H.R. 7539 — SAFE Act

This section directs the Comptroller General of the United States to submit to Congress, not later than one year after enactment, a report examining chameleon carriers (i.e., motor carriers evading federal safety oversight by repeatedly changing identities, as identified in a March 2012 Government Accountability Office report) operating on U.S. roadways. The report must include (1) estimates of their number and prevalence since the 2012 report; (2) estimates of fatalities, serious bodily injuries (broken down by state), and property damage caused by them since the 2012 report; (3) analyses of their evasion methods and evolution, Department of Transportation monitoring and enforcement capabilities and shortcomings (including registration processes, software, data recommendations, and penalties); and (4) legislative recommendations.

This section directs the Administrator of the Federal Motor Carrier Safety Administration (FMCSA) to develop, test, and implement, not later than one year after enactment, an advanced automation tool to detect chameleon carrier applications (i.e., new or affiliated motor carrier entities created to evade safety regulations, enforcement actions, or negative compliance history) during the Department of Transportation (DOT) number registration process. The tool must (1) detect chameleon carrier characteristics (e.g., commonality of ownership, officers, addresses, equipment, drivers, operations, or insurance; prior safety violations; lapses in insurance), (2) compile relevant evidence, (3) provide automated decision support for registration determinations (with final decisions by FMCSA personnel), (4) automate federal interagency information sharing, and (5) address other priorities set by the Administrator. The Administrator must collaborate via memoranda of understanding with specified federal agencies (e.g., Treasury, Justice, Homeland Security), state agencies, and others; ensure data privacy; and establish an appeals process allowing denied applicants 30 days to correct flagged issues, with redetermination within 30 days. Additionally, this section requires the Administrator to brief congressional committees of jurisdiction on chameleon carriers within 30 days of enactment; prohibits final automated decisions on registrations; and directs the Department of Transportation Inspector General to audit the tool's effectiveness and report to Congress within two years of implementation, including data on flagged/rejected applications, crash reductions, and appeal outcomes.

This section defines a “chameleon carrier,” for purposes of the Act, as a motor carrier, intermodal equipment provider, broker, or freight forwarder—or an officer, employee, agent, authorized representative, or other affiliated party thereof—that has operated or attempted to operate under a new identity or as an affiliated entity to (1) avoid complying with a Federal Motor Carrier Safety Administration (FMCSA) order; (2) avoid complying with a statutory or regulatory requirement; (3) avoid paying a civil penalty; (4) avoid responding to an enforcement action; (5) avoid being linked with a negative compliance history; (6) avoid or evade increased insurance premiums, policy cancellations, or underwriting restrictions; (7) misrepresent ownership, control, management, or operational continuity to an insurer, broker, or underwriter to secure lower rates or favorable terms; or (8) reincorporate, re-register, or reconstitute following denial, nonrenewal, or cancellation of an insurance policy due to safety, claims, or compliance history.