FMCSA Denies AIPBA Exemption Application for Bond Provision

The Federal Motor Carrier Safety Administration (FMCSA) published in the Federal Register a notice of denial of application for exemption from the Association of Independent Property Brokers and Agents (AIPBA). FMCSA denied the request on the basis that the United States Code (49 U.S.C. 13541) does not give the Agency the authority to essentially nullify a statutory provision by exempting the entire class of persons (brokers and forwarders) to the provision.

The Agency further clarified by stating:

… even if the Agency had the authority to issue such a blanket exemption, AIPBA's exemption application does not meet the factors provided in section 13541 because (1) the new $75,000 bond requirement is necessary to carry out the National Transportation Policy at 49 U.S.C.13101, (2) there has been no showing that the $75,000 requirement “is not needed to protect shippers from the abuse of market power” and (3) the requested exemption is not in the public interest.

AIPBA filed their petition on August 14, 2013, and the Agency opened the application for public comments on December 26, 2013 in the Federal Register. FMCSA received 80 responses of which 23 were anonymous. Most of the commenters (52, including 16 of the 23 anonymous commenters) supported the AIPBA application for an exemption, while 26 opposed the request.

Among the commenters in opposition of the application were TIA, OOIDA, and the Surety & Fidelity Association of America. The comments in opposition to the exemption application centered on three keys areas including:

1. Protection of the Shippers’ and Carriers’ Financial Interests;
2. Granting the Exemption would eliminate the bond requirement; and
3. Costs of the bond are reasonable.

To view the entire notice, click HERE. If you have any questions, contact Chris Burroughs (, 703.299.5705).