WASHINGTON — New legislation threatens to transform the way truck brokers do business, replacing voluntary vetting practices with a stiff federal penalty for contracting “unsafe” motor carriers.
Introduced by U.S. Rep. John Moolenaar, R-Mich., the Patrick and Barbara Kowalski Freight Brokers Safety Act aims to improve roadway safety by holding freight brokers directly accountable for the safety records of the trucking companies they hire.
The bill is named after the parents of Shannon Mertz, who were killed in a crash involving a trucking company that had several safety violations.
“Companies, like the one involved in my parents’ accident, must be held accountable,” Mertz said in a statement. “My family and I are thankful for Congressman Moolenaar’s responsiveness and efforts to prevent another family from experiencing the heartbreak we have felt.”
Specifically, the bill mandates a 10% surcharge on contracts with trucking companies that have three or more Department of Transportation violations within a five-year period. It would also grant the Federal Motor Carrier Safety Administration unprecedented authority to investigate freight brokers and impose operating requirements after fatal crashes.
For the brokerage sector, the legislation represents a move toward federalizing accountability for safety, and could radically shift how commercial freight is assigned and priced.
If passed, the measure could have a sizable impact on smaller brokers who may struggle with the data-intensive requirement to track every carrier’s violation history over a five-year rolling period.
FreightWaves has reached out to the Transportation Intermediaries Association (TIA), which represents freight brokers, for comment.
TIA has spent nearly a decade lobbying for standardized fitness legislation to counter conflicting standards that brokers face in court following highway accidents.
The Motor Carrier Safety Selection Standard Act, reintroduced in September, requires that brokers and shippers contract only with trucking companies registered with FMCSA, hold a valid operating authority, and meet the required insurance thresholds.
It also directs FMCSA to create a public-facing website confirming which carriers meet these requirements.
But while the TIA-backed legislation aims to clarify when a broker has done enough to ensure a carrier is safe, the Kowalski Act focuses on holding brokers directly accountable for the actual safety history of the companies they choose to employ.
Both bills reflect a push to define federal broker responsibilities, which have been less defined compared to those of motor carriers.
Related articles:
- Freight brokers pushing truck-fitness bill
- FMCSA pumps the brakes on broker transparency
- Lead sponsor of TIA-backed safety bill withdraws support
Click for more FreightWaves articles by John Gallagher.
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