FMCSA ‘remains committed’ to broker transparency rulemaking

A rulemaking aimed at addressing the lack of broker transparency in the trucking industry is still on track to be released in 2024, the Federal Motor Carrier Safety Administration confirmed.

The clarification from FMCSA follows the recent release of the U.S. Department of Transportation’s Significant Rulemaking Report, which did not include an entry for broker transparency.

“FMCSA remains committed to initiating a rulemaking in 2024 concerning broker transparency,” said Cicely Waters, FMCSA’s communication director.

The DOT’s Significant Rulemaking Report is not a rundown of every regulatory action planned by its agencies. Instead, Executive Order 12866 defines an “economically significant” rulemaking as one that would have an annual effect on the economy of $100 million or more. Waters said that FMCSA doesn’t believe the broker rulemaking meets that definition, which is why it was not included on the report.

However, FMCSA’s previous projections that a notice of proposed rulemaking would be published in October 2024 appear to be on track.

Petition granted

The Owner-Operator Independent Drivers Association, which represents small-business truckers, petitioned FMCSA in 2020 to begin the rulemaking process for more transparency in trucking transactions with brokers.

In March 2023, FMCSA granted OOIDA’s petition, as well as a petition from the Small Business in Transportation Coalition, to start the rulemaking process.

Regulation CFR 371.3 already requires that brokers keep records of each transaction with a carrier and that each party to the transaction has a right to view these records. OOIDA asked the agency to begin enforcing that regulation and to eliminate any loopholes allowing brokers to sidestep the rule.

When will there be a broker transparency proposal?

The DOT’s Spring 2023 Unified Regulatory Agenda projected that FMCSA would release a broker transparency notice of proposed rulemaking that June.

In the September 2023 Significant Rulemaking Report, however, FMCSA updated the projected publication date to Oct. 31, 2024. FMCSA noted that the broker transparency rulemaking was not considered significant but was being included in the report only to correct the previous projection.

OOIDA has maintained its stance that FMCSA should address the lack of broker transparency as soon as possible.

“We are anxiously awaiting the transparency proposal as broker concerns remain a top issue for OOIDA members,” said Jay Grimes, OOIDA’s director of federal affairs. “The sooner, the better.” LL