The Association of Independent Property Brokers and Agents (AIPBA) filed an application with the FMCSA for exemption of all brokers from the increase in the minimum bond amount. The FMCSA presented an application for exemption from the minimum bond amount increase today. Comments on the application will be accepted until January 27.
Recent regulations require brokers to have a minimum of $75,000 surety bond, a $65,000 increase from the previous $10,000 minimum. The bond was part of the October package of regulations, and began being enforced on December 1. When the bond regulation began being enforced, over 8,500 brokers, about 35% of licensed brokers, had trouble meeting the required minimum. The increase may have contributed to these brokers losing their operating authority.
Opinion on the regulation seems to be split within the trucking industry. While there are $65,000 obvious reasons to like the lower minimum for brokers, the higher minimum can help protect carriers from fraudulent brokers, according to the Owner-Operator Independent Drivers Association.
This application comes at the heels of a federal court denying AIPBA’s petition for lawsuit against the FMCSA over the bond increase rule. The AIPBA believes that the increase will eventually cause 75% of brokers to lose operating authority, which is why they disapprove of the ruling so strongly. Most comments on the ruling say the impact on brokers will be minimal.
To comment, visit regulations.gov and find the rule using Docket Number FMCSA-2013-0513. Comments can also be made by mail (Docket Management Facility (M-30), U.S. Department of Transportation, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE., Washington, DC 20590-0001) or fax (1-202-493-2251).