Below is the proposed bill that may change bonding requirements and new regulations to new and current Brokers in the transportation industry. Please read the brief summary of the bill and Liberty Nationals position in the matter.

*Summary of the Motor Carrier Protection Act of 2010 follows:

Motor Carrier Protection Act of 2010
Summary of Major Provisions

• Increases the broker bond from $10,000 to $100,000 and applies the bonding requirement to freight forwarders.

• Establishes stricter requirements for entities seeking broker/forwarder authority as well as specific guidelines from FMCSA’s review of authority applicants and applications.

• Establishes strict penalties for violations including unlimited liability for freight charges for brokerage activities without a license or bond.  Authorizes private damages remedies against companies who violate FMCSA regulations.

• Establishes an annual registration requirement to renew broker/forwarder operating authority and generate revenue for FMCSA enforcement. Requires FMCSA to revoke operating authority that is not renewed annually.

• Establishes strict regulations on bond providers and the manner in which bonds are administered.

• Clarifies that motor carriers must have a brokers or forwarders license and bond to put freight on another carrier for compensation.

• Requires separate registration numbers per authority, and that whatever authority is used in a transaction must be stated in writing.

Brokers and Potential Brokers:

Although this bill has not passed, there is still the reality that it could in the near future come to pass. As a broker and small business owner in the transportation industry, we at Liberty National know that this increase of the bond from $10,000 to $100,000 and numerous other restrictions and regulations could pose a very serious problem for you as a broker. Liberty's position is that all brokers and potential brokers should take a very proactive stance in the matter. First off you as a broker should not give more money than the required $10,000 to any company offering surety/trust funds until this bill has come to pass. Second, any company requiring or offering higher funded bonds ( greater than $10,000 ) is only looking out for their benefit and not the customers. Liberty National Financial does recognize the urgency of being proactive in the matter, however, we recommend that the broker or potential broker start putting aside extra funds for the potential increase in the bonding requirement. Do not fall into the trap of sending more money than the required $10,000 to companies wishing to benefit from your hardship.