Collapse to view only § 13902. Registration of motor carriers
- § 13901. Requirements for registration
- § 13902. Registration of motor carriers
- § 13903. Registration of freight forwarders
- § 13904. Registration of brokers
- § 13905. Effective periods of registration
- § 13906. Security of motor carriers, motor private carriers, brokers, and freight forwarders
- § 13907. Household goods agents
- § 13908. Registration and other reforms
- § 13909. Availability of information
§ 13901. Requirements for registration
(a)In General.—A person may provide transportation as a motor carrier subject to jurisdiction under subchapter I of chapter 135 or service as a freight forwarder subject to jurisdiction under subchapter III of such chapter, or service as a broker for transportation subject to jurisdiction under subchapter I of such chapter only if the person is registered under this chapter to provide such transportation or service.
(b)Registration Numbers.—
(1)In general.—If the Secretary registers a person under this chapter to provide transportation or service, including as a motor carrier, freight forwarder, or broker, the Secretary shall issue a distinctive registration number to the person for each such authority to provide transportation or service for which the person is registered.
(2)Transportation or service type indicator.—A number issued under paragraph (1) shall include an indicator of the type of transportation or service for which the registration number is issued, including whether the registration number is issued for registration of a motor carrier, freight forwarder, or broker.
(c)Specification of Authority.—For each agreement to provide transportation or service for which registration is required under this chapter, the registrant shall specify, in writing, the authority under which the person is providing such transportation or service.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 879; amended Pub. L. 112–141, div. C, title II, § 32914(a), July 6, 2012, 126 Stat. 819.)
§ 13902. Registration of motor carriers
(a)Motor Carrier Generally.—
(1)In general.—Except as otherwise provided in this section, the Secretary of Transportation shall register a person to provide transportation subject to jurisdiction under subchapter I of chapter 135 as a motor carrier using self-propelled vehicles the motor carrier owns, rents, or leases only if the Secretary determines that the person—
(A)
(i) this part and the applicable regulations of the Secretary and the Board;
(ii) any safety regulations imposed by the Secretary;
(iii) the duties of employers and employees established by the Secretary under section 31135;
(iv) the safety fitness requirements established by the Secretary under section 31144;
(v) the accessibility requirements established by the Secretary under subpart H of part 37 of title 49, Code of Federal Regulations (or successor regulations), for transportation provided by an over-the-road bus; and
(vi) the minimum financial responsibility requirements established by the Secretary under sections 13906, 31138, and 31139;
(B) has been issued a USDOT number under section 31134;
(C) has disclosed any relationship involving common ownership, common management, common control, or common familial relationship between that person and any other motor carrier, freight forwarder, or broker, or any other applicant for motor carrier, freight forwarder, or broker registration, if the relationship occurred in the 3-year period preceding the date of the filing of the application for registration; and
(D) after the Secretary establishes a written proficiency examination pursuant to section 32101(b) of the Commercial Motor Vehicle Safety Enhancement Act of 2012, has passed the written proficiency examination.
(2)Additional registration requirements for household goods motor carriers.—In addition to meeting the requirements of paragraph (1), the Secretary may register a person to provide transportation of household goods as a household goods motor carrier only after that person—
(A) provides evidence of participation in an arbitration program and provides a copy of the notice of the arbitration program as required by section 14708(b)(2);
(B) identifies its tariff and provides a copy of the notice of the availability of that tariff for inspection as required by section 13702(c); and
(C) demonstrates, before being registered, through successful completion of a proficiency examination established by the Secretary, knowledge and intent to comply with applicable Federal laws relating to consumer protection, estimating, consumers’ rights and responsibilities, and options for limitations of liability for loss and damage.
(3)Consideration of evidence; findings.—The Secretary shall consider, and to the extent applicable, make findings on any evidence demonstrating that the registrant is unable to comply with any applicable requirement of paragraph (1) or, in the case of a registrant to which paragraph (2) applies, paragraph (1) or (2).
(4)Withholding.—If the Secretary determines that a registrant under this section does not meet, or is not able to meet, any requirement of paragraph (1) or, in the case of a registrant to which paragraph (2) applies, paragraph (1) or (2), the Secretary shall withhold registration.
(5)Limitation on complaints.—The Secretary may hear a complaint from any person concerning a registration under this subsection only on the ground that the registrant fails or will fail to comply with this part, the applicable regulations of the Secretary and the Board (including the accessibility requirements established by the Secretary under subpart H of part 37 of title 49, Code of Federal Regulations, or such successor regulations to those accessibility requirements as the Secretary may issue, for transportation provided by an over-the-road bus), the safety regulations of the Secretary, or the safety fitness or minimum financial responsibility requirements of paragraph (1) of this subsection. In the case of a registration for the transportation of household goods as a household goods motor carrier, the Secretary may also hear a complaint on the ground that the registrant fails or will fail to comply with the requirements of paragraph (2) of this subsection.
(6)Separate registration required.—A motor carrier may not broker transportation services unless the motor carrier has registered as a broker under this chapter.
(b)Motor Carriers of Passengers.—
(1)Registration of private recipients of governmental assistance.—The Secretary shall register under subsection (a)(1) a private recipient of governmental assistance to provide special or charter transportation subject to jurisdiction under subchapter I of chapter 135 as a motor carrier of passengers if the Secretary finds that the recipient meets the requirements of subsection (a)(1), unless the Secretary finds, on the basis of evidence presented by any person objecting to the registration, that the transportation to be provided pursuant to the registration is not in the public interest.
(2)Registration of public recipients of governmental assistance.—
(A)Charter transportation.—The Secretary shall register under subsection (a)(1) a public recipient of governmental assistance to provide special or charter transportation subject to jurisdiction under subchapter I of chapter 135 as a motor carrier of passengers if the Secretary finds that—
(i) the recipient meets the requirements of subsection (a)(1); and
(ii)(I) no motor carrier of passengers (other than a motor carrier of passengers which is a public recipient of governmental assistance) is providing, or is willing to provide, the transportation; or(II) the transportation is to be provided entirely in the area in which the public recipient provides regularly scheduled mass transportation services.
(B)Regular-route transportation.—The Secretary shall register under subsection (a)(1) a public recipient of governmental assistance to provide regular-route transportation subject to jurisdiction under subchapter I of chapter 135 as a motor carrier of passengers if the Secretary finds that the recipient meets the requirements of subsection (a)(1), unless the Secretary finds, on the basis of evidence presented by any person objecting to the registration, that the transportation to be provided pursuant to the registration is not in the public interest.
(C)Treatment of certain public recipients.—Any public recipient of governmental assistance which is providing or seeking to provide transportation of passengers subject to jurisdiction under subchapter I of chapter 135 shall, for purposes of this part, be treated as a person which is providing or seeking to provide transportation of passengers subject to such jurisdiction.
(3)Intrastate transportation by interstate carriers.—A motor carrier of passengers that is registered by the Secretary under subsection (a) is authorized to provide regular-route transportation entirely in one State as a motor carrier of passengers if such intrastate transportation is to be provided on a route over which the carrier provides interstate transportation of passengers.
(4)Preemption of state regulation regarding certain service.—No State or political subdivision thereof and no interstate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, standard or other provision having the force and effect of law relating to the provision of pickup and delivery of express packages, newspapers, or mail in a commercial zone if the shipment has had or will have a prior or subsequent movement by bus in intrastate commerce and, if a city within the commercial zone, is served by a motor carrier of passengers providing regular-route transportation of passengers subject to jurisdiction under subchapter I of chapter 135.
(5)Jurisdiction over certain intrastate transportation.—Subject to section 14501(a), any intrastate transportation authorized by this subsection shall be treated as transportation subject to jurisdiction under subchapter I of chapter 135 until such time as the carrier takes such action as is necessary to establish under the laws of such State rates, rules, and practices applicable to such transportation, but in no case later than the 30th day following the date on which the motor carrier of passengers first begins providing transportation entirely in one State under this paragraph.
(6)Special operations.—This subsection shall not apply to any regular-route transportation of passengers provided entirely in one State which is in the nature of a special operation.
(7)Suspension or revocation.—Intrastate transportation authorized under this subsection may be suspended or revoked by the Secretary under section 13905 of this title at any time.
(8)Definitions.—In this subsection, the following definitions apply:
(A)Public recipient of governmental assistance.—The term “public recipient of governmental assistance” means—
(i) any State,
(ii) any municipality or other political subdivision of a State,
(iii) any public agency or instrumentality of one or more States and municipalities and political subdivisions of a State,
(iv) any Indian tribe, and
(v) any corporation, board, or other person owned or controlled by any entity described in clause (i), (ii), (iii), or (iv),
which before, on, or after January 1, 1996, received governmental assistance for the purchase or operation of any bus.
(B)Private recipient of government assistance.—The term “private recipient of government assistance” means any person (other than a person described in subparagraph (A)) who before, on, or after January 1, 1996, received governmental financial assistance in the form of a subsidy for the purchase, lease, or operation of any bus.
(c)Restrictions on Motor Carriers Domiciled in or Owned or Controlled by Nationals of a Contiguous Foreign Country.—
(1)Prevention of discriminatory practices.—If the President, or the delegate thereof, determines that an act, policy, or practice of a foreign country contiguous to the United States, or any political subdivision or any instrumentality of any such country is unreasonable or discriminatory and burdens or restricts United States transportation companies providing, or seeking to provide, motor carrier transportation to, from, or within such foreign country, the President or such delegate may—
(A) seek elimination of such practices through consultations; or
(B) notwithstanding any other provision of law, suspend, modify, amend, condition, or restrict operations, including geographical restriction of operations, in the United States by motor carriers of property or passengers domiciled in such foreign country or owned or controlled by persons of such foreign country.
(2)Equalization of treatment.—Any action taken under paragraph (1)(A) to eliminate an act, policy, or practice shall be so devised so as to equal to the extent possible the burdens or restrictions imposed by such foreign country on United States transportation companies.
(3)Removal or modification.—The President, or the delegate thereof, may remove or modify in whole or in part any action taken under paragraph (1)(A) if the President or such delegate determines that such removal or modification is consistent with the obligations of the United States under a trade agreement or with United States transportation policy.
(4)Protection of existing operations.—Unless and until the President, or the delegate thereof, makes a determination under paragraph (1) or (3), nothing in this subsection shall affect—
(A) operations of motor carriers of property or passengers domiciled in any contiguous foreign country or owned or controlled by persons of any contiguous foreign country permitted in the commercial zones along the United States-Mexico border as such zones were defined on December 31, 1995; or
(B) any existing restrictions on operations of motor carriers of property or passengers domiciled in any contiguous foreign country or owned or controlled by persons of any contiguous foreign country or any modifications thereof pursuant to section 6 of the Bus Regulatory Reform Act of 1982.
(5)Publication; comment.—Unless the President, or the delegate thereof, determines that expeditious action is required, the President shall publish in the Federal Register any determination under paragraph (1) or (3), together with a description of the facts on which such a determination is based and any proposed action to be taken pursuant to paragraph (1)(B) or (3), and provide an opportunity for public comment.
(6)Delegation to secretary.—The President may delegate any or all authority under this subsection to the Secretary, who shall consult with other agencies as appropriate. In accordance with the directions of the President, the Secretary may issue regulations to enforce this subsection.
(7)Civil actions.—Either the Secretary or the Attorney General may bring a civil action in an appropriate district court of the United States to enforce this subsection or a regulation prescribed or order issued under this subsection. The court may award appropriate relief, including injunctive relief.
(8)Limitation on statutory construction.—This subsection shall not be construed as affecting the requirement for all foreign motor carriers and foreign motor private carriers operating in the United States to comply with all applicable laws and regulations pertaining to fitness, safety of operations, financial responsibility, and taxes imposed by section 4481 of the Internal Revenue Code of 1986.
(d)Transition Rule.—
(1)In general.—Pending the implementation of the rulemaking required by section 13908, the Secretary may register a person under this section—
(A) as a motor common carrier if such person would have been issued a certificate to provide transportation as a motor common carrier under this subtitle on December 31, 1995; and
(B) as a motor contract carrier if such person would have been issued a permit to provide transportation as a motor contract carrier under this subtitle on such day.
(2)Definitions.—In this subsection, the terms “motor common carrier” and “motor contract carrier” have the meaning such terms had under section 10102 as such section was in effect on December 31, 1995.
(3)Termination.—This subsection shall cease to be in effect on the transition termination date.
(e)Penalties for Failure To Comply With Registration Requirements.—In addition to other penalties available under law, motor carriers that fail to register their operations as required by this section or that operate beyond the scope of their registrations may be subject to the following penalties:
(1)Out-of-service orders.—If, upon inspection or investigation, the Secretary determines that a motor carrier providing transportation requiring registration under this section is operating without a registration or beyond the scope of its registration, the Secretary may order the motor carrier operations out-of-service. Subsequent to the issuance of the out-of-service order, the Secretary shall provide an opportunity for review in accordance with section 554 of title 5, United States Code; except that such review shall occur not later than 10 days after issuance of such order.
(2)Permission for operations.—A person domiciled in a country contiguous to the United States with respect to which an action under subsection (c)(1)(A) or (c)(1)(B) is in effect and providing transportation for which registration is required under this section shall maintain evidence of such registration in the motor vehicle when the person is providing the transportation. The Secretary shall not permit the operation in interstate commerce in the United States of any motor vehicle in which there is not a copy of the registration issued pursuant to this section.
(f)Modification of Carrier Registration.—
(1)In general.—On and after the transition termination date, the Secretary—
(A) may not register a motor carrier under this section as a motor common carrier or a motor contract carrier;
(B) shall register applicants under this section as motor carriers; and
(C) shall issue any motor carrier registered under this section after that date a motor carrier certificate of registration that specifies whether the holder of the certificate may provide transportation of persons, household goods, other property, or any combination thereof.
(2)Pre-existing certificates and permits.—The Secretary shall redesignate any motor carrier certificate or permit issued before the transition termination date as a motor carrier certificate of registration. On and after the transition termination date, any person holding a motor carrier certificate of registration redesignated under this paragraph may provide both contract carriage (as defined in section 13102(4)(B)) and transportation under terms and conditions meeting the requirements of section 13710(a)(1). The Secretary may not, pursuant to any regulation or form issued before or after the transition termination date, make any distinction among holders of motor carrier certificates of registration on the basis of whether the holder would have been classified as a common carrier or as a contract carrier under—
(A) subsection (d) of this section, as that section was in effect before the transition termination date; or
(B) any other provision of this title that was in effect before the transition termination date.
(3)Transition termination date defined.—
(g)Motor Carrier Defined.—In this section and sections 13905 and 13906, the term “motor carrier” includes foreign motor private carriers.
(h)Update of Registration.—
(1)In general.—The Secretary shall require a registrant to update its registration under this section not later than 30 days after a change in the registrant’s address, other contact information, officers, process agent, or other essential information, as determined by the Secretary.
(2)Motor carriers of passengers.—In addition to the requirements of paragraph (1), the Secretary shall require a motor carrier of passengers to update its registration information, including numbers of vehicles, annual mileage, and individuals responsible for compliance with Federal safety regulations quarterly for the first 2 years after being issued a registration under this section.
(i)Registration as Freight Forwarder or Broker Required.—A motor carrier registered under this chapter—
(1) may only provide transportation of property with—
(A) self-propelled motor vehicles owned or leased by the motor carrier; or
(B) interchanges under regulations issued by the Secretary if the originating carrier—
(i) physically transports the cargo at some point; and
(ii) retains liability for the cargo and for payment of interchanged carriers; and
(2) may not arrange transportation except as described in paragraph (1) unless the motor carrier has obtained a separate registration as a freight forwarder or broker for transportation under section 13903 or 13904, as applicable.
(j)Mexico-Domiciled Motor Carriers.—Notwithstanding any other provision of this section, upon an order in accordance with section 324(a) of the United States-Mexico-Canada Agreement Implementation Act, the Secretary shall carry out the relief specified by denying or imposing limitations on a request for registration or capping the number of requests for registration by Mexico-domiciled motor carriers of cargo to operate beyond the municipalities along the United States-Mexico international border and the commercial zones of those municipalities as directed.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 880; amended Pub. L. 104–287, § 5(32), Oct. 11, 1996, 110 Stat. 3391; Pub. L. 106–159, title II, § 205, Dec. 9, 1999, 113 Stat. 1762; Pub. L. 109–59, title IV, §§ 4113(b), 4204, 4303(c), Aug. 10, 2005, 119 Stat. 1725, 1753, 1762; Pub. L. 110–291, § 2, July 30, 2008, 122 Stat. 2915; Pub. L. 112–141, div. C, title II, §§ 32101(a), 32107(a), 32111, 32915, 32921(a), July 6, 2012, 126 Stat. 777, 781, 783, 820, 827; Pub. L. 114–94, div. A, title V, § 5508(a)(1), Dec. 4, 2015, 129 Stat. 1554; Pub. L. 116–113, title III, § 326(a), Jan. 29, 2020, 134 Stat. 60.)
§ 13903. Registration of freight forwarders
(a)In General.—The Secretary shall register a person to provide service subject to jurisdiction under subchapter III of chapter 135 as a freight forwarder if the Secretary determines that the person—
(1) has sufficient experience to qualify the person to act as a freight forwarder; and
(2) is fit, willing, and able to provide the service and to comply with this part and applicable regulations of the Secretary.
(b)Duration.—A registration issued under subsection (a) shall only remain in effect while the freight forwarder is in compliance with section 13906(c).
(c)Experience or Training Requirement.—Each freight forwarder shall employ, as an officer, an individual who—
(1) has at least 3 years of relevant experience; or
(2) provides the Secretary with satisfactory evidence of the individual’s knowledge of related rules, regulations, and industry practices.
(d)Registration as Motor Carrier Required.—A freight forwarder may not provide transportation as a motor carrier unless the freight forwarder has registered separately under this chapter to provide transportation as a motor carrier.
(e)Update of Registration.—The Secretary shall require a freight forwarder to update its registration under this section not later than 30 days after a change in the freight forwarder’s address, other contact information, officers, process agent, or other essential information, as determined by the Secretary.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 884; amended Pub. L. 109–59, title IV, § 4142(b), Aug. 10, 2005, 119 Stat. 1747; Pub. L. 110–244, title III, § 305(d), June 6, 2008, 122 Stat. 1620; Pub. L. 112–141, div. C, title II, §§ 32107(b), 32916(a), July 6, 2012, 126 Stat. 782, 820; Pub. L. 114–94, div. A, title V, § 5508(a)(2), Dec. 4, 2015, 129 Stat. 1554.)
§ 13904. Registration of brokers
(a)In General.—The Secretary shall register, subject to section 13906(b), a person to be a broker for transportation of property subject to jurisdiction under subchapter I of chapter 135, if the Secretary determines that the person—
(1) has sufficient experience to qualify the person to act as a broker for transportation; and
(2) is fit, willing, and able to be a broker for transportation and to comply with this part and applicable regulations of the Secretary.
(b)Duration.—A registration issued under subsection (a) shall only remain in effect while the broker for transportation is in compliance with section 13906(b).
(c)Experience or Training Requirements.—Each broker shall employ, as an officer, an individual who—
(1) has at least 3 years of relevant experience; or
(2) provides the Secretary with satisfactory evidence of the individual’s knowledge of related rules, regulations, and industry practices.
(d)Registration as Motor Carrier Required.—
(1)In general.—A broker for transportation may not provide transportation as a motor carrier unless the broker has registered separately under this chapter to provide transportation as a motor carrier.
(2)Limitation.—This subsection does not apply to a motor carrier registered under this chapter or to an employee or agent of the motor carrier to the extent the transportation is to be provided entirely by the motor carrier, with other registered motor carriers, or with rail or water carriers.
(e)Regulation to Protect Motor Carriers and Shippers.—Regulations of the Secretary applicable to brokers registered under this section shall provide for the protection of motor carriers and shippers by motor vehicle.
(f)Bond and Insurance.—The Secretary may impose on brokers for motor carriers of passengers such requirements for bonds or insurance or both as the Secretary determines are needed to protect passengers and carriers dealing with such brokers.
(g)Update of Registration.—The Secretary shall require a broker to update its registration under this section not later than 30 days after a change in the broker’s address, other contact information, officers, process agent, or other essential information, as determined by the Secretary.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 884; amended Pub. L. 109–59, title IV, § 4142(c), Aug. 10, 2005, 119 Stat. 1747; Pub. L. 110–244, title III, § 305(e), June 6, 2008, 122 Stat. 1620; Pub. L. 112–141, div. C, title II, §§ 32107(c), 32916(b), July 6, 2012, 126 Stat. 782, 821.)
§ 13905. Effective periods of registration
(a)Person Holding ICC Authority.—Any person having authority to provide transportation or service as a motor carrier, freight forwarder, or broker under this title, as in effect on December 31, 1995, shall be deemed, for purposes of this part, to be registered to provide such transportation or service under this part.
(b)Person Registered With Secretary.—
(1)In general.—Except as provided in paragraph (2), any person having registered with the Secretary to provide transportation or service as a motor carrier or motor private carrier under this title, as in effect on January 1, 2005, but not having registered pursuant to section 13902(a), shall be treated, for purposes of this part, to be registered to provide such transportation or service for purposes of sections 13908 and 14504a.
(2)Exclusively intrastate operators.—Paragraph (1) does not apply to a motor carrier or motor private carrier (including a transporter of waste or recyclable materials) engaged exclusively in intrastate transportation operations.
(c)Effective Period.—
(1)In general.—Except as otherwise provided in this part, each registration issued under section 13902, 13903, or 13904—
(A) shall be effective beginning on the date specified by the Secretary; and
(B) shall remain in effect for such period as the Secretary determines appropriate by regulation.
(2)Reissuance of registration.—
(A)Requirement.—Not later than 4 years after the date of enactment of the Commercial Motor Vehicle Safety Enhancement Act of 2012, the Secretary shall require a freight forwarder or broker to renew its registration issued under this chapter.
(B)Effective period.—Each registration renewal under subparagraph (A)—
(i) shall expire not later than 5 years after the date of such renewal; and
(ii) may be further renewed as provided under this chapter.
(d)Suspension, Amendments, and Revocations.—
(1)Applications.—On application of the registrant, the Secretary may amend or revoke a registration.
(2)Complaints and actions on secretary’s own initiative.—On complaint or on the Secretary’s own initiative and after notice and an opportunity for a proceeding, the Secretary may—
(A) suspend, amend, or revoke any part of the registration of a motor carrier, foreign motor carrier, foreign motor private carrier, broker, or freight forwarder for willful failure to comply with—
(i) this part;
(ii) an applicable regulation or order of the Secretary or the Board, including the accessibility requirements established by the Secretary under subpart H of part 37 of title 49, Code of Federal Regulations (or successor regulations), for transportation provided by an over-the-road bus; or
(iii) a condition of its registration;
(B) withhold, suspend, amend, or revoke any part of the registration of a motor carrier, foreign motor carrier, foreign motor private carrier, broker, or freight forwarder for failure—
(i) to pay a civil penalty imposed under chapter 5, 51, 149, or 311;
(ii) to arrange and abide by an acceptable payment plan for such civil penalty, not later than 90 days after the date specified by order of the Secretary for the payment of such penalty; or
(iii) for failure 1
1 So in original. The words “for failure” probably should not appear.
to obey a subpoena issued by the Secretary;(C) withhold, suspend, amend, or revoke any part of a registration of a motor carrier, foreign motor carrier, foreign motor private carrier, broker, or freight forwarder following a determination by the Secretary that the motor carrier, broker, or freight forwarder failed to disclose, in its application for registration, a material fact relevant to its willingness and ability to comply with—
(i) this part;
(ii) an applicable regulation or order of the Secretary or the Board; or
(iii) a condition of its registration; or
(D) withhold, suspend, amend, or revoke any part of a registration of a motor carrier, foreign motor carrier, foreign motor private carrier, broker, or freight forwarder if the Secretary finds that the motor carrier, broker, or freight forwarder does not disclose any relationship through common ownership, common management, common control, or common familial relationship to any other motor carrier, broker, or freight forwarder, or any other applicant for motor carrier, broker, or freight forwarder registration that the Secretary determines is or was unwilling or unable to comply with the relevant requirements listed in section 13902, 13903, or 13904.
(3)Limitation.—Paragraph (2)(B) shall not apply to a person who is unable to pay a civil penalty because the person is a debtor in a case under chapter 11 of title 11.
(4)Regulations.—Not later than 12 months after the date of the enactment of this paragraph, the Secretary, after notice and opportunity for public comment, shall issue regulations to provide for the suspension, amendment, or revocation of a registration under this part for failure to pay a civil penalty as provided in paragraph (2)(B).
(e)Procedure.—Except on application of the registrant, or if the Secretary determines that the registrant failed to disclose a material fact in an application for registration in accordance with subsection (d)(2)(C), the Secretary may revoke a registration of a motor carrier, freight forwarder, or broker, only after—
(1) the Secretary has issued an order to the registrant under section 14701 requiring compliance with this part, a regulation of the Secretary, or a condition of the registration; and
(2) the registrant willfully does not comply with the order for a period of 30 days.
(f)Expedited Procedure.—
(1)Protection of safety.—Notwithstanding subchapter II of chapter 5 of title 5, the Secretary—
(A) may suspend the registration of a motor carrier, a freight forwarder, or a broker for failure to comply with requirements of the Secretary pursuant to section 13904(e) or 13906 or an order or regulation of the Secretary prescribed under those sections; and
(B) shall revoke the registration of a motor carrier that has been prohibited from operating in interstate commerce for failure to comply with the safety fitness requirements of section 31144.
(2)Imminent hazard to public health.—Notwithstanding subchapter II of chapter 5 of title 5, the Secretary shall revoke the registration of a motor carrier if the Secretary finds that the carrier is or was conducting unsafe operations that are or were an imminent hazard to public health or property.
(3)Notice; period of suspension.—The Secretary may suspend or revoke under this subsection the registration only after giving notice of the suspension or revocation to the registrant. A suspension remains in effect until the registrant complies with the applicable sections or, in the case of a suspension under paragraph (2), until the Secretary revokes the suspension.
(g)Mexico-Domiciled Motor Carriers.—Notwithstanding any other provision of this section, upon an order in accordance with section 324(a) of the United States-Mexico-Canada Agreement Implementation Act, the Secretary shall carry out the relief specified by revoking or imposing limitations on existing registrations of Mexico-domiciled motor carriers of cargo to operate beyond the municipalities along the United States-Mexico international border and the commercial zones of those municipalities as directed.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 884; amended Pub. L. 104–287, § 5(33), Oct. 11, 1996, 110 Stat. 3392; Pub. L. 105–102, § 2(10), Nov. 20, 1997, 111 Stat. 2204; Pub. L. 106–159, title II, § 206(a), Dec. 9, 1999, 113 Stat. 1763; Pub. L. 109–59, title IV, §§ 4104, 4303(a), Aug. 10, 2005, 119 Stat. 1716, 1761; Pub. L. 110–291, § 2(b), July 30, 2008, 122 Stat. 2915; Pub. L. 112–141, div. C, title II, §§ 32103(a), 32109, 32205, 32917, 32933(a), July 6, 2012, 126 Stat. 778, 782, 785, 821, 830; Pub. L. 114–94, div. A, title V, § 5508(a)(3), Dec. 4, 2015, 129 Stat. 1554; Pub. L. 116–113, title III, § 326(b), Jan. 29, 2020, 134 Stat. 60.)
§ 13906. Security of motor carriers, motor private carriers, brokers, and freight forwarders
(a)Motor Carrier Requirements.—
(1)Liability insurance requirement.—The Secretary may register a motor carrier under section 13902 only if the registrant files with the Secretary a bond, insurance policy, or other type of security approved by the Secretary, in an amount not less than such amount as the Secretary prescribes pursuant to, or as is required by, sections 31138 and 31139, and the laws of the State or States in which the registrant is operating, to the extent applicable. The security must be sufficient to pay, not more than the amount of the security, for each final judgment against the registrant for bodily injury to, or death of, an individual resulting from the negligent operation, maintenance, or use of motor vehicles, or for loss or damage to property (except property referred to in paragraph (3) 1
1 See References in Text note below.
of this subsection), or both. A registration remains in effect only as long as the registrant continues to satisfy the security requirements of this paragraph.(2)Security requirement.—Not later than 120 days after the date of enactment of the Unified Carrier Registration Act of 2005, any person, other than a motor private carrier, registered with the Secretary to provide transportation or service as a motor carrier under section 13905(b) shall file with the Secretary a bond, insurance policy, or other type of security approved by the Secretary, in an amount not less than required by sections 31138 and 31139.
(3)Agency requirement.—A motor carrier shall comply with the requirements of sections 13303 and 13304. To protect the public, the Secretary may require any such motor carrier to file the type of security that a motor carrier is required to file under paragraph (1) of this subsection. This paragraph only applies to a foreign motor private carrier and foreign motor carrier operating in the United States to the extent that such carrier is providing transportation between places in a foreign country or between a place in one foreign country and a place in another foreign country.
(4)The Secretary may require a registered motor carrier to file with the Secretary a type of security sufficient to pay a shipper or consignee for damage to property of the shipper or consignee placed in the possession of the motor carrier as the result of transportation provided under this part. A carrier required by law to pay a shipper or consignee for loss, damage, or default for which a connecting motor carrier is responsible is subrogated, to the extent of the amount paid, to the rights of the shipper or consignee under any such security.
(b)Broker Financial Security Requirements.—
(1)Requirements.—
(A)In general.—The Secretary may register a person as a broker under section 13904 only if the person files with the Secretary a surety bond, proof of trust fund, or other financial security, or a combination thereof, in a form and amount, and from a provider, determined by the Secretary to be adequate to ensure financial responsibility.
(B)Use of a group surety bond, trust fund, or other surety.—In implementing the standards established by subparagraph (A), the Secretary may authorize the use of a group surety bond, trust fund, or other financial security, or a combination thereof, that meets the requirements of this subsection.
(C)Proof of trust or other financial security.—For purposes of subparagraph (A), a trust fund or other financial security may be acceptable to the Secretary only if the trust fund or other financial security consists of assets readily available to pay claims without resort to personal guarantees or collection of pledged accounts receivable.
(2)Scope of financial responsibility.—
(A)Payment of claims.—A surety bond, trust fund, or other financial security obtained under paragraph (1) shall be available to pay any claim against a broker arising from its failure to pay freight charges under its contracts, agreements, or arrangements for transportation subject to jurisdiction under chapter 135 if—
(i) subject to the review by the surety provider, the broker consents to the payment;
(ii) in any case in which the broker does not respond to adequate notice to address the validity of the claim, the surety provider determines that the claim is valid; or
(iii) the claim is not resolved within a reasonable period of time following a reasonable attempt by the claimant to resolve the claim under clauses (i) and (ii), and the claim is reduced to a judgment against the broker.
(B)Response of surety providers to claims.—If a surety provider receives notice of a claim described in subparagraph (A), the surety provider shall—
(i) respond to the claim on or before the 30th day following the date on which the notice was received; and
(ii) in the case of a denial, set forth in writing for the claimant the grounds for the denial.
(C)Costs and attorney’s fees.—In any action against a surety provider to recover on a claim described in subparagraph (A), the prevailing party shall be entitled to recover its reasonable costs and attorney’s fees.
(3)Minimum financial security.—Each broker subject to the requirements of this section shall provide financial security of $75,000 for purposes of this subsection, regardless of the number of branch offices or sales agents of the broker.
(4)Cancellation notice.—If a financial security required under this subsection is canceled—
(A) the holder of the financial security shall provide electronic notification to the Secretary of the cancellation not later than 30 days before the effective date of the cancellation; and
(B) the Secretary shall immediately post such notification on the public Internet Website of the Department of Transportation.
(5)Suspension.—The Secretary shall immediately suspend the registration of a broker issued under this chapter if the available financial security of that person falls below the amount required under this subsection.
(6)Payment of claims in cases of financial failure or insolvency.—If a broker registered under this chapter experiences financial failure or insolvency, the surety provider of the broker shall—
(A) submit a notice to cancel the financial security to the Administrator in accordance with paragraph (4);
(B) publicly advertise for claims for 60 days beginning on the date of publication by the Secretary of the notice to cancel the financial security; and
(C) pay, not later than 30 days after the expiration of the 60-day period for submission of claims—
(i) all uncontested claims received during such period; or
(ii) a pro rata share of such claims if the total amount of such claims exceeds the financial security available.
(7)Penalties.—
(A)Civil actions.—Either the Secretary or the Attorney General of the United States may bring a civil action in an appropriate district court of the United States to enforce the requirements of this subsection or a regulation prescribed or order issued under this subsection. The court may award appropriate relief, including injunctive relief.
(B)Civil penalties.—If the Secretary determines, after notice and opportunity for a hearing, that a surety provider of a broker registered under this chapter has violated the requirements of this subsection or a regulation prescribed under this subsection, the surety provider shall be liable to the United States for a civil penalty in an amount not to exceed $10,000.
(C)Eligibility.—If the Secretary determines, after notice and opportunity for a hearing, that a surety provider of a broker registered under this chapter has violated the requirements of this subsection or a regulation prescribed under this subsection, the surety provider shall be ineligible to provider 2
2 So in original. Probably should be “provide”.
broker financial security for 3 years.(8)Deduction of costs prohibited.—The amount of the financial security required under this subsection may not be reduced by deducting attorney’s fees or administrative costs.
(c)Freight Forwarder Financial Security Requirements.—
(1)Requirements.—
(A)In general.—The Secretary may register a person as a freight forwarder under section 13903 only if the person files with the Secretary a surety bond, proof of trust fund, other financial security, or a combination of such instruments, in a form and amount, and from a provider, determined by the Secretary to be adequate to ensure financial responsibility.
(B)Use of a group surety bond, trust fund, or other financial security.—In implementing the standards established under subparagraph (A), the Secretary may authorize the use of a group surety bond, trust fund, other financial security, or a combination of such instruments, that meets the requirements of this subsection.
(C)Surety bonds.—A surety bond obtained under this section may only be obtained from a bonding company that has been approved by the Secretary of the Treasury.
(D)Proof of trust or other financial security.—For purposes of subparagraph (A), a trust fund or other financial security may not be accepted by the Secretary unless the trust fund or other financial security consists of assets readily available to pay claims without resort to personal guarantees or collection of pledged accounts receivable.
(2)Scope of financial responsibility.—
(A)Payment of claims.—A surety bond, trust fund, or other financial security obtained under paragraph (1) shall be available to pay any claim against a freight forwarder arising from its failure to pay freight charges under its contracts, agreements, or arrangements for transportation subject to jurisdiction under chapter 135 if—
(i) subject to the review by the surety provider, the freight forwarder consents to the payment;
(ii) in the case 3
3 So in original.
the freight forwarder does not respond to adequate notice to address the validity of the claim, the surety provider determines the claim is valid; or(iii) the claim—(I) is not resolved within a reasonable period of time following a reasonable attempt by the claimant to resolve the claim under clauses (i) and (ii); and(II) is reduced to a judgment against the freight forwarder.
(B)Response of surety providers to claims.—If a surety provider receives notice of a claim described in subparagraph (A), the surety provider shall—
(i) respond to the claim on or before the 30th day following receipt of the notice; and
(ii) in the case of a denial, set forth in writing for the claimant the grounds for the denial.
(C)Costs and attorney’s fees.—In any action against a surety provider to recover on a claim described in subparagraph (A), the prevailing party shall be entitled to recover its reasonable costs and attorney’s fees.
(3)Freight forwarder insurance.—
(A)In general.—The Secretary may register a person as a freight forwarder under section 13903 only if the person files with the Secretary a surety bond, insurance policy, or other type of financial security that meets standards prescribed by the Secretary.
(B)Liability insurance.—A financial security filed by a freight forwarder under subparagraph (A) shall be sufficient to pay an amount, not to exceed the amount of the financial security, for each final judgment against the freight forwarder for bodily injury to, or death of, an individual, or loss of, or damage to, property (other than property referred to in subparagraph (C)), resulting from the negligent operation, maintenance, or use of motor vehicles by, or under the direction and control of, the freight forwarder while providing transfer, collection, or delivery service under this part.
(C)Cargo insurance.—The Secretary may require a registered freight forwarder to file with the Secretary a surety bond, insurance policy, or other type of financial security approved by the Secretary, that will pay an amount, not to exceed the amount of the financial security, for loss of, or damage to, property for which the freight forwarder provides service.
(4)Minimum financial security.—Each freight forwarder subject to the requirements of this section shall provide financial security of $75,000, regardless of the number of branch offices or sales agents of the freight forwarder.
(5)Cancellation notice.—If a financial security required under this subsection is canceled—
(A) the holder of the financial security shall provide electronic notification to the Secretary of the cancellation not later than 30 days before the effective date of the cancellation; and
(B) the Secretary shall immediately post such notification on the public Internet web site of the Department of Transportation.
(6)Suspension.—The Secretary shall immediately suspend the registration of a freight forwarder issued under this chapter if its available financial security falls below the amount required under this subsection.
(7)Payment of claims in cases of financial failure or insolvency.—If a freight forwarder registered under this chapter experiences financial failure or insolvency, the surety provider of the freight forwarder shall—
(A) submit a notice to cancel the financial security to the Administrator in accordance with paragraph (5);
(B) publicly advertise for claims for 60 days beginning on the date of publication by the Secretary of the notice to cancel the financial security; and
(C) pay, not later than 30 days after the expiration of the 60-day period for submission of claims—
(i) all uncontested claims received during such period; or
(ii) a pro rata share of such claims if the total amount of such claims exceeds the financial security available.
(8)Penalties.—
(A)Civil actions.—Either the Secretary or the Attorney General may bring a civil action in an appropriate district court of the United States to enforce the requirements of this subsection or a regulation prescribed or order issued under this subsection. The court may award appropriate relief, including injunctive relief.
(B)Civil penalties.—If the Secretary determines, after notice and opportunity for a hearing, that a surety provider of a freight forwarder registered under this chapter has violated the requirements of this subsection or a regulation prescribed under this subsection, the surety provider shall be liable to the United States for a civil penalty in an amount not to exceed $10,000.
(C)Eligibility.—If the Secretary determines, after notice and opportunity for a hearing, that a surety provider of a freight forwarder registered under this chapter has violated the requirements of this subsection or a regulation prescribed under this subsection, the surety provider shall be ineligible to provide freight forwarder financial security for 3 years
(9)Deduction of costs prohibited.—The amount of the financial security required under this subsection may not be reduced by deducting attorney’s fees or administrative costs.
(d)Type of Insurance.—The Secretary may determine the type and amount of security filed under this section. A motor carrier may submit proof of qualifications as a self-insurer to satisfy the security requirements of this section. The Secretary shall adopt regulations governing the standards for approval as a self-insurer. Motor carriers which have been granted authority to self-insure as of January 1, 1996, shall retain that authority unless, for good cause shown and after notice and an opportunity for a hearing, the Secretary finds that the authority must be revoked.
(e)Notice of Cancellation of Insurance.—The Secretary shall issue regulations requiring the submission to the Secretary of notices of insurance cancellation sufficiently in advance of actual cancellation so as to enable the Secretary to promptly revoke or suspend the registration of any carrier or broker after the effective date of the cancellation.
(f)Form of Endorsement.—The Secretary shall also prescribe the appropriate form of endorsement to be appended to policies of insurance and surety bonds which will subject the insurance policy or surety bond to the full security limits of the coverage required under this section.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 885; amended Pub. L. 104–287, § 5(34), Oct. 11, 1996, 110 Stat. 3392; Pub. L. 109–59, title IV, § 4303(b), (d)(1), Aug. 10, 2005, 119 Stat. 1762, 1763; Pub. L. 112–141, div. C, title II, § 32918(a), July 6, 2012, 126 Stat. 822; Pub. L. 114–94, div. A, title V, § 5201, Dec. 4, 2015, 129 Stat. 1534.)
§ 13907. Household goods agents
(a)Carriers Responsible for Agents.—Each motor carrier providing transportation of household goods shall be responsible for all acts or omissions of any of its agents which relate to the performance of household goods transportation services (including accessorial or terminal services) and which are within the actual or apparent authority of the agent from the carrier or which are ratified by the carrier.
(b)Standard for Selecting Agents.—Each motor carrier providing transportation of household goods shall use due diligence and reasonable care in selecting and maintaining agents who are sufficiently knowledgeable, fit, willing, and able to provide adequate household goods transportation services (including accessorial and terminal services) and to fulfill the obligations imposed upon them by this part and by such carrier.
(c)Enforcement.—
(1)Complaint.—Whenever the Secretary has reason to believe from a complaint or investigation that an agent providing household goods transportation services (including accessorial and terminal services) under the authority of a motor carrier providing transportation of household goods has violated section 14901(e) or 14912 or is consistently not fit, willing, and able to provide adequate household goods transportation services (including accessorial and terminal services), the Secretary may issue to such agent a complaint stating the charges and containing notice of the time and place of a hearing which shall be held no later than 60 days after service of the complaint to such agent.
(2)Right to defend.—The agent shall have the right to appear at such hearing and rebut the charges contained in the complaint.
(3)Order.—If the agent does not appear at the hearing or if the Secretary finds that the agent has violated section 14901(e) or 14912 or is consistently not fit, willing, and able to provide adequate household goods transportation services (including accessorial and terminal services), the Secretary may issue an order to compel compliance with the requirement that the agent be fit, willing, and able. Thereafter, the Secretary may issue an order to limit, condition, or prohibit such agent from any involvement in the transportation or provision of services incidental to the transportation of household goods if, after notice and an opportunity for a hearing, the Secretary finds that such agent, within a reasonable time after the date of issuance of a compliance order under this section, but in no event less than 30 days after such date of issuance, has willfully failed to comply with such order.
(4)Hearing.—Upon filing of a petition with the Secretary by an agent who is the subject of an order issued pursuant to the second sentence of paragraph (3) of this subsection and after notice, a hearing shall be held with an opportunity to be heard. At such hearing, a determination shall be made whether the order issued pursuant to paragraph (3) of this subsection should be rescinded.
(5)Court review.—Any agent adversely affected or aggrieved by an order of the Secretary issued under this subsection may seek relief in the appropriate United States court of appeals as provided by and in the manner prescribed in chapter 158 of title 28, United States Code.
(d)Limitation on Applicability of Antitrust Laws.—
(1)In general.—The antitrust laws, as defined in the first section of the Clayton Act (15 U.S.C. 12), do not apply to discussions or agreements between a motor carrier providing transportation of household goods and its agents (whether or not an agent is also a carrier) related solely to—
(A) rates for the transportation of household goods under the authority of the principal carrier;
(B) accessorial, terminal, storage, or other charges for services incidental to the transportation of household goods transported under the authority of the principal carrier;
(C) allowances relating to transportation of household goods under the authority of the principal carrier; and
(D) ownership of a motor carrier providing transportation of household goods by an agent or membership on the board of directors of any such motor carrier by an agent.
(2)Board review.—The Board, upon its own initiative or request, shall review any activities undertaken under paragraph (1) and shall modify or terminate the activity if necessary to protect the public interest.
(e)Definitions.—In this section, the following definitions apply:
(1)Household goods.—The term “household goods” has the meaning such term had under section 10102(11) of this title, as in effect on December 31, 1995.
(2)Transportation.—The term “transportation” means transportation that would be subject to the jurisdiction of the Interstate Commerce Commission under subchapter II of chapter 105 of this title, as in effect on December 31, 1995, if such subchapter were still in effect.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 887; amended Pub. L. 104–287, § 5(35), Oct. 11, 1996, 110 Stat. 3392.)
§ 13908. Registration and other reforms
(a)Establishment of Unified Carrier Registration System.—The Secretary, in cooperation with the States, representatives of the motor carrier, motor private carrier, freight forwarder, and broker industries and after notice and opportunity for public comment, shall issue within 1 year after the date of enactment of the Unified Carrier Registration Act of 2005 regulations to establish an online Federal registration system, to be named the “Unified Carrier Registration System”, to replace—
(1) the current Department of Transportation identification number system, the single State registration system under section 14504; 1
1 See References in Text note below.
(2) the registration system contained in this chapter and the financial responsibility information system under section 13906; and
(3) the service of process agent systems under sections 503 and 13304.
(b)Role as Clearinghouse and Depository of Information.—The Unified Carrier Registration System shall serve as a clearinghouse and depository of information on, and identification of, all foreign and domestic motor carriers, motor private carriers, brokers, freight forwarders, and others required to register with the Department of Transportation, including information with respect to a carrier’s safety rating, compliance with required levels of financial responsibility, and compliance with the provisions of section 14504a. The Secretary shall ensure that Federal agencies, States, representatives of the motor carrier industry, and the public have access to the Unified Carrier Registration System, including the records and information contained in the System.
(c)Procedures for Correcting Information.—Not later than 60 days after the effective date of this section, the Secretary shall prescribe regulations establishing procedures that enable a motor carrier to correct erroneous information contained in any part of the Unified Carrier Registration System.
(d)Fee System.—The Secretary shall establish, under section 9701 of title 31, a fee system for the Unified Carrier Registration System according to the following guidelines:
(1)Registration and filing evidence of financial responsibility.—The fee for new registrants shall as nearly as possible cover the costs of processing the registration.
(2)Evidence of financial responsibility.—The fee for filing evidence of financial responsibility pursuant to this section shall not exceed $10 per filing. No fee shall be charged for a filing for purposes of designating an agent for service of process or the filing of other information relating to financial responsibility.
(3)Access and retrieval fees.—
(A)In general.—Except as provided in subparagraph (B), the fee system shall include a nominal fee for the access to or retrieval of information from the Unified Carrier Registration System to cover the costs of operating and upgrading the System, including the personnel costs incurred by the Department and the costs of administration of the unified carrier registration agreement.
(B)Exceptions.—There shall be no fee charged under this paragraph—
(i) to any agency of the Federal Government or a State government or any political subdivision of any such government for the access to or retrieval of information and data from the Unified Carrier Registration System for its own use; or
(ii) to any representative of a motor carrier, motor private carrier, leasing company, broker, or freight forwarder (as each is defined in section 14504a) for the access to or retrieval of the individual information related to such entity from the Unified Carrier Registration System for the individual use of such entity.
(e)Use of Fees for Unified Carrier Registration System.—Fees collected under this section may be credited to the Department of Transportation appropriations account for purposes for which such fees are collected and shall be available for expenditure for such purposes until expended.
(f)Application to Certain Intrastate Operations.—Nothing in this section requires the registration of a motor carrier, a motor private carrier of property, or a transporter of waste or recyclable materials operating exclusively in intrastate transportation not otherwise required to register with the Secretary under another provision of this title.
(Added Pub. L. 104–88, title I, § 103, Dec. 29, 1995, 109 Stat. 888; amended Pub. L. 104–287, § 5(36), Oct. 11, 1996, 110 Stat. 3392; Pub. L. 109–59, title IV, § 4304, Aug. 10, 2005, 119 Stat. 1763; Pub. L. 110–244, title III, § 301(l), June 6, 2008, 122 Stat. 1617; Pub. L. 112–141, div. C, title II, § 32106, July 6, 2012, 126 Stat. 781.)
§ 13909. Availability of information
The Secretary shall make information relating to registration and financial security required by this chapter publicly available on the Internet, including—
(1) the names and business addresses of the principals of each entity holding such registration;
(2) the status of such registration; and
(3) the electronic address of the entity’s surety provider for the submission of claims.
(Added Pub. L. 112–141, div. C, title II, § 32914(b)(1), July 6, 2012, 126 Stat. 819.)