FMCSA to Host Listening Session on Broker Transparency Regulation
From 1:00 PM to 2:30 PM EDT on Wednesday, October 28, the Federal Motor Carrier Safety Administration will host a public listening session concerning the pending broker transparency rulemaking petitions. These petitions propose to modify the federal regulations requiring brokers to disclose certain information to carriers, including the amount the shippers paid a broker to arrange a load. OOIDA’s petition would require brokers to transmit this information to carriers electronically within 48 hours following the completion of a brokered load and would prohibit brokers from requiring carriers to waive their rights to access this information. Conversely, the Transportation Intermediaries Association has asked FMCSA to repeal the rule in its entirety.
FMCSA invites members of the public, including carrier and drivers, to share their experiences with brokers and opinions about whether this rule should be improved or repealed. This is a chance for real people to tell the FMCSA how this part of the trucking industry works. Members of the public wishing to comment on this proposal are invited to participate in the listening session and can register online.
More information on OOIDA’s petition can be found online at National Archives. The current rule is as follows, with the pertinent parts bolded:
49 C.F.R. § 371.3 Records to be kept by brokers.(a) A broker shall keep a record of each transaction. For purposes of this section, brokers may keep master lists of consignors and the address and registration number of the carrier, rather than repeating this information for each transaction. The record shall show:
(1) The name and address of the consignor;
(2) The name, address, and registration number of the originating motor carrier;
(3) The bill of lading or freight bill number;
(4) The amount of compensation received by the broker for the brokerage service performed and the name of the payer;
(5) A description of any non-brokerage service performed in connection with each shipment or other activity, the amount of compensation received for the service, and the name of the payer; and
(6) The amount of any freight charges collected by the broker and the date of payment to the carrier.
(b) Brokers shall keep the records required by this section for a period of three years.(c) Each party to a brokered transaction has the right to review the record of the transaction required to be kept by these rules.