragraph (a) and the introductory text of paragraph (b);
0
b. Removing paragraph (b)(1);
0
c. Redesignating paragraphs (b)(2) through (5) as paragraphs (b)(1)
through (4);
0
d. Redesignating paragraph (e) as paragraph (f);
0
e. Adding new paragraph (e); and
0
f. 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 Department of Transportation (DOT) publication titled
``Ready to Move?--Tips for a Successful Interstate Move'' (DOT
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'' (DOT 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'' (DOT 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
9. 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
10. 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
11. 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
12. 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
13. 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
14. 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. You should maintain a record of the date, time, and
manner that the new estimate was prepared.
* * * * *
    (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
15. Remove and reserve Sec.  375.501.

0
16. Amend Sec.  375.505 by:
0
a. Revising paragraphs (a), (b) introductory text, and (b)(1) through
(3), (6), and (14);
0
b. Adding paragraphs (b)(15) through (17);
0
c. Revising paragraph (d); and
0
d. Adding paragraphs (e) through (h).
    The revisions and additions 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 U.S. DOT 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:
    (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 (h).

0
17. 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:
* * * * *

0
18. Amend Sec.  375.801 by:
0
a. Revising the section heading; and
0
b. In paragraph (a), removing the words ``freight or expense bill, or''
and adding, in their place, the words ``invoice; or''.
    The revision reads as follows:

Sec.  375.801  What types of charges are subject to this subpart?

* * * * *

Sec.  375.803  [Amended]

0
19. Amend Sec.  375.803 by removing the words ``freight or expense
bill'' wherever they appear and adding, in their place, the word
``invoice'' and removing the words ``of this subpart''.

Sec.  375.805  [Amended]

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

Sec.  375.807  [Amended]

0
21. Amend Sec.  375.807 by:
0
a. Removing the words ``freight bill'' and adding, in their place, the
word ``invoice'' in the section heading and paragraphs (a) and (c)(1)
through (3); and
0
b. Removing the words ``freight bills'' and adding, in their place, the
word ``invoices'' in paragraphs (c)(3) and (4).

0
22. 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)