U.S. Sens. Todd Young, R-Ind., and Andy Kim, D-N.J., introduced legislation Tuesday aimed at trucking companies that reopen under new identities. The bipartisan Safety and Accountability in Freight Enforcement Act seeks to prevent operators from escaping enforcement through fresh registrations, a problem lawmakers say can undermine safety oversight across the freight sector. The sponsors refer to these businesses as “chameleon carriers.” The proposal now awaits action in the Senate committee process.

The bill is directed at companies that shut down after safety violations, penalties, insurance problems, or other enforcement actions, then later apply for another USDOT number under a different business structure. Lawmakers want the Federal Motor Carrier Safety Administration to identify those links before approving registration applications. The measure also applies to brokers, freight forwarders, and intermodal equipment providers.

FMCSA would screen for identity links

The SAFE Act directs FMCSA to develop and test an automated screening tool for use during the USDOT registration process. Agency staff would use the system, but final decisions would remain with FMCSA employees rather than automation. Applicants could appeal a mistaken flag and receive a review after correcting their submission.

The tool would search for common ownership, managers, drivers, equipment, addresses, phone numbers, email addresses, and operating facilities. It would also review insurance continuity, lapsed coverage, transferred assets, inactive USDOT numbers, and company formation dates. Those details could help determine whether a new applicant is continuing a previous operation. FMCSA could use the findings when deciding whether to approve registration.

Young described the proposal as a road-safety measure. “When unsafe trucking companies evade enforcement by reopening under a new identity, everyone who shares the road” faces risk, Young stated. Kim said the legislation is intended to address operators who skirt regulations and said those actions “can cost people’s lives.”

Study would measure the problem

The SAFE Act would require the Government Accountability Office to study the scope of chameleon carriers nationwide. The report would estimate their prevalence, related fatalities, serious injuries, property damage, and enforcement methods. GAO would also examine weaknesses in federal monitoring and recommend improvements. Congress would receive the findings within one year after enactment.

FMCSA could share information with agencies including the Justice Department, Treasury Department, Homeland Security, the Postal Service, and state partners. The bill includes data privacy protections for that work. The Department of Transportation inspector general would audit the tool two years after implementation. That review would measure flagged applications, rejected registrations, errors, redeterminations, and reductions in severe crashes.

The Owner-Operator Independent Drivers Association supports the Senate legislation. OOIDA President Todd Spencer called it a way to “identify and weed out bad actors” before they become chameleon carriers. The American Trucking Associations, Truckload Carriers Association, National Tank Truck Carriers, and Indiana Motor Truck Association also endorsed the proposal. Rep. Harriet Hageman, R-Wyo., introduced the House version earlier this year.

Why it matters

Bad actors can exploit weak registration checks to return with a clean-looking identity, which makes identity verification a practical enforcement issue rather than just an administrative one. The SAFE Act would place greater emphasis on ownership, contact information, equipment, insurance, and operational links before FMCSA issues a USDOT number, using those markers to help distinguish new entrants from carriers that may be trying to reenter after penalties or shutdowns.

Click here for more articles on cargo theft and freight fraud by Phil Brink.

7 smuggled migrants die in sealed rail container, 11 face life sentences – FreightWaves

Banana shipment from Ecuador to Europe concealed $290 million in cocaine – FreightWaves

Staged truck crashes could bring 20 years in federal prison under new bill – FreightWaves

The post New Senate bill targets ‘chameleon carriers’ that reopen to escape penalties and enforcement appeared first on FreightWaves.