New Bill Could Aid Truck Drivers, Reducing Fraud

The Owner-Operator Independent Drivers Association (OOIDA) recently issued a press release, coming out in support of the newly proposed Motor Carrier Protection Act of 2010. Warning that with the introduction of the new bill, that "bad brokers' days are numbered," they applauded the legislation that would significantly increase regulatory oversight of brokers and freight forwarders in the trucking industry.

The senate bill was introduced by Senators Olympia Snowe (R-Maine) and Amy Klobuchar (D-Minn.). S. 3483 was introduced in response to concerns about unscrupulous brokering practices that prey upon small business truckers. The two senators worked closely with the OOIDA as well as the Transportation Intermediaries Association in developing this legislation. The Motor Carrier Protection Act of 2010 legislates an increase in the broker bond from $10,000 to $100,000 and expands that bond requirement to freight forwarders. It increases requirements and disclosures for any person or company seeking to obtain broker or freight forwarder authority.

The act would establish significant penalties for violations of broker regulations, including unlimited liability for freight charges for conducting brokerage activities without a license or bond. Additionally, if the bill is passed into law, brokers and freight forwarders will be required to renew their operating authority annually and FMCSA will be required to revoke operating authority that is not renewed annually. Revenue generated from the renewal fees would then be dedicate to FMCSA's oversight and enforcement of broker regulations. The bill establishes strict guidelines on companies that provide brokers with surety bonds, as well as guidelines on how they administer these bonds. The bill clarifies 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.

Why would this legislation be a good thing for truckers? Todd Spencer, Executive Vice President of OOIDA, thinks tightening regulation and closing loopholes is necessary. "If passed, this law would put a stop to a system that allows rogue brokers and scam artist to operate unchecked," he said. "Too often, we've seen bad brokers get away with collecting payment from shippers but leaving truckers holding the bag." The OOIDA has, for many decades, represented the interests of small-business trucking professionals and professional truck drivers. They are the nation's largest such trade association, with over 155,000 members.