Oregon Bonds -- The Motor Carrier Transportation Division (MCTD) in Oregon is considering changes to its bond requirements that could reduce costs for some truckers, while increasing costs for others.
Currently, the MCTD requires a cash deposit or surety bond for all carriers registering with Oregon for the first time, and for established carriers that don't qualify for a waiver. The state's weight mile tax is the primary reason for this requirement. The amount of the cash deposit or bond is tied to the size of the trucking operation and the number of miles operated in the state.
While the state does make exceptions in some instances, in general a one-truck operator that files quarterly reports with the state is required to post a $1000 cash or surety bond. For three or more vehicles the requirement is $2000.
The state is proposing a change in these amounts to $2000 for a new one-truck operator with additional amounts assessed per truck. All new carriers would be required to file mileage reports with the state monthly. The only way a new carrier could avoid the higher cash or bond requirements would be to produce a Dunn & Bradstreet rating that showed the carrier to be credit worthy.
For established carriers with at least one year of prompt payment practices of the weight mile tax, the state is proposing elimination of the cash bond requirement entirely. A spokesperson from ODOT said the change will eliminate the bond requirement for many carriers operating in Oregon, but it will also make the requirement higher for others.
ODOT will be accepting comments from interested parties through July 10. To submit comments online, go to www.odot.state.or.us/rules. Comments can be made by fax to 503-945-5254.
--Todd Spencer, Executive Vice President, OOIDA