H.R. 7539

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7539 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7539

To direct the Administrator of the Federal Motor Carrier Safety 
Administration to conduct a study on chameleon carriers in the United 
States and 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, and for other 
purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 12, 2026

Ms. Hageman introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure

_______________________________________________________________________

A BILL

To direct the Administrator of the Federal Motor Carrier Safety 
Administration to conduct a study on chameleon carriers in the United 
States and 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, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Safety and Accountability in Freight 
Enforcement Act'' or the ``SAFE Act''.

SEC. 2. REPORT ON CHAMELEON CARRIERS.

(a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States shall submit 
to Congress a report that contains the results of a study that examines 
chameleon carriers on United States roadways.
(b) Contents.--The report under subsection (a) shall include--
(1) the estimated number of chameleon carriers on United 
States roadways at any given time;
(2) the prevalence of chameleon carriers on United States 
roadways since the issuance of the report of the Government 
Accountability Office titled ``Motor Carrier Safety: New 
Applicant Reviews Should Expand to Identify Freight Carriers 
Evading Detection'', issued March 22, 2012;
(3) the estimated number of fatalities caused by chameleon 
carriers since the report described in paragraph (2), including 
the number of fatalities broken down by State;
(4) the estimated number of serious bodily injuries caused 
by chameleon carriers since the report described in paragraph 
(2), including the number of serious bodily injuries broken 
down by State;
(5) the estimated amount of property damage caused by 
chameleon carriers since the report described in paragraph (2);
(6) an identification and analysis of the methods and 
techniques used by chameleon carriers to evade Federal 
enforcement, including how such methods and techniques have 
evolved over time;
(7) an identification and analysis of the existing 
monitoring and enforcement capabilities, along with any 
shortcomings, of the Department of Transportation to detect and 
mitigate chameleon carrier activity, including--
(A) the registration processes for Department of 
Transportation numbers;
(B) the existing software capabilities of the 
Department of Transportation to detect chameleon 
carrier applicants;
(C) any recommendations for improving data fields 
within the Motor Carrier Management Information System; 
and
(D) any existing penalties laid out under Federal 
statute and regulation for chameleon carriers;
(8) any other relevant priorities deemed necessary by the 
Department of Transportation; and
(9) any legislative recommendations to address chameleon 
carriers.
(c) Collaboration.--In carrying out the study under subsection (a), 
the Comptroller General may collaborate with other Federal agencies, 
State and local governments, institutions of higher education, and 
private sector entities.

SEC. 3. ADVANCED AUTOMATION TOOL.

(a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Administrator of the Federal Motor Carrier Safety 
Administration shall develop, test, and implement an advanced 
automation tool to help Federal Motor Carrier Safety Administration 
registration personnel detect chameleon carrier applications under the 
registration process for Department of Transportation numbers.
(b) Collaboration.--
(1) In general.--In developing the tool under subsection 
(a), the Administrator may collaborate with other Federal 
agencies, State and local governments, institutions of higher 
education, and the private sector as necessary to develop and 
test the advanced automation tool.
(2) Federal agencies.--The Administrator and any Federal 
agency the Administrator determines is relevant shall enter 
into a memorandum of understanding to share information needed 
to implement the requirements of the tool under subsection (c), 
which may include--
(A) the Department of Treasury;
(B) the Department of Justice;
(C) the United States Postal Service;
(D) the Department of Homeland Security;
(E) the Department of Commerce;
(F) the Department of State; and
(G) relevant operating administrations within the 
Department of Transportation.
(3) State agencies.--The Administrator shall enter into a 
memorandum of understanding with any relevant State agency to 
share information needed to implement the requirements of the 
tool under subsection (c).
(c) Requirements.--The advanced automation tool developed under 
subsection (a) shall include--
(1) the ability to detect chameleon carrier-like 
characteristics that support evidence of substantial continuity 
between entities, including--
(A) whether the new or affiliated entity was 
created for the purpose of evading statutory or 
regulatory requirements, a Federal Motor Carrier Safety 
Administration order, enforcement action, or negative 
compliance history;
(B) the previous entity's safety performance 
history, including, among other things, safety 
violations and enforcement actions of the Secretary, if 
any;
(C) existing or inactive Department of 
Transportation numbers;
(D) consideration exchanged for assets purchased or 
transferred;
(E) dates of company creation and dissolution or 
cessation of operations;
(F) commonality of ownership between the current 
and former company or between current companies;
(G) commonality of officers and management 
personnel;
(H) identity of physical or mailing addresses, 
telephone, fax numbers, or email addresses;
(I) identity of motor vehicle equipment;
(J) continuity of liability insurance policies or 
commonality of coverage under such policies;
(K) commonality of drivers and other employees;
(L) continuation of carrier facilities and other 
physical assets;
(M) continuity or commonality of nature and scope 
of operations; and
(N) advertising, corporate name, or other acts 
through which the company holds itself out to the 
public;
(2) the ability to detect lapses in insurance coverage;
(3) the ability to compile evidence of the chameleon 
carrier-like characteristics under paragraph (1) relevant to 
the determination of a registration application for Department 
of Transportation numbers;
(4) the ability to provide automated decision support 
relevant to the determination of any registration application 
for Department of Transportation numbers, while keeping 
responsibility for final determinations on employees of the 
Administration;
(5) the ability to automate information sharing between 
Federal agencies; and
(6) any other relevant priorities determined necessary by 
the Administrator.
(d) Appeals for Redetermination.--
(1) In general.--In establishing the tool under this 
section, the Administrator shall develop an appeals process 
under which persons denied a Department of Transportation 
number on the basis of a flag by such tool may seek a review of 
the denial.
(2) Notification.--In establishing the tool under this 
section, the Administrator shall provide for a process under 
which a person denied a Department of Transportation number as 
described in paragraph (1) shall receive a notification of such 
denial that includes the factors flagged by the tool and 
provides instructions to such person to correct the application 
for such number not later than 30 days after receipt of the 
notification.
(3) Timing of redetermination.--The appeals process 
developed under paragraph (1) shall provide for a 
redetermination on the amended application for a Department of 
Transportation number to take place not later than 30 days 
after the receipt of the information described in paragraph 
(2).
(e) Briefing.--Not later than 30 days after the date of enactment 
of this Act, the Administrator shall brief the congressional committees 
of jurisdiction on the issue of chameleon carriers and any ongoing 
efforts or progress that the Administration has made to combat such 
issue or meet the objectives of this Act.
(f) Rule of Construction.--Nothing in this Act shall be construed 
to allow the final use of an automated decision by the tool created 
under this section for Department of Transportation number 
registration.
(g) Data Privacy.--In developing the tool under subsection (a), the 
Administrator shall ensure that data used by such tool is not disclosed 
for a purpose not described in this section.
(h) Audit and Report on Effectiveness.--
(1) In general.--Not later than 2 years after the date of 
implementation of the tool established under this section, the 
inspector general of the Department of Transportation shall 
submit to Congress a report on the effectiveness of such tool.
(2) Contents.--The report under paragraph (1) shall 
contain--
(A) the results of an audit of the effectiveness of 
the tool established under this section;
(B) empirical data on outcomes of the use of the 
tool, including the number of flagged and rejected 
applications for Department of Transportation numbers, 
any reduction in severe crashes, and the number of 
errors and application redeterminations under 
subsection (d); and
(C) any recommendations to improve the 
effectiveness of the tool.

SEC. 4. DEFINITION OF CHAMELEON CARRIER.

In this Act, the term ``chameleon carrier'' means a motor carrier, 
intermodal equipment provider, broker, or freight forwarder, or an 
officer, employee, agent, authorized representative, or other 
affiliated party of such an entity, that has, directly or indirectly, 
operated or attempted to operate a motor carrier, intermodal equipment 
provider, broker, or freight forwarder under a new identity or as an 
affiliated entity to--
(1) avoid complying with a Federal Motor Carrier Safety 
Administration 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 by obtaining or 
attempting to obtain insurance coverage under a new or 
materially different identity, ownership structure, or 
corporate form;
(7) misrepresent ownership, control, management, or 
operational continuity to an insurer, broker, or underwriter 
for the purpose of securing lower insurance rates or favorable 
coverage terms; or
(8) reincorporate, re-register, or otherwise reconstitute a 
carrier entity following the denial, nonrenewal, or 
cancellation of an insurance policy due to safety, claims, or 
compliance history.
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