Friday, July 20, 2012

Analysis of Highway Bill

Attached is a PowerPoint explaining the issues covered in the Highway Bill (MAP-21). This outline is prepared by Rick Gobbell, our firm's Safety Consultant. Of particular interest is the EOBR requirement which may be delayed due to continued opposition and a de-funding bill passed by the House. In addition to provisions for new entrants and driver training, there are provisions precluding chameleon carriers and precluding shippers, broker and receivers from coercing drivers to exceed the hours of service.

The most important provision is the broker bond provision. Every carrier who has used convenience interlining or subcontracting to obtain excess capacity will be required to obtain a broker's license when the new law takes effect. All brokers will have to have  a $75,000 bond or bank trust agreement and after the regulations become effective new applicants will be required to demonstrate they have at least 3 years of relevant experience and knowledge of the rulers and regulations. 

MAP-21 is not self executing. Importantly, the FMCSA must promulgate rules before the broker's bond and other provisions go into effect. This means you do not have to obtain a $75,000 bond any time in the near future. 

The increase in the bond amount and the requirement that all carriers who subcontract freight obtain a broker's license is anti-competitive. We will be working through Service of Process Agents, various insurers, and financial institutions to ensure that our clients are able to comply with these regulations at a minimum expense. If you are interested in having us track the broker's bond issue or an implementation of any other provision of MAP-21, please let us know.

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