Overdrive Magazine | Trucking Business News & Owner Operator Info
Issue link: https://read.dmtmag.com/i/255292
18 | Overdrive | February 2014 Logbook The Association of Independent Property Brokers and Agents, taking a different route in its ongoing battle against the increase in the minimum bond amount freight brokers must carry, filed an application with the Federal Motor Carrier Safety Ad- ministration, asking it to exempt all brokers from the increase. A notice of an application for exemption was Broker group seeks exemption from bond increase published in the Federal Register and the agency accepted public comment until Jan. 27. The increase was required by the MAP-21 highway funding act passed last summer, which stipulated brokers must have a minimum $75,000 surety bond, up from the previous $10,000 minimum. FMCSA published a final rule Oct. 1 requiring the $75,000 minimum, with an enforcement date of Dec. 1. AIPBA said more than 8,500 brokers lost their operating authority between Dec. 1 and Dec. 10 due to the increase – about 35 percent of all federal- ly licensed brokers. The Transportation Inter- mediaries Association, another broker trade group, supported the increase. TIA's Chris Bur- roughs said that while the bond increase may have affected the thousands of brokers who lost authority, the main factor was the registration database needing to be updated. The American Trucking As- sociations and the Owner-Op- erator Independent Drivers Association also supported the bond increase. OOIDA says it will protect carriers from fraudulent brokers. AIPBA has been fighting the increase in court since July, when it filed a lawsuit against FMCSA trying to stop it. A federal court in December denied AIPBA's request, but the association has appealed the ruling. AIPBA President James Lamb said 75 percent of brokers eventually will lose operating authority because of the bond hike. TIA disagrees. – James Jaillet © 2014 CAT Scale Company Like us on Facebook. www.catscale.com 1-877-CAT-SCALE (228-7225) Weighing on a CAT Scale has never been easier! CAT Scale's new Weigh My Truck application will revolutionize how you weigh your loads. Go to www.weighmytruck.com to create your account and get the app. Find out more about the Weigh My Truck app. CAT OD half 121213_Layout 1 12/13/13 11:30 AM Page 1 Untitled-8 1 12/17/13 9:16 AM Text INFO to 205-289-3555 or visit www.ovdinfo.com Logbook_0214.indd 18 1/28/14 10:45 PM