H. R. 4348—416
(1) IN GENERAL .—Chapter 139 is amended by adding at
the end the following:
‘‘§ 13909. Availability of information
‘‘The Secretary shall make information relating to registration
and financial security required by this chapter publicly available
on the Internet, including––
‘‘(1) the names and business addresses of the principals
of each entity holding such registration;
‘‘(2) the status of such registration; and
‘‘(3) the electronic address of the entity’s surety provider
for the submission of claims.’’.
(2) CONFORMING AMENDMENT .—The analysis for chapter
139 is amended by adding at the end the following:
‘‘13909. Availability of information.’’.
SEC. 32915. ADDITIONAL MOTOR CARRIER REGISTRATION REQUIREMENTS.
Section 13902, as amended by sections 32101 and 32107(a)
of this Act, is amended––
(1) in subsection (a)—
(A) in paragraph (1), by inserting ‘‘using self-propelled
vehicles the motor carrier owns, rents, or leases’’ after
‘‘motor carrier’’; and
(B) by adding at the end the following:
‘‘(6) SEPARATE REGISTRATION REQUIRED .—A motor carrier
may not broker transportation services unless the motor carrier
has registered as a broker under this chapter.’’; and
(2) by inserting after subsection (h) the following:
‘‘(i) REGISTRATION AS FREIGHT FORWARDER OR BROKER
REQUIRED .—A motor carrier registered under this chapter––
‘‘(1) may only provide transportation of property with—
‘‘(A) self-propelled motor vehicles owned or leased by
the motor carrier; or
‘‘(B) interchanges under regulations issued by the Secretary
if the originating carrier—
‘‘(i) physically transports the cargo at some point;
and
‘‘(ii) retains liability for the cargo and for payment
of interchanged carriers; and
‘‘(2) may not arrange transportation described in paragraph
(1) unless the motor carrier has obtained a separate registration
as a freight forwarder or broker for transportation under section
13903 or 13904, as applicable.’’.
SEC. 32916. REGISTRATION OF FREIGHT FORWARDERS AND BROKERS.
(a) REGISTRATION OF FREIGHT FORWARDERS .—Section 13903,
as amended by section 32107(b) of this Act, is amended—
(1) in subsection (a)—
(A) by striking ‘‘finds that the person is fit’’ and
inserting the following: ‘‘determines that the person––
‘‘(1) has sufficient experience to qualify the person to act
as a freight forwarder; and
‘‘(2) is fit’’; and
(B) by striking ‘‘and the Board’’;
(2) by redesignating subsections (b) and (c) as subsections
(d) and (e), respectively;
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(3) by inserting after subsection (a) the following:
‘‘(b) DURATION .—A registration issued under subsection (a) shall
only remain in effect while the freight forwarder is in compliance
with section 13906(c).
‘‘(c) EXPERIENCE OR TRAINING REQUIREMENT .—Each freight forwarder
shall employ, as an officer, an individual who––
‘‘(1) has at least 3 years of relevant experience; or
‘‘(2) provides the Secretary with satisfactory evidence of
the individual’s knowledge of related rules, regulations, and
industry practices.’’; and
(4) by amending subsection (d), as redesignated, to read
as follows:
‘‘(d) REGISTRATION AS MOTOR CARRIER REQUIRED .—
‘‘(1) IN GENERAL .—A freight forwarder may not provide
transportation as a motor carrier unless the freight forwarder
has registered separately under this chapter to provide
transportation as a motor carrier.’’.
(b) REGISTRATION OF BROKERS .—Section 13904, as amended
by section 32107(c) of this Act, is amended—
(1) in subsection (a), by striking ‘‘finds that the person
is fit’’ and inserting the following: ‘‘determines that the person—
‘‘(1) has sufficient experience to qualify the person to act
as a broker for transportation; and
‘‘(2) is fit’’;
(2) by redesignating subsections (b), (c), (d), and (e) as
subsections (d), (e), (f), and (g) respectively;
(3) by inserting after subsection (a) the following:
‘‘(b) DURATION .—A registration issued under subsection (a) shall
only remain in effect while the broker for transportation is in
compliance with section 13906(b).
‘‘(c) EXPERIENCE OR TRAINING REQUIREMENTS .—Each broker
shall employ, as an officer, an individual who––
‘‘(1) has at least 3 years of relevant experience; or
‘‘(2) provides the Secretary with satisfactory evidence of
the individual’s knowledge of related rules, regulations, and
industry practices.’’;
(4) by amending subsection (d), as redesignated, to read
as follows:
‘‘(d) REGISTRATION AS MOTOR CARRIER REQUIRED .—
‘‘(1) IN GENERAL .—A broker for transportation may not
provide transportation as a motor carrier unless the broker
has registered separately under this chapter to provide
transportation as a motor carrier.
‘‘(2) LIMITATION .—This subsection does not apply to a motor
carrier registered under this chapter or to an employee or
agent of the motor carrier to the extent the transportation
is to be provided entirely by the motor carrier, with other
registered motor carriers, or with rail or water carriers.’’; and
(5) by amending subsection (e), as redesignated, to read
as follows:
‘‘(e) REGULATION TO PROTECT MOTOR CARRIERS AND SHIPPERS .—
Regulations of the Secretary applicable to brokers registered under
this section shall provide for the protection of motor carriers and
shippers by motor vehicle.’’.
SEC. 32917. EFFECTIVE PERIODS OF REGISTRATION.
Section 13905(c) is amended to read as follows:
H. R. 4348—418
‘‘(c) EFFECTIVE PERIOD .—
‘‘(1) IN GENERAL .—Except as otherwise provided in this
part, each registration issued under section 13902, 13903, or
13904—
‘‘(A) shall be effective beginning on the date specified
by the Secretary; and
‘‘(B) shall remain in effect for such period as the Secretary
determines appropriate by regulation.
‘‘(2) REISSUANCE OF REGISTRATION .—
‘‘(A) REQUIREMENT .—Not later than 4 years after the
date of enactment of the Commercial Motor Vehicle Safety
Enhancement Act of 2012, the Secretary shall require a
freight forwarder or broker to renew its registration issued
under this chapter.
‘‘(B) EFFECTIVE PERIOD .—Each registration renewal
under subparagraph (A)—
‘‘(i) shall expire not later than 5 years after the
date of such renewal; and
‘‘(ii) may be further renewed as provided under
this chapter.’’.
SEC. 32918. FINANCIAL SECURITY OF BROKERS AND FREIGHT FORWARDERS.
(a) IN GENERAL .—Section 13906 is amended by striking subsections
(b) and (c) and inserting the following:
‘‘(b) BROKER FINANCIAL SECURITY REQUIREMENTS .—
‘‘(1) REQUIREMENTS .—
‘‘(A) IN GENERAL .—The Secretary may register a person
as a broker under section 13904 only if the person files
with the Secretary a surety bond, proof of trust fund,
or other financial security, or a combination thereof, in
a form and amount, and from a provider, determined by
the Secretary to be adequate to ensure financial responsibility.
‘‘(B) USE OF A GROUP SURETY BOND , TRUST FUND , OR
OTHER SURETY .—In implementing the standards established
by subparagraph (A), the Secretary may authorize
the use of a group surety bond, trust fund, or other financial
security, or a combination thereof, that meets the requirements
of this subsection.
‘‘(C) PROOF OF TRUST OR OTHER FINANCIAL SECURITY .—
For purposes of subparagraph (A), a trust fund or other
financial security may be acceptable to the Secretary only
if the trust fund or other financial security consists of
assets readily available to pay claims without resort to
personal guarantees or collection of pledged accounts
receivable.
‘‘(2) SCOPE OF FINANCIAL RESPONSIBILITY .—
‘‘(A) PAYMENT OF CLAIMS .—A surety bond, trust fund,
or other financial security obtained under paragraph (1)
shall be available to pay any claim against a broker arising
from its failure to pay freight charges under its contracts,
agreements, or arrangements for transportation subject to
jurisdiction under chapter 135 if––
‘‘(i) subject to the review by the surety provider,
the broker consents to the payment;
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‘‘(ii) in any case in which the broker does not
respond to adequate notice to address the validity of
the claim, the surety provider determines that the
claim is valid; or
‘‘(iii) the claim is not resolved within a reasonable
period of time following a reasonable attempt by the
claimant to resolve the claim under clauses (i) and
(ii), and the claim is reduced to a judgment against
the broker.
‘‘(B) RESPONSE OF SURETY PROVIDERS TO CLAIMS .—If
a surety provider receives notice of a claim described in
subparagraph (A), the surety provider shall––
‘‘(i) respond to the claim on or before the 30th
day following the date on which the notice was
received; and
‘‘(ii) in the case of a denial, set forth in writing
for the claimant the grounds for the denial.
‘‘(C) COSTS AND ATTORNEY ’S FEES .—In any action
against a surety provider to recover on a claim described
in subparagraph (A), the prevailing party shall be entitled
to recover its reasonable costs and attorney’s fees.
‘‘(3) MINIMUM FINANCIAL SECURITY .—Each broker subject
to the requirements of this section shall provide financial security
of $75,000 for purposes of this subsection, regardless of
the number of branch offices or sales agents of the broker.
‘‘(4) CANCELLATION NOTICE .—If a financial security required
under this subsection is canceled––
‘‘(A) the holder of the financial security shall provide
electronic notification to the Secretary of the cancellation
not later than 30 days before the effective date of the
cancellation; and
‘‘(B) the Secretary shall immediately post such notification
on the public Internet Website of the Department
of Transportation.
‘‘(5) SUSPENSION .—The Secretary shall immediately suspend
the registration of a broker issued under this chapter
if the available financial security of that person falls below
the amount required under this subsection.
‘‘(6) PAYMENT OF CLAIMS IN CASES OF FINANCIAL FAILURE
OR INSOLVENCY .—If a broker registered under this chapter
experiences financial failure or insolvency, the surety provider
of the broker shall––
‘‘(A) submit a notice to cancel the financial security
to the Administrator in accordance with paragraph (4);
‘‘(B) publicly advertise for claims for 60 days beginning
on the date of publication by the Secretary of the notice
to cancel the financial security; and
‘‘(C) pay, not later than 30 days after the expiration
of the 60-day period for submission of claims––
‘‘(i) all uncontested claims received during such
period; or
‘‘(ii) a pro rata share of such claims if the total
amount of such claims exceeds the financial security
available.
‘‘(7) PENALTIES .—
‘‘(A) CIVIL ACTIONS .—Either the Secretary or the
Attorney General of the United States may bring a civil
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action in an appropriate district court of the United States
to enforce the requirements of this subsection or a regulation
prescribed or order issued under this subsection. The
court may award appropriate relief, including injunctive
relief.
‘‘(B) CIVIL PENALTIES .—If the Secretary determines,
after notice and opportunity for a hearing, that a surety
provider of a broker registered under this chapter has
violated the requirements of this subsection or a regulation
prescribed under this subsection, the surety provider shall
be liable to the United States for a civil penalty in an
amount not to exceed $10,000.
‘‘(C) ELIGIBILITY .—If the Secretary determines, after
notice and opportunity for a hearing, that a surety provider
of a broker registered under this chapter has violated the
requirements of this subsection or a regulation prescribed
under this subsection, the surety provider shall be ineligible
to provider broker financial security for 3 years.
‘‘(8) 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.
‘‘(c) FREIGHT FORWARDER FINANCIAL SECURITY REQUIREMENTS .—
‘‘(1) REQUIREMENTS .—
‘‘(A) IN GENERAL .—The Secretary may register a person
as a freight forwarder under section 13903 only if the
person files with the Secretary a surety bond, proof of
trust fund, other financial security, or a combination of
such instruments, in a form and amount, and from a provider,
determined by the Secretary to be adequate to ensure
financial responsibility.
‘‘(B) USE OF A GROUP SURETY BOND , TRUST FUND , OR
OTHER FINANCIAL SECURITY .—In implementing the standards
established under subparagraph (A), the Secretary
may authorize the use of a group surety bond, trust fund,
other financial security, or a combination of such
instruments, that meets the requirements of this subsection.
‘‘(C) SURETY BONDS .—A surety bond obtained under
this section may only be obtained from a bonding company
that has been approved by the Secretary of the Treasury.
‘‘(D) PROOF OF TRUST OR OTHER FINANCIAL SECURITY .—
For purposes of subparagraph (A), a trust fund or other
financial security may not be accepted by the Secretary
unless the trust fund or other financial security consists
of assets readily available to pay claims without resort
to personal guarantees or collection of pledged accounts
receivable.
‘‘(2) SCOPE OF FINANCIAL RESPONSIBILITY .—
‘‘(A) PAYMENT OF CLAIMS .—A surety bond, trust fund,
or other financial security obtained under paragraph (1)
shall be available to pay any claim against a freight forwarder
arising from its failure to pay freight charges under
its contracts, agreements, or arrangements for transportation
subject to jurisdiction under chapter 135 if––
‘‘(i) subject to the review by the surety provider,
the freight forwarder consents to the payment;
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‘‘(ii) in the case the freight forwarder does not
respond to adequate notice to address the validity of
the claim, the surety provider determines the claim
is valid; or
‘‘(iii) the claim—
‘‘(I) is not resolved within a reasonable period
of time following a reasonable attempt by the
claimant to resolve the claim under clauses (i)
and (ii); and
‘‘(II) is reduced to a judgment against the
freight forwarder.
‘‘(B) RESPONSE OF SURETY PROVIDERS TO CLAIMS .—If
a surety provider receives notice of a claim described in
subparagraph (A), the surety provider shall––
‘‘(i) respond to the claim on or before the 30th
day following receipt of the notice; and
‘‘(ii) in the case of a denial, set forth in writing
for the claimant the grounds for the denial.
‘‘(C) COSTS AND ATTORNEY ’S FEES .—In any action
against a surety provider to recover on a claim described
in subparagraph (A), the prevailing party shall be entitled
to recover its reasonable costs and attorney’s fees.
‘‘(3) FREIGHT FORWARDER INSURANCE .—
‘‘(A) IN GENERAL .—The Secretary may register a person
as a freight forwarder under section 13903 only if the
person files with the Secretary a surety bond, insurance
policy, or other type of financial security that meets standards
prescribed by the Secretary.
‘‘(B) LIABILITY INSURANCE .—A financial security filed
by a freight forwarder under subparagraph (A) shall be
sufficient to pay an amount, not to exceed the amount
of the financial 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 subparagraph (C)), resulting
from the negligent operation, maintenance, or use of motor
vehicles by, or under the direction and control of, the
freight forwarder while providing transfer, collection, or
delivery service under this part.
‘‘(C) CARGO INSURANCE .—The Secretary may require
a registered freight forwarder to file with the Secretary
a surety bond, insurance policy, or other type of financial
security approved by the Secretary, that will pay an
amount, not to exceed the amount of the financial security,
for loss of, or damage to, property for which the freight
forwarder provides service.
‘‘(4) MINIMUM FINANCIAL SECURITY .—Each freight forwarder
subject to the requirements of this section shall provide financial
security of $75,000, regardless of the number of branch
offices or sales agents of the freight forwarder.
‘‘(5) CANCELLATION NOTICE .—If a financial security required
under this subsection is canceled––
‘‘(A) the holder of the financial security shall provide
electronic notification to the Secretary of the cancellation
not later than 30 days before the effective date of the
cancellation; and
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‘‘(B) the Secretary shall immediately post such notification
on the public Internet web site of the Department
of Transportation.
‘‘(6) SUSPENSION .—The Secretary shall immediately suspend
the registration of a freight forwarder issued under this
chapter if its available financial security falls below the amount
required under this subsection.
‘‘(7) PAYMENT OF CLAIMS IN CASES OF FINANCIAL FAILURE
OR INSOLVENCY .—If a freight forwarder registered under this
chapter experiences financial failure or insolvency, the surety
provider of the freight forwarder shall––
‘‘(A) submit a notice to cancel the financial security
to the Administrator in accordance with paragraph (5);
‘‘(B) publicly advertise for claims for 60 days beginning
on the date of publication by the Secretary of the notice
to cancel the financial security; and
‘‘(C) pay, not later than 30 days after the expiration
of the 60-day period for submission of claims––
‘‘(i) all uncontested claims received during such
period; or
‘‘(ii) a pro rata share of such claims if the total
amount of such claims exceeds the financial security
available.
‘‘(8) PENALTIES .—
‘‘(A) CIVIL ACTIONS .—Either the Secretary or the
Attorney General may bring a civil action in an appropriate
district court of the United States to enforce the requirements
of this subsection or a regulation prescribed or order
issued under this subsection. The court may award appropriate
relief, including injunctive relief.
‘‘(B) CIVIL PENALTIES .—If the Secretary determines,
after notice and opportunity for a hearing, that a surety
provider of a freight forwarder registered under this
chapter has violated the requirements of this subsection
or a regulation prescribed under this subsection, the surety
provider shall be liable to the United States for a civil
penalty in an amount not to exceed $10,000.
‘‘(C) ELIGIBILITY .—If the Secretary determines, after
notice and opportunity for a hearing, that a surety provider
of a freight forwarder registered under this chapter has
violated the requirements of this subsection or a regulation
prescribed under this subsection, the surety provider shall
be ineligible to provide freight forwarder financial security
for 3 years.
‘‘(9) 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.’’.
(b) RULEMAKING .—Not later than 1 year after the date of enactment
of this Act, the Secretary shall issue regulations to implement
and enforce the requirements under subsections (b) and (c) of section
13906 of title 49, United States Code, as amended by subsection
(a).
(c) EFFECTIVE DATE .—The amendments made by subsection
(a) shall take effect on the date that is 1 year after the date
of enactment of this Act.
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SEC. 32919. UNLAWFUL BROKERAGE ACTIVITIES.
(a) IN GENERAL .—Chapter 149 is amended by adding at the
end the following:
‘‘SEC. 14916. UNLAWFUL BROKERAGE ACTIVITIES.
‘‘(a) PROHIBITED ACTIVITIES .—A person may provide interstate
brokerage services as a broker only if that person––
‘‘(1) is registered under, and in compliance with, section
13904; and
‘‘(2) has satisfied the financial security requirements under
section 13906.
‘‘(b) EXCEPTIONS .—Subsection (a) shall not apply to—
‘‘(1) a non-vessel-operating common carrier (as defined in
section 40102 of title 46) or an ocean freight forwarder (as
defined in section 40102 of title 46) when arranging for inland
transportation as part of an international through movement
involving ocean transportation between the United States and
a foreign port;
‘‘(2) a customs broker licensed in accordance with section
111.2 of title 19, Code of Federal Regulations, only to the
extent that the customs broker is engaging in a movement
under a customs bond or in a transaction involving customs
business, as defined by section 111.1 of title 19, Code of Federal
Regulations; or
‘‘(3) an indirect air carrier holding a Standard Security
Program approved by the Transportation Security Administration,
only to the extent that the indirect air carrier is engaging
in the activities as an air carrier as defined in section 40102(2)
or in the activities defined in section 40102(3).
‘‘(c) 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—
‘‘(1) to the United States Government for a civil penalty
in an amount not to exceed $10,000 for each violation; and
‘‘(2) to the injured party for all valid claims incurred without
regard to amount.
‘‘(d) LIABLE PARTIES .—The liability for civil penalties and for
claims under this section for unauthorized brokering shall apply,
jointly and severally—
‘‘(1) to any corporate entity or partnership involved; and
‘‘(2) to the individual officers, directors, and principals of
such entities.’’.
(b) CLERICAL AMENDMENT .—The analysis for chapter 149 is
amended by adding at the end the following:
‘‘14916. Unlawful brokerage activities.’’.
PART II—HOUSEHOLD GOODS
TRANSPORTATION
SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS FOR HOUSEHOLD
GOODS MOTOR CARRIERS.
(a) Section 13902(a)(2) is amended—
(1) in subparagraph (B), by striking ‘‘section 13702(c);’’
and inserting ‘‘section 13702(c); and’’;
(2) by amending subparagraph (C) to read as follows:
The Map 21 Law In Detail
Other Bonds Available