Broker Organizations Battle it out on Bond Amount

Kevin Anderson Regulations, Transportation

It is interesting to follow the heated battle between the TIA and the Association of Independent Property Brokers & Agents. The TIA is a key force behind the effort to raise the required broker surety bond or trust fund to $100,000 from the existing $10,000. TIA’s current effort to raise the bond amount is set forth in the “Fighting Fraud in Transportation Act of 2011,” which is part of the transportation bill currently under consideration by Congress. That bill would make many changes in addition to raising the bond/trust fund amount, including requiring motor carriers to obtain a broker’s license if they intend to broker shipments.

The Association of Independent Property Brokers & Agents is a small organization compared to TIA, but it is aggressively attacking TIA’s efforts to raise the bond/trust fund amount. AIPBA positions itself as representing the “mom & pop” brokers fighting against the bullying TIA representing the large brokers. AIPBA contends that some 17,000 small “independent” brokers will be put out of business if the increased bond amount is enacted. Strong words are being exchanged between the leaders of TIA and AIPBA, and it will be interesting to see how this plays out.