The Issue

For quite some time, OOIDA has been pushing FMCSA to follow through with its freight broker oversight responsibilities and to fully enforce broker regulations that have been on the books for many years. All too often small business truckers run into problems with brokers and are left with little opportunity to effectively pursue solutions. 

Everyday we hear from truckers who have been cheated by bad brokers out of compensation for hauling a load. Often when we file a claim against a broker’s surety bond, $150,000 or more of claims have already been filed against the $10,000 bond.  It is far too easy for unscrupulous brokers and their surety bond providers to shrug off financial responsibilities.

The Status

“The Motor Carrier Protection Act of 2010” - S.3483 was introduced by Senators Olympia Snowe (R-Maine) and Amy Klobuchar (D-Minn.). OOIDA worked closely with the senators to develop S.3483 and supports the legislation.

The “Motor Carrier Protection Act of 2010” will:

• Increase the broker bond from $10,000 to $100,000 and expands that bond requirement to freight forwarders. Also, requires the Federal Motor Carrier Safety Administration (FMCSA) to immediately suspend the operating authority for any freight broker or freight forwarder whose bond coverage falls below $100,000.
• Increase requirements and disclosures for any person or company seeking to obtain broker or freight forwarder authority as well as makes information about entities seeking operating authority available on-line for public review.
• Establish significant penalties for violations of broker regulations including unlimited liability for freight charges for conducting brokerage activities without a license or bond.
• Create a requirement for brokers and freight forwarders to renew their operating authority annually and requires FMCSA to revoke operating authority that is not renewed annually.  Revenue generated from the renewal fees will be dedicated to FMCSA’s oversight and enforcement of broker regulations.
• Establish strict guidelines on companies who provide brokers with surety bonds and on how they administer those bonds.
• Clarify that trucking companies must have a broker’s or freight forwarder’s license and an appropriate bond in addition to their motor carrier operating authority to arrange freight for another carrier for compensation.

The link to view S.3483 is - http://www.ooida.com/Issues&Actions/Legislative/pdfs/S3483-111th.pdf

What we can do

Members should contact both of their U.S. Senators to convey their support for S.3483 and to request that they sign on as official co-sponsors of the bill.

Call the U.S. Capitol switchboard at (202) 224-3121 and provide the operator with a home zip code.