SAFER Transport Act

This Act may be cited as the Securing American Freight, Enforcement, and Reliability in Transport Act or the SAFER Transport Act.

In this Act:

The term Administration means the Federal Motor Carrier Safety Administration.

The term Administrator means the Administrator of the Administration.

The term appropriate committees of Congress means—

(A) the Committee on Commerce, Science, and Transportation of the Senate; and

(B) the Committee on Transportation and Infrastructure of the House of Representatives.

The term broker has the meaning given the term in section 13102 of title 49, United States Code.

The term Department means the Department of Transportation.

The term freight forwarder has the meaning given the term in section 13102 of title 49, United States Code.

The term MC number means a motor carrier docket number issued by the Administration.

The term motor carrier has the meaning given the term in section 13102 of title 49, United States Code.

The term Secretary means the Secretary of Transportation.

The term USDOT number has the meaning given the term in section 31132 of title 49, United States Code.

Not later than 60 days after the date of enactment of this Act, the Secretary shall establish an advisory committee, to be known as the Freight Fraud and Theft Advisory Committee (referred to in this section as the advisory committee), to receive input from the public on ways in which the Department could contribute to the reduction of freight fraud and theft using existing authorities of the Department.

The advisory committee shall be composed of the following stakeholders:

(1) Stakeholders representing each of the following:

(A) Motor carriers, including independent owner-operators.

(B) Railroads.

(C) Ports.

(D) Marine terminal operators.

(E) Freight brokers.

(F) Aviation operators.

(G) State and local law enforcement officials.

(H) Shippers.

(I) Insurance companies.

(2) Other stakeholders that the Secretary determines would provide insightful information on ways to address freight fraud and theft.

The advisory committee shall provide to the Secretary input and recommendations on ways in which the Department could contribute to the reduction of freight fraud and theft, including ways in which the Department could improve coordination within the Department and between the Department and other Federal agencies to identify and respond to freight fraud and theft.

Not later than 2 years after the date on which the advisory committee is established under subsection (a), the advisory committee shall submit to the Secretary and to the appropriate committees of Congress a report that includes the findings of the advisory committee, any recommendations provided to the Secretary under subsection (c), and any other recommendations relating to the matters described in that subsection.

The advisory committee shall terminate on submission of the report under subsection (d).

Not later than 180 days after the date of enactment of this Act, the Secretary and the Attorney General shall enter into a memorandum of understanding on addressing freight fraud and theft.

At a minimum, the memorandum of understanding entered into under subsection (a) shall—

(1) require the Department to notify appropriate officials at the Department of Justice of any freight fraud or theft identified through the regulatory or enforcement work of the Department, and specify the method for such notification; and

(2) require the Department of Justice to establish a process for receiving and handling such information from the Department.

During the 5-year period beginning on the date of enactment of this Act, the Secretary—

(1) shall not issue or renew an MC number; and

(2) shall take other appropriate steps to phase out reference to MC numbers.

The Secretary shall ensure that, as of the date that is 5 years after the date of enactment of this Act—

(1) no motor carrier, broker, or freight forwarder holds an MC number; and

(2) each motor carrier, broker, and freight forwarder has been assigned a USDOT number.

Section 13903(a) of title 49, United States Code, is amended—

(1) in paragraph (1), by striking and at the end;

(2) in paragraph (2), by striking the period at the end and inserting; and; and

(3) by adding at the end the following:

(3) has been issued a USDOT number under section 31134.

(3) .

Section 13904(a) of title 49, United States Code, is amended—

(1) in paragraph (1), by striking and at the end;

(2) in paragraph (2), by striking the period at the end and inserting; and; and

(3) by adding at the end the following:

(3) has been issued a USDOT number under section 31134.

(3) .

Section 31132 of title 49, United States Code, is amended—

(1) in the matter preceding paragraph (1), by striking the em dash and inserting a colon;

(2) in paragraph (8), by striking 31136 and 31140–31142 and inserting 31136, 31141, and 31142;

(3) in each of paragraphs (1) through (11)—

(A) by inserting The term after the paragraph designation; and

(B) by inserting a paragraph heading, the text of which comprises the term defined in the paragraph;

(4) by redesignating paragraphs (1) through (11) as paragraphs (2), (6), (7), (8), (9), (10), (11), (13), (14), (15), and (16), respectively;

(5) by inserting before paragraph (2) (as so redesignated) the following:

The term Administration means the Federal Motor Carrier Safety Administration.

(5) ;

(6) by inserting after paragraph (2) (as so redesignated) the following:

The term convicted, with respect to an employer or person, means that a conviction has been made final with respect to that employer or person.

The term conviction means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of Federal or State law.

The term covered felony means a felony under Federal or State law involving—

(A) transportation, trafficking, or smuggling of persons, property, firearms, or controlled substances;

(B) theft, fraud, coercion, or extortion—

(i) involving the commercial transportation of property or passengers; or

(ii) in connection with operation as a motor carrier; or

(C) transportation of property or passengers in violation of an immigration or labor law.

(6) ;

(7) by inserting after paragraph (11) (as so redesignated) the following:

The term Secretary means the Secretary of Transportation.

(7) ; and

(8) by adding at the end the following:

The term USDOT number means a unique identifier issued to an employer or person under section 31134.

(8) .

Section 31134 of title 49, United States Code, is amended—

(1) in subsection (a)—

(A) in the fourth sentence, by striking An and inserting the following:

An

(A) ;

(B) in the third sentence, by striking Nothing and inserting the following:

Nothing

(B) ;

(C) in the second sentence, by striking An and inserting the following:

An

(C) ;

(D) by striking the subsection designation and heading and all that follows through the period at the end of the first sentence and inserting the following:

On application, and subject to paragraphs (3) and (6) and subsections (b) and (d), the Secretary shall register—

(A) an employer or person subject to the safety jurisdiction of this subchapter; or

(B) a motor carrier, broker, or freight forwarder subject to chapter 139.

(D) ; and

(E) by inserting after paragraph (2) the following:

A USDOT number shall—

(A) be required to obtain registration under this section or part B of subtitle IV;

(B) uniquely identify the employer or person to which it is issued; and

(C) be the only unique identifier issued by the Secretary to the employer or person for purposes of this section or part B of subtitle IV.

(E) ;

(2) in subsection (b)—

(A) in the matter preceding paragraph (1), by striking subsection (a) and inserting this subsection;

(B) in paragraph (2)—

(i) by striking (A); and

(ii) by striking listed in subsection (b)(1) and inserting described in subparagraph (A);

(C) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively, and indenting appropriately; and

(D) by striking the subsection designation and heading and all that follows through The in the matter preceding subparagraph (A) (as so redesignated) and inserting the following:

The

(D) ;

(3) by redesignating subsections (c) through (e) as subsections (d) through (f), respectively;

(4) by inserting after subsection (a) the following:

The Secretary may withhold registration from an employer or person under subsection (a) if the employer or person has been convicted of a covered felony relating to the motor carrier operations of, or use of a commercial motor vehicle by, the employer or person.

Not later than 30 days after a motor carrier, broker, or freight forwarder associated with a USDOT number of an employer or person under this section experiences a change in ownership, including through purchase, sale, merger, acquisition, or any other transfer, the new employer or person owning the motor carrier, broker, or freight forwarder shall notify the Administration of the change in ownership.

(4) ; and

(5) in subsection (d) (as so redesignated)—

(A) in paragraph (1), by striking sections 13905(d)(1) and inserting section 13905(d)(2);

(B) in paragraph (2), by striking listed in subsection (b)(1) and inserting described in subsection (a)(6)(A);

(C) in paragraph (3), by striking listed in subsection (b)(1) and inserting described in subsection (a)(6)(A);

(D) in paragraph (4), by striking the period at the end and inserting; or;

(E) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D), respectively, and indenting appropriately;

(F) in the matter preceding subparagraph (A) (as so redesignated), by striking The Secretary and inserting the following:

The Secretary

(F) ;

(G) in paragraph (1) (as so designated), by adding at the end the following:

(E) the employer or person failed to disclose, in an application for registration under subsection (a) or any update required by subsection (e), a material fact relevant to the willingness or ability of the employer or person to comply with—

(i) the requirements described in subsection (a)(6)(A); or

(ii) an order of the Secretary.

(G) ; and

(H) by adding at the end the following:

The Secretary may revoke the registration of an employer or person issued under subsection (a) after notice and an opportunity for a proceeding, or suspend the registration after giving notice of the suspension to the employer or person, if the employer or person has been convicted of a covered felony relating to the motor carrier operations of, or use of a commercial motor vehicle by, the employer or person.

(H) .

Section 13902(a)(4) of title 49, United States Code, is amended—

(1) by striking If and inserting the following:

If

(1) ; and

(2) by adding at the end the following:

The Secretary may withhold registration from a registrant if the registrant has been convicted (as defined in section 31132) of a covered felony (as defined in that section) relating to the motor carrier operations of, or use of a commercial motor vehicle by, the registrant.

(2) .

Not later than 1 year after the date of enactment of this Act, the Secretary shall complete all requirements relating to the establishment of the Unified Carrier Registration System under section 13908 of title 49, United States Code.

(1) Section 321(4) of the United States-Mexico-Canada Agreement Implementation Act (19 U.S.C. 4571(4)) is amended by striking paragraph (1) and inserting paragraph (2).

(2) Section 224(b) of the Motor Carrier Safety Improvement Act of 1999 (49 U.S.C. 31100 note; Public Law 106–159) is amended, in the first sentence, by striking section 31132(1)(B) and inserting section 31132(2)(B).

(3) Section 4008(b) of the Transportation Equity Act for the 21st Century (49 U.S.C. 31136 note; Public Law 105–178) is amended by striking section 31132(1)(B) of such title (as amended by subsection (a)) and inserting section 31132(2)(B) of that title.

(4) Section 32702(3) of the Motorcoach Enhanced Safety Act of 2012 (49 U.S.C. 31136 note; Public Law 112–141) is amended by striking section 31132(1) and inserting section 31132.

(5) Subchapter III of chapter 311 of title 49, United States Code, is amended—

(A) by striking Federal Motor Carrier Safety Administration each place it appears and inserting Administration; and

(B) by striking Secretary of Transportation each place it appears and inserting Secretary.

Section 31311(a)(12) of title 49, United States Code, is amended—

(1) in subparagraph (A), by striking subparagraphs (B) and (C) and inserting subparagraphs (B) through (D);

(2) by redesignating subparagraph (C) as subparagraph (D); and

(3) by inserting after subparagraph (B) the following:

(C) A State that issues a commercial learner’s permit or a commercial driver’s license to an individual who is not a citizen or lawful permanent resident of the United States shall—

(i) confirm that the applicant for the commercial learner’s permit or commercial driver’s license is authorized to work in the United States;

(ii) provide to the Administrator of the Federal Motor Carrier Safety Administration such information as the Administrator determines necessary to confirm that the applicant is authorized to work in the United States; and

(iii) if the applicant’s authorization to work in the United States expires before the date on which the applicant’s commercial learner’s permit or commercial driver’s license would otherwise expire, align the expiration of the applicant’s commercial learner’s permit or commercial driver’s license to the date on which the applicant’s authorization to work in the United States expires.

(3) .

Chapter 313 of title 49, United States Code, is amended by adding at the end the following:

Not later than the last day of each month, each State that issues commercial driver’s licenses under this chapter shall submit to the Secretary of Transportation a report describing—

(1) the number of commercial learner’s permits issued by the State during the preceding month;

(2) the number of commercial driver’s licenses issued by the State during the preceding month;

(3) the number of foreign non-domiciled commercial driver’s licenses issued by the State during the preceding month;

(4) the number of endorsements issued by the State during the preceding month; and

(5) the number of, and justification for, revocations, suspensions, and downgrades of commercial driver’s licenses by the State during the preceding month.

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The analysis for chapter 313 of title 49, United States Code, is amended by adding at the end the following:

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Section 31305 of title 49, United States Code, is amended—

(1) in subsection (a), in the matter preceding paragraph (1), by inserting (referred to in this section as the Secretary) after Secretary of Transportation; and

(2) by adding at the end the following:

In this subsection:

The term Administration means the Federal Motor Carrier Safety Administration.

The term principal place of business, with respect to a provider, means a single physical business location of the provider where—

(i) management officials of the provider report to work; and

(ii) the provider conducts a significant portion of its business relating to the training of persons to transport persons or property.

The term provider means a training provider (within the meaning of subpart G of part 380 of title 49, Code of Federal Regulations (or successor regulations)).

The term registry means the training provider registry maintained by the Administration.

The Secretary shall establish a process to audit providers listed on the registry to ensure that each provider meets the criteria established by the Secretary to provide training.

The Secretary may require States—

(i) to conduct an audit under subparagraph (A); or

(ii) to collect relevant information from providers in the State for the Administration to audit.

On complaint or on the initiative of the Secretary, the Secretary may, after providing notice and an opportunity to be heard, withhold, suspend, or revoke the registration of any provider listed on the registry if the Secretary finds that the provider failed to disclose any relationship, whether arising from common ownership, management, control, or familial ties, with another provider listed on the registry or with any applicant for inclusion on the registry whom the Secretary has determined to be unwilling or unable to comply with an applicable regulation or order of the Secretary.

Not later than 120 days after the date of enactment of this subsection, the Secretary shall establish a process for States to remove a provider from the registry if the State determines that the provider—

(A) is no longer in business;

(B) has been found guilty of committing fraud; or

(C) has violated State regulations governing commercial motor vehicle operator training.

An entity seeking to become a provider in accordance with subsection (c) shall register with the Administration.

A provider may not be added to the registry unless the provider has registered a principal place of business with the Administration.

A provider listed on the registry as of the date of enactment of this subsection—

(i) shall register a principal place of business with the Administration by the date that is 1 year after that date of enactment; and

(ii) shall be removed from the registry if the provider has not registered a principal place of business with the Administration by the deadline described in clause (i).

Not later than 180 days after receiving a complaint against a provider included on the registry, the Administration shall make a determination with respect to resolving that complaint.

(2) .

In this section:

The term existing user means a motor carrier that has access to, is registered for, or is otherwise included in the registration system.

The term flagged user means a new user or existing user—

(A) the activity of which is flagged as suspicious by an automated system implemented under subsection (b);

(B) with respect to which a discrepancy or other suspicious matter is identified; or

(C) with respect to which the Administration receives a report or other notification of—

(i) failure to disclose a material fact;

(ii) fraud;

(iii) any activity indicative of fraud; or

(iv) any other suspicious activity pertaining to the registration system.

The term new user means a motor carrier or broker that first accesses or registers, or is first included in, the registration system.

The term person has the meaning given the term in section 13102 of title 49, United States Code.

The term registration system means the system that the Administration uses to register motor carriers or brokers as required under section 13908 of title 49, United States Code.

Not later than 1 year after the date of enactment of this Act, the Administrator shall develop and implement 1 or more automated systems to flag suspicious activity in the registration system, or by motor carriers, brokers, or other persons dealing with the Administration, such as—

(1) rapid or unusual changes to motor carrier or broker information;

(2) unusual registration patterns; or

(3) duplicate business identifiers.

The Administrator shall establish a process to review each flagged user to determine whether that user engaged in fraud with respect to the registration system.

A review under paragraph (1) shall—

(A) begin immediately on—

(i) the flagging of suspicious activity by an automated system implemented under subsection (b);

(ii) the identification of any discrepancy or other suspicious matter; or

(iii) the receipt of a report or other notification described in subsection (a)(3)(C); and

(B) include an audit of the flagged user, if appropriate or necessary to resolve the review.

The Administrator may—

(i) temporarily suspend the registration of any flagged user in the registration system during a review under paragraph (1); or

(ii) note in any record of the Administration, including a public record published on the registration system, that a review of the applicable flagged user is ongoing.

If the Administrator temporarily suspends a registration of a flagged user under subparagraph (A)(i), the Administrator shall provide to the flagged user a period of not less than 30 days to respond to and address any problems identified by the Administrator for purposes of resolving the review.

On a determination that a motor carrier, broker, or any other person has failed to disclose a material fact, submitted fraudulent information, or committed fraud with respect to the registration system, the Administrator shall, as the Administrator determines to be appropriate—

(i) remove the person from the public view of the registration system;

(ii) remove the ability of the person to access the registration system; or

(iii) suspend or revoke the authority of the person to operate as a motor carrier, broker, or otherwise.

If the Administrator takes an action described in subparagraph (A)(iii), the Administrator shall maintain the information of the applicable person in the registration system to assist the Administrator in identifying future fraudulent activities of the person.

Any update to a record in the registration system under this section—

(1) shall be made instantaneously, or as near instantaneously as possible, with respect to the determination relating to the update; and

(2) shall not be made unless the person requesting the update verifies that the person is authorized to request the update.

Not later than 90 days after the date of enactment of this Act, the Administrator shall issue to motor carriers and brokers guidance about how to protect against fraudulent activities.

The Administrator shall update the guidance issued under paragraph (1) as appropriate to improve awareness of fraudulent activities.

The Administrator and the Commissioner of U.S. Customs and Border Protection shall enter into a memorandum of understanding with respect to how the Administrator and State law enforcement agencies communicate to the Commissioner information relating to violations of—

(1) section 13902(k) of title 49, United States Code, relating to the prohibition on the provision of point-to-point transportation services within the United States by drivers or motor carriers, including motor private carriers (as defined in section 13102 of title 49, United States Code), domiciled in Mexico or Canada operating in the United States; and

(2) section 13902(l) of title 49, United States Code, relating to the prohibition on the provision of point-to-point transportation services within the United States by unauthorized alien drivers.

Section 13902 of title 49, United States Code, is amended by adding at the end the following:

A motor carrier or motor private carrier described in paragraph (2) shall not transport domestic cargo from a point originating within the United States to a destination point also within the United States.

A motor carrier or motor private carrier referred to in paragraph (1) is a motor carrier or motor private carrier that—

(A) is domiciled in Canada or Mexico; or

(B) is domiciled in the United States but owned or controlled, directly or indirectly, by a person domiciled in Mexico.

A motor carrier or motor private carrier shall not knowingly transport domestic cargo from a point originating within the United States to a destination point also within the United States in a commercial motor vehicle (as defined in section 31301) operated by an alien (as defined in section 101(a) of the Immigration and Nationality Act (8 U.S.C. 1101(a))) who is not authorized by U.S. Citizenship and Immigration Services to engage in employment in the United States that includes driving a commercial motor vehicle.

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Not later than 1 year after the date of enactment of this Act, the Administrator shall revise section 365.101T(h) of title 49, Code of Federal Regulations, to reflect the requirements of subsection (a) and section 13902(k) of title 49, United States Code.

The Commissioner of U.S. Customs and Border Protection shall reimburse the victims of cargo theft under section 659 of title 18, United States Code, for fines paid by such victims to U.S. Customs and Border Protection for containers that are not sealed as required by regulations prescribed pursuant to section 204 of the Security and Accountability For Every Port Act of 2006 (6 U.S.C. 944).

In this section, the term fraudulent certification means any statement, representation, or omission of fact, including in any writing or document, that—

(1) is material;

(2) is known by the person submitting or using it to be false, fictitious, misleading, or incomplete; and

(3) is submitted or used in connection with any registration, certification, filing, or compliance requirement administered by the Administration under chapter 5, 311, 313, or 315 of title 49, United States Code.

Any person who knowingly and willfully submits to the Administrator or otherwise uses a fraudulent certification and, by means of that fraudulent certification or any authority or status obtained pursuant to that fraudulent certification, engages or attempts to engage in the unlawful transportation of property or passengers in interstate commerce shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.

Section 13102 of title 49, United States Code, is amended—

(1) in the matter preceding paragraph (1), by striking, the following definitions shall apply;

(2) by redesignating paragraphs (6) through (27) as paragraphs (7), (8), (9), (10), (11), (12), (13), (14), (15), (16), (17), (18), (20), (21), (22), (23), (24), (25), (26), (27), (28), and (19) respectively, and moving the paragraphs so as to appear in numerical order; and

(3) by inserting after paragraph (5) the following:

The term foreign dispatch service means a person that—

(A) is not located in the United States, Mexico, or Canada;

(B) maintains its principal place of business or substantial operations in a foreign country;

(C) acts as a direct licensed agent on behalf of 1 or more motor carriers through a formal written agreement;

(D) receives compensation from those motor carriers based on a predetermined written legal contractual agreement;

(E) discloses that—

(i) the person is a dispatch service operating under an agreement with a specific motor carrier; and

(ii) the relevant shipment is arranged for that motor carrier only;

(F) provides only administrative or support services limited to—

(i) coordinating freight movements without assuming responsibility for the cargo or arranging transportation; and

(ii) communicating through a broker to arrange for the transportation of shipments for the motor carrier; and

(G) does not seek or solicit shippers for freight.

(3) .

Chapter 139 of title 49, United States Code, is amended by adding at the end the following:

A person operating as a foreign dispatch service shall register as a broker.

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The analysis for chapter 139 of title 49, United States Code, is amended by adding at the end the following:

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(1) Section 32702(5) of the Motorcoach Enhanced Safety Act of 2012 (49 U.S.C. 31136 note; Public Law 112–141) is amended—

(A) in subparagraph (A), by striking section 13102(14) and inserting section 13102; and

(B) in subparagraph (B), by striking section 13102(15) of that title and inserting that section.

(2) Section 14101(b)(1) of title 49, United States Code, is amended, in the first sentence, by striking section 13102(10)(A) and inserting section 13102(11)(A).

(3) Section 14104(b)(1)(A) of title 49, United States Code, is amended by striking section 13102(10)(A) and inserting section 13102(11)(A).

(4) Section 14706(c)(1)(A) of title 49, United States Code, is amended by striking section 13102(10)(A) and inserting section 13102(11)(A).

Section 14122 of title 49, United States Code, is amended by striking subsection (a) and inserting the following:

The Secretary or the Board, as applicable, may prescribe the form of records required to be prepared or compiled under this subchapter by carriers and brokers, including records related to movement of traffic and receipts and expenditures of money.

Records described in paragraph (1) shall be maintained or made accessible upon demand at the principal place of business of the carrier or broker.

Nothing in this subsection prevents the Secretary or the Board, as applicable, from conducting an investigation at a location other than the principal place of business or virtually.

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Section 13102 of title 49, United States Code, is amended by striking paragraph (2) and inserting the following:

The term broker means a person who offers for sale, negotiates for, or holds itself out by solicitation, advertisement, technology, or otherwise as selling, providing, or arranging for, transportation by motor carrier for direct or indirect compensation.

The term broker does not include a person providing only financial assistance, analysis, or accounting services.

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Section 14916(a) of title 49, United States Code, is amended by striking the subsection designation and heading and all that follows through that person— in the matter preceding paragraph (1) and inserting the following:

A person may provide interstate brokerage services only if that person—

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