TIA Releases Updated Model Contract and Certification to Address CARB

TIA has released an updated version of its model Broker-Carrier Contract to address the recent changing landscape of the California Air Resources Board (CARB) regulations on 3PLs and brokers. In addition to the model contract, the TIA Contracts Committee has put together a sample certification addendum to have your motor carriers sign. This is an important step to take when arranging transportation in California and one that CARB specifically recommends.

Prior to recent financial penalties issued by CARB against two large asset-based 3PLs for non-compliance of certain regulations containing California-based broker language, there was no need for specific contract language for brokers domiciled outside California. TIA previously released a California-based model agreement. Unfortunately, the landscape has changed, and CARB is now defining a California-based broker as a business that arranges transportation within California no matter where your business is domiciled.

The certification addendum is a key piece to consider; demonstrating due diligence when a motor carrier does not have an official CARB certificate on file. There are several exemptions and examples where a motor carrier does not need to register with the CARB system; this model certification is the required step for 3PLs to take to demonstrate compliance.

This significant change required the action of the TIA Contracts Committee to address this concern. “The TIA Contracts Committee is constantly looking to update our model agreements to address the changing landscapes in the industry. The recent fines against 3PLs for non-compliance are unfortunate, TIA will continue to try to keep our members prepared and protected from these type of situations,” said TIA Contracts Committee Chairman James Lee of Choptank Transport, Inc.

To view the updated model agreement and the sample certification form, please visit Model Contracts page on the Members Only section of the TIA website.

If you have any questions, please contact Chris Burroughs at burroughs@tianet.org or 703-299-5700.