PRA 2126-0017 Supporting Statement 04.04.25

Department of Transportation

Federal Motor Carrier Safety Administration

SUPPORTING STATEMENT

Financial Responsibility Motor Carriers, Freight Forwarders and Brokers

OMB Control No. 2126-0017

SUMMARY

• This Information Collection Request (ICR) expires on June 30, 2025. A 60-day Federal Register notice was published on August 1st, 2024 (89 FR 62842)), addressing the compliance impacts of the Broker and Freight Forwarder Financial Responsibility Final Rule, which was initially scheduled to be implemented on January 16, 2025. However, the rule’s compliance date has been extended to January 16, 2026 (89 FR 107021, Dec. 31, 2024). A 60-day Federal Register notice was published on January 6th, 2025 (2024-31550 (90 FR 720)) to correct the August 1st, 2024, notice and serve as a revision of the currently approved information collection and include updated estimates.

• This ICR has two collection periods. The first period covers the six months prior to the implementation of the Broker and Freight Forwarder Financial Responsibility Final Rule (88 FR 78656, Nov. 16, 2023). There are no changes to the respondents, responses, burden hours or annual burden costs for this period. The second collection period covers the 2.5 years following the implementation of the Broker and Freight Forwarder Financial Responsibility Final Rule. This collection period has 200,147 respondents, 290,345 responses, 49,722 annual burden hours and a total annual burden cost of $1,725,372. This program change increase to the existing ICR of 283 hours is due to updates made to three forms, BMC-36, BMC-84, and BMC-85, as part of the implementation of the Broker and Freight Forwarder Financial Responsibility Final Rule. The burden per response for the associated ICs (IC-6, IC-7, and IC-9) increased from 10 minutes to 12 minutes for the 2.5 years following the implementation of the Rule. The cost burden increase is due to the increased burden hours and the updated BLS wage data.

INTRODUCTION

The Federal Motor Carrier Safety Administration (FMCSA) requests the Office of Management

and Budget’s (OMB) revision of the three-year approved clearance for the information collection request (ICR) titled “Financial Responsibility Motor Carriers, Freight Forwarders and Brokers,” covered by OMB Control Number 2126-0017. This ICR expires on June 30, 2025.

Part A. Justification

1. CIRCUMSTANCES THAT MAKE THE COLLECTION OF INFORMATION NECESSARY

The Secretary of Transportation (Secretary) is authorized to register for-hire motor carriers of property and passengers under 49 U.S.C. §13902 (see Attachment A); surface freight forwarders under 49 U.S.C. § 13903 (see Attachment B); and property brokers under 49 U.S.C. § 13904 (see Attachment C). These persons may conduct transportation services only if they are registered pursuant to 49 U.S.C. § 13901 (see Attachment D). The Secretary’s authority to register these entities has been delegated to FMCSA (see 49 CFR 1.87, Attachment E). The registration, known as operating authority registration, remains valid only if the transportation entities maintain, on file with FMCSA, evidence of the required levels of financial responsibility (see 49 U.S.C. § 13906, Attachment F). The FMCSA regulations governing the minimum levels of financial responsibility are found at 49 CFR part 387 (see Attachment G).

Certificates of insurance (Forms BMC-91, BMC-91X, and BMC-34); surety bonds (Forms BMC-82, BMC-83, and BMC-84); and trust fund agreements (Form BMC-85) can be used by FMCSA regulated entities to satisfy the statutory financial responsibility requirements. The endorsements (Forms BMC-90, BMC-90B and BMC-32)¹ are attached to insured motor carriers’ or freight forwarders’ policies of insurance to establish continuing compliance with the statutory requirement to retain liability insurance, which terminates only when a policy is canceled. Notices of cancellation (Form BMC-35) notify FMCSA when regulated motor carriers and freight forwarders have canceled their required bodily injury and property damage (BI & PD) liability and/or cargo liability coverage. In all instances, notices of cancellation (Forms BMC-36 and BMC-85) notify FMCSA when property brokers, freight forwarders and motor carriers have canceled their surety bonds or trust fund agreements.

Section 32918 of the Moving Ahead for Progress in the 21st Century Act (MAP-21)² amended 49 U.S.C. §13906 (See Attachment H) by requiring FMCSA to increase the surety bond or trust fund levels applicable to brokers to $75,000, and to extend this requirement to freight forwarders. Congress directed FMCSA to make these non-discretionary changes effective on October 1, 2013. FMCSA amended the burden for forms BMC-84 and BMC-85 in the previous renewal of this information collection.

Motor carriers and Freight Forwarders can also satisfy the statutory financial responsibility requirement by applying for FMCSA self-insurance authority in lieu of filing certificates of insurance or surety bonds with FMCSA. (See 49 CFR 387.309, Attachment I). Form BMC-40 is the application form carriers use to apply for self-insurance authority.

2. HOW, BY WHOM, AND FOR WHAT PURPOSE IS THE INFORMATION USED

The purpose of certificates of insurance, when filed with FMCSA, is to certify that the insurance company making the filing is providing the motor carrier or freight forwarder named thereon with liability insurance coverage in the amounts prescribed. By requiring the filing of Forms BMC-91, BMC-91X and BMC-34, the Agency ensures that the public is protected and will be compensated for claims involving bodily injury and property damage (BI & PD), or loss or damage to household goods, respectively, within the limits prescribed by FMCSA.

Motor carrier BI & PD liability and household goods cargo liability surety bonds (Forms BMC-82 and BMC-83), when filed with FMCSA, certify that the surety company making the filing is liable for BI & PD and cargo losses and damages of the motor carrier or freight forwarder named thereon. A property broker’s or freight forwarder’s surety bond¹ (Form BMC-84) or trust fund agreement (Form BMC-85), on the other hand, makes the surety company or trustee responsible for any sum or sums, up to $75,000, that the broker or freight forwarder has failed to pay and “would be held legally liable by reason of [its] failure” to carry out any contracts, agreements, or arrangements for transportation.² The filing of surety bonds or trust fund agreements helps ensure that motor carriers and shippers are protected against non-performance of the broker’s or freight forwarder’s legal obligations.

An endorsement (Forms BMC-90, BMC-90B and BMC-32) sets forth the minimum limits of liability or cargo insurance coverage that an FMCSA-regulated motor carrier or freight forwarder is required to maintain. Attachment of the endorsement to the insurance policy establishes continuing compliance with statutory and regulatory requirements. The purpose of the endorsement is to hold an insurance company liable for any damages that may occur to the public (up to the limits of the policy), and to supersede any exclusions or limitations which may be contained in the insured motor carrier’s or freight forwarder’s policy.

Notices of cancellation (Forms BMC-35, BMC-36, and BMC-85) are used by insurance and surety companies or trustees to notify FMCSA that a certificate of insurance, surety bond, or trust fund agreement has been canceled. Since evidence of financial responsibility is to be maintained on a continuous basis, FMCSA will revoke the operating authority registration of the regulated entity if replacement insurance, a replacement surety bond, or replacement trust fund agreement is not filed with FMCSA by the effective date of the cancellation.

The only alternative motor carriers have to filing certificates of insurance and surety bonds with FMCSA is to qualify to act as self-insurers for their BI & PD and/or cargo liability. Form BMC-40 is the application form used by motor carriers to apply for such authority. Data contained on the completed self-insurance form, and in exhibits attached thereto, provide pertinent information regarding the carrier’s or forwarder’s financial claims and safety rating. FMCSA uses this data to make a determination regarding whether the entity qualifies for the grant of self-insurance authority.

This ICR has been disaggregated into 11 information collections (ICs), as follows:

1. IC-1, Form BMC-91 titled, “Motor Carrier Automobile Bodily Injury and Property Damage Liability Certificate of Insurance.”

2. IC-2, Form BMC-91X titled, “Motor Carrier Automobile Bodily Injury and Property Damage Liability Certificate of Insurance.”

3. IC-3, Form BMC-34 titled, “Household Goods Motor Carrier Cargo Liability Certificate of Insurance.”

4. IC-4, Form BMC-82 titled, “Motor Carrier Bodily Injury Liability and Property Damage Liability Surety Bond Under 49 U.S.C. 13906.”

5. IC-5, Form BMC-83 titled, “Household Goods Motor Carrier Cargo Liability Surety Bond Under 49 U.S.C. 13906.”

6. IC-6, Form BMC-84 titled, “Broker’s or Freight Forwarder’s Surety Bond Under 49 U.S.C. 13906.”

7. IC-7(a)(b), Form BMC-85 titled, “Broker’s or Freight Forwarder’s Trust Fund Agreement under 49 U.S.C. 13906 or BMC-85 Notice of Cancellation of the Agreement.”³

8. IC-8, Form BMC-35 titled, “Notice of Cancellation Motor Carrier Insurance Under 49 U.S.C. 13906.”

9. IC-9, Form BMC-36 titled, “Motor Carrier, Broker’s and Freight Forwarder’s Surety Bonds Under 49 U.S.C. 13906 Notice of Cancellation.”

10. IC-10, Form BMC-40 titled, “Application for Authority to Self-Insure Under 49 U.S.C. 13906.”

11. IC-11, Form BMC-32 titled, “Endorsement for Household Goods Motor Carrier Policies of Insurance for Cargo Liability under 49 U.S.C. 13906.”

For this revision, three forms, BMC-36, BMC-84, and BMC-85, corresponding to IC-9, IC-6, and IC-7 respectably, will be updated starting January 16, 2026, due to the requirements of the Broker and Freight Forwarder Financial Responsibility Final Rule.

Form changes due to the rule:

BMC 36

Notice of cancellation- Added three options to indicate the reason for the cancellation to determine what part of the rule the cancellation applies to.

BMC-84

1. Added Surety Bond Account Number field to match the format of the BMC-85

2. Updated the following section to agree with the new rule:

The Surety agrees to furnish written notice with two (2) days to the Federal Motor Carrier Safety Administration forthwith of all suits filed, judgements rendered, and payments made by said Surety under this bond, and to comply with all provisions of Section 387.307 of Title 49 of the Code of Federal Regulations.

BMC-85

Updates to the language on the following items

1. Item 4. Added the sentence “The assets held in the trust comply with the requirements of 49 CFR 387.307(b).”

2. Item 7. Changed from “Trustor shall within thirty days, replenish the trust fund” to “Trustor shall within seven days, replenish the trust fund.”

3. Item 8. Changed from “Trustee shall immediately give written notice to FMCSA of all lawsuits filed” to “Trustee shall immediately give written notice within two (2) days to FMCSA of all lawsuits filed.”

4. Notice of cancellation- Added three options to indicate the reason for the cancellation to determine what part of the rule the cancellation applies to.

Complying with the rule will increase the collection requirements.  

As of January 16, 2026, the surety provider or trustee must notify FMCSA within two days of any of the following occurring:

1. A drawdown on a broker bond below the $75,000 requirement. The notification must include:

1. The broker’s USDOT number, and

2. A description of the reason for the notification and

3. Either

   • Evidence of the date and amount of payments made, or

   • A list of currently pending claims amounts and evidence that the surety company or financial institution notified the carrier of pending claims.

2. Broker insolvency or financial failure.

3. A broker satisfies all pending claims and is no longer experiencing financial failure or insolvency.

The remaining forms will be updated with the following changes:

1. The name of the Division will be changed to ‘Office of Registration, Financial Responsibility Filings Division.’

2. The USDOT Number will move from the top right to the application section to be entered as another part of the application.

3. The link on the forms will be updated to https://www.fmcsa.dot.gov/registration.

4. BMC-40 was modified to include a secondary representative’s name, contact information, and signature.

3. EXTENT OF AUTOMATED INFORMATION COLLECTION

All filers are required to file the insurance forms noted above electronically, except Form BMC-40, titled “Application for Authority to Self-Insure Under 49 U.S.C. 13906.” Because fewer than 10 carriers file Form BMC-40 annually, creating an electronic form is not justified. In addition, the Agency is continuing its practice of processing and approving each self-insurance application on a case-by-case basis. FMCSA also accepts paper copies of the Form BMC-85 titled, “Broker’s or Freight Forwarder’s Trust Fund Agreement under 49 U.S.C. 13906 or Notice of Cancellation of the Agreement”, in addition to accepting electronic filings.

4. EFFORTS TO IDENTIFY DUPLICATION

There are no similar insurance filings made with any other Federal agency or within the Department of Transportation that would result in duplication of this information.

5. EFFORTS TO MINIMIZE THE BURDEN ON SMALL BUSINESSES

The Small Business Administration (SBA) defines small business for motor carriers as those with annual revenues or receipts up to $34 million, and $19 million for passenger carriers¹ and motor carrier freight and household goods arrangement. Direct Property and Casualty Insurance Carriers are defined as having more than 1,500 employees². FMCSA assumes insurance providers are almost all large business. Consistent with other FMCSA ICRs, and FMCSA’s Motor Carrier Management Information System (MCMIS), almost all (97% to 99% percent) of these populations (household goods and freight brokers, motor carriers, passenger carriers) are small businesses.³

Forms BMC-90 (“Endorsement for Motor Carrier Policies of Insurance for Automobile Bodily Injury and Property Damage Liability Under Section 13906, Title 49 of the United States Code,”) and BMC-32 (“Endorsement for Motor Common Carrier Policies of Insurance for Cargo Liability Under 49 U.S.C. 13906”) do not create a paperwork burden for Motor Carriers. These forms are executed by the insurance company, attached to the BI & PD or cargo liability insurance policy, respectively, and forwarded to the motor carrier or freight forwarder.

Paperwork burdens associated with completing Forms BMC-91, BMC-91X, BMC-34,

BMC-82, BMC-83, BMC-84, BMC-85, BMC-35, and BMC-36 are minimized for small businesses because such entities merely fill in blank spaces with information about the carrier, freight forwarder or broker, and the insurer, surety or trustee. Furthermore, certificates of insurance, surety bonds, and trust fund agreements are not renewed or replaced on an annual or periodic basis, and notices of cancellation are only filed with FMCSA when an insurance policy, surety bond, or trust fund agreement is terminated.

Endorsements (see Forms BMC-90, BMC-90B, and BMC-32) do not create a paperwork burden for any small business. The insurance company or its agent merely executes the endorsement, attaches it to the BI & PD or cargo liability insurance policy, respectively, and forwards it to the motor carrier or freight forwarder.

Applications for Authority to Self-Insure (see Form BMC-40) consist of seven pages. However, no consideration has been given to limiting the information requested by this form, since such form is submitted on a voluntary basis. Furthermore, each filing is assessed on the information provided but less information may result in a request for additional data.

6. IMPACT OF LESS FREQUENT COLLECTION OF INFORMATION

The information is collected annually. If these data were collected less frequently, the purpose of the applicable regulations would be defeated. The information collected is intended to establish continuing compliance with statutory financial responsibility requirements and is not collected on a periodic basis.

7. SPECIAL CIRCUMSTANCES

There are no special circumstances related to this information collection.

8. COMPLIANCE WITH 5 CFR 1320.8:

On January 6, 2025, FMCSA published a 60-day notice in the Federal Register (90-FR 720)) announcing its intent to submit this revised ICR to OMB and opening a 60-day comment period (see Attachment J). FMCSA received two comments in response to the published notice. One of the comments was not related to this ICR and was removed from the docket because it contained possible PII. The second commenter opposed the Broker and Freight Forwarder Financial Responsibility Rule, mainly because the $75,000 financial responsibility requirement imposes a financial burden on smaller brokers and freight forwarders. In response, FMCSA notes that the minimum amount of financial responsibility is set by statute and the Agency has no discretion to change it. See 49 USC 13906(b)(3).

Additionally, the comment implied that the rule would impose 49,722 burden hours on the participants. However, the commenter’s calculation is inaccurate, as it represents the annual burden of hours for all 11 forms included in this ICR, not just the three forms being updated here. The burden hours associated with these three forms are 19 hours for BMC-36, 1,859 hours for BMC-84, and 371 hours for BMC-85, for a total of 2,249 hours. The commenter did not address whether the proposed collection is necessary for the accuracy of the estimated burden; nor the ways the burden could be minimized without reducing the quality of the collected information. 

9. PAYMENTS OR GIFTS TO RESPONDENTS

Respondents are not provided with any payment or gift for this information collection.

10. ASSURANCE OF CONFIDENTIALITY

There is no statute, regulation, or Agency policy that provides assurances of confidentiality beyond the protection afforded by the Freedom of Information Act (5 U.S.C. 552). The insurance coverages and cancellations evidenced by these filings are public information regularly requested by individuals and groups.

11. JUSTIFICATION FOR COLLECTION OF SENSITIVE INFORMATION

The information requested and collected is not of a sensitive nature.

12. ESTIMATE OF BURDEN HOURS FOR INFORMATION REQUESTED

The annual burden hour estimates for all the forms remain the same for the first six months prior to the implementation of the Broker Freight Forwarder Financial Responsibility Rule on January 16, 2026. The burden hours are based on 3-year average (2018–2020) respondent application data derived from FMCSA’s Licensing & Insurance (L&I), August 2021 data snapshot. Using a 3-year average, FMCSA estimated that an average of 290,345 financial responsibility filings will be made annually in years 1, 2 and 3 on behalf of 200,147 respondents.¹ Financial responsibility filings are filed by insurance companies, surety companies, and/or financial institutions except for BMC-40, IC-10, which motor carriers file. FMCSA records indicate insurance companies, surety companies, financial institutions and motor carriers file these forms electronically. IC-1 to IC-9, and IC-11 are completed by selecting from check boxes. FMCSA continues to estimate that all the ICs except IC-6, IC-7, and IC-9 take 10 minutes² or 0.17 hours to complete and submit. For the self-insurance application (BMC-40). FMCSA continues to estimate the self-insurance form takes 40 hours to complete. For the 2.5 years following the implementation of the Broker Freight Forwarder Financial Responsibility Rule, the burden hours per response for IC-6, IC-7 and IC-9 increased slightly from 10 minutes (0.17 hours) to 12 minutes (0.20 hours). The resulting total annual average burden hours is 49,722. Table 1 below provides a summary of the annual burden calculation.

Table 1. Annual Average Total Responses, Respondents and Burden Hours

IC/Form Number	Annual Number of Respondents	Average Number of Responses per Respondent	Annual Number of Responses	Hours per Response	Annual Burden Hours
	(a)	(b)	(c = a x b)	(d)	*(e = c × d)
IC-1, BMC-91	4,129	1.392	5,748	0.17	977
IC-2, BMC-91X	171,801	1.49	255,983	0.17	43,517
IC-3, BMC-34	3,614	1.361	4,918	0.17	836
IC-4, BMC-82	147	1.268	186	0.17	32
IC-5, BMC-83	16	1.074	17	0.17	3
**IC-6, BMC-84	7,246	1.319	9,558	0.19	1,859
**IC-7, BMC-85	1,426	1.34	1,911	0.19	371
IC-8, BMC-35	10,226	1.025	10,482	0.17	1,782
**IC-9, BMC-36	95	1	95	0.20	19
IC-10, BMC-40	2	1	2	40	80
IC-11, BMC-32	1,445	1	1,445	0.17	246
Total	200,147	-	290,345	-	49,722

*Numbers may not match due to rounding

**For the ICs being revised (ICs 6, 7 and 9) the annual burden hours was calculated based on a 0.17 hours per response estimate for the first 6 months and a 0.20 hours per response estimate for the remaining 2.5 years. The hours per response reflected on the table was calculated by dividing the annual burden hours by the annual number of responses for simplicity.

IC-1: Form BMC-91, Bodily Injury and Property Damage—Full Requirements

FMCSA estimates that Form BMC-91 takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 977.

Estimated Annual Number of Respondents: 4,129.

Estimated Annual Number of Responses: 5,748.

IC-2: Form BMC-91X, Bodily Injury and Property Damage Liability Aggregation

FMCSA estimates that Form BMC-91X takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 43,517.

Estimated Annual Number of Respondents: 171,801.

Estimated Annual Number of Responses: 255,983.

IC-3: Form BMC-34, Motor Carrier Cargo Liability Certificate of Insurance

FMCSA estimates that Form BMC-34 takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 836.

Estimated Annual Number of Respondents: 3,614.

Estimated Annual Number of Responses: 4,918.

IC-4: Form BMC-82, Motor Carriers Public Liability Surety Bond

FMCSA estimates that Form BMC-82 takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 32

Estimated Annual Number of Respondents: 147.

Estimated Annual Number of Responses: 186.

IC-5: Form BMC-83, Motor Carrier Cargo Liability Surety Bond

FMCSA estimates that Form BMC-83 takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 3.

Estimated Annual Number of Respondents: 16.

Estimated Annual Number of Responses: 17.

IC-6: Form BMC 84, Broker’s or Freight Forwarder’s Surety Bond

FMCSA estimates that for the six-month period prior to the implementation of the Broker and Freight Forwarder Financial Responsibility Rule Form BMC-84 will take approximately 10 minutes to complete. For simplicity, FMCSA calculates the burden for the six-month period prior to the implementation of the Rule by dividing the annual (12 month) number of responses in half then multiplying the number of responses by 10 minutes.

Estimated Burden Hours to Respondents Pre-Rule: 797 (797=4,779*(10/60)).

Estimated Number of Respondents Pre-Rule: 3,623 (3,623=7,246/2).

Estimated Number of Responses Pre-Rule: 4,779 (4,779=9,558/2).

FMCSA estimates that for the remaining 2.5 years after the implementation of the Broker and Freight Forwarder Financial Responsibility Rule, the revised Form BMC-84 will take approximately 12 minutes to complete. For the first six-months the annual burden is calculated by multiplying half of the responses (4,779) by 12 minutes per response.

Estimated Annual Burden Hours to Respondents: 956

Estimated Annual Number of Respondents: 3,623.

Estimated Annual Number of Responses: 4,779

For Year 1, the annual burden equals 1,753 (797+956). For Year 2 and Year 3 the annual burden is 1,912. Using these figures, the average annual burden calculates to 1,859 (1,753+1,912+1,912/3) with an average annual burden per response of 0.19 hours per response (1,859 burden hours/9,558 responses).

IC-7: Form BMC 85, Broker’s or Freight Forwarder’s Trust Fund Agreement

FMCSA estimates that that for the six-month period prior to the implementation of the Broker and Freight Forwarder Financial Responsibility Rule Form BMC-85 will take approximately 10 minutes to complete. For simplicity, FMCSA calculates the burden for the six-month period prior to the implementation of the Rule by dividing the annual (12 month) number of responses in half then multiplying the number of responses by 10 minutes.

Estimated Burden Hours to Respondents Pre-Rule: 159 (159=956*(10/60)).

Estimated Number of Respondents Pre-Rule: 713 (713=1,426/2).

Estimated Number of Responses Pre-Rule: 956 (956=1,911/2).

FMCSA estimates that for the remaining 2.5 years after the implementation of the Broker and Freight Forwarder Financial Responsibility Rule, the revised Form BMC-85 will take approximately 12 minutes to complete. For the first 6 months the annual burden is calculated by multiplying half of the responses (956) by 12 minutes per response.

Estimated Annual Burden Hours to Respondents: 191.

Estimated Annual Number of Respondents: 713.

Estimated Annual Number of Responses: 956.

For Year 1, the annual burden equals 350 (159+191). For Year 2 and Year 3 the annual burden is 382. Using these figures, the average annual burden calculates to 371 (350+382+382/3) with an average annual burden per response of 0.19 hours per response (371 burden hours/1,911 responses).

IC-8: Form BMC-35, Notice of Cancellation of Motor Carrier Insurance

FMCSA estimates that Form BMC-35 takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 1,782.

Estimated Annual Number of Respondents: 10,226.

Estimated Annual Number of Responses: 10,482.

IC-9: Form BMC-36, Notice of Cancellation Motor Carrier’s, Broker’s, or Freight Forwarder’s Surety Bond

FMCSA estimates that for the six-month period prior to the implementation of the Broker and Freight Forwarder Financial Responsibility Rule Form BMC-36 will take approximately 10 minutes to complete. For simplicity, FMCSA calculates the burden for the six-month period prior to the implementation of the Rule by dividing the annual (12 month) number of responses in half then multiplying the number of responses by 10 minutes. Note that some of the below figures are rounded.

Estimated Burden Hours to Respondents Pre-Rule: 8 (7.9=47.5*(10/60)).

Estimated Number of Respondents Pre-Rule: 47.5 (47.5=95/2).

Estimated Number of Responses Pre-Rule: 47.5 (47.5=95/2).

FMCSA estimates that for the 2.5 years after the implementation of the Broker and Freight Forwarder Financial Responsibility Rule the revised Form BMC36 will take approximately 12 minutes to complete. For the first 6 months the annual burden is calculated by multiplying half of the responses (47.5) by 12 minutes per response.

Estimated Annual Burden Hours to Respondents: 10.

Estimated Annual Number of Respondents: 47.5.

Estimated Annual Number of Responses: 47.5.

For Year 1, the annual burden equals 18 (10+8). For Year 2 and Year 3 the annual burden is 19. Using these figures, the average annual burden calculates to 19 (18+19+19/3) with an average annual burden per response of 0.20 hours per response (19 burden hours/95 responses).

IC-10: Form BMC-40, Authority to Self-insure Against Bodily Injury and Property

Damage Claims.

FMCSA estimates that Form BMC-40 takes approximately 40 hours to complete.

Estimated Annual Burden Hours to Respondents: 80.

Estimated Annual Number of Respondents: 2.

Estimated Annual Number of Responses: 2.

IC-11: Endorsement for Household Goods Motor Carrier Policies of Insurance for Cargo Liability.

FMCSA estimates that Form BMC-32 takes approximately 10 minutes to complete.

Estimated Annual Burden Hours to Respondents: 246.

Estimated Annual Number of Respondents: 1,445.

Estimated Annual Number of Responses: 1,445.

Estimated Total Annual Burden for this ICR: 49,722 average annual hours.

Estimated Total Annual Number of Respondents for this ICR: 200,147 average annual respondents.

Estimated Total Annual Number of Responses for this ICR: 290,345 average annual responses.

For IC-1 through IC-9 and IC-11, FMCSA continues to estimate that the respondent labor category for this ICR best fits the “insurance industry insurance claims and policy processing clerk” of the Department of Labor’s Occupational Employment Statistics (OES), which has a median wage rate of $22.55 per hour³. To arrive at a loaded wage for this labor category, FMCSA divides the total cost of compensation for series “Insurance Carriers and Related Activities” ($60.57) by the median cost of hourly wages and salaries for the same series ($39.38) as reported by the Bureau of Labor Statistics in its Employer Costs for Employee Compensation for December 2023.⁴ This results in a load factor of 1.538 ($60.57/$39.38). Multiplying the median hourly wage of the same series yields a loaded hourly wage of $34.68 ($22.55 × 1.538 = $34.68). The total cost for IC-1 through IC-9 and IC-11 is $1,721,585 (49,642 hours × $34.68 = $1,721,585).

For IC-10, FMCSA estimates the respondent labor category that best fits is the “First-Line Supervisors of Transportation and Material Moving Workers” (SOC 53-1040) of the Department of Labor’s Occupational Employment Statistics (OES), under the NAICS 484000, Truck Transportation, which has a median wage rate of $32.85 per hour⁵. To develop the load rate, similar to the method above, FMCSA takes the cost of total compensation ($34.43) per hour and divides by the cost of only wages and salary per hour ($23.89) in the Transportation and Material Moving Employer Costs for Employee Compensation (ECEC), December 2023 data release⁶. This results in a load rate of 1.441 ($34.43/$23.89). The loaded hourly rate for this analysis is $47.34 ($32.85*1.441 = $47.34). This results in a total cost of $3,787 for IC-10 (80 hours × $47.34 = $3,787).

Total respondent cost for IC-1 through 1C-11, as Table 2 illustrates is 1,725,372 ($1,721,585 + $3,787 = $1,725,372).

Table 2. Annual Average Respondent Total Labor Cost

IC/Form Number	Average Annual Burden Hours	Hourly Labor Rate	Average Annual Labor Cost
	(a)	(b)	(c = a × b)
IC-1, BMC-91	977	$34.68	$33,882
IC-2, BMC-91X	43,517	$34.68	$1,509,170
IC-3, BMC-34	836	$34.68	$28,992
IC-4, BMC-82	32	$34.68	$1,110
IC-5, BMC-83	3	$34.68	$104
IC-6- BMC-84	1,859	$34.68	$64,470
IC-7, BMC-85	371	$34.68	$12,866
IC-8, BMC-35	1,782	$34.68	$61,800
IC-9, BMC-36	19	$34.68	$659
IC-10, BMC-40	80	$47.34	$3,787
IC-11, BMC-32	246	$34.68	$8,531
Total	49,722		$1,725,372

*Numbers may not match due to rounding

13. ESTIMATE OF TOTAL ANNUAL COSTS TO RESPONDENTS:

Approximately 1,445 BMC-32 forms will be mailed by insurance company or agent to the carrier. The costs associated with this includes an envelope and postage, which FMCSA estimates to be a combined flat cost of $1.00. The estimated total annual cost to respondents for envelopes and postage is $1,445.

There are no costs associated with electronic filings for the BMC-34, BMC-35, BMC-36, BMC-40, BMC-82, BMC-83, BMC-84, BMC-85, BMC-91, and BMC-91X forms. Total Estimate of Annual Costs to Respondents: $0.

Total Estimate of Annual Non-Labor Costs to Respondents: $1,445.

14. ESTIMATE OF COST TO THE FEDERAL GOVERNMENT:

The cost of the insurance program is estimated to be approximately $21,530,000¹ annually, covering staff, IT services, and overhead costs.

15. EXPLANATION OF PROGRAM CHANGES OR ADJUSTMENTS:

The currently approved ICR has 200,147 respondents, 290,345 responses, 49,439 annual burden hours. The proposed revision of BMC-84 (IC-6), BMC-85 (IC-7) and BMC-36 (IC-9) slightly increases the annual burden hours to 49,722 hours, an increase of 283 hours. The corresponding cost increased from $1,514,300 to $1,725,372. This increase is due to a 2-minute increase in the amount of time it would take to complete the revised forms and the use of updated BLS wage data.

16. PUBLICATION OF RESULTS OF DATA COLLECTION

The information collected is summarized and displayed in the L&I system.

17. APPROVAL FOR NOT DISPLAYING THE EXPIRATION DATE OF OMB APPROVAL

FMCSA is not seeking this approval.

18. EXCEPTIONS TO CERTIFICATION STATEMENT

There are no exceptions to the certification statement.

ATTACHMENTS

Attachment A: 49 U.S.C. §13902

Attachment B: 49 U.S.C. § 13903

Attachment C: 49 U.S.C. § 13904

Attachment D: 49 U.S.C. § 13901

Attachment E: 49 CFR 1.87

Attachment F: 49 U.S.C. § 13906

Attachment G: 49 CFR part 387

Attachment H: Section 32918 of P.L. 112-141

Attachment I: 49 CFR 387.309

Attachment J: 60-day Federal Register notice (90 FR 720), published January 6, 2025.

1 Only household goods motor carriers and household goods freight forwarders need to file the Forms BMC-32 endorsement and BMC-34 certificate of insurance as security to compensate shippers or consignees for loss or damage to cargo in connection with their transportation services. The limits of cargo liability are set forth at 49 CFR 387.303T(c).

2 Pub. L. 112-141, 126 Stat. 405, July 6, 2012.

1 This surety bond is distinct from any surety bonds filed by freight forwarders related to BI & PD liability or cargo insurance.

2 See Forms BMC-84 and BMC-85.

3 Note BMC-85C is attached to form BMC-85 and is the cancellation portion of the form. While form BMC-85 ‘and BMC-85C are one form, we refer to form BMC-85 when discussing trust fund form requirements and BMC-85/C when discussing cancellation.

1 See U. S. Small Business Administration Table “Small Business Size Standards Matched to North American Industry Classification System Codes,” classified under NAICS code 484121 “General Freight Trucking, Long-Distance, Truckload” (Motor Carriers). NAICS code 485113 “Bus and Other Motor Vehicle Transit Systems,” (Passenger Carriers) 485510 “Charter Bus Industry” (Passenger Carriers) and 485999 “All Other Transit and Ground Passenger Transportation” (Passenger Carriers), NAICS code 488510 “Freight Transportation Arrangement” (Motor Carrier Freight and Household Good Brokers) available at https://www.sba.gov/sites/default/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf

(accessed July 23,2024).

2 NAICS code 524126 “Direct Property and Casualty Insurance Carriers, Number of Employees: 1,500. U. S. Small Business Administration Table “Small Business Size Standards Matched to North American Industry Classification System Codes, https://www.sba.gov/sites/default/files/2023-06/Table%20of%20Size%20Standards_Effective%20March%2017%2C%202023%20%282%29.pdf (accessed July 23,2024).

3 See Section 5 of the Supporting Statement Part A, OMB Report Number 2126-0048, “Practices of Household Good Brokers,” Approved without changes 5/20/2021. Available at https://omb.report/search.php?terms=2126-0048 . FMCSA, Motor Carrier Management Information System (MCMIS), data snapshot of interstate carriers as of December 2020.

1 Ratios based on previous iteration of ICR.

2 10 minutes is based on the first iteration of this ICR approved on December 1, 1999, in which an employee of an FMCSA predecessor agency with knowledge of the program estimated that any user would be able to complete the collection in 10 minutes because all the insurance company filings are completed electronically, and many fields are check boxes.

3 U.S. Department of Labor (DOL), Bureau of Labor Statistics (BLS). “Occupational Employment Statistics (OES). National. June 2024. National Industry-Specific Occupational Employment and Wage Estimates. NAICS 43-9041 (Insurance Claims and Policy Processing Clerks).” Available at: https://www.bls.gov/oes/current/oes439041.htm (accessed January 06, 2022).

4 Bureau of Labor Statistics (2021). “Table 4. Employer Costs for Employee Compensation for private industry workers by occupational and industry group, December 2023.” Available at https://www.bls.gov/news.release/ecec.t04.htm (accessed June 5, 2024).

5 U.S. Department of Labor (DOL), Bureau of Labor Statistics (BLS). “Occupational Employment Statistics (OES). National. May 2023. National Industry-Specific Occupational Employment and Wage Estimates. NAICS 484000 (Truck Transportation).” See “First-Line Supervisors of Transportation and Material Moving Workers” (SOC 53-1040). Available at: https://www.bls.gov/oes/2023/may/naics3_484000.htm#53-0000 (accessed June 5, 2024)

6 Bureau of Labor Statistics (BLS), Employer Costs for Employee Compensation (ECEC), December 2023. Table 4. Employer Costs for Employee Compensation for private industry workers by occupational and industry group,

https://www.bls.gov/news.release/pdf/ecec.pdf (accessed June 5, 2024).

1 The previous iteration of this ICR stated the cost to the Federal Government was $19,500,000. Adjusted for inflation, the revised cost is $21,530,00. Inflation adjustment based on CPI Inflation Calculator available at https://www.bls.gov/data/inflation_calculator.htm . Adjustment based on January 2016 dollars adjusted for January 2021 dollars.

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