FMCSA proposes delay for broker financial responsibility rule

The Federal Motor Carrier Safety Administration is proposing to delay the compliance date of its broker financial responsibility rule until 2026.

In a notice of proposed rulemaking that is scheduled to be published in the Federal Register on Monday, Nov. 4, FMCSA said it plans to move the compliance date from Jan. 16, 2025 to Jan. 16, 2026, when its new registration system may be ready.

“This action is being proposed because FMCSA has determined that only its forthcoming online registration system will be used to accept filings and track notifications, and this functionality will not be added to its legacy systems,” the agency wrote in the notice. “As the new system is not expected to be available before Jan. 16, 2025, FMCSA proposed to extend the compliance date to provide regulated entities time to begin using and familiarizing themselves with the system before compliance is required.”

The rule

FMCSA issued the final rule regarding broker and freight forwarder financial responsibility in November 2023.

The rule takes several steps to improve broker security regulations, including the suspension of operating authority if the available financial security falls below $75,000.

Specifically, the rule aims to:

• Limit the asset types that can be maintained in broker or freight forwarder trusts to cash, treasury bonds and irrevocable letters of credit issued by a federally insured depository institution
• Establish procedures and requirements for the immediate suspension of broker and freight forwarder operating authority registration if the available financial security falls below $75,000
• Clarify when a broker or freight forwarder is in financial failure or insolvency and establish related requirements
• Amend FMCSA regulations to add civil penalties for surety and trust fund violations of the regulations and to establish a process for the suspension of sureties and trusts in the event of non-compliance with the regulations

Brokers, surety providers and financial institutions were ordered to comply with suspension rules starting on Jan. 16, 2025, while other aspects of the rule would take effect in 2026. Now, the agency wants to delay the suspension rules for a year.

How to comment

Once the proposal to delay the compliance date is published in the Federal Register, the public will have 15 days to comment. To do so, go to Regulations.gov and enter FMCSA-2024-0280. LL