How should FMCSA define brokers and bona fide agents?

The Federal Motor Carrier Security Administration wishes comments about the definitions of broker and bona fide brokers.

FMCSA is scheduled to publish a recognize to the Federal Sign up on Friday, June 10, to tell future steering. As instructed by the infrastructure legislation handed in 2021, the company need to difficulty steering to explain the definitions by Nov. 15.

“The direction will have to consider into thing to consider the extent to which technologies has transformed the mother nature of freight brokerage, the position of bona fide agents and other facets of the freight transportation field,” FMCSA wrote in its observe.

After the observe is published in the Federal Register, the public will have 30 days to remark.

FMCSA’s direction must look at the purpose of a dispatch services in the transportation market, take a look at the extent to which dispatch companies could be deemed brokers or bona fide brokers, and explain the level of economic penalties for unauthorized brokerage activities under 49 U.S.C. 14916, applicable to a dispatch services.

As component of the feedback, the company needs field stakeholders to react to 13 queries.

1. What analysis criteria ought to FMCSA use when pinpointing irrespective of whether a company product or entity meets the definition of a broker?

2. Present examples of operations that fulfill the definition of broker in 49 CFR 371.2 and examples of operations that do not meet the definition in 49 CFR 371.2.

3. What purpose ought to the possession of cash exchanged in between shippers and motor carriers in a brokered transaction participate in in analyzing whether or not 1 is conducting brokerage or not?

4. How would you outline the expression “dispatch service”? Is there a usually accepted definition? What role do dispatch expert services participate in in the transportation market?

5. To the finest of your expertise, do dispatch solutions need to have to receive a company license or Employer Identification Quantity from the state in which they principally perform enterprise?

6. What must FMCSA look at when figuring out if a dispatch service needs to attain broker working authority?

7. If a dispatch service represents more than a person carrier, does this in and of alone make it a broker functioning with no authority?

8. When must a dispatch services be deemed a bona fide agent?

9. What role do bona fide brokers play in the transportation of freight?

10. Electronic bulletin boards match shippers and carriers for a cost. The rate is a membership charge to have entry to the bulletin board details. Should really electronic bulletin boards be deemed brokers are essential to register with FMCSA to attain broker operating authority? If so, when and why?

11. How has engineering improved the nature of freight brokerage, and how must these changes be reflected, if at all, in FMCSA’s advice?

12. Are there other small business types or expert services, other than dispatch providers and electronic bulletin boards, that must be regarded as when clarifying the definition of broker?

13. Are there other facets of the freight transportation market that FMCSA ought to take into consideration in issuing assistance pertaining to the definitions of broker and bona fide agents?

Setting up June 10, the general public can submit reviews on the recognize by going to the Restrictions.gov web site and getting into Docket No. FMCSA-2022-0134. LL

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