A REAL ACT, TO REALLY FIX THE INDUSTRY. WRITTEN BY A TRUCKER FOR TRUCKERS

FREIGHT OPERATIONS PROTECTION & TRANSPARENCY ACT

(FOPT Act)

A BILL

To reform freight operations in the United States by strengthening transparency, protecting commercial drivers and small carriers, modernizing regulatory standards, enforcing operational accountability, eliminating predatory practices, and restoring integrity to the national supply chain.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

TITLE I — BROKER TRANSPARENCY & FAIR COMPENSATION

SEC. 101. DEFINITIONS.

a. For this Act, the following definitions apply:

(1) Commercial motor vehicle (CMV). —The term “commercial motor vehicle” has the meaning given in section 31101 of title 49, United States Code.

(2) Motor carrier. —The term “motor carrier” has the meaning given in section 13102 of title 49, United States Code and includes any person or entity transporting property in interstate commerce for compensation.

(3) Broker. —The term “broker” has the meaning given in section 13102 of title 49, United States Code and includes any person or entity arranging transportation of property by a motor carrier for compensation.

(4) Broker of record. —The term “broker of record” means the first licensed broker or entity that enters into a direct transportation contract with a shipper for a load.

(5) Shipper. —The term “shipper” means any person or entity that tenders property for transportation in interstate commerce.

(6) Consignee or receiver. —The term “consignee” or “receiver” means the person or entity designated to receive property at destination.

(7) Rate confirmation.—The term “rate confirmation” means a written or electronic agreement issued prior to dispatch that sets forth all financial terms of a shipment, including—(A) the total amount paid by the shipper;(B) broker fees;(C) carrier compensation;(D) fuel surcharges;(E) accessorial charges; and(F) detention, cancellation, and unloading-related fees.

(8) Original load rate. —The term “original load rate” means the total compensation paid by the shipper for transportation of a load prior to any broker fee or deduction.

(9) Carrier rate. —The term “carrier rate” means the compensation payable to the authorized motor carrier performing the transportation, exclusive of broker fees.

(10) Broker fee. —The term “broker fee” means all compensation retained by a broker for arranging transportation, expressed as both a dollar amount and a percentage of the original load rate, including technology, platform, administrative, or service fees.

(11) Accessorial charges. —The term “accessorial charges” means additional compensation for services beyond linehaul transportation, including detention, layover, unloading, missed pickups, redelivery, additional stops, or similar services.

(12) Lumper fee. —The term “lumper fee” means any charge assessed by a shipper or receiver for loading or unloading services at origin or destination.

(13) Chargeback. —The term “chargeback” means any post-settlement deduction imposed against a motor carrier, including deductions for cargo claims, shortages, administrative fees, or alleged service failures.

(14) Unauthorized double brokering. —The term “unauthorized double brokering” means the re-brokering of a load by a broker without the prior written consent of the shipper.

(15) Co-brokering. —The term “co-brokering” means a disclosed and shipper-approved arrangement between two or more licensed brokers in which all parties, payment responsibilities, and roles are identified on the rate confirmation and bill of lading.

(16) Tracking data. —The term “tracking data” means GPS, ELD-derived, or other location information transmitted for shipment visibility or safety purposes.

(17) Hours-of-service (HOS). —The term “hours-of-service” has the meaning given in part 395 of title 49, Code of Federal Regulations.

(18) Electronic logging device (ELD). —The term “electronic logging device” has the meaning given in section 395.2 of title 49, Code of Federal Regulations.

(19) Paper logbook. —The term “paper logbook” means a record of duty status maintained in accordance with section 395.8 of title 49, Code of Federal Regulations.

(20) Owner-operator. —The term “owner-operator” means a motor carrier or driver who owns or leases a commercial motor vehicle and operates under their own operating authority or pursuant to a lawful lease agreement.

(21) Lease-purchase agreement. —The term “lease-purchase agreement” means any contract under which a driver leases equipment with an option or expectation of ownership.

(22) Predatory lease-purchase agreement. —The term “predatory lease-purchase agreement” means a lease arrangement structured to prevent meaningful equity accrual or to impose hidden, coercive, or unavoidable financial obligations.

(23) Medical qualification. — The term “medical qualification” means compliance with the physical qualification standards set forth in section 391.41 of title 49, Code of Federal Regulations.

(24) Certified medical examiner. — The term “certified medical examiner” has the meaning given in section 390.5 of title 49, Code of Federal Regulations.

(25) Professional trucker. — The term “professional trucker” means an individual legally qualified to operate a commercial motor vehicle in interstate commerce under parts 383 and 391 of title 49, Code of Federal Regulations.

(26) Safe miles. — The term “safe miles” means verifiable miles driven without a preventable crash, serious traffic violation, or disqualifying safety infraction, as determined under FMCSA standards.

(27) Digital freight platform. — The term “digital freight platform” means any electronic system or marketplace used to post, tender, or arrange freight transportation.

(28) Entity identifier requirements. — The term “entity identifier requirements” means the physical address, telephone number, and operating-location requirements set forth in section 108 of this Act.

(29) Secretary. — The term “Secretary” means the Secretary of Transportation.

(30) FMCSA. — The term “FMCSA” means the Federal Motor Carrier Safety Administration.

(31) Broker revenue. — The term “broker revenue” means all compensation retained by a broker from shipper payments, including fees, margins, technology charges, and administrative costs.

(32) Quarterly reporting period. — The term “quarterly reporting period” means each calendar quarter ending March 31, June 30, September 30, and December 31.

(33) Economic control test. — The term “economic control test” means the federal standard for determining employee versus independent contractor status under section 203 of title 29, United States Code, and part 795 of title 29, Code of Federal Regulations.

(34) Driver coercion. — The term “driver coercion” means any action by a motor carrier, broker, or shipper intended to force a driver to violate safety, labor, or compensation laws.

(35) Verifiable proof. — The term “verifiable proof” means documented evidence, including communications, recordings, ELD data, dispatch records, or sworn testimony.

(36) Truck parking facility. — The term “truck parking facility” means any designated public or private area for commercial motor vehicle parking.

(37) Truck ordered not used (TONU). — The term “truck ordered not used” means compensation owed to a motor carrier when a confirmed load is canceled, withdrawn, materially altered, or made unavailable prior to loading after the carrier has positioned equipment or driver in reasonable reliance on the rate confirmation.

(38) Detention time. — The term “detention time” means The period during which a commercial motor vehicle and its operator are held beyond the scheduled appointment time or reasonable arrival window at a shipper or receiver while awaiting loading or unloading, during which the shipper or receiver exercises exclusive control over the vehicle and knowingly accepts the benefit of the carrier’s standby services, excluding delays caused by the motor carrier. 

(39) Material alteration. — The term “material alteration” means any change to a confirmed load that materially affects rate, distance, commodity, pickup or delivery location, appointment time, equipment requirement, or regulatory compliance.

(40) Confirmed load. — The term “confirmed load” means a shipment for which a rate confirmation has been issued and accepted by a motor carrier.

(41) Operating authority. — The term “operating authority” means authority granted by the Secretary under subtitle IV of title 49, United States Code.

(42) Affiliated entity. — The term “affiliated entity” means any person or entity that directly or indirectly controls, is controlled by, or is under common control with another entity, including through ownership, management, financing, contractual arrangement, or indirect operational influence.

(43) Retaliation. — The term “retaliation” means any adverse action taken against a driver or motor carrier for exercising rights under this Act, including load denial, rate reduction, termination, blacklisting, adverse reporting, or any such action taken within 90 days of exercising a protected right.

(44) Gross compensation. — The term “gross compensation” means total compensation before deductions for fuel, insurance, escrow, equipment, or administrative fees.

(45) Substantial control. — The term “substantial control” means control over routes, schedules, loads, rates, equipment, or working conditions sufficient to establish an employment relationship under federal law.

(46) Labor Trafficking. —The term “labor trafficking” has the meaning given in section 103(9) of the Trafficking Victims Protection Act (22 U.S.C. §7102), including the use of force, fraud, or coercion for the purpose of labor or services.

Sec. 102. Broker Fee Limitation.

(a) A broker may not assess a fee exceeding 15 percent of the Original Load Rate.

(b) Any attempt to disguise compensation through technology fees, administrative surcharges, or platform fees is included in the 10 percent cap.

(c) Violations constitute an unfair trade practice under this Act.

Sec. 103. Mandatory Rate Disclosure

(a) Each rate confirmation shall explicitly state the following:

1.       Original Load Rate

2.       Broker Fee (including both dollar amount and percentage)

3.       Carrier Rate

4.       All preauthorized accessory charges

5.       Detention, layover, TONU, and lumper fees

6.       Fuel surcharge as a separate line item.

(b) Lumper Fee Allocation

Responsibility for all lumper fees rests exclusively with the shipper or receiver who requires these services. Under no circumstances shall a motor carrier or driver be required to advance, pay, or absorb lumper fees. Any broker's attempt to deduct lumper fees from the carrier rate constitutes an unlawful chargeback.

(c) Absolute Prohibition on Waiver

The rights and protections set forth under section 14101(b)(1) of title 49, United States Code, are not subject to waiver, limitation, assignment, or modification by contract, agreement, or through any course of dealing. Any effort to alter these provisions is null, void, and without legal effect.

(d) Penalties

1.       First Violation: Probation for up to six months and a civil penalty not exceeding $1,000.

2.       Second Violation: Suspension of broker authority for a period not greater than thirty days and a civil penalty not exceeding $5,000.

3.       Third Violation: Permanent revocation of broker authority.

Sec. 104. Chargeback Documentation Standards.

(a) Chargebacks must include third-party documentation from the shipper or consignee.

(b) Brokers may not profit from chargebacks.(c) Undocumented or retaliatory chargebacks are prohibited.

Sec. 105. Prohibition on Unauthorized Double Brokering.

(a) Unauthorized double brokering is unlawful.

(b) Penalties include:

1. up to $25,000 per incident,

2. suspension or revocation of broker authority.

   
   

   (c) Co-brokering is lawful only if fully disclosed to shipper and carrier.

Sec. 106. Tracking & Privacy Standards.

(a) Brokers may require tracking but may not issue fines for lapses.

(b) Tracking data may be used only for safety and shipment visibility.

(c) Data retention shall not exceed 90 days unless a claim is active.

(d) Drivers may not be retaliated against for declining non-essential tracking.

Sec. 107. Mandatory Bond Scaling.

(a) Broker bond or trust requirements shall equal not less than 30 days of actual freight volume.

(b) Annual CPA or surety attestation required.

Sec. 108. Unique Entity Identification Requirements.

(a) All FMCSA-regulated entities must maintain:

1. A unique, verifiable physical address within the United States.

2. A unique phone number.

3. No P.O. Boxes, virtual offices, server banks, shared office space, or registered agent-only addresses permitted.

(b) Entities violating this section may be removed from active operating status.

Sec. 109. Quarterly Broker Revenue Reporting.

(a) Reporting Requirement. Each licensed freight broker operating under 49 U.S.C. §13904 shall file a quarterly revenue report with the Federal Motor Carrier Safety Administration.

(b) Contents of Report. Each report shall include, at minimum:

1. Total gross freight revenue collected from shippers.

2. Total broker fees retained.

3. Aggregate carrier compensation paid.

4. Average broker fee percentage across all loads.

5. Number of loads brokered during the reporting period.

(c) Public Transparency. FMCSA shall publish aggregated broker revenue data in anonymized form to identify market trends without disclosing shipper-specific pricing.

(d) False Reporting. Knowingly false or misleading reports shall constitute fraud and result in penalties under subsection (e).

(e) Penalties. Failure to file or falsification of reports shall result in:

1. Civil penalties are not to exceed $50,000 per quarter.

2. Suspension or revocation of broker authority for repeat violations.

Sec. 110. Guaranteed Detention Compensation Requirement.

(a) Guaranteed Compensation Requirement.— Any motor carrier or driver delayed beyond the scheduled appointment time or reasonable arrival window at a shipper or receiver Once detention time as defined in section 101(38) has commenced, detention compensation shall be earned as a matter of law for standby services rendered and accepted, and shall not be contingent upon shipper approval, broker policy, negotiated caps, or post-occurrence authorization.

(b) Minimum Standard.—Detention compensation shall—

1. begin no later than one hour after the scheduled appointment time or reasonable arrival window;

2. be paid for each additional hour or fraction thereof that the delay continues; and

3. not be waived, reduced, or offset by contract, agreement, or course of dealing.

4. Appointment Times. — A scheduled appointment time establishes carrier readiness and defines the commencement of reasonable free time only. An appointment shall not operate as a waiver, cap, limitation, or authorization for extended delay, nor shall it diminish detention compensation otherwise owed.

(c) Responsibility for Payment.—Responsibility for payment of detention compensation shall rest jointly and severally with—

1. the shipper or receiver causing the delay; and

2. any broker arranging the transportation, unless the broker can demonstrate that the shipper or receiver paid such compensation in full.

(d) Guaranteed Payment Obligation. —

1.       Detention compensation shall be considered earned and payable upon occurrence of the delay and shall not be contingent upon shipper approval, documentation delays, or discretionary determination by a broker.

2.       Multi-Day Detention. — Detention extending beyond a single duty period or calendar day shall constitute continued acceptance of standby services. Compensation shall accrue uninterrupted until the vehicle is released, without reset, forgiveness, or renegotiation due to the passage of time.

(e) Disclosure Requirement.—The guaranteed detention compensation terms shall be clearly disclosed on the rate confirmation prior to dispatch.

(f) Prohibition on Retaliation.—No motor carrier or driver may be penalized, denied future loads, rate-reduced, or otherwise retaliated against for asserting the right to detention compensation under this section.

(g) Enforcement.—Failure to pay required detention compensation shall constitute—

1. an unfair trade practice under this Act; and

2. a violation subject to civil penalties, enforcement action, and suspension or revocation of authority under section 31133 of title 49, United States Code.

(h) Reasonable Value Standard. — The reasonable value of detention compensation shall be evaluated based on documented carrier operating costs, standby labor value, equipment unavailability, and opportunity cost, consistent with restitution and quantum meruit principles, and shall not be governed by unilateral policy caps or internal guidelines.

(i) Internal Policy Not Controlling. — Internal policies, customer rules, broker guidelines, or platform terms shall not override or limit detention compensation owed for services rendered and accepted under this section.

TITLE II — OPERATOR FREEDOM & LOGGING PARITY

Sec. 201. Recognition of ELD/Paper Log Equivalence.

(a) Drivers may use electronic logging devices (ELDs) or paper logbooks.

(b) Both forms have equal legal standing in enforcement and courts.

(c) Brokers, shippers, and insurers may not require ELD-only use.(d) Penalty: $2,500 per incident.

Sec. 202. Data Privacy Controls.

(a) Drivers own their HOS and tracking data.

(b) No resale, redistribution, or access without written consent.

(c) Violations are actionable under federal privacy law.

TITLE III — HOURS OF SERVICE MODERNIZATION

Sec. 301. Split Sleeper Options.

a.       Drivers may use any of the following splits: 8/2, 7/3, 6/4, 5/5.Combined periods reset the 14-hour duty clock.

Sec. 302. Elimination of the 30-Minute Break Mandate.

a.       The mandatory break rule is repealed. Drivers may rest at their discretion.

Sec. 303. Removal of 11-Hour Driving Limit.

a.       The 11-hour driving rule is repealed.Drivers remain bound by the 14-hour on-duty limit and safety standards.Regulatory intent: align work-rest cycles with circadian science.

Sec. 304. Revision of the 34-Hour Reset.

a.       The 34-hour restart requirement is replaced with a 24-hour reset.

Sec. 305. Parking Infrastructure Mandate.

a.       Not less than 12 percent of federal highway funds must be dedicated to:

1.       commercial truck parking,

2.       rest facilities,

3.       lighting, snow removal, and security.

4.       This section shall not be construed to reduce safety obligations under 49 USC 31136.

TITLE IV — TRANSPARENT REGULATION THROUGH A PLAIN-LANGUAGE DOT

Sec. 401. Plain Language Rewrite.

a.       DOT and FMCSA must rewrite all motor-carrier regulations in plain English.

Sec. 402. Multilingual Publication.

a. Handbooks must be published in English, Spanish, and French.

Sec. 403. Enforcement Limitation.

a.       No regulation may be enforced unless included in the published handbook.

Sec. 404. Training Requirements.

a.       Enforcement officers must be trained in both CFR and plain-language regulations.

Sec. 405. Enforcement and Compliance.

1.       (a) Enforcement: The Secretary of Transportation enforces this title under sections 31133 and 31136, title 49, U.S. Code.

2.       (b) Timeline: Implementation must be completed within 18 months of enactment.

3.       (c) Noncompliance: Regulations not published as required are unenforceable until addressed.

TITLE V — CDL TRAINING & SCHOOL REFORM

Sec. 501. English Proficiency.

a.       CDL applicants must demonstrate reading and communication proficiency.

Sec. 502. Training Standards.

a.       All CDL programs must provide:

1.        160–240 hours of instruction.

2.        at least 50% behind-the-wheel.

Sec. 503. Apprenticeship.

a.       New CDL holders must complete a 4-month supervised apprenticeship.

Sec. 504. Instructor Requirements.

a.       Instructors must have:

1.        5+ years of OTR experience,

2.        no major preventable accidents.

Sec. 505. Skills Testing Integrity.

a.       All CDL road tests must be video recorded.

Sec. 506. Ban on Diploma-Mill CDL Schools.

a.       Fraudulent operations face fines and decertification.

Sec. 507. Penalties and Enforcement for Violations of Title V.

a.       Civil Penalties: Driving schools, training providers, third-party examiners, motor carriers, or individuals violating any part of this title face civil penalties of $10,000 to $50,000 per violation, per trainee affected. Each day of noncompliance counts as a separate violation.

Sec. 508. Enforcement Authority

a.       The Secretary of Transportation enforces sections 501–507 under 49 U.S.C. §§ 31305 and 31133.

Sec. 509. Decertification and Loss of Authority.

a.       In addition to civil penalties, the Secretary of Transportation may—

1.       Immediately suspend or revoke FMCSA certification of any CDL training provider or third-party testing entity found to be noncompliant.

2.       Permanently bar repeat offenders from participating in any federally recognized CDL training or testing program.

Sec. 510. Invalidation of Fraudulently Issued Credentials.

a. Any commercial driver’s license, learner’s permit, skills test, or endorsement obtained through—

1.       Fraudulent training practices,

2.       Falsified records,

3.       Inadequate instruction hours, or

4.       Improper testing procedures

Shall be deemed void, and the issuing entity shall be liable for all associated enforcement, retraining, and administrative costs.

Sec. 511. Criminal Liability.

a. Any person who knowingly—

1.       Falsify training records,

2.       Certified unqualified instructors,

3.       Records, alters, or falsifies skills testing video, or

4.       Issues credentials without required training.

b.       Shall be subject to criminal penalties under applicable federal fraud statutes, including fines and imprisonment of up to 5 years.

Sec. 512. Whistleblower Protection.

a. Any student, instructor, examiner, or employee who reports violations of this title shall be protected from retaliation.

b. Retaliation shall result in an additional civil penalty of $25,000 per incident.

Sec. 513. Carrier Liability.

a. Motor carriers that knowingly hire or place drivers trained or licensed in violation of this title shall be subject to—

1.       Civil penalties are up to $25,000 per driver.

2.       Mandatory compliance audits.

3.       Suspension of operating authority for repeated violations.

Sec. 514. Rule of Construction.

a. Nothing in this section shall be construed to penalize good-faith compliance errors that are promptly corrected upon notice. Penalties apply to willful, reckless, or repeated violations.

TITLE VI — OWNER-OPERATOR PROTECTIONS

Sec. 601. Settlement Transparency.

a. Carriers must provide itemized settlements with documentation for every deduction.

Sec. 602. Lease-Purchase Fairness.

(a) No balloon payments.

(b) Equity must accrue at 50 percent of payments.

(c) All escrow funds must be returned upon contract termination.

(d) Predatory leases are void.

Sec. 603. Fuel Surcharge Pass-Through.

a.       Fuel surcharge must be passed through 100 percent to the operator and documented on the rate confirmation.

Sec. 604. Anti-Retaliation.

a.       Any blacklisting, freight starvation, or retaliation results in $25,000 penalties and suspension of authority.

Sec. 605. Enforcement.

(a) Authority. The Secretary of Transportation, acting through the Federal Motor Carrier Safety Administration, shall enforce this title pursuant to section 31133 of title 49, United States Code.

(b) Investigations. The Secretary may conduct audits, require document production, and impose civil penalties for violations.

(c) Private Complaints. Drivers and owner-operators may submit complaints directly to FMCSA for investigation under this section.

TITLE VII — PROFESSIONAL TRUCKER QUALIFICATION STANDARDS

Sec. 701. Medical Standards.

(a) No BMI thresholds or blanket sleep-apnea requirements shall be imposed absent individualized medical necessity.

(b) Only certified medical examiners may determine driver medical qualification.

(c) Employer Responsibility for Medical Qualification Costs.

1. Once a driver is hired and enters active employment, all medical qualification costs required under 49 CFR §391.41—including DOT physicals, follow-up exams, medical letters, diagnostic testing, and recertification—shall be paid by the employing motor carrier.

2. Carriers may not require reimbursement from the driver nor deduct such costs from wages, settlements, or escrow accounts.

3. Medical qualification expenses required as a condition of initial hiring may be the responsibility of the applicant unless otherwise agreed in writing.

4. No carrier may condition employment on the applicant pre-paying medical exam costs that exceed federal minimum standards.

Sec. 702. Professional Development.

1.       Mandatory:

a.        4-month apprenticeship,

b.        annual safety refresher training.

c.        A commercial motor vehicle operator who has completed not less than one million verifiable safe miles, as determined under FMCSA preventable crash standards, shall be entitled to a gross minimum compensation rate equivalent to not less than $1.00 per mile driven, indexed annually to the Consumer Price Index for Urban Consumers (CPI-U).

Sec. 703. Disqualifying Offenses.

a. Any sexual crime conviction results in lifetime disqualification from DOT safety-sensitive functions.

Sec. 704. Prohibition on Driver Coercion.

(a) Unlawful Conduct. It shall be unlawful for any motor carrier, broker, or shipper to coerce or attempt to coerce a driver to:

1. Violate hours-of-service rules.

2. Operate in unsafe conditions.

3. Accept compensation below contractual or statutory minimums.

4. Falsify logs, records, or inspections.

(b) Standard of Proof.1. A violation may be established by verifiable proof, including electronic records, communications, or witness testimony.

(c) Penalties.1. Any carrier found in violation shall be subject to:

1. Civil penalties up to $75,000 per violation.

2. Immediate safety audit.

3. Suspension or revocation of operating authority for repeated violations.

(d) Non-Retaliation. Retaliation against a driver for reporting coercion shall result in an additional $25,000 penalty per incident.

TITLE VIII — INSURANCE REFORM

Sec. 801. Premium Stabilization.

a.       Clean-record carriers may not see premium increases exceeding CPI unless justified by documented risk.

Sec. 802. Standardized Cargo Claim Procedures.

a. Uniform federal standards govern cargo claim documentation, timelines, and dispute processes.

Sec. 803. Federal Insurance Pool.

a.       A voluntary federal insurance program is established for qualifying small carriers.

Sec. 804. Transparency of Underwriting Data.

a.       Hidden or proprietary scoring systems may not be used without full disclosure.

Sec. 805. Enforcement and Coordination.

(a) Enforcement Authority. The Secretary of Transportation shall enforce this title in coordination with State insurance regulators pursuant to sections 13906 and 31133 of title 49, United States Code.

(b) Non-Preemption. Nothing in this title shall be construed to limit more protective State insurance consumer-protection laws.

TITLE IX — SKILLED TRADE RECOGNITION

Sec. 901. Skilled Trade Classification.

a.       Professional trucking is reclassified federally as a skilled trade.

Sec. 902. National Wage Floor.

a.       A wage floor is established based on inflation-adjusted 1970s long-haul earnings.

Sec. 903. Contractor Revenue Floors.

a.       Independent contractors must receive proportionate revenue floors aligned to wage-floor benchmarks.

Sec. 904. Apprenticeship Integration.

a.       Apprenticeship hours qualify toward skilled-trade certification.

Sec. 905. Enforcement and Administration.

(a) Administration. The Secretary of Labor shall administer and enforce this title in coordination with the Secretary of Transportation.

(b) Authority. Enforcement shall be carried out pursuant to sections 201 through 219 of title 29, United States Code, and section 31133 of title 49, United States Code.

TITLE X — ANTITRUST ENFORCEMENT AGAINST MEGA-CARRIERS

Sec. 1001. Structural Oversight.

a.       DOJ may dismantle umbrella corporations that manipulate DOT numbers or suppress market access.

Sec. 1002. Platform Access.

a.       Digital freight platforms must operate on nondiscriminatory terms.

Sec. 1003. Related-Party Disclosure.

a.       Shippers, brokers, and carriers must disclose related-party ownership and financial arrangements.

Sec. 1004. Limitation on DOT Number Ownership.

(a) Single DOT Number Rule. No person, corporation, partnership, or affiliated entity may own, control, or operate more than one Department of Transportation (DOT) number.

(b) Affiliated Entity Defined. Affiliated entities include those with shared ownership, management, financing, or operational control.

(c) Prohibited Circumvention. The use of shell companies, subsidiaries, or nominee entities to evade this requirement is prohibited.

(d) Penalties. Violations shall result in:

1. Consolidation or revocation of DOT numbers.

2. Civil penalties up to $100,000.

3. DOJ referral for antitrust enforcement.

TITLE XI — PUBLIC SAFETY & INFRASTRUCTURE

Sec. 1101. Truck Parking Expansion.

a.       Federal grant programs shall give priority to the construction and expansion of new truck parking facilities.

Sec. 1102. Towing & Recovery Oversight.

a.       States are required to regulate towing rates through the use of published tariff schedules and the provision of itemized invoices.

Sec. 1103. Inspection Modernization.

a.       Implementation of preclearance technology and data-driven inspection targeting shall become standard practice.

Sec. 1104. Emergency Waivers.

a.       Hours of Service (HOS) and regulatory waivers must adhere to transparent, time-limited criteria.

Sec. 1105. Lighting and Security Standards for Truck Parking.

a.       Lighting Requirement. All truck parking facilities funded by federal grants must be equipped with lighting that ensures adequate visibility and promotes driver safety during nighttime hours.

b.       Minimum Standards. Lighting provisions must:

1)       Illuminate all parking areas and pedestrian walkways.

2)       Minimize blind spots.

3)       Be maintained throughout the year.

(c) Security Enhancements.

1.       The Department of Transportation may incorporate cameras, emergency call stations, and coordination with patrol services as allowable expenses under truck parking grant programs.

Sec. 1106. Enforcement and Funding Conditions.

(a) Grant Conditions. Compliance with the provisions of this title is mandatory for eligibility to receive federal transportation funding.

(b) Oversight. The Secretary of Transportation is responsible for monitoring adherence to these requirements and is authorized to withhold or recapture funds in cases of noncompliance, pursuant to Title 23, United States Code.

TITLE XII — HUMAN TRAFFICKING PREVENTION

Sec. 1201. Mandatory Training.

a. Carriers with 10+ trucks must certify drivers through TAT or equivalent.

Sec. 1202. Anti-Coercion in Leasing.

a.       Lease-purchase contracts with coercive or exploitative terms constitute labor trafficking under this Act.

Sec. 1203. Penalties.

a.       Violations may incur fines up to $50,000 and loss of operating authority.

Sec. 1204. Good-Faith Reporting Protection.

a.       A driver or motor carrier who, in good faith, reports suspected human trafficking or labor exploitation to law enforcement, FMCSA, or a designated reporting system shall not be subject to retaliation, adverse employment action, or enforcement penalty solely as a result of such report.

TITLE XIII — MISCLASSIFICATION & 1099 ABUSE

Sec. 1301. Federal Economic-Reality Test.

a.       The federal economic-reality test governs classification regardless of contract labels.

Sec. 1302. Prohibition on Forced 1099.

a.       Misclassification of company drivers as contractors is wage theft under federal law.

Sec. 1303. Penalties.

a.       Violations incur $10,000 per driver, with repeat offenders subject to revocation of operating authority.

Sec. 1304. Proof Requirement for Independent Contractor Classification.

(a) Burden of Proof. Any motor carrier compensating a driver on a 1099 basis shall bear the burden of proving compliance with the federal economic control test.

(b) Documentation Required. Such proof shall include:

1. Evidence of independent business operations.

2. Control over routes, schedules, and profit/loss.

3. Ownership or lease of equipment.

4. Absence of dispatch or employment control.

(c) Presumption of Employment. Failure to produce documentation shall create a rebuttable presumption of employee status.

(d) Penalties. Violations shall result in:

1. Back wages and taxes owed.

2. Civil penalties are up to $10,000 per driver.

3. Suspension or revocation of operating authority for repeat violations.

TITLE XIV — MOTOR CARRIER BUSINESS COMPETENCY REQUIREMENTS

Sec. 1401. Purpose.

a.       The purpose of this title is to ensure that motor carriers operating in interstate commerce possess the minimum business, financial, and regulatory competency necessary to operate safely, lawfully, and sustainably, and to reduce preventable carrier failures that destabilize the freight market and harm professional drivers.

Sec. 1402. Business Competency Requirement for Motor Carriers.

(a) Requirement. Any person or entity applying for, renewing, or reactivating motor carrier operating authority under 49 U.S.C. Subtitle IV shall demonstrate minimum business competency as defined in this section.

(b) Applicability. This requirement applies to:

1. New motor carrier applicants.

2. Reinstatement of inactive or revoked authority.

3. Renewal of authority for carriers operating fewer than twenty-five power units.

Sec. 1403. Minimum Business Competency Standards.

Motor carriers shall demonstrate knowledge and understanding of the following core areas:

(a) Operating Cost Analysis.

1. Fixed and variable operating costs.

2. Cost-per-mile calculation.

3. Break-even rate determination.

4. Equipment depreciation and lifecycle planning.

(b) Financial Management.

1. Basic accounting principles.

2. Cash-flow management.

3. Escrow and settlement accounting.

4. Tax obligations, including fuel, payroll, and self-employment taxes.

(c) Contract & Rate Literacy.

1. Rate confirmations and broker agreements.

2. Accessorial compensation.

3. Chargebacks and deductions.

4. Rights under 49 U.S.C. §§13708, 14101, and 49 CFR Part 371.

(d) Insurance & Risk Management.

1. Liability, cargo, and physical damage coverage.

2. Claim handling and deductibles.

3. Understanding premium rating factors.

(e) Regulatory Compliance.

1. FMCSA registration and reporting requirements.

2. Hours of Service basics.

3. Safety audits and recordkeeping obligations.

Sec. 1404. Method of Compliance.

(a) Certification Options. Motor carriers may satisfy the competency requirement by one of the following:

1. Completion of an FMCSA-approved business competency course.

2. Passing a standardized business competency examination administered or approved by FMCSA.

3. Demonstrating prior verified experience operating a motor carrier for not less than two consecutive years without enforcement action related to financial misrepresentation or fraud.

(b) Accessibility. All required education or examinations shall be made available:

1. Online.

2. At no cost to applicants operating fewer than ten power units.

Sec. 1405. Prohibited Practices.

(a) No carrier shall:

1. Operate without understanding documented operating costs.

2. Represent themselves as a lawful motor carrier while lacking basic financial competency.

3. Transfer authority to evade this requirement.

(b) Brokers and shippers may not coerce carriers into accepting freight below documented operating costs.

Sec. 1406. Enforcement.

(a) Failure to meet the business competency requirement may result in:

1. Denial of authority.

2. Suspension pending compliance.

3. Mandatory remedial education.

4. Enforcement under this section shall be conducted by the Federal Motor Carrier Safety Administration pursuant to section 31133 of title 49, United States Code.

(b) This section shall not be used to discriminate against small carriers or owner-operators, but to ensure baseline operational competence.

Sec. 1407. Rulemaking.

1.        The Secretary of Transportation shall issue implementing regulations within 18 months of enactment.

END OF ACT

CITATIONS AND STATUTORY AUTHORITY

Section 1501. Constitutional Authority.

This Act is enacted pursuant to the authority granted to Congress under Article I, Section 8, Clause 3 of the United States Constitution (the Commerce Clause), which empowers Congress to regulate interstate commerce, including transportation, labor standards, safety, and economic practices affecting interstate freight transportation.

Section 1502. General Transportation Authority (Title 49, United States Code).

This Act is further authorized and supported by the following provisions of

Title 49, United States Code, which establish federal authority over motor carriers, brokers, freight forwarders, safety, registration, and enforcement:

• 49 U.S.C. § 13102 — Definitions for motor carriers, brokers, freight forwarders, and transportation.

• 49 U.S.C. § 13708 — Regulation of transportation contracts and payment obligations.

• 49 U.S.C. § 13902 — Registration of motor carriers.

• 49 U.S.C. § 13904 — Registration of brokers and freight forwarders.

• 49 U.S.C. § 13906 — Financial responsibility requirements.

• 49 U.S.C. § 14101 — Contracts and limitations on waiver of rights.

• 49 U.S.C. § 31101 et seq. — Motor carrier safety authority and definitions.

• 49 U.S.C. § 31133 — General enforcement authority of the Secretary of Transportation.

• 49 U.S.C. § 31136 — Motor carrier safety standards.

Section 1503. Federal Motor Carrier Safety Regulations (Code of Federal Regulations).

This Act references and modifies regulatory structures established under

Title 49, Code of Federal Regulations, including but not limited to:

• 49 C.F.R. Part 390 — Federal Motor Carrier Safety Regulations; general applicability and definitions.

• 49 C.F.R. Part 371 — Brokers of property.

• 49 C.F.R. Part 380 — Entry-Level Driver Training requirements.

• 49 C.F.R. Part 382 — Controlled substances and alcohol testing.

• 49 C.F.R. Part 383 — Commercial driver’s license standards.

• 49 C.F.R. Part 387 — Minimum levels of financial responsibility.

• 49 C.F.R. Part 391 — Qualifications of drivers, including medical standards.

• 49 C.F.R. Part 395 — Hours of service for drivers.

Section 1504. Labor and Employment Classification Authority.

Provisions of this Act concerning labor standards, misclassification, and independent contractor status are supported by the following authorities:

• 29 U.S.C. § 203 — Definitions under the Fair Labor Standards Act.

• 29 U.S.C. §§ 201–219 — Fair Labor Standards Act enforcement provisions.

• 29 C.F.R. Part 795 — Independent contractor status under the Fair Labor Standards Act.

Section 1505. Insurance and Financial Responsibility Authority.

Insurance and risk-management provisions of this Act are supported by:

• 49 U.S.C. § 13906 — Financial responsibility requirements for motor carriers.

• 49 C.F.R. Part 387 — Minimum levels of financial responsibility for motor carriers.

Section 1506. Antitrust and Competition Authority.

Provisions addressing consolidation, market manipulation, and unfair competition are supported by:

• 15 U.S.C. § 1 — Sherman Antitrust Act (restraint of trade).

• 15 U.S.C. § 2 — Sherman Antitrust Act (monopolization).

• 15 U.S.C. § 45 — Federal Trade Commission Act (unfair methods of competition).

Section 1507. Public Safety and Infrastructure Authority.

Infrastructure, parking, lighting, and safety provisions are supported by:

• 23 U.S.C. § 402 — Highway safety programs.

• MAP-21, Section 1401 (Jason’s Law) Truck parking safety initiatives.

• 49 U.S.C. § 31136 — Safety standards authority.

Section 1508. Rulemaking Authority.

Except where otherwise specified, the Secretary of Transportation, the Federal Motor Carrier Safety Administration, and the Secretary of Labor are authorized to issue regulations necessary to conduct this Act pursuant to:

• 49 U.S.C. § 31133

• 5 U.S.C. § 553 — Administrative Procedure Act (notice-and-comment rulemaking).

Section 1509. Severability.

If any provision of this Act, or the application thereof to any person or circumstance, is held invalid, the remainder of this Act shall not be affected.

Congress’s authority to enact the Freight Operations Protection & Transparency Act is firmly grounded in Article I, Section 8, Clause 3 of the United States Constitution. The Supreme Court has consistently held that Congress may regulate interstate transportation, labor conditions, economic intermediaries, and market practices that affect interstate commerce. See Gibbons v. Ogden, 22 U.S. 1 (1824); Stafford v. Wallace, 258 U.S. 495 (1922); United States v. Darby, 312 U.S. 100 (1941); Wickard v. Filburn, 317 U.S. 111 (1942); Gonzales v. Raich, 545 U.S. 1 (2005).

CONSTITUTIONAL AND JUDICIAL AUTHORITY SUPPORTING THE FREIGHT OPERATIONS PROTECTION & TRANSPARENCY ACT

I. Congressional Authority Under the Commerce Clause

Article I, Section 8, Clause 3 of the United States Constitution grants Congress the power “to regulate Commerce…among the several States.” The Supreme Court has repeatedly interpreted this authority to include regulation of interstate transportation, labor conditions, market intermediaries, safety standards, and economic practices that substantially affect interstate commerce.

The provisions of the Freight Operations Protection & Transparency Act fall squarely within this well-established constitutional framework.

II. Foundational Transportation Authority

Gibbons v. Ogden, 22 U.S. (9 Wheat.) 1 (1824)

Holding: The Supreme Court held that interstate transportation constitutes “commerce” within the meaning of the Commerce Clause and that Congress’s power over such commerce is plenary and supreme over conflicting state regulation.

Key Principle: Commerce includes not only the exchange of goods, but also the means and channels by which commerce is conducted, including navigation and transportation.

Relevance to the Act:

• Interstate trucking is a direct channel of interstate commerce.

• Regulation of motor carriers, freight brokers, dispatch arrangements, and transportation contracts falls within Congress’s core constitutional authority.

• Federal oversight of freight operations supersedes conflicting state practices when national uniformity is required.

Application: Every title of this Act regulating freight movement, broker conduct, and interstate logistics rests on the authority recognized in Gibbons.

III. Regulation of Rates, Practices, and Intermediaries

Houston, East & West Texas Railway Co. v. United States (Shreveport Rate Case), 234 U.S. 342 (1914)

Holding: Congress may regulate intrastate transportation rates and practices when they exert a substantial economic effect on interstate commerce.

Key Principle: Congress’s commerce power extends to local practices that create undue burdens or distortions in interstate markets.

Relevance to the Act:

• Broker fee structures

• Intrastate freight practices affecting interstate supply chains.

• Carrier pay arrangements influencing national freight capacity.

Application: Even where a load or practice is nominally intrastate, Congress may regulate it when its aggregate effect disrupts interstate freight markets.

Stafford v. Wallace, 258 U.S. 495 (1922)

Holding: Congress may regulate intermediaries operating within the “stream of commerce,” including stockyards and market agents.

Key Principle: Intermediaries that function as essential choke points in interstate commerce are subject to federal regulation.

Relevance to the Act:

• Freight brokers

• Digital freight platforms

• Dispatch and load-matching intermediaries.

Application: Brokers and digital platforms serve as modern stockyards—gatekeepers through which interstate freight must pass. Their regulation is constitutionally authorized.

IV. Labor Standards and Employment Conditions

United States v. Darby, 312 U.S. 100 (1941)

Holding: Congress may regulate wages, hours, and labor conditions of workers engaged in interstate commerce.

Key Principle: Congress may exclude from interstate commerce goods produced under labor conditions deemed harmful to commerce.

Relevance to the Act:

• Misclassification enforcement

• Wage floors

• Apprenticeship standards

• Medical qualification cost allocation

Application: Driver labor conditions directly affect interstate freight movement and safety. Regulation of these conditions is a classic Commerce Clause exercise.

Wickard v. Filburn, 317 U.S. 111 (1942)

Holding: Congress may regulate local economic activity when, in the aggregate, it exerts a substantial effect on interstate commerce.

Key Principle: The scope of federal authority is measured by aggregate economic impact, not individual scale.

Relevance to the Act:

• Owner-operators

• Small fleets

• Lease-purchase arrangements.

• Single-truck carriers

Application: Even the smallest carrier’s practices affect national freight capacity, pricing, insurance risk, and safety when aggregated across the industry.

V. Regulation of Private Businesses Affecting Interstate Movement

Heart of Atlanta Motel, Inc. v. United States, 379 U.S. 241 (1964)

Holding: Congress may regulate private businesses whose operations effect interstate travel and commerce.

Key Principle: Businesses serving interstate travelers or facilitating interstate movement are subject to federal regulation.

Relevance to the Act:

• Truck parking facilities

• Freight infrastructure access

• Non-discriminatory platform access

Application: Truck stops, parking facilities, and logistics infrastructure are integral to interstate commerce and may be regulated for safety and accessibility.

Katzenbach v. McClung, 379 U.S. 294 (1964)

Holding: Congress may regulate local businesses whose supply chains or customer base affect interstate commerce.

Key Principle: Participation in the flow of interstate goods subjects a business to federal regulation.

Relevance to the Act:

• Shippers

• Receivers

• Warehouses

• Distribution centers

Application: Entities demanding unloading fees, detention practices, or coercive conditions are participants in interstate commerce and fall within federal jurisdiction.

VI. Market Stabilization and Economic Integrity

Perez v. United States, 402 U.S. 146 (1971)

Holding: Congress may regulate economic activities that threaten the integrity of interstate commerce, even if traditionally local.

Key Principle: Preventing economic instability and market abuse is a legitimate federal interest.

Relevance to the Act:

• Predatory lease-purchase schemes

• CDL diploma mills

• Shell DOT number structures

• Fraudulent brokerage practices

Application: Congress may act proactively to prevent systemic industry failures affecting interstate commerce.

Hodel v. Virginia Surface Mining & Reclamation Assn, 452 U.S. 264 (1981)

Holding: Congress may impose conditions, standards, and compliance requirements on industries affecting interstate commerce.

Key Principle: Federal regulation may include training, licensing, and competency requirements.

Relevance to the Act:

• Business competency standards

• CDL training reforms

• Safety compliance requirements

Application: Requiring carriers to demonstrate business and regulatory competency is constitutionally permissible.

VII. Anti-Evasion and Comprehensive Regulatory Schemes

Gonzales v. Raich, 545 U.S. 1 (2005)

Holding: Congress may regulate even non-commercial activity when necessary to make a comprehensive regulatory scheme effective.

Key Principle: Anti-evasion provisions are constitutionally valid.

Relevance to the Act:

• Prohibition of waivers of statutory rights

• Single DOT number rule

• Anti-circumvention language

• Prevention of shell entities

Application: Without closing loopholes, federal freight regulation would be undermined. Congress may lawfully prohibit evasive practices.

VIII. Trucking-Specific Authority

American Trucking Associations, Inc. v. United States, 344 U.S. 298 (1953)

Holding: Congress has broad authority to regulate trucking operations, safety, and practices.

Key Principle: Federal oversight of trucking is a long-recognized exercise of Commerce Clause power.

Relevance to the Act:

• Broker oversight

• Carrier practices

• Safety standards

• Economic regulation of freight movement

IX. Constitutional Conclusion

The Supreme Court has consistently upheld Congress’s authority to regulate:

• Interstate transportation

• Economic intermediaries

• Labor conditions

• Market stability

• Safety and infrastructure

• Anti-evasion measures

Accordingly, the Freight Operations Protection & Transparency Act represents a constitutionally sound exercise of Congress’s power under Article I, Section 8, Clause 3.