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FMCSA Denies AIPBA’s Request for Property Broker Bond Exemption

Mar
31,
2015
1

 

Association of Independent Property Brokers & Agents

Association of Independent Property Brokers & Agents

FMCSA Denies AIPBA’s Request for Property Broker Bond Exemption in Wake of Nearly 10,000 Businesses Being Forced Out-of-Business; Two Federal Lawsuits Now Move Forward

The Association of Independent Property Brokers & Agents (“AIPBA”) announced today that the Federal Motor Carrier Safety Administration (“FMCSA”), an agency of the United States Department of Transportation, has denied its application for a categorical exemption from the minimum $75,000 property broker and freight forwarder bond requirement that recently was raised from $10,000 and caused nearly 10,000 small surface transportation intermediary businesses to go out of business.
AIPBA can now move forward with two lawsuits previously filed in Georgia (“Association of Independent Property Brokers and Agents, Inc. v. Foxx, No. 13-15238-D (Atlanta, GA 11th Cir.)” and Florida (“Association of Independent Property Brokers and Agents, Inc. v. Foxx et al, No. 5:15-cv-00038-JSM-PRL (M.D. FL.)”.

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Fort Lauderdale, Florida (PRWEB) March 31, 2015

The United States Department of Transportation’s Federal Motor Carrier Safety Administration (“FMCSA”) announced via in the “Federal Register” on March 30th, 2015 that it has denied the Association of Independent Property Brokers & Agents’ (“AIPBA”), a freight broker trade group, August 2013 application for a categorical property broker and freight forwarder bond exemption  See AIPBA Exemption Letter

The decision was opened for “public inspection” on March 30, 2015 online at:

Under Federal Law (49 USC 13906), a minimum $75,000 bond has been required of property brokers and freight forwarders in order to receive and maintain a federal business license since October 1, 2013.

AIPBA issued a statement in response to the FMCSA’s decision:

“The AIPBA is very disappointed in FMCSA, in this instance. We disagree with FMCSA’s long-awaited decision on this application, and find it totally devoid of sensitivity toward the nearly 10,000 small business intermediaries, especially members of the minority brokerage community, that were revoked in the first two weeks of December of 2013 and the anti-competitive obstacles to entry currently in place due to a bond obviously set too high for over 40% of the property brokerage industry to handle,” AIPBA President James Lamb said.

Lamb stated that whereas AIPBA offered that over 9,800 intermediaries (8,200 of which were brokers  were revoked in the first two weeks of December 2013 as a direct result of enforcement of a $75,000 minimum bond, FMCSA acknowledged in their decision that 8,962 intermediaries were, indeed, lost during the full month of December 2013, the difference representing a relatively small amount of intermediaries whose licenses were reinstated in the last two weeks of that month, and other new non-small business broker applicants sparked by the 2012 highway bill dubbed “Moving Ahead for Progress in the 21st Century Act of 2012 (“MAP-21”)

Lamb noted that while FMCSA points in its decision to a small increase over the year that followed, Lamb believes it neglects to acknowledge that a significant part of that increase is due to the fact that MAP-21 reinforced the need for large carriers to obtain broker licenses when they arrange transportation (formerly asserted to be unregulated as a matter of “interlining”) when the carrier does not take possession of the property at least at some point in the shipment.

“The current broker census therefore cannot be fairly attributed to a return of these small business brokers that were utterly decimated in December 2013,” Lamb said.

According to the AIPBA website, AIPBA has two lawsuits in motion; one previously filed in Georgia (“Association of Independent Property Brokers and Agents, Inc. v. Foxx, No. 13-15238-D (Atlanta, GA 11th Cir.);” and the other in Florida (“Association of Independent Property Brokers and Agents, Inc. v. Foxx et al, No. 5:15-cv-00038-JSM-PRL (M.D. FL.)” against the FMCSA over the broker bond issue, one of which, is now before the U.S Court of Appeals.

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Listen TODAY, March 31st @ 3PM ET
FMCSA Broker Bond Decision
AIPBA President James Lamb will be on Sirius XM’S Road Dog Trucking News Channel 146 today at 3PM Eastern talking about the Broker Bond Exemption Application Decision.

© 2015, Allen Smith. All rights reserved.

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By: Allen Smith

Allen Smith is a 37 year veteran who started at an early age in a household goods family moving business. He began driving straight trucks in 1977 and moved to the big rigs in 1982. His experience within the industry includes; owner operator, company driver, operations manager, and owner of a long distance HHG moving business, taking many of the long haul moves himself when needed. Allen Smith, a truck driver advocate who is driven by the desire to help others succeed within an industry where injustice, unrewarded sacrifice, and lack of respect and recognition exists. Allen and his wife Donna are hosts of Truth About Trucking ”Live” on Blog Talk Radio. Other websites include AskTheTrucker, TruckingSocialMedia, NorthAmericanTruckingALerts, TruthAboutTrucking, and many Social Media websites. In 2011 Allen and Donna hosted the first Truck Driver Social Media Convention, designed to create unity and solutions for the trucking industry. This is now being extended through the North American Trucking Alerts network as those within the industry join forces for the betterment of the industry. Allen strongly supports other industry advocates who are also stepping up to the plate to help those who share honesty, guidance and direction. He believes that all those involved in trucking need to be accountable for their part within the industry, including drivers, carriers, brokers, shippers, receivers, etc… The list of supporters and likeminded people grow daily, networking together and sharing thoughts and ideas for the betterment of trucking. He has coined the popular phrase "Raising the standards of the trucking industry"

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