H.R. 8267

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8267 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 8267

To amend title 49, United States Code, to combat freight fraud and 
theft, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

April 14, 2026

Mr. Knott introduced the following bill; which was referred to the 
Committee on Transportation and Infrastructure, and in addition to the 
Committees on the Judiciary, and Homeland Security, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee 
concerned

_______________________________________________________________________

A BILL

To amend title 49, United States Code, to combat freight fraud and 
theft, 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 ``Securing American Freight, 
Enforcement, and Reliability in Transport Act'' or the ``SAFER 
Transport Act''.

SEC. 2. DEFINITIONS.

In this Act:
(1) Administration.--The term ``Administration'' means the 
Federal Motor Carrier Safety Administration.
(2) Administrator.--The term ``Administrator'' means the 
Administrator of the Administration.
(3) Appropriate committees of congress.--The term 
``appropriate committees of Congress'' means--
(A) the Committee on Commerce, Science, and 
Transportation of the Senate; and
(B) the Committee on Transportation and 
Infrastructure of the House of Representatives.
(4) Broker.--The term ``broker'' has the meaning given the 
term in section 13102 of title 49, United States Code.
(5) Department.--The term ``Department'' means the 
Department of Transportation.
(6) Freight forwarder.--The term ``freight forwarder'' has 
the meaning given the term in section 13102 of title 49, United 
States Code.
(7) MC number.--The term ``MC number'' means a motor 
carrier docket number issued by the Administration.
(8) Motor carrier.--The term ``motor carrier'' has the 
meaning given the term in section 13102 of title 49, United 
States Code.
(9) Secretary.--The term ``Secretary'' means the Secretary 
of Transportation.
(10) USDOT number.--The term ``USDOT number'' has the 
meaning given the term in section 31132 of title 49, United 
States Code.

SEC. 3. FREIGHT FRAUD AND THEFT ADVISORY COMMITTEE.

(a) In General.--Not later than 60 days after the date of enactment 
of this Act, the Secretary shall establish an advisory committee, to be 
known as the ``Freight Fraud and Theft Advisory Committee'' (referred 
to in this section as the ``advisory committee''), to receive input 
from the public on ways in which the Department could contribute to the 
reduction of freight fraud and theft using existing authorities of the 
Department.
(b) Composition.--The advisory committee shall be composed of the 
following stakeholders:
(1) Stakeholders representing each of the following:
(A) Motor carriers, including independent owner-
operators.
(B) Railroads.
(C) Ports.
(D) Marine terminal operators.
(E) Freight brokers.
(F) Aviation operators.
(G) State and local law enforcement officials.
(H) Shippers.
(I) Insurance companies.
(2) Other stakeholders that the Secretary determines would 
provide insightful information on ways to address freight fraud 
and theft.
(c) Duties.--The advisory committee shall provide to the Secretary 
input and recommendations on ways in which the Department could 
contribute to the reduction of freight fraud and theft, including ways 
in which the Department could improve coordination within the 
Department and between the Department and other Federal agencies to 
identify and respond to freight fraud and theft.
(d) Report.--Not later than 2 years after the date on which the 
advisory committee is established under subsection (a), the advisory 
committee shall submit to the Secretary and to the appropriate 
committees of Congress a report that includes the findings of the 
advisory committee, any recommendations provided to the Secretary under 
subsection (c), and any other recommendations relating to the matters 
described in that subsection.
(e) Sunset.--The advisory committee shall terminate on submission 
of the report under subsection (d).

SEC. 4. MEMORANDUM OF UNDERSTANDING ON FREIGHT FRAUD AND THEFT.

(a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary and the Attorney General shall 
enter into a memorandum of understanding on addressing freight fraud 
and theft.
(b) Requirement.--At a minimum, the memorandum of understanding 
entered into under subsection (a) shall--
(1) require the Department to notify appropriate officials 
at the Department of Justice of any freight fraud or theft 
identified through the regulatory or enforcement work of the 
Department, and specify the method for such notification; and
(2) require the Department of Justice to establish a 
process for receiving and handling such information from the 
Department.

SEC. 5. SECURING THE REGISTRATION SYSTEM OF THE ADMINISTRATION.

(a) In General.--During the 5-year period beginning on the date of 
enactment of this Act, the Secretary--
(1) shall not issue or renew an MC number; and
(2) shall take other appropriate steps to phase out 
reference to MC numbers.
(b) Transition To Use of USDOT Numbers.--The Secretary shall ensure 
that, as of the date that is 5 years after the date of enactment of 
this Act--
(1) no motor carrier, broker, or freight forwarder holds an 
MC number; and
(2) each motor carrier, broker, and freight forwarder has 
been assigned a USDOT number.
(c) Registration of Freight Forwarders.--Section 13903(a) of title 
49, United States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and 
inserting ``; and''; and
(3) by adding at the end the following:
``(3) has been issued a USDOT number under section 
31134.''.
(d) Registration of Brokers.--Section 13904(a) of title 49, United 
States Code, is amended--
(1) in paragraph (1), by striking ``and'' at the end;
(2) in paragraph (2), by striking the period at the end and 
inserting ``; and''; and
(3) by adding at the end the following:
``(3) has been issued a USDOT number under section 
31134.''.
(e) Definitions.--Section 31132 of title 49, United States Code, is 
amended--
(1) in the matter preceding paragraph (1), by striking the 
em dash and inserting a colon;
(2) in paragraph (8), by striking ``31136 and 31140-31142'' 
and inserting ``31136, 31141, and 31142'';
(3) in each of paragraphs (1) through (11)--
(A) by inserting ``The term'' after the paragraph 
designation; and
(B) by inserting a paragraph heading, the text of 
which comprises the term defined in the paragraph;
(4) by redesignating paragraphs (1) through (11) as 
paragraphs (2), (6), (7), (8), (9), (10), (11), (13), (14), 
(15), and (16), respectively;
(5) by inserting before paragraph (2) (as so redesignated) 
the following:
``(1) Administration.--The term `Administration' means the 
Federal Motor Carrier Safety Administration.'';
(6) by inserting after paragraph (2) (as so redesignated) 
the following:
``(3) Convicted.--The term `convicted', with respect to an 
employer or person, means that a conviction has been made final 
with respect to that employer or person.
``(4) Conviction.--The term `conviction' means a finding of 
guilt (including a plea of nolo contendere) or imposition of 
sentence, or both, by any judicial body charged with the 
responsibility to determine violations of Federal or State law.
``(5) Covered felony.--The term `covered felony' means a 
felony under Federal or State law involving--
``(A) transportation, trafficking, or smuggling of 
persons, property, firearms, or controlled substances;
``(B) theft, fraud, coercion, or extortion--
``(i) involving the commercial 
transportation of property or passengers; or
``(ii) in connection with operation as a 
motor carrier; or
``(C) transportation of property or passengers in 
violation of an immigration or labor law.'';
(7) by inserting after paragraph (11) (as so redesignated) 
the following:
``(12) Secretary.--The term `Secretary' means the Secretary 
of Transportation.''; and
(8) by adding at the end the following:
``(17) USDOT number.--The term `USDOT number' means a 
unique identifier issued to an employer or person under section 
31134.''.
(f) USDOT Numbers.--Section 31134 of title 49, United States Code, 
is amended--
(1) in subsection (a)--
(A) in the fourth sentence, by striking ``An'' and 
inserting the following:
``(5) Motor carriers.--An'';
(B) in the third sentence, by striking ``Nothing'' 
and inserting the following:
``(4) Intrastate operators.--Nothing'';
(C) in the second sentence, by striking ``An'' and 
inserting the following:
``(2) Registration and USDOT number required.--An''; and
(D) by striking the subsection designation and 
heading and all that follows through the period at the 
end of the first sentence and inserting the following:
``(a) Registration.--
``(1) In general.--On application, and subject to 
paragraphs (3) and (6) and subsections (b) and (d), the 
Secretary shall register--
``(A) an employer or person subject to the safety 
jurisdiction of this subchapter; or
``(B) a motor carrier, broker, or freight forwarder 
subject to chapter 139.''; and
(E) by inserting after paragraph (2) the following:
``(3) USDOT numbers.--A USDOT number shall--
``(A) be required to obtain registration under this 
section or part B of subtitle IV;
``(B) uniquely identify the employer or person to 
which it is issued; and
``(C) be the only unique identifier issued by the 
Secretary to the employer or person for purposes of 
this section or part B of subtitle IV.'';
(2) in subsection (b)--
(A) in the matter preceding paragraph (1), by 
striking ``subsection (a)'' and inserting ``this 
subsection'';
(B) in paragraph (2)--
(i) by striking ``(A)''; and
(ii) by striking ``listed in subsection 
(b)(1)'' and inserting ``described in 
subparagraph (A)'';
(C) by redesignating paragraphs (1) through (3) as 
subparagraphs (A) through (C), respectively, and 
indenting appropriately; and
(D) by striking the subsection designation and 
heading and all that follows through ``The'' in the 
matter preceding subparagraph (A) (as so redesignated) 
and inserting the following:
``(6) Requirements.--The'';
(3) by redesignating subsections (c) through (e) as 
subsections (d) through (f), respectively;
(4) by inserting after subsection (a) the following:
``(b) Withholding of Registration.--The Secretary may withhold 
registration from an employer or person under subsection (a) if the 
employer or person has been convicted of a covered felony relating to 
the motor carrier operations of, or use of a commercial motor vehicle 
by, the employer or person.
``(c) Ownership Changes and Transfers.--Not later than 30 days 
after a motor carrier, broker, or freight forwarder associated with a 
USDOT number of an employer or person under this section experiences a 
change in ownership, including through purchase, sale, merger, 
acquisition, or any other transfer, the new employer or person owning 
the motor carrier, broker, or freight forwarder shall notify the 
Administration of the change in ownership.''; and
(5) in subsection (d) (as so redesignated)--
(A) in paragraph (1), by striking ``sections 
13905(d)(1)'' and inserting ``section 13905(d)(2)'';
(B) in paragraph (2), by striking ``listed in 
subsection (b)(1)'' and inserting ``described in 
subsection (a)(6)(A)'';
(C) in paragraph (3), by striking ``listed in 
subsection (b)(1)'' and inserting ``described in 
subsection (a)(6)(A)'';
(D) in paragraph (4), by striking the period at the 
end and inserting ``; or'';
(E) by redesignating paragraphs (1) through (4) as 
subparagraphs (A) through (D), respectively, and 
indenting appropriately;
(F) in the matter preceding subparagraph (A) (as so 
redesignated), by striking ``The Secretary'' and 
inserting the following:
``(1) In general.--The Secretary'';
(G) in paragraph (1) (as so designated), by adding 
at the end the following:
``(E) the employer or person failed to disclose, in 
an application for registration under subsection (a) or 
any update required by subsection (e), a material fact 
relevant to the willingness or ability of the employer 
or person to comply with--
``(i) the requirements described in 
subsection (a)(6)(A); or
``(ii) an order of the Secretary.''; and
(H) by adding at the end the following:
``(2) Certain convictions.--The Secretary may revoke the 
registration of an employer or person issued under subsection 
(a) after notice and an opportunity for a proceeding, or 
suspend the registration after giving notice of the suspension 
to the employer or person, if the employer or person has been 
convicted of a covered felony relating to the motor carrier 
operations of, or use of a commercial motor vehicle by, the 
employer or person.''.
(g) Registration of Motor Carriers.--Section 13902(a)(4) of title 
49, United States Code, is amended--
(1) by striking ``If'' and inserting the following:
``(A) In general.--If''; and
(2) by adding at the end the following:
``(B) Certain convictions.--The Secretary may 
withhold registration from a registrant if the 
registrant has been convicted (as defined in section 
31132) of a covered felony (as defined in that section) 
relating to the motor carrier operations of, or use of 
a commercial motor vehicle by, the registrant.''.
(h) Completion of Registration System.--Not later than 1 year after 
the date of enactment of this Act, the Secretary shall complete all 
requirements relating to the establishment of the Unified Carrier 
Registration System under section 13908 of title 49, United States 
Code.
(i) Conforming Amendments.--
(1) Section 321(4) of the United States-Mexico-Canada 
Agreement Implementation Act (19 U.S.C. 4571(4)) is amended by 
striking ``paragraph (1)'' and inserting ``paragraph (2)''.
(2) Section 224(b) of the Motor Carrier Safety Improvement 
Act of 1999 (49 U.S.C. 31100 note; Public Law 106-159) is 
amended, in the first sentence, by striking ``section 
31132(1)(B)'' and inserting ``section 31132(2)(B)''.
(3) Section 4008(b) of the Transportation Equity Act for 
the 21st Century (49 U.S.C. 31136 note; Public Law 105-178) is 
amended by striking ``section 31132(1)(B) of such title (as 
amended by subsection (a))'' and inserting ``section 
31132(2)(B) of that title''.
(4) Section 32702(3) of the Motorcoach Enhanced Safety Act 
of 2012 (49 U.S.C. 31136 note; Public Law 112-141) is amended 
by striking ``section 31132(1)'' and inserting ``section 
31132''.
(5) Subchapter III of chapter 311 of title 49, United 
States Code, is amended--
(A) by striking ``Federal Motor Carrier Safety 
Administration'' each place it appears and inserting 
``Administration''; and
(B) by striking ``Secretary of Transportation'' 
each place it appears and inserting ``Secretary''.

SEC. 6. STRENGTHENING STATE LICENSING TO ENSURE LEGAL DRIVERS.

(a) In General.--Section 31311(a)(12) of title 49, United States 
Code, is amended--
(1) in subparagraph (A), by striking ``subparagraphs (B) 
and (C)'' and inserting ``subparagraphs (B) through (D)'';
(2) by redesignating subparagraph (C) as subparagraph (D); 
and
(3) by inserting after subparagraph (B) the following:
``(C) A State that issues a commercial learner's permit or 
a commercial driver's license to an individual who is not a 
citizen or lawful permanent resident of the United States 
shall--
``(i) confirm that the applicant for the commercial 
learner's permit or commercial driver's license is 
authorized to work in the United States;
``(ii) provide to the Administrator of the Federal 
Motor Carrier Safety Administration such information as 
the Administrator determines necessary to confirm that 
the applicant is authorized to work in the United 
States; and
``(iii) if the applicant's authorization to work in 
the United States expires before the date on which the 
applicant's commercial learner's permit or commercial 
driver's license would otherwise expire, align the 
expiration of the applicant's commercial learner's 
permit or commercial driver's license to the date on 
which the applicant's authorization to work in the 
United States expires.''.
(b) Monthly Report.--Chapter 313 of title 49, United States Code, 
is amended by adding at the end the following:
``Sec. 31318. Monthly report on commercial driver's licenses
``Not later than the last day of each month, each State that issues 
commercial driver's licenses under this chapter shall submit to the 
Secretary of Transportation a report describing--
``(1) the number of commercial learner's permits issued by 
the State during the preceding month;
``(2) the number of commercial driver's licenses issued by 
the State during the preceding month;
``(3) the number of foreign non-domiciled commercial 
driver's licenses issued by the State during the preceding 
month;
``(4) the number of endorsements issued by the State during 
the preceding month; and
``(5) the number of, and justification for, revocations, 
suspensions, and downgrades of commercial driver's licenses by 
the State during the preceding month.''.
(c) Clerical Amendment.--The analysis for chapter 313 of title 49, 
United States Code, is amended by adding at the end the following:

``31318. Monthly report on commercial driver's licenses.''.

SEC. 7. IMPROVEMENTS TO COMMERCIAL DRIVER'S LICENSE TRAINING PROVIDER 
REGISTRY.

Section 31305 of title 49, United States Code, is amended--
(1) in subsection (a), in the matter preceding paragraph 
(1), by inserting ``(referred to in this section as the 
`Secretary')'' after ``Secretary of Transportation''; and
(2) by adding at the end the following:
``(e) Training Provider Registry.--
``(1) Definitions.--In this subsection:
``(A) Administration.--The term `Administration' 
means the Federal Motor Carrier Safety Administration.
``(B) Principal place of business.--The term 
`principal place of business', with respect to a 
provider, means a single physical business location of 
the provider where--
``(i) management officials of the provider 
report to work; and
``(ii) the provider conducts a significant 
portion of its business relating to the 
training of persons to transport persons or 
property.
``(C) Provider.--The term `provider' means a 
training provider (within the meaning of subpart G of 
part 380 of title 49, Code of Federal Regulations (or 
successor regulations)).
``(D) Registry.--The term `registry' means the 
training provider registry maintained by the 
Administration.
``(2) Audits .--
``(A) In general.--The Secretary shall establish a 
process to audit providers listed on the registry to 
ensure that each provider meets the criteria 
established by the Secretary to provide training.
``(B) Role of states.--The Secretary may require 
States--
``(i) to conduct an audit under 
subparagraph (A); or
``(ii) to collect relevant information from 
providers in the State for the Administration 
to audit.
``(3) Removal for nondisclosure of certain relationships.--
On complaint or on the initiative of the Secretary, the 
Secretary may, after providing notice and an opportunity to be 
heard, withhold, suspend, or revoke the registration of any 
provider listed on the registry if the Secretary finds that the 
provider failed to disclose any relationship, whether arising 
from common ownership, management, control, or familial ties, 
with another provider listed on the registry or with any 
applicant for inclusion on the registry whom the Secretary has 
determined to be unwilling or unable to comply with an 
applicable regulation or order of the Secretary.
``(4) Expedited removal from registry.--Not later than 120 
days after the date of enactment of this subsection, the 
Secretary shall establish a process for States to remove a 
provider from the registry if the State determines that the 
provider--
``(A) is no longer in business;
``(B) has been found guilty of committing fraud; or
``(C) has violated State regulations governing 
commercial motor vehicle operator training.
``(5) Registration of providers.--
``(A) In general.--An entity seeking to become a 
provider in accordance with subsection (c) shall 
register with the Administration.
``(B) Principal place of business.--A provider may 
not be added to the registry unless the provider has 
registered a principal place of business with the 
Administration.
``(C) Existing providers.--A provider listed on the 
registry as of the date of enactment of this 
subsection--
``(i) shall register a principal place of 
business with the Administration by the date 
that is 1 year after that date of enactment; 
and
``(ii) shall be removed from the registry 
if the provider has not registered a principal 
place of business with the Administration by 
the deadline described in clause (i).
``(6) Deadline for review of complaints against 
providers.--Not later than 180 days after receiving a complaint 
against a provider included on the registry, the Administration 
shall make a determination with respect to resolving that 
complaint.''.

SEC. 8. PREVENTING, DETECTING, AND ADDRESSING FRAUD IN REGISTRATION.

(a) Definitions.--In this section:
(1) Existing user.--The term ``existing user'' means a 
motor carrier that has access to, is registered for, or is 
otherwise included in the registration system.
(2) Flagged user.--The term ``flagged user'' means a new 
user or existing user--
(A) the activity of which is flagged as suspicious 
by an automated system implemented under subsection 
(b);
(B) with respect to which a discrepancy or other 
suspicious matter is identified; or
(C) with respect to which the Administration 
receives a report or other notification of--
(i) failure to disclose a material fact;
(ii) fraud;
(iii) any activity indicative of fraud; or
(iv) any other suspicious activity 
pertaining to the registration system.
(3) New user.--The term ``new user'' means a motor carrier 
or broker that first accesses or registers, or is first 
included in, the registration system.
(4) Person.--The term ``person'' has the meaning given the 
term in section 13102 of title 49, United States Code.
(5) Registration system.--The term ``registration system'' 
means the system that the Administration uses to register motor 
carriers or brokers as required under section 13908 of title 
49, United States Code.
(b) Automated Systems.--Not later than 1 year after the date of 
enactment of this Act, the Administrator shall develop and implement 1 
or more automated systems to flag suspicious activity in the 
registration system, or by motor carriers, brokers, or other persons 
dealing with the Administration, such as--
(1) rapid or unusual changes to motor carrier or broker 
information;
(2) unusual registration patterns; or
(3) duplicate business identifiers.
(c) Review of Flagged Users.--
(1) In general.--The Administrator shall establish a 
process to review each flagged user to determine whether that 
user engaged in fraud with respect to the registration system.
(2) Requirements.--A review under paragraph (1) shall--
(A) begin immediately on--
(i) the flagging of suspicious activity by 
an automated system implemented under 
subsection (b);
(ii) the identification of any discrepancy 
or other suspicious matter; or
(iii) the receipt of a report or other 
notification described in subsection (a)(3)(C); 
and
(B) include an audit of the flagged user, if 
appropriate or necessary to resolve the review.
(3) Suspension.--
(A) In general.--The Administrator may--
(i) temporarily suspend the registration of 
any flagged user in the registration system 
during a review under paragraph (1); or
(ii) note in any record of the 
Administration, including a public record 
published on the registration system, that a 
review of the applicable flagged user is 
ongoing.
(B) Requirement.--If the Administrator temporarily 
suspends a registration of a flagged user under 
subparagraph (A)(i), the Administrator shall provide to 
the flagged user a period of not less than 30 days to 
respond to and address any problems identified by the 
Administrator for purposes of resolving the review.
(4) Removal and other penalties.--
(A) In general.--On a determination that a motor 
carrier, broker, or any other person has failed to 
disclose a material fact, submitted fraudulent 
information, or committed fraud with respect to the 
registration system, the Administrator shall, as the 
Administrator determines to be appropriate--
(i) remove the person from the public view 
of the registration system;
(ii) remove the ability of the person to 
access the registration system; or
(iii) suspend or revoke the authority of 
the person to operate as a motor carrier, 
broker, or otherwise.
(B) Requirement.--If the Administrator takes an 
action described in subparagraph (A)(iii), the 
Administrator shall maintain the information of the 
applicable person in the registration system to assist 
the Administrator in identifying future fraudulent 
activities of the person.
(d) Records Updates.--Any update to a record in the registration 
system under this section--
(1) shall be made instantaneously, or as near 
instantaneously as possible, with respect to the determination 
relating to the update; and
(2) shall not be made unless the person requesting the 
update verifies that the person is authorized to request the 
update.
(e) Guidance.--
(1) In general.--Not later than 90 days after the date of 
enactment of this Act, the Administrator shall issue to motor 
carriers and brokers guidance about how to protect against 
fraudulent activities.
(2) Updates.--The Administrator shall update the guidance 
issued under paragraph (1) as appropriate to improve awareness 
of fraudulent activities.

SEC. 9. ENFORCEMENT OF CABOTAGE LAWS.

(a) In General.--The Administrator and the Commissioner of U.S. 
Customs and Border Protection shall enter into a memorandum of 
understanding with respect to how the Administrator and State law 
enforcement agencies communicate to the Commissioner information 
relating to violations of--
(1) section 13902(k) of title 49, United States Code, 
relating to the prohibition on the provision of point-to-point 
transportation services within the United States by drivers or 
motor carriers, including motor private carriers (as defined in 
section 13102 of title 49, United States Code), domiciled in 
Mexico or Canada operating in the United States; and
(2) section 13902(l) of title 49, United States Code, 
relating to the prohibition on the provision of point-to-point 
transportation services within the United States by 
unauthorized alien drivers.
(b) Registration of Motor Carriers.--Section 13902 of title 49, 
United States Code, is amended by adding at the end the following:
``(k) Prohibiting Certain Foreign Motor Carriers From Point-to-
Point Transport of Domestic Cargo in the United States.--
``(1) In general.--A motor carrier or motor private carrier 
described in paragraph (2) shall not transport domestic cargo 
from a point originating within the United States to a 
destination point also within the United States.
``(2) Motor carriers and motor private carriers 
described.--A motor carrier or motor private carrier referred 
to in paragraph (1) is a motor carrier or motor private carrier 
that--
``(A) is domiciled in Canada or Mexico; or
``(B) is domiciled in the United States but owned 
or controlled, directly or indirectly, by a person 
domiciled in Mexico.
``(l) Prohibiting Unauthorized Alien Drivers From Point-to-Point 
Transport of Domestic Cargo in the United States.--A motor carrier or 
motor private carrier shall not knowingly transport domestic cargo from 
a point originating within the United States to a destination point 
also within the United States in a commercial motor vehicle (as defined 
in section 31301) operated by an alien (as defined in section 101(a) of 
the Immigration and Nationality Act (8 U.S.C. 1101(a))) who is not 
authorized by U.S. Citizenship and Immigration Services to engage in 
employment in the United States that includes driving a commercial 
motor vehicle.''.
(c) Rulemaking.--Not later than 1 year after the date of enactment 
of this Act, the Administrator shall revise section 365.101T(h) of 
title 49, Code of Federal Regulations, to reflect the requirements of 
subsection (a) and section 13902(k) of title 49, United States Code.

SEC. 10. REIMBURSEMENT OF CERTAIN VICTIMS OF FREIGHT THEFT.

The Commissioner of U.S. Customs and Border Protection shall 
reimburse the victims of cargo theft under section 659 of title 18, 
United States Code, for fines paid by such victims to U.S. Customs and 
Border Protection for containers that are not sealed as required by 
regulations prescribed pursuant to section 204 of the Security and 
Accountability For Every Port Act of 2006 (6 U.S.C. 944).

SEC. 11. CRIMINAL PENALTIES; SUBMISSION OR USE OF FRAUDULENT 
CERTIFICATIONS.

(a) Definition of Fraudulent Certification.--In this section, the 
term ``fraudulent certification'' means any statement, representation, 
or omission of fact, including in any writing or document, that--
(1) is material;
(2) is known by the person submitting or using it to be 
false, fictitious, misleading, or incomplete; and
(3) is submitted or used in connection with any 
registration, certification, filing, or compliance requirement 
administered by the Administration under chapter 5, 311, 313, 
or 315 of title 49, United States Code.
(b) Criminal Penalty.--Any person who knowingly and willfully 
submits to the Administrator or otherwise uses a fraudulent 
certification and, by means of that fraudulent certification or any 
authority or status obtained pursuant to that fraudulent certification, 
engages or attempts to engage in the unlawful transportation of 
property or passengers in interstate commerce shall be fined under 
title 18, United States Code, imprisoned for not more than 5 years, or 
both.

SEC. 12. FOREIGN DISPATCH SERVICES.

(a) Definition of Foreign Dispatch Service.--Section 13102 of title 
49, United States Code, is amended--
(1) in the matter preceding paragraph (1), by striking ``, 
the following definitions shall apply'';
(2) by redesignating paragraphs (6) through (27) as 
paragraphs (7), (8), (9), (10), (11), (12), (13), (14), (15), 
(16), (17), (18), (20), (21), (22), (23), (24), (25), (26), 
(27), (28), and (19) respectively, and moving the paragraphs so 
as to appear in numerical order; and
(3) by inserting after paragraph (5) the following:
``(6) Foreign dispatch service.--The term `foreign dispatch 
service' means a person that--
``(A) is not located in the United States, Mexico, 
or Canada;
``(B) maintains its principal place of business or 
substantial operations in a foreign country;
``(C) acts as a direct licensed agent on behalf of 
1 or more motor carriers through a formal written 
agreement;
``(D) receives compensation from those motor 
carriers based on a predetermined written legal 
contractual agreement;
``(E) discloses that--
``(i) the person is a dispatch service 
operating under an agreement with a specific 
motor carrier; and
``(ii) the relevant shipment is arranged 
for that motor carrier only;
``(F) provides only administrative or support 
services limited to--
``(i) coordinating freight movements 
without assuming responsibility for the cargo 
or arranging transportation; and
``(ii) communicating through a broker to 
arrange for the transportation of shipments for 
the motor carrier; and
``(G) does not seek or solicit shippers for 
freight.''.
(b) Registration.--
(1) In general.--Chapter 139 of title 49, United States 
Code, is amended by adding at the end the following:
``Sec. 13910. Registration of foreign dispatch services as brokers
``A person operating as a foreign dispatch service shall register 
as a broker.''.
(2) Clerical amendment.--The analysis for chapter 139 of 
title 49, United States Code, is amended by adding at the end 
the following:

``13910. Registration of foreign dispatch services as brokers.''.
(c) Conforming Amendments.--
(1) Section 32702(5) of the Motorcoach Enhanced Safety Act 
of 2012 (49 U.S.C. 31136 note; Public Law 112-141) is amended--
(A) in subparagraph (A), by striking ``section 
13102(14)'' and inserting ``section 13102''; and
(B) in subparagraph (B), by striking ``section 
13102(15) of that title'' and inserting ``that 
section''.
(2) Section 14101(b)(1) of title 49, United States Code, is 
amended, in the first sentence, by striking ``section 
13102(10)(A)'' and inserting ``section 13102(11)(A)''.
(3) Section 14104(b)(1)(A) of title 49, United States Code, 
is amended by striking ``section 13102(10)(A)'' and inserting 
``section 13102(11)(A)''.
(4) Section 14706(c)(1)(A) of title 49, United States Code, 
is amended by striking ``section 13102(10)(A)'' and inserting 
``section 13102(11)(A)''.

SEC. 13. RECORDS MAINTENANCE.

Section 14122 of title 49, United States Code, is amended by 
striking subsection (a) and inserting the following:
``(a) Form and Maintenance of Records.--
``(1) Form of records.--The Secretary or the Board, as 
applicable, may prescribe the form of records required to be 
prepared or compiled under this subchapter by carriers and 
brokers, including records related to movement of traffic and 
receipts and expenditures of money.
``(2) Maintenance of records.--Records described in 
paragraph (1) shall be maintained or made accessible upon 
demand at the principal place of business of the carrier or 
broker.
``(3) Savings provision.--Nothing in this subsection 
prevents the Secretary or the Board, as applicable, from 
conducting an investigation at a location other than the 
principal place of business or virtually.''.

SEC. 14. DEFINITION OF BROKER; UNLAWFUL BROKERAGE ACTIVITIES.

(a) Definition of Broker.--Section 13102 of title 49, United States 
Code, is amended by striking paragraph (2) and inserting the following:
``(2) Broker.--
``(A) In general.--The term `broker' means a person 
who offers for sale, negotiates for, or holds itself 
out by solicitation, advertisement, technology, or 
otherwise as selling, providing, or arranging for, 
transportation by motor carrier for direct or indirect 
compensation.
``(B) Exclusion.--The term `broker' does not 
include a person providing only financial assistance, 
analysis, or accounting services.''.
(b) Unlawful Brokerage Activities.--Section 14916(a) of title 49, 
United States Code, is amended by striking the subsection designation 
and heading and all that follows through ``that person--'' in the 
matter preceding paragraph (1) and inserting the following:
``(a) Prohibited Activities.--A person may provide interstate 
brokerage services only if that person--''.
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