Motor carrier selection standard of care

(a)

Definitions

In this section:(1)

Covered entity

(A)

In general

The term covered entity means a person acting as—(i)except as provided in subparagraph (B), a shipper or consignee of goods;(ii)a broker, a freight forwarder, or a household goods freight forwarder (as those terms are defined in section 13102 of title 49, United States Code);(iii)an ocean transportation intermediary (as defined in section 40102 of title 46, United States Code), when arranging for inland transportation as part of an international through movement involving ocean transportation between the United States and a foreign port;(iv)an indirect air carrier holding a Standard Security Program approved by the Transportation Security Administration, only to the extent that the person acting as an indirect air carrier is engaging in—(I)activities as an air carrier (as defined in section 40102 of title 49, United States Code); or(II)air commerce (as defined in that section);(v)a customs broker licensed in accordance with section 111.2 of title 19, Code of Federal Regulations (or a successor regulation), only to the extent that the person acting as a customs broker is engaging in—(I)a movement under a customs bond; or(II)a transaction involving customs business (as defined in section 111.1 of that title (or a successor regulation)); or(vi)a motor carrier registered under chapter 139 of title 49, United States Code.(B)

Exclusion

The term covered entity does not include a person acting as an individual shipper.(2)

Covered motor carrier

The term covered motor carrier means a motor carrier or a household goods motor carrier that is subject to Federal motor carrier financial responsibility and safety regulations.(3)

Household goods

The term household goods has the meaning given the term in section 13102 of title 49, United States Code.(4)

Household goods motor carrier

The term household goods motor carrier has the meaning given the term in section 13102 of title 49, United States Code.(5)

Individual shipper

The term individual shipper has the meaning given the term in section 13102 of title 49, United States Code.(6)

Motor carrier

The term motor carrier has the meaning given the term in section 13102 of title 49, United States Code.(7)

Secretary

The term Secretary means the Secretary of Transportation.(b)

Selection standard

(1)

In general

For any claim of negligent selection of a motor carrier against a covered entity with respect to the covered entity contracting with a covered motor carrier for the shipment of goods or household goods, the covered entity shall be considered reasonable and prudent in the selection of that covered motor carrier if, not later than the date of shipment and not earlier than 45 days before that date, the covered entity verifies that the covered motor carrier—(A)is registered under section 13902 of title 49, United States Code, as a motor carrier or a household goods motor carrier;(B)has at least the minimum insurance coverage required by Federal and State law; and(C)has been confirmed by the Federal Motor Carrier Safety Administration, including through a public confirmation described in subsection (c)(1), to be in compliance with all required Federal Motor Carrier Safety Administration safety standards to operate as a motor carrier.(2)

Sunset

Paragraph (1) shall cease to be effective on the effective date of a regulation promulgated under subsection (d)(1).(c)

Public confirmation

The public confirmation described in paragraph (1)(C) shall include 1 of the following statements, depending on the status of the motor carrier: (1)This motor carrier is confirmed to meet all operating requirements of the Federal Motor Carrier Safety Administration (FMCSA) and is authorized to operate on the nation’s roadways..(2)This motor carrier is not confirmed to operate on the nation’s roadways and fails to meet 1 or more requirements of the Federal Motor Carrier Safety Administration (FMCSA) to operate as a motor carrier..(d)

Safety fitness rule

(1)

Rulemaking

Not later than 1 year after the date of enactment of this Act, the Secretary shall promulgate final regulations amending appendix B to part 385 of title 49, Code of Federal Regulations (or a successor regulation), to revise the methodology for issuance of motor carrier safety fitness determinations.(2)

Considerations

In promulgating the regulations under paragraph (1), the Secretary shall consider the use of all available data to determine the fitness of a motor carrier.(3)

Factors for an unfit determination

The regulations promulgated under paragraph (1) shall provide a procedure for the Secretary to determine whether a motor carrier is not fit to operate a commercial motor vehicle in or affecting interstate commerce in accordance with section 31144 of title 49, United States Code.(4)

Requirement

The regulations promulgated under paragraph (1) shall include the requirements described in subsections (b)(1) and (c).(e)

Exemption for individual shippers

For any claim of negligent selection of a motor carrier against a person acting as an individual shipper with respect to that person contracting with a covered motor carrier for the shipment of goods or household goods, that person shall, on demonstration that the person contracted with a covered motor carrier, be considered reasonable and prudent in the selection of that covered motor carrier without having to satisfy any of the requirements described in subsection (b)(1) (or any similar requirement in the regulations promulgated under subsection (d)(1)).(f)

Savings clause

Nothing in this Act preempts or supersedes any State law (including regulations) relating to drayage.