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S.3483 - Motor Carrier Protection Act of 2010
A bill to amend section 139 of title 49, United States Code, to increase the effectiveness of Federal oversight of motor carriers, and for other purposes.
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SECTION 1. SHORT TITLE.
SEC. 2. REGISTRATION REQUIREMENTS.
(2) USE OF FEES- All new fees collected by the Secretary as a result of the new licensing requirements under this Act and the amendments made by this Act shall be used to administer and enforce the registration and related requirements under chapter 139 of title 49, United States Code.CommentsClose CommentsPermalink
(3) CONSEQUENCE OF NONCOMPLIANCE- Not later than 30 days after the date on which a broker, freight forwarder, or motor carrier fails to comply with this subsection, such entity shall be listed as inactive on all relevant Department of Transportation Internet websites.CommentsClose CommentsPermalink
‘(1) IN GENERAL- If the Administrator of the Federal Motor Carrier Administration registers a person under this chapter for 1 or more activities or services, including motor carrier, freight forwarder, or broker activities or services, the Administrator shall issue a distinctive registration number to the person for each such activity or service for which the person is registered.CommentsClose CommentsPermalink
‘(2) ACTIVITY OR SERVICE TYPE INDICATOR- Each number issued under paragraph (1) shall include an indicator of the type of activity or service for which the registration number is issued, including whether the registration number is issued for registration of a motor carrier, freight forwarder, or broker activity or service.CommentsClose CommentsPermalink
‘(c) Authority- For each shipment for which a registered person seeks compensation, the registered person shall specify, in writing, the operating authority under which it is providing the services required.’.CommentsClose CommentsPermalink
SEC. 3. REGISTRATION OF MOTOR CARRIERS.
‘(6) SEPARATE REGISTRATION REQUIRED- A motor carrier may not broker transportation services unless the motor carrier has registered as a broker under this chapter.’; andCommentsClose CommentsPermalink
‘(4) INSURANCE REQUIREMENTS- A motor carrier registered under this section shall maintain insurance for property damage required under section 13906(a)(4) for all shipments transported under its operating authority.’.CommentsClose CommentsPermalink
SEC. 4. REGISTRATION AND SECURITY OF FREIGHT FORWARDERS AND BROKERS.
‘Sec. 13903. Registration of freight forwarders and brokers
‘(a) In General- A person may not act as a freight forwarder by providing service subject to the jurisdiction under subchapter III of chapter 135 or as a broker unless the person holds a freight forwarder’s permit or a broker’s license, as the case may be, issued by the Federal Motor Carrier Safety Administration.CommentsClose CommentsPermalink
‘(1) ELIGIBILITY REQUIREMENTS- The Administrator of the Federal Motor Carrier Safety Administration shall issue a freight forwarder’s permit or broker’s license to any person that the Administration determines--CommentsClose CommentsPermalink
‘(2) DURATION- The permit or license issued under paragraph (1) shall remain in effect only as long as the freight forwarder or broker is in compliance with section 13904.CommentsClose CommentsPermalink
‘Sec. 13904. Security of freight forwarders and brokers
‘(1) IN GENERAL- A person may not act as a freight forwarder or broker unless the person furnishes a bond, proof of trust fund, or other surety, or combination of such sureties, in a form and amount, and from a provider, determined by the Administrator of the Federal Motor Carrier Safety Administration to be adequate to insure financial responsibility.CommentsClose CommentsPermalink
‘(2) STANDARDS- The Administrator may authorize the use of a group bond, trust fund, or other surety, or combination of such securities that meet the cash and legal requirements under section 13904(d). The Administrator may not accept proof of security from any person whose surety or surety provider does not meet the standards established by the Administrator, by regulation. Bonds issued under this section may only be offered by a bonding company that has been approved by the Secretary of the Treasury.CommentsClose CommentsPermalink
‘(b) Scope of Financial Responsibility- A bond, trust fund, or other surety obtained under this section shall be available to pay any claim against a freight forwarder or broker arising from its failure to pay freight charges in its contracts, agreements, or arrangements for transportation subject to regulation under this chapter--CommentsClose CommentsPermalink
‘(2) if the claim is deemed valid by the surety company after the freight forwarder or broker has failed to respond to adequate notice to address the validity of the claim; orCommentsClose CommentsPermalink
‘(1) IN GENERAL- The Administrator of the Federal Motor Carrier Safety Administration may not register a person as a freight forwarder under section 13903 unless the person files with the Administrator a bond, insurance policy, or other type of security, in accordance with the standards established by the Administrator under this section.CommentsClose CommentsPermalink
‘(2) LIABILITY INSURANCE- A security filed under paragraph (1) shall be sufficient to pay an amount, not to exceed the amount of the security, for each final judgment against the freight forwarder for bodily injury to, or death of, an individual, or loss of, or damage to, property (other than property referred to in paragraph (3)), resulting from the negligent operation, maintenance, or use of motor vehicles by, or under the direction and control of, the freight forwarder when providing transfer, collection, or delivery service under this part.CommentsClose CommentsPermalink
‘(3) CARGO INSURANCE- The Administrator may require a registered freight forwarder to file with the Administrator a bond, insurance policy, or other type of security approved by the Secretary, that will pay an amount, not to exceed the amount of the security, for loss of, or damage to, property for which the freight forwarder provides service.CommentsClose CommentsPermalink
‘(1) REISSUANCE OF LICENSES AND PERMITS- Not later than 4 years after the date of the enactment of the Motor Carrier Protection Act of 2010, freight forwarders and brokers shall acquire new licenses and permits from the Federal Motor Carrier Safety Administration that are subject to the terms and conditions under this subsection. Such licenses and permits shall expire 5 years after the date of issuance and may be renewed as provided under this chapter.CommentsClose CommentsPermalink
‘(4) MINIMUM FINANCIAL SECURITY- Each freight forwarder and broker shall provide financial security of at least $100,000, regardless of the number of branch offices or sales agents of such entities.CommentsClose CommentsPermalink
‘(B) the balance of the surety amount consists of assets readily available to pay valid claims without resort to personal guarantees or collection of pledged accounts receivable; andCommentsClose CommentsPermalink
‘(A) the holder of the surety shall provide electronic notification to the Administrator of such cancellation not later than 30 days before the effective date of such cancellation; andCommentsClose CommentsPermalink
‘(7) SUSPENSION- The Administrator shall immediately suspend the registration of a freight forwarder or broker if its available security falls below the amount required under this subsection.CommentsClose CommentsPermalink
‘(B) WILFUL VIOLATIONS- Any surety that knowingly and willfully violates the posting and notification requirements under this subsection shall be held financially liable for all valid claims submitted against the broker or forwarder involved, regardless of the amount of the security.CommentsClose CommentsPermalink
‘(11) DEDUCTION OF COSTS PROHIBITED- The amount of the financial security required under this subsection may not be reduced by deducting attorney’s fees or administrative costs.CommentsClose CommentsPermalink
‘(12) AUDIT- Claim payments by sureties shall be annually audited by a public accounting firm. The results of such audits shall be made publicly available on the surety’s website.’.CommentsClose CommentsPermalink
(2) RULEMAKING- Not later than 270 days after the date of the enactment of this Act, the Administrator of the Federal Motor Carrier Safety Administration shall issue regulations to enforce the requirements under
section 13904(d) of title 49, United States Code, as added by paragraph (1).CommentsClose CommentsPermalink
(3) EFFECTIVE DATE-
Section 13904(d) of title 49, United States Code, as added by paragraph (1), shall take effect on the date that is 270 days after the date of the enactment of this Act.CommentsClose CommentsPermalink
SEC. 5. REVIEW.
(a) Review by Inspector General- Not later than 15 months after the date of the enactment of this subsection, the Inspector General of the Department of Transportation shall--CommentsClose CommentsPermalink
(1) review the regulations and enforcement practices of the Federal Motor Carrier Safety Administration under
(b) Security and Insurance Amount Assessment- Every 5 years, the Administrator of the Federal Motor Carrier Safety Administration shall review, with public notice and comment, the amount of the security and insurance required under
SEC. 6. UNLAWFUL BROKERAGE ACTIVITIES.
‘Sec. 14916. Unlawful brokerage activities
‘(a) Prohibited Activities- Any person that acts as a broker, other than a non-vessel-operating common carrier (as defined in section 40102(16) of title 46), or an ocean freight forwarder providing brokerage as part of an international through movement involving ocean transportation between the United States and a foreign port, is prohibited from providing interstate brokerage services as a broker unless that person--CommentsClose CommentsPermalink
‘(b) Civil Penalties and Private Cause of Action- Any person who knowingly authorizes, consents to, or permits, directly or indirectly, either alone or in conjunction with any other person, a violation of subsection (a) is liable--CommentsClose CommentsPermalink
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