A companion bill intended to address the growing concerns of freight fraud and cargo theft has been introduced in the House.
On Tuesday, April 14, Congressman Brad Knott, R-N.C., introduced the Securing American Freight, Enforcement and Reliability Act. According to Knott, the proposed legislation is designed to “close loopholes exploited by bad actors in the nation’s freight and transportation systems.”
Tabbed the SAFER in Transport Act, Knott said the bill “enhances federal coordination, modernizes fraud detection and fortifies licensing and enforcement practices” as a means of improving security within the supply chain.
“For too long, criminals and bad actors have exploited weak enforcement and outdated systems to target our freight network,” Knott said in a statement. “The SAFER Transport Act restores integrity, builds real guardrails and gives our drivers and businesses the tools to stop fraud and theft. When we secure America’s roads, we protect cargo, jobs, families and our nation’s economy.”
In February, Sen. Todd Young, R-Ind., introduced companion legislation in the Senate. Both proposals seek to attack freight fraud through a multi-pronged approach.
The first of which is to direct the U.S. Department of Transportation to establish a Freight Fraud and Theft Advisory Committee to “identify vulnerabilities and recommend solutions.”
The bill also requires a Memorandum of Understanding between the U.S. DOT and the Department of Justice, formalizing how the agencies handle information and coordinate on freight fraud cases.
Another key component of the proposed legislation would be significant changes to how carriers, brokers and freight forwarders register with the federal government, namely by eliminating the use of Motor Carrier numbers.
If approved, the bill would require the Secretary of Transportation to immediately suspend the issuance or renewal of MC numbers and “take other appropriate steps to phase out” MC numbers within five years of the bill’s passage. During the five-year period, the bill would require all new and existing carriers, brokers and freight forwarders to transition to using U.S. DOT numbers for business registration.
The bill also aims to combat freight fraud by enhancing oversight of the issuance of commercial driver’s licenses and the training of commercial drivers.
The proposed legislation would require states to submit monthly reports to the Transportation Secretary on the number of CLPs, CDLs, foreign non-domiciled CDLs and endorsements issued by the state. The reports must also include the total number of revocations, suspensions or downgrades of commercial driver’s licenses, and the justification for each, every month.
If approved, the SAFER Transport Act would also increase oversight of states that issue a CDL or CLP to an individual who is not a citizen or lawful permanent resident of the United States. Under the proposed legislation, states that issue licenses or permits to individuals in this category must:
- Confirm that the applicant is authorized to work in the United States
- Provide the FMCSA with “such information as the Administrator determines necessary to confirm that the applicant is authorized to work in the United States”
- Align the expiration of the CDL or CLP to the date on which the applicant’s authorization to work in the United States expires
The bill would also require the U.S. DOT to establish a process to audit registered training providers. In addition, the proposed legislation would require the Transportation Secretary to establish a process for states to remove training providers from the registry if the state finds the provider is “no longer in business, has been found guilty of committing fraud, or has violated state regulations governing commercial motor vehicle operator training.”
The proposal also aims to fight freight fraud by expanding the department’s ability to stop bad actors before they register by granting the authority to withhold or revoke registration for certain felonies or nondisclosures.
According to the bill’s text, any registrant who is found to have “failed to disclose a material fact, submitted fraudulent information, or committed fraud with respect to the registration system,” could have their authority revoked, “motor carrier, broker, or otherwise.”
Additionally, the proposed legislation would mandate the completion of the Unified Carrier Registration System within one year of passage.
The bill has been referred to the Committee on Transportation and Infrastructure, where it now waits for consideration. LL
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