This bill establishes a standard of care for the selection of brokers and other entities that contract with motor carriers (e.g., trucking companies) for the shipment of goods or household goods. (A broker is the middle person between a shipper and a motor carrier. Brokers arrange for the transportation of property or household goods.)
Specifically, the bill requires such entities to verify that a transporting motor carrier (1) is properly registered with the Department of Transportation (DOT); (2) has obtained the minimum required insurance coverage; and (3) is in compliance with all Federal Motor Carrier Safety Administration safety standards, including through a public confirmation statement. Entities that comply with the verification requirements shall be considered reasonable and prudent in the selection of a covered motor carrier (for the purposes of a claim of negligent selection of a motor carrier).
Further, DOT must promulgate final regulations that revise the methodology for issuing motor carrier safety fitness determinations. The regulations must provide a procedure for DOT to determine whether a motor carrier is not fit to operate a commercial motor vehicle that is in, or affects, interstate commerce.
The bill exempts from the verification requirements an individual shipper (i.e., a shipper that owns the goods being transported and pays the tariff transportation charges) that contracts with a covered motor carrier.
