HR 7539
SAFE Act
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Bill overview
The Safety and Accountability in Freight Enforcement Act (SAFE Act) directs the Federal Motor Carrier Safety Administration (FMCSA) to study chameleon carriers – entities that disguise themselves to evade regulations – and develop an advanced automation tool to detect these practices during the registration process. The bill also requires a report on the prevalence and impact of chameleon carriers, including fatalities and injuries, and mandates the creation of a tool to identify potential chameleon carrier applications. Finally, it establishes an appeals process for denied registrations and requires an audit of the tool’s effectiveness.
Key provisions
- Conduct a study on chameleon carriers and their impact on safety.
- Develop and test an advanced automation tool to detect chameleon carrier applications.
- Require the Comptroller General to submit a report to Congress on the study's findings.
- Establish an appeals process for denied Department of Transportation numbers flagged by the automation tool.
- Mandate a notification process for denied applications, including the reasons for denial.
- Require the Inspector General to audit the effectiveness of the automation tool.
- Collaborate with various federal agencies, state governments, and private sector entities.
- Define ‘chameleon carrier’ to encompass entities attempting to evade regulations and insurance requirements.
Who is affected
- Motor carriers
- Freight brokers
- Department of Transportation
- Federal Motor Carrier Safety Administration
- Insurance companies
Sponsors
Official sponsors from legislative records.
Primary sponsor
Harriet M. [R-WY-At Large] Hageman
Cosponsors
Dusty [R-SD-At Large] Johnson
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119th CONGRESS — 2d Session
H. R. 7539
IN THE HOUSE OF REPRESENTATIVES
A BILL
To direct the Administrator of the Federal Motor Carrier Safety Administration to conduct a study on chameleon carriers in the United States and plan, develop, and test an advanced automation tool to help enforcement personnel detect chameleon carrier applications under the registration process of the Department of Transportation, and for other purposes.
This Act may be cited as the Safety and Accountability in Freight Enforcement Act SAFE Act
or the
.
The report under subsection (a) shall include—
the prevalence of chameleon carriers on United States roadways since the issuance of the report of the Government Accountability Office titled Motor Carrier Safety: New Applicant Reviews Should Expand to Identify Freight Carriers Evading Detection
, issued March 22, 2012;
the estimated number of fatalities caused by chameleon carriers since the report described in paragraph (2), including the number of fatalities broken down by State;
the estimated amount of property damage caused by chameleon carriers since the report described in paragraph (2);
an identification and analysis of the methods and techniques used by chameleon carriers to evade Federal enforcement, including how such methods and techniques have evolved over time;
an identification and analysis of the existing monitoring and enforcement capabilities, along with any shortcomings, of the Department of Transportation to detect and mitigate chameleon carrier activity, including—
the registration processes for Department of Transportation numbers;
the existing software capabilities of the Department of Transportation to detect chameleon carrier applicants;
any existing penalties laid out under Federal statute and regulation for chameleon carriers;
any other relevant priorities deemed necessary by the Department of Transportation; and
any legislative recommendations to address chameleon carriers.
In carrying out the study under subsection (a), the Comptroller General may collaborate with other Federal agencies, State and local governments, institutions of higher education, and private sector entities.
the Department of Justice;
the United States Postal Service;
the Department of Homeland Security;
the Department of Commerce;
the Department of State; and
relevant operating administrations within the Department of Transportation.
the previous entity's safety performance history, including, among other things, safety violations and enforcement actions of the Secretary, if any;
existing or inactive Department of Transportation numbers;
consideration exchanged for assets purchased or transferred;
dates of company creation and dissolution or cessation of operations;
commonality of ownership between the current and former company or between current companies;
commonality of officers and management personnel;
identity of physical or mailing addresses, telephone, fax numbers, or email addresses;
identity of motor vehicle equipment;
continuity of liability insurance policies or commonality of coverage under such policies;
commonality of drivers and other employees;
continuation of carrier facilities and other physical assets;
continuity or commonality of nature and scope of operations; and
advertising, corporate name, or other acts through which the company holds itself out to the public;
the ability to detect lapses in insurance coverage;
the ability to compile evidence of the chameleon carrier-like characteristics under paragraph (1) relevant to the determination of a registration application for Department of Transportation numbers;
the ability to provide automated decision support relevant to the determination of any registration application for Department of Transportation numbers, while keeping responsibility for final determinations on employees of the Administration;
the ability to automate information sharing between Federal agencies; and
any other relevant priorities determined necessary by the Administrator.
In establishing the tool under this section, the Administrator shall provide for a process under which a person denied a Department of Transportation number as described in paragraph (1) shall receive a notification of such denial that includes the factors flagged by the tool and provides instructions to such person to correct the application for such number not later than 30 days after receipt of the notification.
Not later than 30 days after the date of enactment of this Act, the Administrator shall brief the congressional committees of jurisdiction on the issue of chameleon carriers and any ongoing efforts or progress that the Administration has made to combat such issue or meet the objectives of this Act.
Nothing in this Act shall be construed to allow the final use of an automated decision by the tool created under this section for Department of Transportation number registration.
The report under paragraph (1) shall contain—
the results of an audit of the effectiveness of the tool established under this section;
empirical data on outcomes of the use of the tool, including the number of flagged and rejected applications for Department of Transportation numbers, any reduction in severe crashes, and the number of errors and application redeterminations under subsection (d); and
any recommendations to improve the effectiveness of the tool.
In this Act, the term chameleon carrier
means a motor carrier, intermodal equipment provider, broker, or freight forwarder, or an officer, employee, agent, authorized representative, or other affiliated party of such an entity, that has, directly or indirectly, operated or attempted to operate a motor carrier, intermodal equipment provider, broker, or freight forwarder under a new identity or as an affiliated entity to—
avoid complying with a Federal Motor Carrier Safety Administration order;
avoid complying with a statutory or regulatory requirement;
avoid paying a civil penalty;
avoid responding to an enforcement action;
avoid being linked with a negative compliance history;
misrepresent ownership, control, management, or operational continuity to an insurer, broker, or underwriter for the purpose of securing lower insurance rates or favorable coverage terms; or
reincorporate, re-register, or otherwise reconstitute a carrier entity following the denial, nonrenewal, or cancellation of an insurance policy due to safety, claims, or compliance history.