[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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