Transportation Fraud Bill Introduced in House

An anti-fraud bill introduced in the House would raise the freight broker surety requirement to $100,000 and require separate broker and carrier licenses.

The Fighting Fraud in Transportation Act of 2011 was introduced Friday by Reps. Frank Guinta (R-N.H.) and Russ Carnahan (D-Mo.).

The legislation is supported by American Trucking Associations, the Transportation Intermediaries Association and the Owner Operator Independent Drivers Association — three trade groups that often do not agree on transportation legislation.

The bill, which would take effect 270 days after passage, also would increase requirements and disclosures for any person or company seeking to obtain broker or freight forwarder authority, toughen penalties for violations of broker regulations and establish strict guidelines for companies that provide brokers with surety bonds and on how they administer those bonds.

“This law would put a stop to a system that allows ruthless brokers and scam artists to continue to operate unchecked,” OOIDA Executive Director Todd Spencer said in a statement. “Too often, we’ve seen deceitful brokers get away with collecting payments from shippers but cheating truckers out of what is rightfully theirs.”

A similar bill introduced in the Senate last year, but the Motor Carrier Protection Act failed to muster enough support to clear Senate’s commerce committee.