Senators introduce SAFE Act to target chameleon carriers

The Senate bill is a companion to H.R. 7539, introduced Feb. 12 by Rep. Harriet Hageman, a Wyoming Republican. (Al Drago/Bloomberg)

U.S. Sens. Todd Young (R-Ind.) and Andy Kim (D-N.J.) have introduced legislation to crack down on chameleon carriers, mirroring a House bill that continues to attract additional co-sponsors.

The legislation would direct the Federal Motor Carrier Safety Administration to study chameleon carriers and plan, develop and test an advanced automation tool to detect chameleon carrier applications submitted for registration. This measure would enable enforcement personnel to better identify fraudulent motor carriers and associated activities.

“In recent years, we’ve seen chameleon carriers become a major issue on Indiana’s roads, putting Hoosiers at risk and punishing law-abiding truckers,” Young said. “When unsafe trucking companies evade enforcement by reopening under a new identity, everyone who shares the road with them is put at greater risk.”

Young and Kim introduced the Safety and Accountability in Freight Enforcement (SAFE) Act on July 28. Young is chairman of the Subcommittee on Surface Transportation, Freight, Pipelines and Safety. Kim also serves on the same committee.

The Senate bill is a companion to H.R. 7539, introduced Feb. 12 by Rep. Harriet Hageman, a Wyoming Republican.

The legislation identifies a chameleon carrier as a motor carrier, broker, freight forwarder or related business operating under a new or affiliated identity to evade FMCSA regulations, orders, enforcement actions, safety records and insurance requirements. These companies also conceal ownership or operational continuity to obtain lower insurance rates or more favorable coverage. Chameleon carriers are known to reincorporate, re-register or transform themselves into another carrier entity after a denied, nonrenewed or canceled insurance policy due to safety, claims or compliance history.

Kim said the SAFE Act works with truckers and FMCSA “to take on unsafe operators so that our roads are safer for everyone and truckers can continue to keep our economy moving with greater peace of mind.”

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Rosen 

Alex Rosen, legislative affairs senior vice president at American Trucking Associations, said the legislation would give FMCSA a more powerful and proactive tool to prevent bad actors before they reappear under new names, ownership or USDOT numbers to evade accountability.

“By leveraging advanced automation to flag suspicious registration applications, the agency will be better equipped to detect fraud, close loopholes and keep unsafe carriers off our roads,” Rosen said.

Information from the automated tool could be shared with federal agencies, such as the Department of Homeland Security, the Department of Justice, the Treasury Department, the Department of Commerce and the State Department.

The Trump administration has been forming several multiagency agreements to crack down on bad actors in the trucking industry through information-sharing and enforcement efforts. For instance, the Department of Transportation and FMCSA have formed agreements with DHS, Customs and Border Protection and the Department of Labor to deter cabotage and deport undocumented foreign truckers, especially those with criminal records and recent court convictions.

Hageman’s legislation has attracted 19 co-sponsors. Though the bill is backed almost entirely by Republicans, two co-sponsors are California Democrats — Reps. Salud Carbajal and Julia Brownley.

The bill is gaining traction, adding 11 House backers in July. The co-sponsors include three representatives each from California and Ohio, plus two each from Illinois and Texas. Other backers are from Alabama, Alaska, Florida, Indiana, Kansas, Minnesota, New Jersey, South Dakota and Wisconsin.

The last action taken in the House occurred Feb. 13, when it moved to the Subcommittee on Highways and Transit after a referral a day earlier by the House Committee on Transportation and Infrastructure.

After introducing the proposed law, Hageman noted chameleon carriers “game the system, ignore the law and put American families at risk, all while punishing hardworking truckers who follow the rules. If a trucking company racks up violations or loses its license, it should not get to slap on a new name and get back on the road. My bill closes dangerous loopholes and holds bad actors accountable.”