Members of both chambers of Congress this week reintroduced a bill that would restore the authority of the Federal Motor Carrier Safety Administration to assess civil penalties against bad actors and more, aimed at combating the proliferation of freight fraud.

The Household Goods Shipping Consumer Protection Act was first introduced last year in the U.S. House of Representatives, but it never reached the House floor for a vote. While the title highlights consumer protections with HHG shipments, the bill extends beyond that niche and codifies FMCSA’s authority to act against unauthorized brokers and other fraudulent entities.

Key provisions of the bill:

  • Restoration of FMCSA’s authority: Restores FMCSA’s ability to impose those civil penalties, enabling the agency to act swiftly against bad actors. 
  • Stronger regulation enforcement: Mandates that companies operating in the household goods sector and elsewhere must maintain a legitimate principal place of business, ensuring that companies cannot use P.O. Boxes or non-physical address to skirt regulations.
  • Identifying fraudulent practices: Directs FMCSA to analyze trends and commonalities among companies who apply for authority, to identify potentially fraudulent operations before they can cause harm.
  • State enforcement and consumer protection: Allows states to use federal funds to enforce consumer protection laws related to household goods transportation. 

With a changeover of Congress, the bipartisan bill was introduced in the Senate by Sens. Deb Fischer (R-Nebraska) and Tammy Duckworth (D-Illinois). In the House, Reps. Eleanor Holmes Norton (D-D.C.) and Mike Ezell (R-Mississippi) brought forth the legislation.

“We cannot allow bad actors in the shipping and moving industry to violate consumer trust and harm our nation’s supply chain,” Fischer said. “Our bipartisan, bicameral legislation will give the Federal Motor Carrier Safety Administration the tools they need to hold these thieves accountable. I look forward to working with my colleagues in both the House and the Senate to get our bill signed into law.”

The legislation has received support from organizations representing both trucking interests and brokers.

"Freight fraud committed by criminals and scam artists has been devastating to many small business truckers simply trying to make a living in a tough freight market,” said Owner-Operator Independent Drivers Association President Todd Spencer. 

Spencer thanked the bill’s sponsors for introducing the legislation to “provide FMCSA better tools to root out fraudulent actors, which are also harmful to consumers and highway safety. Because of the broad industry support for these commonsense reforms, we hope this bipartisan legislation will move through the committee process without delay.”

The Transportation Intermediaries Association representing brokers also voiced its support.

"Fraud continues to wreak havoc on the supply chain and,  in turn, hurts consumers and the U.S. economy," said TIA President and CEO Chris Burroughs. He added that, if implemented, the bill “could markedly reduce fraud in the supply chain, minimize financial losses to small business and restore integrity to the nation’s freight sector. This bill is good for the industry, consumers and the American economy."

 

Source : https://www.overdriveonline.com/regulations/article/15736344/antifraud-cdl-testing-legislation-introduced-in-congress