Proposed Bill: Strengthening Enforcement Against Double and Triple Brokering

Proposed Bill: Strengthening Enforcement Against Double and Triple Brokering in Freight Transportation

Purpose

To enhance the enforcement of regulation 371.2 by explicitly prohibiting double and triple brokering practices, which undermine the integrity, safety, and financial stability of the freight transportation industry. This bill aims to define rebrokering as a criminal activity and establish strict penalties to deter violations.

Background

Under current regulation 371.2, the definition of a broker does not include double or triple brokering. However, these practices persist, causing significant financial and safety risks. Double brokering is unnecessary, as it duplicates the work that the original broker was hired to perform. The financial impacts of rebrokering often force carriers to cut corners on safety-critical maintenance, jeopardizing public safety and the reliability of the transportation network.

Provisions

1. Clarification of the Definition of a Broker:

   Amend 49 CFR 371.2 to explicitly state that double and triple brokering are not permitted under the definition of a broker.

2. Criminalization of Rebrokering:

   Designate double and triple brokering as criminal acts under federal law.

3. Penalties for Violations:
   • First Offense:
     • Mandatory Performance and Paperwork (PPW) Audit.
     • Six-month suspension of the violator’s operating authority.
     • A $500 fine for each rebrokered load.
   • Second Offense:
     • Permanent revocation of the violator’s operating authority.
     • Additional civil and criminal penalties as deemed necessary.
4. Public Safety Focus:

   Recognize that the financial strain caused by rebrokering directly impacts carriers' ability to maintain proper safety standards, leading to increased risks for the public.

5. Implementation:

   Direct the Federal Motor Carrier Safety Administration (FMCSA) to develop and enforce compliance measures. Allocate resources for the investigation and prosecution of double and triple brokering cases.

Summary 

Rebrokering was never intended to be a function within the transportation industry. It exploits regulatory loopholes, erodes trust in the freight network, and endangers public safety. By closing this loophole and imposing swift and significant penalties, this bill aims to restore accountability and safety to the freight transportation sector.

It is time for the FMCSA and our legislators to act decisively and shut the door on this exploitative practice.