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June 17, 2010

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AIPBA

Regarding H.R.2357 - Fighting Fraud in Transportation Act of 2011

Last June, similar proposed legislation was introduced into the Senate (S. 3483) called the “The Motor Carrier Protection Act of 2010.” This bill would have, among other things, raised the financial security of property brokers who are licensed by the FMCSA tenfold from $10,000 to $100,000. That bill died in committee after we contacted the members of the Committee on Commerce, Science & Transportation and pointed out the adverse impacts on small business.

The AIPBA similarly opposes HR-2357 in that it too seeks to implement a $100,000 property broker bond. If the bond were to be drastically increased as proposed, then small and mid-sized property brokers would not be able to afford the premium and/or the cash collateral requirements that would be imposed by surety companies. As a result, thousands of small business owners, including our members, would be forced out-of-business. Tens of thousands of employees and agents would lose their jobs.

Listen to our radio interview regarding big business' attempt to squeeze out the little guys in the transportation industry... http://podcasting.fia.net/6797​/4796147.mp3 or download direct from http://www.midnighttrucking.com/sectional.asp?id=25018, Thurs. July 7th Hour 2

John D Thomas

Thanks Don for your input. If you want to email your senators, go to: http://www.pac-fin.com/SB3483.php

Please do so immediately!

jdt

Don Jipping

Raising the security from 10k to 100k is going to put the majority of brokers out of business. The only brokers left will be the "deep pocket" brokers who then in turn will be able to control pricing.
Carriers may look at this bill as beneficial. It appears that way on the surface, but I urge you to look deeper at the trickle down ramifications.
Currently, shippers have no financial obligations to guarantee payment to the broker or carrier. Many a broker have gone under because of failure of the shipper to pay. Maybe this should be looked at.
This bill does help in many ways to eliminate the "rogue" & dishonest brokers who currently operate.
But raising the broker financial obligation from 10k to 100k(10k in cash) is not going to help.
I urge you to contact your congressman and voice your concern.

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