SAFER Transport Act

The SAFER Transport Act combats freight fraud and theft by amending title 49 of the United States Code. It establishes an advisory committee, requires a memorandum of understanding between the Department of Transportation and the Department of Justice, phases out MC numbers in favor of USDOT numbers, strengthens state licensing for commercial drivers, improves the training provider registry, prevents fraud in the registration system, enforces cabotage laws, reimburses certain victims of freight theft, creates criminal penalties for fraudulent certifications, requires foreign dispatch services to register as brokers, updates records maintenance rules, and revises the definition of broker and unlawful brokerage activities.

Sec. 3, Freight Fraud and Theft Advisory Committee: The Secretary of Transportation must establish an advisory committee within 60 days to gather public input on reducing freight fraud and theft using existing Department authorities. The committee includes stakeholders like motor carriers, railroads, ports, brokers, and law enforcement. It must submit a report with findings and recommendations within 2 years, then terminate.

Sec. 4, Memorandum of Understanding on Freight Fraud and Theft: Within 180 days, the Secretary and the Attorney General must sign a memorandum of understanding requiring the Department to notify the Department of Justice of any identified freight fraud or theft, and for the Department of Justice to set up a process for handling such information.

Sec. 5, Securing the Registration System of the Administration: Over 5 years, the Secretary must stop issuing or renewing MC numbers and phase them out. After 5 years, all motor carriers, brokers, and freight forwarders must have a USDOT number instead. The bill amends registration requirements for freight forwarders and brokers to require a USDOT number, and updates definitions in section 31132.

Sec. 6, Strengthening State Licensing to Ensure Legal Drivers: States issuing commercial learner's permits or commercial driver's licenses to non-citizens or non-lawful permanent residents must confirm work authorization, provide relevant information to the Federal Motor Carrier Safety Administration, and align license expiration with work authorization expiration. States must also submit monthly reports on license issuances, endorsements, and revocations.

Sec. 7, Improvements to Commercial Driver's License Training Provider Registry: The Secretary must establish a process to audit training providers on the registry, may remove providers for nondisclosure of certain relationships, and must create a process for states to expedite removal of providers no longer in business, guilty of fraud, or violating state regulations.

Sec. 8, Preventing, Detecting, and Addressing Fraud in Registration: Within 1 year, the Administrator must develop automated systems to flag suspicious activity in the registration system, such as rapid changes or duplicate identifiers. A review process for flagged users must begin immediately, with possible temporary suspension of registration during the review.

Sec. 9, Enforcement of Cabotage Laws: The Administrator and the Commissioner of U.S. Customs and Border Protection must enter into a memorandum of understanding on communicating information about violations of cabotage laws, including prohibitions on point-to-point transport by foreign motor carriers and unauthorized alien drivers. The bill adds these prohibitions to section 13902 and requires a rulemaking to update regulations.

Sec. 10, Reimbursement of Certain Victims of Freight Theft: The Commissioner of U.S. Customs and Border Protection must reimburse victims of cargo theft for fines paid for containers not sealed as required by regulations under the Security and Accountability For Every Port Act of 2006.

Sec. 11, Criminal Penalties; Submission or Use of Fraudulent Certifications: A person who knowingly submits or uses a fraudulent certification in connection with certain Administration requirements and engages in unlawful transportation of property or passengers faces a fine, imprisonment for up to 5 years, or both.

Sec. 12, Foreign Dispatch Services: The bill defines a foreign dispatch service as a person not located in the U.S., Mexico, or Canada that acts as a direct licensed agent for motor carriers, providing only administrative or support services. Such services must register as brokers, and the bill makes conforming amendments to other sections.

Sec. 13, Records Maintenance: The Secretary or the Board may prescribe the form of records for carriers and brokers, which must be maintained or accessible at the principal place of business, but this does not prevent investigations at other locations or virtually.

Sec. 14, Definition of Broker; Unlawful Brokerage Activities: The definition of broker is updated to include a person who offers, negotiates, or holds out as arranging transportation for compensation, excluding those providing only financial assistance. The bill also revises prohibited activities to state that a person may provide interstate brokerage services only if that person meets certain conditions.