On June 24, U.S. Rep. Frank Guinta (R-N.H.) introduced the “Fighting Fraud in Transportation Act,” after working on it with the Owner-Operator Independent Drivers Association, American Trucking Associations and Transportation Intermediaries Association.
Todd Spencer, OOIDA executive vice president, said current law provides too much opportunity for fraud. “Too often, we’ve seen deceitful brokers get away with collecting payments from shippers, but cheating truckers out of what is rightfully theirs,” he said.
TIA, the third-party logistics association, said the federal broker bond requirement has been $10,000 since the mid-1980s. In recent years, some transportation associations pushed for requiring escrow accounts and upping bond to $500,000, while there was a Congressional move to demand brokers disclose profit margin on invoices.
The trucking and brokers industries compromised with a $100,000 bond requirement and the Federal Motor Carrier Safety Administration Administrator would have the option of reconsidering that amount every five years.
The bill would demand the U.S. Department of Transportation establish an annual screening of registered motor carriers, brokers and freight forwarders and list only those with current operating authority.