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House passes crucial bill to combat freight fraud

September 18, 2024 | Transportation and Infrastructure: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal


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House passes crucial bill to combat freight fraud
In a recent government meeting, lawmakers discussed two significant pieces of legislation aimed at enhancing safety and consumer protection within the transportation sector.

The first bill, HR 3356, known as the Motor Carrier Safety Screening Modernization Act, seeks to expand access to the Pre-Employment Screening Program (PSP) for motor carriers. Currently, employers can only access a driver's safety record during the hiring process. This legislation would allow employers to re-access this information with the driver's permission after employment, enabling them to monitor ongoing safety performance. Proponents argue that this could lead to improved safety outcomes, citing data indicating an 8% reduction in crashes and a 17% decrease in out-of-service incidents for companies utilizing the PSP. The bill has garnered bipartisan support, with endorsements from various industry stakeholders, including the American Trucking Association and the National Safety Council.

However, some lawmakers expressed concerns that the bill could lead to misuse of the data, potentially allowing employers to terminate drivers based on their driving history, regardless of fault in accidents. Critics argue that the current law already provides sufficient guidelines for when a driver should be disqualified from operating a vehicle, and they worry that the proposed changes could create an overly punitive environment for drivers.

The second piece of legislation, HR 8505, the Household Goods Shipping Consumer Protection Act, aims to empower the Federal Motor Carrier Safety Administration (FMCSA) to combat fraud in the transportation of household goods. This bill would clarify the FMCSA's authority to impose civil penalties on fraudulent operators and ensure that only legitimate businesses can register for operation. The legislation responds to a 2019 ruling that limited the FMCSA's enforcement capabilities, leaving consumers vulnerable to scams. Supporters of the bill highlight the need for stronger protections against fraudulent practices that have plagued the moving industry, while opponents raise concerns about the potential for overreach and lack of due process in the enforcement of penalties.

Both bills reflect a concerted effort by lawmakers to address safety and consumer protection in the transportation industry, with ongoing debates about the balance between regulatory oversight and the rights of drivers and consumers. The discussions are set to continue as the bills move forward in the legislative process.

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