The Transportation Intermediaries Association, Owner-Operator Independent Drivers Association and the American Trucking Associations have joined together in supporting the Fighting Fraud in Transportation Act 2011, FITT.


The Act, H.R. 2357, would address issues of fraud that plague the marketplace. The bill was introduced by Congressmen Russ Carnahan (D-MO) and Frank Guinta (R-NH).

The organizations felt that a united approach was required to correct problems with unscrupulous operators that victimized both brokers and carriers. Past discussions with Congressman Peter DeFazio (D-OR), former Chairman of the House Subcommittee on Highways and Transit, led the groups to find a shared solution to the problems that members of all the organizations were experiencing.

"The legislation recognizes that the brokerage and overall transportation industry have changed since the ICC Termination Act," said TIA president and CEO Robert Voltmann. "The FFIT Act will address serious fraud and confusion in the industry."

Brokers, forwarders, owner-operators, and carriers must be able to reasonably rely on representations made in the terms of their agreement, Voltmann said. According to him, the encroachment of fraudulent operations has left the legitimate industry vulnerable.

Key provisions of the proposed legislation would require brokers and freight forwarders to:

* Carry a $100,000 bond
* Provide strict regulation of broker surety companies so that they must fulfill their obligations to brokers and forwarders
* Provide greater transparency for those seeking to become brokers or forwarders
* Establish significant penalties including unlimited liability for freight charges for those operating without the required authority

Motor carriers would be required to hold broker or freight forwarder authority.

The bill also clarifies that a motor carrier may provide transportation of property with self-propelled motor vehicles owned or leased by the motor carrier or through interchanges as permitted under regulation issued by the Secretary provided some conditions are met. The originating carrier must physically transport the cargo at some point, and retains liability for the cargo and payment of interchanged carriers and require that there must be at least one corporate officer who has met minimum training standards or equivalent experience.

FITT is nearly identical to last year's Senate Bill, the Motor Carrier Protection Act, minus a provision on BMC-32 cargo insurance, which the FMCSA ended earlier this year, and some minor word changes. According to Nancy O'Liddy, director of Policy at TIA, the organization is also working with the Sens. Olympia J. Snowe (R-Maine) and Amy Klobuchar (D-Minn.) from last year to get the bill re-introduced in the Senate.

O'Liddy said TIA hopes the measures will be passed as part of the highway reauthorization bill.