Broker group offers online seminar on bond bill

Jill Dunn | July 09, 2010

The newly formed Association of Independent Property Brokers & Agents
opposes a Senate broker bill and is offering a free online seminar July 15 to discuss the proposed law.

The Owner-Operator Independent Drivers Association and the Transportation Intermediaries Association, the brokers and third-party intermediary trade group, support the bill, S. 3483 or the Motor Carriers Protection Act of 2010.

AIPBA President James Lamb said an increase from $10,000 to $100,000 for a property broker bond will hurt smaller brokers and discourage new ones from entering the field. A one-year federal $10,000 property broker surety bond costs $350-$550 and instead he suggests increasing the bond to $25,000.

When the bill was introduced June 14, the American Trucking Associations said it supported a broker bond increase, but was reviewing the proposed legislation. It did not immediately respond to a request for further comment.

The bill also:
• Establishes strict penalties for violations, including unlimited
liability for freight charges for brokerage activities without a license or bond.
• Authorizes private damage remedies against companies that violate
Federal Motor Carrier Safety Administration regulations.
• Implements an annual registration requirement to renew
broker/forwarder operating authority and generate revenue for FMCSA
enforcement.
• Establishes strict regulations on bond providers and how bonds are
administered.
• Requires separate registration numbers per authority and whatever
authority used in a transaction must be in writing.

Sen. Olympia Snowe introduced a bill, which was referred to the Committee on Commerce, Science and Transportation with one co-sponsor.

Those interested in the webinar may register at www2.gotomeeting.com/register/313130370.