House and Senate Reach Agreement on Transportation Bill (Broker Bond Update)

Earlier today, The House and Senate Conference Committee members reached an agreement for a 27 month transportation bill (2014).  The bill will now go to the floor of each chamber for an up or down vote.  Amendments are not allowed on Conference Reports.  The House and Senate are expected to vote tomorrow.

Although the entire bill is still being reviewed, the TIA/OOIDA/ATA "Fighting Fraud in Transportation" langauge is included in the bill, including the increased broker bond requirement.  The one major change, however, is that the report reduces the broker/forwarder surety requirement to $75,000 from $100,000.

Other major transportation provisions of the new Transportation Bill include:

1. The broker/forwarder surety requirement is raised to $75,000 from $10,000.  The DOT must review the broker/forwarder surety requirement six-months after enactment and every 4 years thereafter.  The increase goes into effect one year from enactment.
2. The TIA/OOIDA/ATA language that places strict regulations on broker/forwarder bond/trust companies is in the Conference Report.  This means that bond/trust companies will have stricter requirements on them on how they pay claims, including paying all claims on a pro-rata basis, making claim filings and payments public on their website.  The new surety requirements go into effect one year after enactment.
3. The bill clarifies motor carriers and brokers/forwarders.  Motor carriers will not be able to legally re-broker freight - as many carriers are doing now - without proper broker/broker authority and bond.
4. The bill mandates EOBRs one year from enactment.
5. The bill removes language that the Senate had included regarding CSA.  This is significant in that it allows the industry a clean field on which to address CSA and the Safety Fitness Determination with FMCSA.

For more information on the Transportation Bill please click here.