Lawmaker takes aim at chameleon carriers in trucking industry with new bill

A Wyoming Congresswoman introduced legislation this week designed to fight the problem of chameleon carriers within the trucking industry.

On February 12, U.S. Rep. Harriet Hageman introduced H.R.7539, or the Safety and Accountability in Freight Enforcement (SAFE) Act.

The SAFE Act seeks to combat “chameleon carriers”, a term for a trucking company that closes and then reopens under a different name in order to avoid regulatory enforcement or other penalties.

The bill would require the Administrator of the Federal Motor Carrier Safety Administration (FMCSA) to conduct a study on chameleon carriers operating in the U.S.

The FMCSA would also be required to “plan, develop, and test an advanced automation tool to help enforcement personnel detect chameleon carrier applications under the registration process of the Department of Transportation.”

The SAFE Act would also create an appeals process for trucking companies that are denied registration.

“These companies game the system, ignore the law, and put American families at risk, all while punishing hardworking truckers who follow the rules,” said Rep. Hageman.  “If a trucking company racks up violations or loses its license, it should not get to slap on a new name and get back on the road.  My bill closes dangerous loopholes and holds bad actors accountable.” 

The bill is supported by groups including the American Trucking Associations (ATA), the Owner-Operator Independent Drivers Association (OOIDA), and the Wyoming Trucking Association.

“Chameleon carriers have undermined America’s highway safety and damaged the professionalism of the trucking industry by evading enforcement, dodging penalties, and reopening under new identities. Representative Hageman’s SAFE Act takes decisive action to detect and crack down on these bad actors at the registration stage. OOIDA and truckers across America commend Representative Hageman’s leadership in restoring accountability to the system and standing up for law-abiding small-business truckers and the safety of the motoring public,” said Todd Spencer, President of OOIDA.

“Chameleon carriers are a plague on our nation’s highways, putting all motorists at risk and undercutting the vast majority of trucking companies that are responsible and follow the rules,” said American Trucking Associations SVP of Legislative Affairs Alex Rosen. “Safety is a priority for our members, which is why we are grateful for Rep. Hageman’s leadership to strengthen federal safety requirements and oversight.  Alongside USDOT, we have closed loopholes and removed bad actors from our roads, and we look forward to building on this progress by working with Rep. Hageman and her colleagues to attach this commonsense policy to the next Highway Bill.” 
 
“Wyoming trucking companies play by the rules, invest in safety, and carry the cost when bad actors dodge accountability,” said Wyoming Trucking Association President and CEO Kevin Hawley.  “The SAFE Act is a common-sense step to stop chameleon carriers from reappearing under new identities after serious safety failures or enforcement actions.  By strengthening screening at registration, protecting due process through a clear appeals process, and improving data sharing, this bill helps level the playing field for responsible carriers and makes our roads safer for everyone.”

The bill has been referred to the House Committee on Transportation and Infrastructure.