Anti-fraud, CDL testing laws launched in Congress

Trucking information and briefs for Friday, Jan. 31, 2025:

Anti-freight fraud laws reintroduced in Congress

Members of each chambers of Congress this week reintroduced a invoice that will restore the authority of the Federal Motor Service Security Administration to evaluate civil penalties in opposition to dangerous actors and extra, aimed toward combating the proliferation of freight fraud.

The Family Items Transport Shopper Safety Act was first launched final 12 months within the U.S. Home of Representatives, however it by no means reached the Home flooring for a vote. Whereas the title highlights shopper protections with HHG shipments, the invoice extends past that area of interest and codifies FMCSA’s authority to behave in opposition to unauthorized brokers and different fraudulent entities.

[Related: New bill would let FMCSA fine double brokers $10,000, crack down on shady actors]

Key provisions of the invoice:

• Restoration of FMCSA’s authority: Restores FMCSA’s capability to impose these civil penalties, enabling the company to behave swiftly in opposition to dangerous actors. 
• Stronger regulation enforcement: Mandates that firms working within the family items sector and elsewhere should keep a authentic principal office, guaranteeing that firms can not use P.O. Packing containers or non-physical tackle to skirt rules.
• Figuring out fraudulent practices: Directs FMCSA to analyze traits and commonalities amongst firms who apply for authority, to determine doubtlessly fraudulent operations earlier than they’ll trigger hurt.
• State enforcement and shopper safety: Permits states to make use of federal funds to implement shopper safety legal guidelines associated to family items transportation. 

With a changeover of Congress, the bipartisan invoice was launched within the Senate by Sens. Deb Fischer (R-Nebraska) and Tammy Duckworth (D-Illinois). Within the Home, Reps. Eleanor Holmes Norton (D-D.C.) and Mike Ezell (R-Mississippi) introduced forth the laws.

“We can not permit dangerous actors within the transport and shifting trade to violate shopper belief and hurt our nation’s provide chain,” Fischer stated. “Our bipartisan, bicameral laws will give the Federal Motor Service Security Administration the instruments they should maintain these thieves accountable. I look ahead to working with my colleagues in each the Home and the Senate to get our invoice signed into regulation.”

The laws has obtained assist from organizations representing each trucking pursuits and brokers.

„Freight fraud dedicated by criminals and rip-off artists has been devastating to many small enterprise truckers merely attempting to make a residing in a troublesome freight market,” stated Proprietor-Operator Impartial Drivers Affiliation President Todd Spencer. 

Spencer thanked the invoice’s sponsors for introducing the laws to “present FMCSA higher instruments to root out fraudulent actors, which are additionally dangerous to customers and freeway security. Due to the broad trade assist for these commonsense reforms, we hope this bipartisan laws will transfer by way of the committee course of at once.”

The Transportation Intermediaries Affiliation representing brokers additionally voiced its assist.

„Fraud continues to wreak havoc on the provision chain and,  in flip, hurts customers and the U.S. economic system,“ stated TIA President and CEO Chris Burroughs. He added that, if carried out, the invoice “might markedly cut back fraud within the provide chain, reduce monetary losses to small enterprise and restore integrity to the nation’s freight sector. This invoice is good for the trade, customers and the American economic system.“

[Related: FMCSA pleads with Congress for more power to punish brokered-freight fraudsters]

Senate intros invoice to streamline CDL testing

Following its introduction within the U.S. Home earlier this month, members of the U.S. Senate have launched the Licensing Particular person Industrial Examination-takers Now Safely and Effectively (LICENSE) Act, which builds on waivers the Federal Motor Service Security Administration (FMCSA) carried out through the COVID-19 pandemic.

The bipartisan laws was launched by Sens. Mark Kelly (D-Arizona) and Cynthia Lummis (R-Wyoming).

The invoice would permit state and third-party CDL examiners who have maintained a legitimate CDL take a look at examiner certification, and have beforehand accomplished a CDL abilities take a look at examiner coaching course, to manage the CDL data take a look at with out finishing a CDL data take a look at coaching course.

[Related: Bill to streamline CDL testing reintroduced]

To make the testing course of extra environment friendly and streamlined, the invoice would additionally permit a state to manage a driving abilities take a look at to any out of state CDL applicant, no matter the place the applicant obtained driver coaching.

“When the Federal Motor Service Security Administration (FMCSA) offered flexibility on a number of regulatory necessities through the COVID-19 public well being emergency, drivers and motor carriers gained new operational efficiencies with out compromising security,” stated Dan Horvath of the American Trucking Associations, supporting the invoice. “The LICENSE Act leverages the teachings realized through the pandemic and makes everlasting two commonsense waivers that have been reissued quite a few instances since 2020 to scale back administrative burdens for People pursuing rewarding careers within the trucking trade. The incorporation of those waivers into regulation by enactment of the LICENSE Act will present certainty to the trucking trade and strengthen our provide chain by completely eradicating these pointless bureaucratic limitations.”

[Related: COVID hours waiver should open door for more HOS flexibility]