Broker group seeks exemption from higher broker bond

Broker group seeks exemption from higher broker bond

The Federal Motor Carrier Safety Administration is seeking comments by Jan. 27 on the Assn. of Independent Property Brokers and Agents (AIPBA) request that the agency exempt all property brokers and freight forwarders from the $75,000 bond provision enacted in 2012 as part of MAP-21.

AIPBA sought the exemption in August – less than two months before FMCSA increased the bond from $10,000 to $75,000 as part of a package of regulations implementing provisions of MAP-21.

AIPBA has fought the increased broker bond for more than three years in Congress, rulemakings and the courts. In November, the group sued to block the increased bond, arguing that FMCSA issued the final rule improperly because the agency issued it without notice and comment. Later in November, a federal appeals court denied an injunction or stay, and AIPBA now is continuing the litigation on a non-emergency basis.

Separately, FMCSA is inviting comments by Jan. 27 on the International Assn. of Movers request for an exemption for all domestic freight forwarders that operate solely in the Dept. of Defense’s household goods (HHG) program from the $75,000 bond requirement.

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