Showing posts with label broker bond. Show all posts
Showing posts with label broker bond. Show all posts

Thursday, January 16, 2014

FMCSA (Federal Motor Carrier Safety Administration): Safety Rules Coming in 2014

The trucking industry is expecting finalization for two major safety rules early in 2014: 1) mandated electronic logs (e-logs); and 2) a searchable database with driver drug and alcohol tests. A third is on-tap for later in the year: carrier safety fitness.
Mandated E-Logs
A great deal of controversy has surrounded the issue of e-logs--also referred to as electronic onboard recorders. Many drivers reference similar devices in the past as avenues for coercion, describing log boxes that beep every hour and require input during delays and sleeper berth time. Many consider the harassment responsible for driver sleep deprivation and therefore detrimental to highway safety.
The FMCSA (Federal Motor Carrier Safety Administration) conducted lengthy surveys regarding the potential for coercion and possible measures to protect against it. Survey results are being used to develop a coercion plan. This plan will be publicized via a Notice of Proposed Rulemaking early 2014 and then opened for public feedback.
Searchable Database for Alcohol and Drug Tests
This proposal will require employers to report all positive test results and refusals to a clearinghouse. A prospective employer may--with the applicant's permission--access the database for individual records.
The database would be maintained by a third party, and records would come with rigorous privacy measures. Any driver testing positive would be required to complete a return-to-duty process and that would be reflected in the database.
Although employers would pay a fee to access the clearinghouse, drivers would be able to access their own records for free. Dispute and appeal procedures will be part of the final rule.
As with mandated e-logs, the final rule will be posted by notice and then opened for commentary.
Later in 2014...
A third major safety proposal is not expected to reach notice until later in 2014: standards for carrier safety fitness. As part of the Compliance, Safety, Accountability (CSA) Program, data in the Behavioral Analysis and Safety Improvement Categories will be used to determine whether or not a carrier is fit to operate.

Friday, January 3, 2014

Disagreement Over The New $75,000 Broker Bond

Reports of the impact of the recently enforced $75,000 broker bond on property brokers is mixed. In effect October 1, 2013, brokers were given a 60-day grace period to comply with the increased surety bond requirements. The grace period ended December 1, and the Federal Motor Carrier Safety Administration's (FMCSA's) database has seen a reduction of over 8,000 brokers out of roughly 21,500.
The increased requirement has seen its share of controversy. Backed by the Transportation Intermediary Association (TIA), American Trucking Associations, and the Owner-Operator Independent Drivers Association (OOIDA), it was considered better protection for freight carriers. Supporters argued the $10,000 bond had been in place for 30 years and was no longer adequate to cover losses suffered by carriers jilted by fraudulent brokers. The new and higher bond was touted as proper course to ensure professionalism and legitimacy in the industry.
Others felt it was an unfair hardship inflicted upon small brokers who do not do enough annual business to afford the increased bond. The Association of Independent Property Brokers & Agents (AIPBA) has been the most vocal opponent of the change. In previous negotiations, the AIPBA had agreed to a $25,000 bond that would cover inflation, but argued $75,000 was excessive, overly punitive to small business, and a means for mega-corporations to monopolize the industry.
Estimates of revoked brokerage licenses has varied. Discrepancies in the numbers of affected brokers may be due to whether or not reported statistics include warning notices sent in November, inclusion of those who voluntarily surrendered their licenses, and inactive brokers who were simply cleaned out of the database after December 1. AIPBA maintains that over 8,000 valid and active brokers were shut down. The organization's petition to the U.S. Court of Appeals remains pending.
In the meantime, brokers who have had their licenses revoked may be eligible for reinstatement if they meet the higher bonding requirements.