Section 1 Short title
This Act may be cited as the “Safety and Accountability in Freight Enforcement Act” or the “SAFE Act”.
Safety and Accountability in Freight Enforcement Act
A BILL
To require the Comptroller General of the United States to conduct a study on chameleon carriers in the United States and require the Administrator of the Federal Motor Carrier Safety Administration to 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.
Sec. 2 Definitions
In this Act:
Administrator— The term Administrator means the Administrator of the Federal Motor Carrier Safety Administration.
Broker; freight forwarder; motor carrier— The terms broker, freight forwarder, and motor carrier have the meanings given those terms in section 13102 of title 49, United States Code.
Chameleon carrier— 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 a motor carrier, intermodal equipment provider, broker, or freight forwarder, 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;
complying with a statutory or regulatory requirement;
paying a civil penalty;
responding to an enforcement action; or
being linked with a negative compliance history;
to avoid or evade increased insurance premiums, policy cancellations, or underwriting restrictions by obtaining or attempting to obtain insurance coverage under a new or materially different identity, ownership structure, or corporate form;
to 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
to 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.
USDOT number— The term USDOT number means a USDOT number issued under section 31134 of title 49, United States Code.
Sec. 3 Report on chameleon carriers
In general— Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to Congress a report describing the results of a study that examines chameleon carriers on United States roadways.
Contents— The report under subsection (a) shall include—
the estimated number of chameleon carriers on United States roadways at any given time;
the prevalence of chameleon carriers on United States roadways since the issuance of the report of the Government Accountability Office entitled “Motor Carrier Safety: New Applicant Reviews Should Expand to Identify Freight Carriers Evading Detection”, numbered GAO–12–364, and dated March 22, 2012;
the estimated number of fatalities caused by chameleon carriers since the issuance of the report described in paragraph (2), including the number of fatalities in each State;
the estimated number of serious bodily injuries caused by chameleon carriers since the issuance of the report described in paragraph (2), including the number of serious bodily injuries in each State;
the estimated amount of property damage caused by chameleon carriers since the issuance of 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 those 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 process for USDOT numbers;
the existing software capabilities of the Department of Transportation to detect chameleon carrier applicants;
any recommendations for improving data fields within the Motor Carrier Management Information System; and
any existing penalties prescribed under Federal statutes and regulations for chameleon carriers;
any other relevant priorities, as determined necessary by the Comptroller General of the United States, in consultation with the Administrator; and
any legislative recommendations to address matters relating to chameleon carriers.
Collaboration— In carrying out the study under subsection (a), the Comptroller General of the United States may collaborate with other Federal agencies, State and local governments, institutions of higher education, and private sector entities.
Sec. 4 Advanced automation tool
In general— Not later than 1 year after the date of enactment of this Act, the Administrator shall develop, test, and implement an advanced automation tool to help Federal Motor Carrier Safety Administration registration personnel detect chameleon carrier applications under the registration process for USDOT numbers.
Collaboration—
In general— In developing the advanced automation tool under subsection (a), the Administrator may collaborate with other Federal agencies, State and local governments, institutions of higher education, and the private sector as necessary to develop and test the advanced automation tool.
Federal agencies— The Administrator and any Federal agency the Administrator determines is relevant shall enter into a memorandum of understanding to share information needed to implement the requirements described in subsection (c), which may include—
the Department of the Treasury;
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.
State agencies— The Administrator shall enter into a memorandum of understanding with any relevant State agency to share information needed to implement the requirements described in subsection (c).
Requirements— The advanced automation tool developed under subsection (a) shall include—
the ability to detect chameleon carrier-like characteristics that support evidence of substantial continuity between entities, including—
whether the new or affiliated entity was created for the purpose of evading statutory or regulatory requirements, a Federal Motor Carrier Safety Administration order, enforcement action, or negative compliance history;
the safety performance history of the previous entity, including, at a minimum—
any safety violations; and
any enforcement actions of the Secretary of Transportation;
existing or inactive USDOT 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 numbers, fax numbers, or email addresses;
identity of motor vehicle equipment;
continuity of liability insurance policies or commonality of coverage under those 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—
a determination of whether to approve a registration application; or
a determination of whether to issue a USDOT number;
the ability to provide automated decision support relevant to a determination described in paragraph (3), while keeping responsibility for final determinations with employees of the Federal Motor Carrier Safety Administration;
the ability to automate information sharing between Federal agencies; and
any other relevant priorities, as determined necessary by the Administrator.
Appeals for redetermination—
In general— In establishing the advanced automation tool under subsection (a), the Administrator shall develop an appeals process pursuant to which a person denied a USDOT number on the basis of a flag by that tool may seek a review of the denial.
Notification— In establishing the advanced automation tool under subsection (a), the Administrator shall provide for a process pursuant to which a person denied a USDOT number as described in paragraph (1) shall receive a notification of that denial that—
includes the factors flagged by the tool; and
provides instructions to the person to correct the application for the USDOT number not later than 30 days after receipt of the notification.
Timing of redetermination— The appeals process developed under paragraph (1) shall provide for a redetermination on the amended application for a USDOT number to take effect not later than 30 days after the receipt of a corrected application under paragraph (2)(B).
Briefing— 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 that issue or meet the objectives of this Act.
Rule of construction— Nothing in this Act allows the final use of an automated decision made by the advanced automation tool developed under subsection (a) for any relevant registration or the issuance of a USDOT number.
Data privacy— In developing the advanced automation tool under subsection (a), the Administrator shall ensure that data used by that tool is not disclosed for a purpose not described in this section.
Audit and report on effectiveness—
In general— Not later than 2 years after the date of implementation of the advanced automation tool developed under subsection (a), the Inspector General of the Department of Transportation shall submit to Congress a report on the effectiveness of that tool.
Contents— The report under paragraph (1) shall include—
the results of an audit of the effectiveness of the advanced automation tool developed under subsection (a);
empirical data on outcomes of the use of that tool, including—
the number of flagged and rejected applications for USDOT 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.