Motor Carrier Safety Selection Standard Act
This bill establishes a standard of care for the selection of brokers and other entities that contract with motor carriers for the shipment of goods or household goods. A broker is a person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by motor carrier for compensation.
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 not determined unfit to safely operate commercial motor vehicles, or otherwise ordered to discontinue operations by the Federal Motor Carrier Safety Administration or a state.
DOT must prescribe by regulation a process for revoking the registration of an owner or operator determined unfit to safely operate a commercial motor vehicle.
To establish a national motor carrier safety selection standard for 
entities that contract with certain motor carriers to transport goods, 
                        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 ``Motor Carrier Safety Selection 
Standard Act''.

SEC. 2. MOTOR CARRIER SELECTION STANDARD OF CARE.

    (a) In General.--
            (1) Selection standard.--For any applicable legal 
        requirement with respect to a covered entity contracting with a 
        covered motor carrier for the shipment of goods or household 
        goods, the covered entity shall be considered reasonable and 
        prudent in the selection of such motor carrier if the covered 
        entity verifies, not later than the date of shipment and not 
        earlier than 45 days before the date of shipment, that the 
        covered motor carrier--
                    (A) is registered under section 13902 of title 49, 
                United States Code, as a motor carrier or household 
                goods motor carrier;
                    (B) has at least the minimum insurance coverage 
                required by Federal and State law; and
                    (C) is not determined unfit to operate safely 
                commercial motor vehicles under section 31144 of title 
                49, United States Code, or otherwise ordered to 
                discontinue operations by the Federal Motor Carrier 
                Safety Administration (including not renewing a 
                Department of Transportation registration number) or a 
                State, for intrastate commerce.
            (2) Sunset.--The standard established under paragraph (1) 
        shall sunset on the effective date of a regulation issued 
        pursuant to subsection (c).
    (b) Revocation of Registration.--Section 31144(a) of title 49, 
United States Code, is amended--
            (1) in paragraph (3) by striking ``and'';
            (2) in paragraph (4) by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(5) prescribe by regulation a process for revoking the 
        registration of an owner or operator determined unfit to 
        operate safely a commercial motor vehicle under this 
        section.''.
    (c) Rulemaking.--
            (1) In general.--Not later than 18 months after the date of 
        enactment of this Act, the Secretary shall--
                    (A) update and revise the regulations issued 
                pursuant to subsection (b) of section 31144 to include 
                the requirements of subsection (a); and
                    (B) issue such regulations as are necessary to 
                carry out section 31144(a)(5), as added by this Act.
            (2) Factors for an unsatisfactory rating.--The regulations 
        updated under paragraph (1)(A) shall provide a procedure for 
        the Secretary to determine if a motor carrier is not fit to 
        operate a commercial motor vehicle in or affecting interstate 
        commerce in accordance with such section.
    (d) Savings Clause.--Nothing in this Act shall be construed to 
preempt or supercede any State law or regulation relating to drayage.
    (e) Definitions.--In this Act:
            (1) Covered entity.--The term ``covered entity'' means a 
        person acting as--
                    (A) a shipper or cosignee of goods, except that 
                such term does not mean a person acting as an 
                individual shipper (as such term is defined in section 
                13103 of title 49, United States Code);
                    (B) a broker, a freight forwarder, or a household 
                goods freight forwarder (as such terms are defined in 
                section 13102 of title 49, United States Code);
                    (C) an ocean transportation intermediary (as such 
                term is defined in section 40102 of title 46, United 
                States Code), when arranging for inland transportation 
                as part of an international through movement involving 
                ocean transportation between the United States and a 
                foreign port;
                    (D) an indirect air carrier holding a Standard 
                Security Program approved by the Transportation 
                Security Administration, only to the extent that the 
                indirect air carrier is engaging in the activities as 
                an air carrier as defined in section 40102(2) or in the 
                activities defined in section 40102(3);
                    (E) a customs broker licensed in accordance with 
                section 111.2 of title 19, Code of Federal Regulations, 
                only to the extent that the customs broker is engaging 
                in a movement under a customs bond or in a transaction 
                involving customs business, as defined by section 111.1 
                of title 19, Code of Federal Regulations; or
                    (F) a motor carrier registered under chapter 139 of 
                title 49, United States Code.
            (2) Covered motor carrier.--The term ``covered motor 
        carrier'' means a motor carrier or a household goods motor 
        carrier (as such terms are defined in section 13102 of title 
        49, United States Code) that is subject to Federal motor 
        carrier financial responsibility and safety regulations.
            (3) Household goods.--The term ``household goods'' has the 
        meaning given the term in section 13102 of title 49, United 
        States Code.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Transportation.
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Motor Carrier Safety Selection Standard Act
To establish a national motor carrier safety selection standard for entities that contract with certain motor carriers to transport goods, and for other purposes.
Motor Carrier Safety Selection Standard Act
Rep. Gallagher, Mike