State Enforcement of Household Goods Consumer Protection, 67009-67010 [E6-19411]
Download as PDF
<![CDATA[
Federal Register / Vol. 71, No. 222 / Friday, November 17, 2006 / Notices
jlentini on PROD1PC65 with NOTICES
the official or office responsible for
maintaining the system, the official or office
shall:
(1) Accept the transfer statement;
(2) Promptly amend its records to reflect
the transfer; (emphasis added) and
(3) If applicable, issue a new appropriate
certificate of title in the name of the
transferee.
(c) [Transfer not a disposition; no relief of
secured party’s duties.] A transfer of the
record or legal title to collateral to a secured
party under subsection (b) or otherwise is not
of itself a disposition of collateral under this
article and does not of itself relieve the
secured party of its duties under this article.
I have also considered the Official
Comments of the UCC drafters wherein they
explain the intent of UCC 9–916:
Transfer of Record or Legal Title. Potential
buyers of collateral that is covered by a
certificate of title (e.g., an automobile) or is
subject to a registration system (e.g., a
copyright) typically require as a condition of
their purchase that the certificate or registry
reflect their ownership. In many cases, this
condition can be met only with the consent
of the record owner. If the record owner is
the debtor and, as may be the case after the
default, the debtor refuses to cooperate, the
secured party may have great difficulty
disposing of the collateral. (emphasis added)
Subsection (b) provides a simple
mechanism for obtaining record or legal title,
for use primarily when other law does not
provide one. (emphasis added) Of course, use
of this mechanism will not be effective to
clear title to the extent that subsection (b) is
preempted by federal law. Subsection (b)
contemplates a transfer of record or legal title
to a third party, following a secured party’s
exercise of its disposition or acceptance
remedies under this Part, as well as a transfer
by a debtor to a secured party prior to the
secured party’s exercise of those remedies.
Under subsection (c), a transfer of record or
legal title (under subsection (b) or under
other law) to a secured party prior to the
exercise of those remedies merely puts the
secured party in a position to pass legal or
record title to a transferee at foreclosure. A
secured party who has obtained record or
legal title retains its duties with respect to
enforcement of its security interest, and the
debtor retains its rights as well.
3. Title-Clearing Systems Under Other
Law. Applicable non-UCC law (e.g., * * *,
federal registry rules, or the like) (emphasis
added) may provide a means by which the
secured party may obtain or transfer record
or legal title for the purpose of a disposition
of the property under this Article. The
mechanism provided by this section is in
addition to any title-clearing provision under
law other than this Article.
After due consideration of these facts,
provisions and comments, it is my
opinion that the FAA will consider
utilization of a transfer statement as
contemplated by Section 9–619 of the
Uniform Commercial Code for purposes
of transferring the rights of the aircraft
owner, as Lessor, to the Indenture
Trustee in existing leases.
VerDate Aug<31>2005
16:31 Nov 16, 2006
Jkt 211001
Further, your proposed transfer
statement is eligible for recording as a
stand-alone document because it is a
conveyance affecting an interest in a
civil aircraft of the United States in that
it affects an interest in a recorded lease
between Wells Fargo Bank and
Northwest Airlines concerning
operational control of aircraft.
Be advised that for purposes of
transferring ownership of an aircraft
FAA will not consider a transfer
statement a substitute for a Certificate of
Repossession or its equivalent under 14
CFR 47.11
Sincerely,
Joseph R. Standell
Aeronautical Center Counsel
[FR Doc. 06–9250 Filed 11–16–06; 8:45 am]
BILLING CODE 4910–13–M
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety
Administration
[Docket No. FMCSA–2006–25886]
State Enforcement of Household
Goods Consumer Protection
Federal Motor Carrier Safety
Administration, DOT.
ACTION: Notice.
AGENCY:
SUMMARY: The Safe, Accountable,
Flexible, Efficient Transportation Equity
Act: A Legacy for Users (SAFETEA–LU)
gives State household goods regulatory
authorities and State attorneys general
the right to enforce certain consumer
protection provisions that apply to
individual shippers and are related to
interstate movement of the goods. This
notice specifies the Federal statutory
and regulatory provisions that States
may enforce.
DATES: The policy in this notice is
effective as of the enactment of
SAFETEA–LU, August 10, 2005. State
household goods regulatory authorities
and State attorneys general may enforce
the statutory provisions and FMCSA
regulations identified in this notice for
actions on or after that date.
FOR FURTHER INFORMATION CONTACT: Ms.
Dorothea Grymes, Household Goods
Team, Office of Enforcement and
Program Delivery, Federal Motor Carrier
Safety Administration, Department of
Transportation, 400 Seventh St., SW.,
Room 8310, Washington, DC 20590–
0001. (202) 385–2400. Office hours are
from 7:45 a.m. to 4:15 p.m., e.t., Monday
through Friday, except Federal holidays.
SUPPLEMENTARY INFORMATION: On August
10, 2005, the President signed the Safe,
Accountable, Flexible, and Efficient
PO 00000
Frm 00103
Fmt 4703
Sfmt 4703
67009
Transportation Equity Act: A Legacy for
Users (SAFETEA–LU) (Public Law 109–
59). Section 4206 of SAFETEA–LU
amends Title 49 of the United States
Code (U.S.C.) by adding two new
sections, 14710 and 14711, to address
the enforcement of the consumer
protection provisions of Title 49 and
related regulations applicable to the
delivery and transportation of
household goods in interstate or foreign
commerce. Before the passage of
SAFETEA–LU, the Federal government
was responsible for enforcing these
statutes and regulations. Section 14710
extends to State agencies that regulate
the movement of intrastate household
goods the authority to ‘‘enforce the
consumer protection provisions of this
title [Title 49] that apply to individual
shippers, as determined by the Secretary
[of the U.S. Department of
Transportation], and are related to the
delivery and transportation of
household goods in interstate
commerce.’’ Section 14711 gives State
attorneys general the authority to bring
a civil action or impose civil penalties
in the U.S. district courts to enforce the
consumer protection provisions that
apply to individual shippers and are
related to the delivery and
transportation of household goods in
interstate or foreign commerce.
Section 4202 of SAFETEA–LU
amended 49 U.S.C. 13102 to define
‘‘individual shipper’’ as follows:
The term ‘‘individual shipper’’ means any
person who—
(A) Is the shipper, consignor, or consignee
of a household goods shipment;
(B) Is identified as the shipper, consignor,
or consignee on the face of the bill of lading;
(C) Owns the goods being transported; and
(D) Pays his or her own tariff transportation
charges.
FMCSA has determined that the
States, under sections 14710 and 14711,
may enforce the following statutory
provisions and FMCSA regulations 1
immediately:
Statutes
1. Tariff requirement for certain
transportation, 49 U.S.C. 13702.
Household goods (HHG) carriers must
have tariffs covering transportation and
related services and must charge in
accordance with their tariff. (Tariffs are
the rates charged for services and the
service terms.) The carrier must give
notice of availability of the tariff to
individual shippers and must make it
available for inspection to shippers
upon reasonable request.
1 The brief description accompanying each item
listed below is for informational purposes only and
is not intended to be a definitive interpretation of
legal requirements.
E:\FR\FM\17NON1.SGM
17NON1
jlentini on PROD1PC65 with NOTICES
67010
Federal Register / Vol. 71, No. 222 / Friday, November 17, 2006 / Notices
2. Household goods rates—estimates;
Guarantees of service, 49 U.S.C. 13704.
Rates for transportation of household
goods moving on a written binding
estimate must be available to shippers
on a non-preferential basis and must not
result in charges that are predatory.
3. Payment of rates; Exceptions, 49
U.S.C. 13707(b).
HHG carriers must give up possession
of a shipment upon payment of 100
percent of a binding estimate or 110
percent of a non-binding estimate, but
may collect all charges related to postcontract services and impracticable
operations at delivery (with some
limitations as to the latter).
4. Requirement for registration, 49
U.S.C. 13901; General civil penalties, 49
U.S.C. 14901(d)(3).
FMCSA registration is required to
provide transportation or brokerage
services subject to FMCSA jurisdiction.
Transportation or brokering of HHG
goods without FMCSA registration is
punishable by a minimum civil penalty
of $25,000 per violation.
5. Household goods carrier
operations; Estimates, 49 U.S.C.
14104(b).
HHG carriers must comply with
certain estimating requirements and
provide individual shippers with
prescribed informational publications.
6. Liability of carriers under receipts
and bills of lading; Limiting liability of
household goods carriers to declared
value, 49 U.S.C. 14706(f).
HHG carriers are liable for the
replacement value of goods unless the
individual shipper waives full value
protection in writing.
7. Dispute settlement program for
household goods carriers, 49 U.S.C.
14708.
HHG carriers must provide binding
arbitration upon shipper request for
disputes up to $10,000 involving loss
and damage and payment of charges in
addition to those collected at delivery.
The arbitration program must contain
several required elements.
8. General civil penalties; Estimate of
broker without carrier agreement, 49
U.S.C. 14901(d)(2).
HHG brokers making estimates before
entering into an agreement with a
carrier are liable for a minimum civil
penalty of $10,000 per violation.
9. General civil penalties; Violation
relating to transportation of household
goods, 49 U.S.C. 14901(e).
Any person falsifying documents
relating to HHG shipment weight or
charging for accessorial services that are
not performed or are not reasonably
necessary for the safe and adequate
movement of the shipment is subject to
a minimum civil penalty of $2,000 for
VerDate Aug<31>2005
16:31 Nov 16, 2006
Jkt 211001
the first violation and $5,000 for each
subsequent violation.
10. Civil penalty procedures, 49
U.S.C. 14915.
Holding a HHG shipment hostage is
punishable by a minimum civil penalty
of $10,000 per violation.
Regulations
1. Transportation of Household Goods
in Interstate Commerce; Consumer
Protection Regulations, 49 CFR part 375.
Contains consumer protection
regulations governing transportation of
household goods for individual shippers
in interstate commerce.
2. Bills of lading for freight
forwarders, 49 CFR 373.201.
All HHG freight forwarders must issue
a shipper a thorough bill of lading
covering transportation from origin to
destination.
3. Designation of process agent;
required States, 49 CFR 366.4.
All carriers and brokers must
designate agents for service of court
process in States of operation.
4. Principles and practices for the
investigation and voluntary disposition
of loss and damage claims, 49 CFR 370.3
through 370.9.
Contains regulations governing
voluntary disposition of loss and
damage claims. The regulations protect
individual shippers (as well as business
shippers) by ensuring that motor
carriers investigate claims and process
them in accordance with prescribed
procedures.
5. Records to be kept by brokers; right
of review, 49 CFR 371.3(c).
Brokers must provide access to
transaction records by each party to a
brokered transaction.
6. Records to be kept by brokers;
misrepresentation, 49 CFR 371.7.
Brokers must not misrepresent their
name or broker status.
7. Procedures governing the
processing, investigation, and
disposition of overcharge, duplicate
payment, or over-collection claims, 49
CFR 378.3 through 378.9.
Contains regulations governing
processing of overcharge claims (where
the carrier has collected payments
exceeding what is permitted by its
tariff). Like part 370, designed to ensure
claim is investigated and disposed of in
accordance with prescribed procedures.
8. Surety bond, certificate of
insurance, or other securities; Cargo
insurance, 49 CFR 387.301(b).
HHG carriers must obtain cargo
insurance in prescribed amounts and
file evidence of such insurance with
FMCSA.
9. Property broker surety bond or trust
fund, 49 CFR 387.307.
PO 00000
Frm 00104
Fmt 4703
Sfmt 4703
All brokers (including HHG brokers)
must obtain and file a surety bond or
trust fund to pay shippers or motor
carriers if the broker fails to carry out its
contracts for the arrangement of
transportation.
10. General requirements, 49 CFR
387.403.
All freight forwarders (including HHG
freight forwarders) must obtain and file
the same level of cargo insurance
required of motor carriers.
Future Applicable Rulemaking
Additionally, section 4212 of
SAFETEA–LU directs the Secretary to
establish regulations requiring HHG
brokers to provide individual shippers
with certain specific information.
FMCSA is developing a notice of
proposed rulemaking under regulatory
identification number 2126–AA84
Brokers of Household Goods
Transportation by Motor Vehicle to
propose regulations that would require
HHG brokers to provide individual
shippers with the specific information
required by section 4212. When this
rule becomes final, it will be added to
the regulations list above.
Issued on: November 9, 2006.
John H. Hill,
Administrator.
[FR Doc. E6–19411 Filed 11–16–06; 8:45 am]
BILLING CODE 4910–EX–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA–2006–25808, Notice
No. 1]
Establishment of an Emergency Relief
Docket for Calendar Year 2006
Federal Railroad
Administration (FRA), DOT.
ACTION: Notice of establishment of
public docket.
AGENCY:
SUMMARY: On August 30, 2006, FRA
published an Interim Final Rule (IFR)
addressing the establishment of
emergency relief dockets (ERD) and the
procedures for handling petitions for
emergency waivers of safety regulations,
71 FR 51517. The IFR provided that
each year, FRA will establish an ERD for
that year and publish a notice in the
Federal Register identifying the docket
number of the ERD for that year. This
Notice announces the establishment of
FRA’s ERD for the current year
(calendar year 2006). The designated
ERD for calendar year 2006 is docket
number FRA–2006–25808.
ADDRESSES: See Supplementary
Information section for further
E:\FR\FM\17NON1.SGM
17NON1
]]>Agencies
[Federal Register Volume 71, Number 222 (Friday, November 17, 2006)]
[Notices]
[Pages 67009-67010]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-19411]
-----------------------------------------------------------------------
DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration
[Docket No. FMCSA-2006-25886]
State Enforcement of Household Goods Consumer Protection
AGENCY: Federal Motor Carrier Safety Administration, DOT.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU) gives State household goods
regulatory authorities and State attorneys general the right to enforce
certain consumer protection provisions that apply to individual
shippers and are related to interstate movement of the goods. This
notice specifies the Federal statutory and regulatory provisions that
States may enforce.
DATES: The policy in this notice is effective as of the enactment of
SAFETEA-LU, August 10, 2005. State household goods regulatory
authorities and State attorneys general may enforce the statutory
provisions and FMCSA regulations identified in this notice for actions
on or after that date.
FOR FURTHER INFORMATION CONTACT: Ms. Dorothea Grymes, Household Goods
Team, Office of Enforcement and Program Delivery, Federal Motor Carrier
Safety Administration, Department of Transportation, 400 Seventh St.,
SW., Room 8310, Washington, DC 20590-0001. (202) 385-2400. Office hours
are from 7:45 a.m. to 4:15 p.m., e.t., Monday through Friday, except
Federal holidays.
SUPPLEMENTARY INFORMATION: On August 10, 2005, the President signed the
Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A
Legacy for Users (SAFETEA-LU) (Public Law 109-59). Section 4206 of
SAFETEA-LU amends Title 49 of the United States Code (U.S.C.) by adding
two new sections, 14710 and 14711, to address the enforcement of the
consumer protection provisions of Title 49 and related regulations
applicable to the delivery and transportation of household goods in
interstate or foreign commerce. Before the passage of SAFETEA-LU, the
Federal government was responsible for enforcing these statutes and
regulations. Section 14710 extends to State agencies that regulate the
movement of intrastate household goods the authority to ``enforce the
consumer protection provisions of this title [Title 49] that apply to
individual shippers, as determined by the Secretary [of the U.S.
Department of Transportation], and are related to the delivery and
transportation of household goods in interstate commerce.'' Section
14711 gives State attorneys general the authority to bring a civil
action or impose civil penalties in the U.S. district courts to enforce
the consumer protection provisions that apply to individual shippers
and are related to the delivery and transportation of household goods
in interstate or foreign commerce.
Section 4202 of SAFETEA-LU amended 49 U.S.C. 13102 to define
``individual shipper'' as follows:
The term ``individual shipper'' means any person who--
(A) Is the shipper, consignor, or consignee of a household goods
shipment;
(B) Is identified as the shipper, consignor, or consignee on the
face of the bill of lading;
(C) Owns the goods being transported; and
(D) Pays his or her own tariff transportation charges.
FMCSA has determined that the States, under sections 14710 and
14711, may enforce the following statutory provisions and FMCSA
regulations \1\ immediately:
---------------------------------------------------------------------------
\1\ The brief description accompanying each item listed below is
for informational purposes only and is not intended to be a
definitive interpretation of legal requirements.
---------------------------------------------------------------------------
Statutes
1. Tariff requirement for certain transportation, 49 U.S.C. 13702.
Household goods (HHG) carriers must have tariffs covering
transportation and related services and must charge in accordance with
their tariff. (Tariffs are the rates charged for services and the
service terms.) The carrier must give notice of availability of the
tariff to individual shippers and must make it available for inspection
to shippers upon reasonable request.
[[Page 67010]]
2. Household goods rates--estimates; Guarantees of service, 49
U.S.C. 13704.
Rates for transportation of household goods moving on a written
binding estimate must be available to shippers on a non-preferential
basis and must not result in charges that are predatory.
3. Payment of rates; Exceptions, 49 U.S.C. 13707(b).
HHG carriers must give up possession of a shipment upon payment of
100 percent of a binding estimate or 110 percent of a non-binding
estimate, but may collect all charges related to post-contract services
and impracticable operations at delivery (with some limitations as to
the latter).
4. Requirement for registration, 49 U.S.C. 13901; General civil
penalties, 49 U.S.C. 14901(d)(3).
FMCSA registration is required to provide transportation or
brokerage services subject to FMCSA jurisdiction. Transportation or
brokering of HHG goods without FMCSA registration is punishable by a
minimum civil penalty of $25,000 per violation.
5. Household goods carrier operations; Estimates, 49 U.S.C.
14104(b).
HHG carriers must comply with certain estimating requirements and
provide individual shippers with prescribed informational publications.
6. Liability of carriers under receipts and bills of lading;
Limiting liability of household goods carriers to declared value, 49
U.S.C. 14706(f).
HHG carriers are liable for the replacement value of goods unless
the individual shipper waives full value protection in writing.
7. Dispute settlement program for household goods carriers, 49
U.S.C. 14708.
HHG carriers must provide binding arbitration upon shipper request
for disputes up to $10,000 involving loss and damage and payment of
charges in addition to those collected at delivery. The arbitration
program must contain several required elements.
8. General civil penalties; Estimate of broker without carrier
agreement, 49 U.S.C. 14901(d)(2).
HHG brokers making estimates before entering into an agreement with
a carrier are liable for a minimum civil penalty of $10,000 per
violation.
9. General civil penalties; Violation relating to transportation of
household goods, 49 U.S.C. 14901(e).
Any person falsifying documents relating to HHG shipment weight or
charging for accessorial services that are not performed or are not
reasonably necessary for the safe and adequate movement of the shipment
is subject to a minimum civil penalty of $2,000 for the first violation
and $5,000 for each subsequent violation.
10. Civil penalty procedures, 49 U.S.C. 14915.
Holding a HHG shipment hostage is punishable by a minimum civil
penalty of $10,000 per violation.
Regulations
1. Transportation of Household Goods in Interstate Commerce;
Consumer Protection Regulations, 49 CFR part 375.
Contains consumer protection regulations governing transportation
of household goods for individual shippers in interstate commerce.
2. Bills of lading for freight forwarders, 49 CFR 373.201.
All HHG freight forwarders must issue a shipper a thorough bill of
lading covering transportation from origin to destination.
3. Designation of process agent; required States, 49 CFR 366.4.
All carriers and brokers must designate agents for service of court
process in States of operation.
4. Principles and practices for the investigation and voluntary
disposition of loss and damage claims, 49 CFR 370.3 through 370.9.
Contains regulations governing voluntary disposition of loss and
damage claims. The regulations protect individual shippers (as well as
business shippers) by ensuring that motor carriers investigate claims
and process them in accordance with prescribed procedures.
5. Records to be kept by brokers; right of review, 49 CFR 371.3(c).
Brokers must provide access to transaction records by each party to
a brokered transaction.
6. Records to be kept by brokers; misrepresentation, 49 CFR 371.7.
Brokers must not misrepresent their name or broker status.
7. Procedures governing the processing, investigation, and
disposition of overcharge, duplicate payment, or over-collection
claims, 49 CFR 378.3 through 378.9.
Contains regulations governing processing of overcharge claims
(where the carrier has collected payments exceeding what is permitted
by its tariff). Like part 370, designed to ensure claim is investigated
and disposed of in accordance with prescribed procedures.
8. Surety bond, certificate of insurance, or other securities;
Cargo insurance, 49 CFR 387.301(b).
HHG carriers must obtain cargo insurance in prescribed amounts and
file evidence of such insurance with FMCSA.
9. Property broker surety bond or trust fund, 49 CFR 387.307.
All brokers (including HHG brokers) must obtain and file a surety
bond or trust fund to pay shippers or motor carriers if the broker
fails to carry out its contracts for the arrangement of transportation.
10. General requirements, 49 CFR 387.403.
All freight forwarders (including HHG freight forwarders) must
obtain and file the same level of cargo insurance required of motor
carriers.
Future Applicable Rulemaking
Additionally, section 4212 of SAFETEA-LU directs the Secretary to
establish regulations requiring HHG brokers to provide individual
shippers with certain specific information. FMCSA is developing a
notice of proposed rulemaking under regulatory identification number
2126-AA84 Brokers of Household Goods Transportation by Motor Vehicle to
propose regulations that would require HHG brokers to provide
individual shippers with the specific information required by section
4212. When this rule becomes final, it will be added to the regulations
list above.
Issued on: November 9, 2006.
John H. Hill,
Administrator.
[FR Doc. E6-19411 Filed 11-16-06; 8:45 am]
BILLING CODE 4910-EX-P
