Skip to Content

Monthly Archives: January 2019

Though FMCSA operations unaffected, shutdown could delay hours of service revisions

James Jaillet | January 16, 2019 | Overdrive

The partial shutdown of the U.S. government could delay the publication of a proposed rule to reform hours of service regulations, according to a U.S. DOT official.

Federal Motor Carrier Safety Administration officials hinted in December that a notice of proposed rulemaking offering potential revisions to federal hours requests could come as early as March. But the lingering closure of federal agencies will impede FMCSA’s ability to proceed with the rulemaking process, the official said.

Though the Federal Motor Carrier Safety Administration remains mostly unaffected by the shutdown, operations at other branches of the DOT have been hampered. More than 20,000 U.S. DOT workers are furloughed, including more than 400 of the 1,470 employees at the DOT’s Office of the Secretary (OST). Also, 327 employees at the White House’s Office of Management and Budget’s (OMB) 488 employees have been furloughed.

Those two agencies — the OST and the OMB — must review and approve the hours of service notice of proposed rulemaking before it’s published. Since operations at those agencies have been mostly shutdown, “everything’s stopped,” the official said, referring to the federal rulemakings process.

Govt. shutdown ripples out — though not toward military freight

And leased owner-op Jerry Boyd’s somewhat sanguine view on the year just ended, at odds with some independents running spot freight: “Everywhere you went,” Boyd …

The official didn’t say whether FMCSA had filed an hours of service proposal with OST, which must clear it before it heads to OMB. But there’s “back and forth” required between the three agencies (OST, OMB and FMCSA), the official said.

It usually takes weeks, if not months, for rulemakings to be cleared for publication. Once cleared, the proposed rule will be sent back to FMCSA.

“Until [the shutdown] is rectified,” the official said, the hour’s rule will be hung up in that procedural process.

What’s more, when the government shutdown ends and employees at the OST and OMB return to work, they’ll have a large backlog of rulemakings and filings to address from all other government agencies, the official said, which will further impede the hours of service proposal.

FMCSA boss Ray Martinez has insisted the agency wanted to “fast track” the hours of service rulemaking. However, that was well before the shutdown fight ensnared D.C. The partial government shutdown is now in its fourth week and is the longest in U.S. history. President Trump and Congressional leaders remain at odds over funding for a wall along the southern border of the U.S.

Despite the hours of service proposal likely being delayed by the shutdown, other FMCSA operations remain unaffected. Agency functions like compliance reviews, grants to states for enforcement, new entrant carrier processing, reviews of DataQs challenges and issuance in CDLs, to name a few, have not been affected by the lapse in funding for the U.S. DOT. FMCSA derives much of its funding from the Highway Trust Fund, funded by gas and diesel taxes and not annual appropriations from Congress.

In sum, more than 800,000 workers nationwide have been furloughed by the shutdown. Employees at many government contractors have also been furloughed over the funding lapse.

0 0 Continue Reading →

Avoid getting stiffed: New flag on brokers with bonds pending cancellation can be effective recon tool

In early November, FMCSA stood up what amounts to a new flag on brokers/forwarders and motor carriers whose surety bonds/insurance have been marked  for cancellation by the provider.

This example of a new surety notice of pending cancellation is in the FMCSA’s Licensing and Insurance public-facing page for a broker who notified its surety provider, Transport Financial Services, it was voluntarily ceasing business at the end of the year, says TFS President Marold Studesville. Brokers whose bonds have been cancelled after a run-up in claims, too, will be thus flagged, partially sealing a loophole that allowed dishonest brokers to conduct business with no intent to pay even as they went under — or were formed with no intent to pay to begin with.

“The goal is to help the public who does business with these regulated entities know that an insurance company or financial institution that made the initial filing has submitted a pending cancellation of the entity’s policy in our system,” say reps from FMCSA’s Licensing and Insurance division. “The notice will remain in place until either the effective date of the updated filing has occurred, or that the authority has been revoked, due to the failure to comply with the insurance requirements.”

Read the complete article here.

0 0 Continue Reading →

YOUR SHOPPING BAG