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Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
The $10,000 Alabama Public Service Commission broker bond is the financial responsibility filing that goes with an APSC broker license for arranging freight moves inside Alabama. It is a small bond with a quick turnaround. You pay an annual premium instead of depositing $10,000 of security with the Commission, and the executed bond rides along with Form 19A and the $100 filing fee.
Alabama requires a bond or other approved security of not less than $10,000 from anyone who holds a Public Service Commission broker license, meaning anyone who for compensation arranges the transportation of property from one point in Alabama to another. The rule is APSC 770-X-10-.04-.04, under Code of Ala. 37-3-15. Licensed motor carriers and their bona fide employees are exempt. Brokers arranging interstate freight need the separate federal $75,000 BMC-84 bond filed with FMCSA, not this one.
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This page is about the Alabama Public Service Commission bond. It covers brokering of property that moves from one Alabama point to another Alabama point. If you arrange freight that crosses a state line, the bond you need is the federal one: a $75,000 surety bond on Form BMC-84, or a trust fund on Form BMC-85, filed with the Federal Motor Carrier Safety Administration. Most freight brokers who search for an Alabama broker bond are really looking for the BMC-84. A broker that does both interstate and purely intrastate Alabama business holds both filings.
Code of Ala. 37-3-2 defines a broker as any person who is not a motor carrier and not a bona fide employee or agent of one, and who as principal or agent sells, negotiates, solicits or arranges transportation of property subject to the Alabama Motor Carrier Act. Code of Ala. 37-3-15 says no such person may sell or offer that transportation for compensation without a broker's license from the Commission, and the Commission may require a bond or other security in whatever form and amount will insure financial responsibility. The Commission set that figure in Alabama Administrative Code rule 770-X-10-.04-.04: a bond or other approved security of not less than $10,000, in a form that insures the broker's financial responsibility and the supplying of authorized transportation in accordance with the broker's contracts and arrangements.
Section 37-3-15 carves out any carrier holding a certificate or permit under the chapter, and any bona fide employee or agent of that carrier, when the transportation is furnished entirely by that carrier or jointly with other authorized carriers. A trucking company that only sells its own capacity, or interlines with other licensed carriers, is not a broker and does not post this bond.
The Commission's Transportation Division handles the license. The application is Form 19A, Property and Household Goods Broker, with a $100 filing fee paid by cashier's check or money order. The Commission does not take cash or personal or company checks. Forms are issued on request from the Transportation Division. The bond names the Alabama Public Service Commission as obligee and is filed with the application. Rule 770-X-10-.18 and its subsections govern how a licensed broker must operate: records to keep, verifying that each carrier used holds operating authority, billing, rebating, misrepresentation, and the rule that a broker license may not be transferred.
The bond backs the broker's financial responsibility to shippers and carriers. If a broker collects freight charges and does not pay the carrier, or takes money from a shipper and does not supply the transportation it contracted for, the injured party can claim against the bond up to $10,000. The surety then recovers what it paid from the broker under the indemnity agreement. The rule sets $10,000 as a floor, so confirm with the Transportation Division whether it wants a higher amount in your case before the bond is written.
Probably not. FMCSA requires a $75,000 surety bond on Form BMC-84 or a trust fund on Form BMC-85 for interstate property brokers. The $10,000 APSC bond is only for arranging shipments that both start and end in Alabama. If you do any intrastate Alabama brokering you need an APSC license and this bond in addition to the federal filing.
Code of Ala. 37-3-15 lets the Public Service Commission require a bond in whatever amount insures financial responsibility. The Commission set the number in Alabama Administrative Code rule 770-X-10-.04-.04, which requires a bond or other approved security of not less than $10,000 before anyone engages in business as a broker.
Not if you are a carrier holding an APSC certificate or permit and the freight moves entirely on your own trucks or jointly with other authorized carriers. Section 37-3-15 excludes those carriers and their bona fide employees. If you arrange loads that you hand to unaffiliated carriers, you are brokering and need the license and bond.
Form 19A carries a $100 filing fee. The Commission accepts a cashier's check or money order only, not cash or personal or company checks.
Yes. The rule states a minimum. The Commission may require a bond or other security in a larger amount if it decides that is needed to insure the broker's financial responsibility. Confirm the amount with the Transportation Division before the bond is issued.
No. APSC rule 770-X-10-.18-.09 addresses transfer of broker licenses, and a buyer should expect to apply for its own license and post its own bond rather than inherit yours.
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