(Grain Valley, Mo., June 15, 2010) – The Owner-Operator Independent Drivers Association (OOIDA) energetically applauded the introduction of the “Motor Carrier Protection Act of 2010” in the U.S. Senate.  That legislation would significantly beef up regulatory oversight of brokers and freight forwarders in the trucking industry.

Senator Olympia Snowe (R-Maine) along with Senator Amy Klobuchar (D-Minn.) introduced the bill, S. 3483, in response to concerns about unscrupulous brokering practices that continually take advantage of small business truckers.  The Senators worked closely with OOIDA and the Transportation Intermediaries Association to develop their legislation.

“If passed, this law would put a stop to a system that allows rogue brokers and scam artists to operate unchecked,” says Todd Spencer, Executive Vice President of OOIDA. “Too often, we’ve seen bad brokers get away with collecting payment from shippers but leaving truckers holding the bag.”

The “Motor Carrier Protection Act of 2010” will:

• Increase the broker bond from $10,000 to $100,000 and expand that bond requirement to freight forwarders.

• Increase requirements and disclosures for any person or company seeking to obtain broker or freight forwarder authority.

• 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 require 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 that provide brokers with surety bonds and on how they administer 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 Owner-Operator Independent Drivers Association is the largest national trade association representing the interests of small-business trucking professionals and professional truck drivers. The Association currently has more than 155,000 members nationwide. OOIDA was established in 1973 and is headquartered in the greater Kansas City, Mo., area.