FOPT BUSINESS ACUMEN CERTIFICATION PROGRAM

FREIGHT OPERATIONS PROTECTION & TRANSPARENCY ACT

FOPT BUSINESS ACUMEN CERTIFICATION PROGRAM

Six to Nine Month Mandatory Curriculum

Section 401. Establishment of Program

The Federal Motor Carrier Safety Administration (FMCSA) shall establish and administer a mandatory Business Acumen Certification Program for motor carriers, designed to ensure minimum demonstrated competency in financial management, contractual literacy, regulatory compliance, safety economics, and risk management as a condition of operating authority eligibility and continued participation in interstate commerce.

The Program shall be instructional, evaluative, and enforceable, and shall be structured to correct systemic failures caused by financial illiteracy, predatory contracting, and insolvency-driven safety violations.

Section 402. Program Duration and Format

1. The Business Acumen Certification Program shall consist of a structured curriculum lasting not less than six (6) months and not more than nine (9) months, equivalent to twenty-four (24) to thirty-six (36) instructional weeks.

2. Instruction shall require a minimum average commitment of four (4) to six (6) hours per week, inclusive of instruction, applied exercises, and assessments.

3. Instruction may be delivered through FMCSA-approved online platforms, accredited educational partners, or certified independent providers operating under FMCSA oversight.

4. Completion of the curriculum and successful certification shall be required prior to issuance of new operating authority, reinstatement of revoked authority, or continued authority following a Program Trigger Event.

5. For purposes of this Program, ‘Program Trigger Event’ shall have the meaning assigned in Section [X] of the Freight Operations Protection & Transparency Act.

Section 403. Curriculum Structure

The curriculum shall be divided into four instructional phases, each with mandatory assessments and applied competency requirements.

PHASE I – BUSINESS AND FINANCIAL FOUNDATIONS

Weeks 1 through 8

Section 403(a). Purpose of Phase I

Phase I of the Business Acumen Certification Program shall establish foundational competency in business structure, financial literacy, cost modeling, cash flow management, and regulatory recordkeeping. This Phase is intended to eliminate preventable carrier failure resulting from basic financial ignorance and to ensure that participants understand the economic realities of operating a motor carrier prior to entering or continuing interstate commerce.

Completion of Phase I is mandatory before advancement to subsequent phases of the Program.

Section 403(b). Module 1 – Business Structure and Operational Reality

Weeks 1–2

Instruction under this Module shall address the distinction between personal labor, asset ownership, and operating authority, and shall correct common misconceptions regarding independence, ownership, and liability within the trucking industry.

Curriculum shall include instruction on the following subjects:

1. Legal business structures commonly used by motor carriers, including sole proprietorships, partnerships, limited liability companies, and corporations, and the liability implications associated with each structure.

2. The legal and financial responsibilities attached to operating authority, including compliance obligations independent of equipment ownership.

3. Personal liability exposure resulting from improper business structuring, inadequate capitalization, or misuse of corporate entities.

4. Common causes of first-year carrier failure, including undercapitalization, improper rate acceptance, cash flow mismanagement, and reliance on predatory contracts.

5. Distinction between being self-employed and operating a sustainable business enterprise.

Applied competency requirements shall include:

1. Creation of a carrier business profile identifying ownership structure, operating authority status, insurance coverage, and personal liability exposure.

2. Written analysis identifying at least three operational risks associated with improper business structure and the corrective measures required to mitigate those risks.

Successful completion of this Module requires demonstration of understanding that trucking is a regulated business enterprise and not merely a personal income activity.

Section 403(c). Module 2 – Cost of Operation and Rate Sustainability

Weeks 3–4

Instruction under this Module shall establish mastery of cost identification, rate analysis, and profitability modeling as a prerequisite to lawful and safe operation.

Curriculum shall include instruction on the following subjects:

1. Identification and classification of fixed costs, variable costs, and semi-variable costs associated with motor carrier operations.

2. Calculation of cost-per-mile and cost-per-day metrics using both loaded miles and total miles traveled.

3. Impact of deadhead, detention, maintenance cycles, and utilization rates on profitability.

4. Fuel cost modeling, fuel surcharge concepts, and volatility risk.

5. Equipment depreciation, maintenance reserves, and lifecycle planning.

Applied competency requirements shall include:

1. Development of a personalized cost-of-operation model using participant-specific data.

2. Completion of breakeven rate calculations for a minimum of three hypothetical lanes under varying operational conditions.

3. Written explanation of why accepting freight below breakeven rates creates safety risk and financial instability.

Participants shall demonstrate the ability to independently determine whether a proposed load is economically sustainable without reliance on external assurances.

Section 403(d). Module 3 – Cash Flow Management and Credit Exposure

Weeks 5–6

Instruction under this Module shall address the distinction between profitability and liquidity, and the operational dangers created by cash flow deficiencies.

Curriculum shall include instruction on the following subjects:

1. Cash flow forecasting and the timing of revenue versus expenses.

2. Billing cycles, payment terms, invoicing practices, and documentation timelines.

3. Factoring arrangements, including recourse and non-recourse structures, reserve accounts, chargebacks, and true annualized cost of capital.

4. Short-term credit exposure, compounding debt risk, and insolvency warning indicators.

5. Relationship between liquidity pressure and unsafe operational decisions.

Applied competency requirements shall include:

1. Creation of a ninety (90) day cash flow forecast reflecting anticipated revenue, expenses, and reserve requirements.

2. Comparative analysis of at least two financing or factoring scenarios, including calculation of true cost.

3. Identification of financial warning signals requiring corrective action.

Successful completion requires demonstration of the ability to manage cash flow without relying on unsustainable credit practices.

Section 403(e). Module 4 – Recordkeeping, Tax Obligations, and Audit Preparedness

Weeks 7–8

Instruction under this Module shall establish compliance-ready recordkeeping practices and basic tax literacy necessary for lawful operation.

Curriculum shall include instruction on the following subjects:

1. Record retention requirements related to transactions, contracts, payments, and operations.

2. Documentation standards sufficient to support audits, disputes, and regulatory reviews.

3. Overview of tax timing obligations, estimated payments, depreciation fundamentals, and common compliance failures.

4. Identification of audit triggers and compliance red flags.

5. Distinction between lawful tax planning and improper avoidance practices.

Applied competency requirements shall include:

1. Development of a recordkeeping checklist sufficient to support compliance audits.

2. Completion of a mock audit exercise requiring identification and correction of deficiencies.

3. Written explanation of the relationship between poor recordkeeping, financial exposure, and enforcement risk.

Completion of this Module requires demonstration of readiness to maintain compliance documentation in real-world operational conditions.

Section 403(f). Phase I Assessment and Advancement Standard

1. Participants shall complete a Phase I assessment consisting of knowledge-based and scenario-based evaluations covering all Modules within this Phase.

2. A minimum score of 90 percent overall and 80 percent per Module shall be required to advance to Phase II.

3. Failure to meet the standard shall require remediation specific to the deficient Module prior to retesting.

Section 403(g). Phase I Intent

The intent of Phase I is to eliminate entry into or continuation of interstate motor carrier operations by entities lacking fundamental business and financial competence, and to reduce safety risks caused by insolvency-driven decision making.

PHASE II – CONTRACTS, TRANSACTIONS, AND MARKET POWER

Weeks 9 through 16

Section 404(a). Purpose of Phase II

Phase II of the Business Acumen Certification Program shall establish demonstrated competency in contractual literacy, transaction documentation, statutory record rights, and fraud risk management. This Phase is intended to eliminate exploitative contracting practices, reduce payment disputes, and ensure that carriers understand and can lawfully enforce the terms governing their participation in freight transactions.

Completion of Phase II is mandatory before advancement to Phase III.

Section 404(b). Module 5 – Contract Literacy and Risk Allocation

Weeks 9–10

Instruction under this Module shall establish the ability to read, interpret, and evaluate contracts governing carrier operations, including broker-carrier agreements, shipper contracts, and related transactional documents.

Curriculum shall include instruction on the following subjects:

1. Fundamental contract structure, including scope, term, termination, modification, and renewal provisions.

2. Risk-shifting mechanisms, including indemnification clauses, hold-harmless provisions, limitation of liability language, and insurance requirements.

3. Arbitration clauses, venue selection, governing law provisions, and fee-shifting language.

4. Waiver provisions, including waivers of statutory and regulatory rights, and the legal implications of such waivers.

5. Automatic renewal clauses, unilateral modification clauses, and notice requirements.

6. Distinction between contracts of adhesion and negotiated agreements.

Applied competency requirements shall include:

1. Line-by-line analysis of sample agreements identifying clauses that materially shift risk to the carrier.

2. Written identification of provisions that may be unlawful, unconscionable, or misleading.

3. Drafting of a carrier-protective contract addendum or rejection notice.

Successful completion requires demonstration of the ability to identify contractual risk prior to load acceptance and to understand the long-term implications of contract execution.

Section 404(c). Module 6 – Broker, Shipper, and Receiver Transactions

Weeks 11–12

Instruction under this Module shall establish transactional literacy and documentation discipline necessary to secure compensation and resolve disputes.

Curriculum shall include instruction on the following subjects:

1. Rate confirmations and their relationship to master agreements.

2. Accessorial compensation, including detention, layover, truck-ordered-not-used (TONU), and cancellation terms.

3. Appointment scheduling, check-in and check-out documentation, and time-stamping requirements.

4. Documentation standards for invoicing, proof of delivery, lumper receipts, and delay claims.

5. Dispute escalation timelines and evidentiary sufficiency.

Applied competency requirements shall include:

1. Assembly of a complete transaction evidence packet for a hypothetical shipment.

2. Completion of a detention and accessorial compensation claim simulation using documented timelines.

3. Written explanation of evidentiary failures that commonly result in non-payment.

Successful completion requires demonstration of the ability to document transactions in a manner sufficient to enforce payment obligations.

Section 404(d). Module 7 – Transaction Record Rights and Transparency Compliance

Weeks 13–14

Instruction under this Module shall establish understanding of transaction record rights, lawful disclosure requirements, and compliance documentation.

Curriculum shall include instruction on the following subjects:

1. Statutory and regulatory requirements governing transaction record retention and disclosure.

2. Audit trail construction linking shipper payment, broker compensation, and carrier compensation.

3. Lawful procedures for requesting transaction records.

4. Common evasion tactics used to obscure transaction data.

5. Documentation practices necessary to support regulatory complaints or enforcement actions.

Applied competency requirements shall include:

1. Drafting of a lawful transaction record request.

2. Construction of a defensible audit trail using hypothetical transaction data.

3. Identification of incomplete or misleading record disclosures.

Successful completion requires demonstration of the ability to recognize and respond to transparency violations without reliance on informal assurances.

Section 404(e). Module 8 – Fraud Prevention, Co-Brokering, and Identity Risk

Weeks 15–16

Instruction under this Module shall establish competency in identifying, preventing, and responding to fraud and unauthorized co-brokering activities.

Curriculum shall include instruction on the following subjects:

1. Double-brokering indicators and unauthorized load transfers.

2. Identity spoofing, email and phone manipulation, and carrier packet compromise.

3. Verification procedures for brokers, shippers, and counterparties.

4. Carrier packet security, credential control, and data hygiene.

5. Immediate response protocols following suspected fraud.

Applied competency requirements shall include:

1. Analysis of fraud case studies identifying warning indicators and points of failure.

2. Development of a fraud prevention and response plan.

3. Written explanation of liability exposure resulting from failure to verify transaction counterparties.

Successful completion requires demonstration of the ability to detect and mitigate fraud risk prior to financial loss.

Section 404(f). Phase II Assessment and Advancement Standard

1. Participants shall complete a Phase II assessment consisting primarily of scenario-based evaluations addressing all Modules within this Phase.

2. A minimum score of 80 percent overall and 70 percent per Module shall be required to advance to Phase III.

3. Failure to meet the standard shall require targeted remediation prior to retesting.

Section 404(g). Phase II Intent

The intent of Phase II is to eliminate ignorance-based acceptance of exploitative contracts, reduce transactional disputes, and ensure that carriers possess the knowledge necessary to lawfully enforce payment and transparency rights within the freight marketplace.

PHASE III – SAFETY, INSURANCE, AND HUMAN SUSTAINABILITY

Weeks 17 through 24

Section 405(a). Purpose of Phase III

Phase III of the Business Acumen Certification Program shall establish demonstrated competency in the economic drivers of safety performance, insurance literacy, human sustainability, and long-term operational risk management. This Phase is intended to reduce preventable crashes, fatigue-related incidents, insurance failures, and workforce instability caused by financially driven operational pressure.

Completion of Phase III is mandatory before advancement to Phase IV.

Section 405(b). Module 9 – Safety Economics and Operational Pressure

Weeks 17–18

Instruction under this Module shall establish the relationship between financial pressure and safety outcomes and shall correct the misconception that safety failures occur independently of economic decision-making.

Curriculum shall include instruction on the following subjects:

1. The economic impact of detention, unpaid delays, and inefficient scheduling on driver fatigue and risk exposure.

2. Interaction between Hours-of-Service compliance, revenue planning, and circadian rhythm disruption.

3. Maintenance deferral and equipment condition degradation resulting from inadequate maintenance reserves.

4. Financial incentives that encourage unsafe behaviors, including speeding, log manipulation, and skipped inspections.

5. Correlation between undercapitalization and elevated crash risk.

Applied competency requirements shall include:

1. Completion of a weekly operational schedule optimization exercise balancing revenue, compliance, and rest.

2. Development of a safety cost analysis identifying the true cost of unsafe operational shortcuts.

3. Written explanation connecting financial decisions to specific safety outcomes.

Successful completion requires demonstration of understanding that safety failures are often financial failures in disguise.

Section 405(c). Module 10 – Insurance Literacy and Claims Survival

Weeks 19–20

Instruction under this Module shall establish practical understanding of insurance coverage, risk transfer, and claims management necessary to avoid catastrophic financial exposure.

Curriculum shall include instruction on the following subjects:

1. Primary liability, cargo, and physical damage insurance coverage and limitations.

2. Deductibles, self-insured retentions, exclusions, and coverage gaps.

3. Insurance requirements imposed by contracts and how they shift risk.

4. Claims reporting timelines, documentation standards, and settlement considerations.

5. Consequences of improper coverage selection and misrepresentation.

Applied competency requirements shall include:

1. Comparison of insurance policy scenarios identifying coverage gaps and cost-risk tradeoffs.

2. Completion of a mock claims documentation packet.

3. Written analysis of how insurance decisions impact long-term operational survival.

Successful completion requires demonstration of the ability to select and manage insurance coverage aligned with operational risk.

Section 405(d). Module 11 – Driver Compensation, Retention, and Human Sustainability

Weeks 21–22

Instruction under this Module shall establish competency in designing compensation structures that support retention, compliance, and long-term workforce stability.

Curriculum shall include instruction on the following subjects:

1. Driver compensation models, including cents-per-mile, percentage, hourly, and guaranteed pay structures.

2. Economic impact of detention, layover, breakdown, and delay compensation on driver behavior and safety.

3. Turnover costs, recruitment expenses, and productivity loss.

4. Worker classification risk indicators and misclassification consequences.

5. Relationship between compensation instability and safety risk.

Applied competency requirements shall include:

1. Design of a sustainable driver compensation model incorporating delay and detention pay.

2. Analysis of turnover costs under alternative compensation structures.

3. Written explanation of how compensation design affects safety and retention.

Successful completion requires demonstration of the ability to align compensation structures with safety and operational goals.

Section 405(e). Module 12 – Growth Management, Capital Planning, and Exit Strategy

Weeks 23–24

Instruction under this Module shall establish disciplined decision-making regarding growth, capital deployment, and orderly exit planning.

Curriculum shall include instruction on the following subjects:

1. Capital adequacy and liquidity requirements for fleet expansion.

2. Risks associated with rapid growth, including maintenance backlog, insurance exposure, and management failure.

3. Equipment acquisition timing and financing considerations.

4. Controlled downsizing and exit strategies to prevent cascading financial failure.

5. Succession and continuity planning.

Applied competency requirements shall include:

1. Development of a twelve-month operational sustainability plan.

2. Scenario analysis evaluating the financial and safety impact of adding or removing equipment.

3. Written justification for growth or contraction decisions based on objective metrics.

Successful completion requires demonstration of the ability to make growth decisions based on sustainability rather than optimism.

Section 405(f). Phase III Assessment and Advancement Standard

1. Participants shall complete a Phase III assessment consisting of scenario-based evaluations covering all Modules within this Phase.

2. A minimum score of 80 percent overall and 70 percent per Module shall be required to advance to Phase IV.

3. Failure to meet the standard shall require remediation specific to the deficient Module prior to retesting.

Section 405(g). Phase III Intent

The intent of Phase III is to reduce preventable safety incidents by addressing the financial and human factors that drive unsafe operations, and to ensure that carriers possess the knowledge necessary to operate safely, sustainably, and lawfully.

PHASE IV – CERTIFICATION, VERIFICATION, AND ENFORCEMENT

Weeks 25 through 36

Section 406(a). Purpose of Phase IV

Phase IV of the Business Acumen Certification Program shall serve as the final validation and enforcement phase, requiring participants to demonstrate applied competence across all prior phases through comprehensive evaluation, documentation, and defense of operational decisions.

This Phase is intended to ensure that certification reflects real-world capability, not attendance, and to establish an auditable record of competency sufficient for regulatory, contractual, and public reliance.

Section 406(b). Capstone Portfolio Requirement

Weeks 25–32

Each participant shall complete and submit a comprehensive Capstone Portfolio demonstrating integrated application of business, financial, contractual, compliance, safety, and risk management competencies.

The Capstone Portfolio shall include, at a minimum, the following components:

1. Cost-of-Operation Model

   A detailed, participant-specific cost-of-operation model reflecting fixed, variable, and contingency costs, including assumptions, data sources, and sensitivity analysis.

2. Cash Flow and Liquidity Forecast

   A minimum twelve (12) month forward-looking cash flow forecast identifying revenue timing, expense obligations, reserve requirements, and liquidity risk points.

3. Contract Risk Analysis

   A written analysis of at least one representative carrier agreement identifying risk allocation, waiver provisions, dispute mechanisms, and recommended mitigation strategies.

4. Compliance and Recordkeeping Checklist

   A compliance-ready documentation framework sufficient to support audits, enforcement actions, and payment disputes.

5. Safety and Risk Mitigation Plan

   A written plan addressing scheduling discipline, detention mitigation, maintenance funding, insurance coverage alignment, and human sustainability considerations.

The Capstone Portfolio shall be evaluated for accuracy, completeness, internal consistency, and practical applicability.

Section 406(c). Final Proctored Examination

Weeks 33–34

Participants shall complete a comprehensive, proctored final examination designed to evaluate applied decision-making rather than rote memorization.

1. The examination shall consist primarily of scenario-based questions requiring analysis, calculation, and judgment across all Program Phases.

2. The examination shall include financial modeling scenarios, contract interpretation exercises, compliance decision points, and safety-risk evaluations.

3. Examination length shall be sufficient to prevent superficial completion and shall not be less than ninety (90) minutes.

A minimum passing standard of 90 percent overall and 80 percent in each competency domain shall be required.

Section 406(d). Oral Defense or Recorded Review

Weeks 35–36

Participants shall complete either an oral defense before a certified evaluator or a recorded review session explaining and defending key elements of their Capstone Portfolio.

The defense or review shall require the participant to:

1. Explain assumptions used in financial and operational models.

2. Justify contract risk assessments and mitigation strategies.

3. Demonstrate understanding of compliance obligations and enforcement exposure.

4. Identify operational risks and corrective actions.

Failure to articulate and defend decisions shall constitute failure of Phase IV regardless of written examination scores.

Section 406(e). Certification Issuance and Validity

Upon successful completion of all Phase IV requirements, FMCSA shall issue a Business Acumen Certification to the carrier.

1. Certification shall be valid for a period of thirty-six (36) months from issuance.

2. Certification status shall be digitally recorded and publicly verifiable through FMCSA systems.

3. Certification shall be non-transferable and tied to the carrier’s operating authority.

Section 406(f). Renewal and Continuing Competency

1. Certification renewal shall require completion of a shortened reassessment reflecting changes in law, regulation, and market conditions.

2. Carriers experiencing Program Trigger Events during the certification period may be required to complete early reassessment or targeted remediation.

Section 406(g). Failure, Remediation, and Enforcement

1. Failure to complete Phase IV requirements shall result in denial or suspension of certification.

2. Participants may undergo one remediation cycle focused on identified deficiencies.

3. Continued failure shall result in ineligibility for certification and referral for enforcement action, including suspension of operating authority where required by statute.

Section 406(h). Program Integrity and Public Trust

The Business Acumen Certification Program shall be administered to preserve public trust, promote market integrity, and ensure that certification represents demonstrated capability rather than participation.

Certification shall not be granted based on tenure, size, affiliation, or financial contribution.

Section 406(i). Phase IV Intent

The intent of Phase IV is to ensure that motor carriers operating in interstate commerce possess the demonstrated ability to manage financial risk, comply with contractual and regulatory obligations, operate safely, and sustain human capital without reliance on predatory practices or insolvency-driven decision-making.

Section 407. Enforcement, Compliance, and Sanctions

Section 407(a). Enforcement Authority

The Federal Motor Carrier Safety Administration (FMCSA) shall have authority to enforce compliance with the Business Acumen Certification Program as a condition of operating authority eligibility and continuation.

Enforcement actions under this Section shall be administrative in nature and shall not require proof of intent, negligence, or malice, but shall be based on failure to meet objective certification requirements.

Section 407(b). Mandatory Compliance Requirement

1. No motor carrier subject to this Act may:

   • Obtain new operating authority;

   • Reinstate revoked or suspended authority; or

   • Continue operating authority following a Program Trigger Event

     unless the carrier holds a valid, current Business Acumen Certification.

2. Certification status shall be continuously maintained and shall not lapse during periods of active operation.

Section 407(c). Notice of Deficiency

1. Upon identification of noncompliance, FMCSA shall issue a written Notice of Deficiency specifying:

   • The nature of the deficiency;

   • The applicable Phase, Module, or requirement;

   • The corrective action required; and

   • The timeframe for compliance.

2. The compliance window shall be:

   • Not less than 30 days for administrative or documentation deficiencies; and

   • Not more than 90 days for curriculum completion, remediation, or reassessment.

3. During the compliance window, operating authority may remain active unless otherwise restricted under subsection (e).

Section 407(d). Remediation and Corrective Action

1. FMCSA shall permit one remediation cycle per deficiency, consisting of:

   • Targeted instructional remediation limited to the deficient competency area; and

   • Reassessment limited to the deficient Phase or Module.

2. Remediation shall not restart the full Program unless the deficiency demonstrates systemic incompetence across multiple Phases.

3. Failure to complete remediation within the prescribed timeframe shall constitute continued noncompliance.

Section 407(e). Progressive Enforcement Measures

If noncompliance persists following issuance of a Notice of Deficiency and opportunity for remediation, FMCSA shall impose progressive enforcement measures, which may include:

1. Written warning and compliance probation;

2. Civil penalties proportionate to the duration and severity of noncompliance;

3. Conditional operating authority subject to additional monitoring or restrictions;

4. Suspension of operating authority for continued noncompliance; and

5. Revocation of operating authority where noncompliance is persistent, willful, or repeated.

Section 407(f). Immediate Enforcement for Material Noncompliance

FMCSA may impose immediate suspension of operating authority where failure to obtain or maintain certification presents a material risk to public safety, including but not limited to situations involving:

1. Repeated insolvency-driven safety violations;

2. Documented patterns of non-payment to drivers or owner-operators;

3. Systemic failure to maintain required insurance or maintenance funding;

4. Fraudulent misrepresentation of certification status.

Section 407(g). Appeals Process

1. A carrier subject to enforcement under this Section may file an administrative appeal limited to:

   • Identity error;

   • Administrative or clerical error;

   • Demonstrated impossibility of compliance due to documented hardship.

2. Appeals shall not be granted based on disagreement with Program requirements or dissatisfaction with assessment outcomes.

3. Filing an appeal shall not automatically stay enforcement unless FMCSA determines that a stay is warranted.

Section 407(h). Public Certification Verification and Disclosure

1. FMCSA shall maintain a publicly accessible verification system indicating:

   • Certification status;

   • Issue date;

   • Expiration date; and

   • Enforcement-related suspensions or revocations.

2. Misrepresentation of certification status by a carrier shall constitute a separate enforceable violation.

Section 407(i). Non-Preemption and No Private Right of Action

1. Nothing in this Section shall preempt existing federal or state enforcement authority.

2. This Section shall not create a private right of action but shall not limit the use of certification status as evidence in administrative or contractual proceedings.

Section 407(j). Enforcement Intent

The intent of this Section is to ensure that participation in interstate motor carrier operations is conditioned on demonstrated competency, not tenure, size, or affiliation, and that failure to meet objective business acumen standards carries meaningful and proportionate consequences.

Section 408. Program Intent, Scope, and Construction

Section 408(a). Legislative Findings and Purpose

Congress finds that persistent safety failures, insolvency-driven operations, and exploitative contracting practices within the motor carrier industry are frequently the result of inadequate business competence rather than a lack of technical driving skill.

The purpose of the Business Acumen Certification Program is to ensure that motor carriers operating in interstate commerce possess the minimum financial, contractual, and operational competence necessary to operate safely, lawfully, and sustainably, thereby protecting drivers, shippers, the public, and the integrity of the freight marketplace.

Section 408(b). Scope of the Program

The Business Acumen Certification Program is intended to apply uniformly to motor carriers subject to this Act, without regard to carrier size, fleet composition, geographic location, or corporate structure.

The Program is designed to address business and operational competence and shall not be construed to regulate driving technique, vehicle design, or equipment standards, which remain governed by existing federal and state safety regulations.

Section 408(c). No Rate Regulation or Price Control

Nothing in this Program shall be construed to establish, mandate, suggest, or enforce freight rates, minimum rates, or pricing controls.

The Program exists solely to ensure that carriers possess the knowledge necessary to evaluate rates independently and to decline economically unsustainable transactions without coercion or deception.

Section 408(d). Relationship to Safety Regulation

The Program is grounded in the principle that financial instability and unsafe operations are closely correlated.

Accordingly, the Business Acumen Certification Program shall be construed as a safety-supporting measure consistent with FMCSA’s statutory mandate to reduce crashes, injuries, and fatalities, and shall not be interpreted as an economic regulation unrelated to safety.

Section 408(e). Protection Against Predatory Practices

The Program is intended to reduce reliance on predatory contracts, opaque transactions, and exploitative payment structures by ensuring that carriers understand their rights, obligations, and risk exposure prior to entering binding agreements.

Nothing in this Section shall be construed to validate or legitimize contract provisions that waive statutory or regulatory protections in a manner inconsistent with law.

Section 408(f). Equal Application and Non-Discrimination

The Program shall be administered in a neutral and non-discriminatory manner.

Certification shall not be granted or denied based on carrier tenure, size, affiliation, political activity, or financial contribution, but solely on demonstrated competence as measured by objective standards.

Section 408(g). Construction and Severability

This Section and the Business Acumen Certification Program shall be construed liberally to effectuate its safety and market-integrity purposes.

If any provision of this Program is held invalid, such invalidity shall not affect the remaining provisions, which shall remain in full force and effect.

Section 408(h). Intent

The intent of this Section is to eliminate financial ignorance as an accepted condition of participation in interstate trucking, to reduce preventable safety risks driven by economic pressure, and to ensure that certification reflects capability rather than affiliation or rhetoric.

Section 409. Certification Issuance, Status, and Legal Effect

Section 409(a). Issuance of Certification

Upon successful completion of all required Phases of the Business Acumen Certification Program, including the Capstone Portfolio, final proctored examination, and oral defense or recorded review, the Federal Motor Carrier Safety Administration (FMCSA) shall issue a Business Acumen Certification to the motor carrier.

Certification issuance shall be based solely on demonstrated competency and successful satisfaction of objective program requirements.

No certification shall be issued based on tenure, prior operating history, size, affiliation, or participation in any organization.

Section 409(b). Form and Record of Certification

1. Certification shall be issued in digital form and recorded in FMCSA systems.

2. Each certification record shall include:

   • Carrier legal name;

   • USDOT and MC number;

   • Date of issuance;

   • Date of expiration;

   • Certification status (active, suspended, revoked).

3. Certification records shall be publicly verifiable through FMCSA without disclosure of examination materials or proprietary submissions.

Section 409(c). Validity Period

1. A Business Acumen Certification shall be valid for a period of thirty-six (36) months from the date of issuance.

2. Certification shall remain valid only while the carrier maintains compliance with Program requirements and does not experience disqualifying enforcement actions under this Act.

Section 409(d). Effect of Certification

1. Possession of a valid Business Acumen Certification shall constitute satisfaction of the Program’s competency requirements for purposes of:

   • New operating authority issuance;

   • Authority reinstatement;

   • Continued operation following a Program Trigger Event.

2. Certification shall not:

   • Confer immunity from enforcement actions;

   • Replace existing safety, insurance, or compliance requirements; or

   • Limit FMCSA’s authority to impose penalties under other statutes.

Section 409(e). Suspension and Revocation of Certification

1. FMCSA may suspend or revoke certification upon:

   • Failure to maintain Program compliance;

   • Fraudulent misrepresentation of certification status;

   • Material falsification of submissions or examination materials;

   • Repeated or willful violations indicating loss of competency.

2. Suspension or revocation shall be accompanied by written notice specifying grounds and corrective options where applicable.

Section 409(f). Renewal of Certification

1. Certification renewal shall be required every thirty-six (36) months.

2. Renewal shall require completion of a reassessment addressing:

   • Changes in law and regulation;

   • Updates to safety and compliance standards;

   • Demonstrated retention of core competencies.

3. FMCSA may require early renewal or targeted reassessment following a Program Trigger Event.

Section 409(g). Non-Transferability

1. Business Acumen Certification shall be non-transferable.

2. Certification shall not survive:

   • Sale or transfer of operating authority;

   • Change in controlling ownership;

   • Merger or consolidation resulting in a materially different operating entity.

3. Any such change shall require re-certification or reassessment as determined by FMCSA.

Section 409(h). Misrepresentation and Penalties

1. Any carrier that knowingly misrepresents certification status shall be subject to:

   • Immediate suspension of certification;

   • Civil penalties; and

   • Referral for enforcement action affecting operating authority.

2. Each instance of misrepresentation shall constitute a separate violation.

Section 409(i). Certification Intent

The intent of this Section is to ensure that Business Acumen Certification represents a verified, enforceable standard of competence that may be relied upon by regulators, counterparties, and the public, and that certification status carries clear legal meaning and consequences.

Section 410. Program Intent and Legislative Construction

Section 410(a). Final Statement of Intent

The intent of the Business Acumen Certification Program is to condition participation in interstate motor carrier operations on demonstrated business and operational competence, rather than tenure, size, affiliation, or rhetoric.

This Program is intended to eliminate financial ignorance as an accepted operating condition within the trucking industry and to reduce preventable safety risks caused by insolvency, exploitative contracting, and economically driven operational pressure.

Section 410(b). Relationship to Market Participation

Congress finds that access to interstate motor carrier operating authority carries inherent public safety responsibilities and that participation in the freight marketplace is not an entitlement, but a regulated privilege conditioned on competence.

The Program establishes minimum competency standards necessary to responsibly exercise that privilege and shall be construed accordingly.

Section 410(c). No Limitation on Lawful Competition

Nothing in this Program shall be construed to restrict lawful competition, innovation, or business models within the trucking industry.

The Program does not favor or disadvantage carriers based on size, fleet composition, ownership structure, geographic scope, or operating model, provided that objective competency requirements are met.

Section 410(d). Prevention of Evasion and Bad-Faith Participation

This Program shall be construed to prevent evasion through nominal restructuring, shell entities, or repeated authority cycling intended to avoid compliance with certification requirements.

FMCSA shall have authority to require reassessment or re-certification where material changes to ownership, control, or operational structure indicate that prior certification no longer reflects actual competence.

Section 410(e). Reliance and Evidentiary Use

Certification status issued under this Program may be relied upon by regulators, counterparties, insurers, and enforcement agencies as evidence of demonstrated competency.

Nothing in this Section shall be construed to create immunity from enforcement actions or to limit the admissibility of certification status in administrative or contractual proceedings.

Section 410(f). Construction in Favor of Safety and Market Integrity

This Program shall be construed in favor of advancing public safety, market integrity, and operational sustainability.

In the event of ambiguity, interpretation shall favor enforcement that reduces insolvency-driven safety risk and discourages participation by unqualified or bad-faith actors.

Section 410(g). Severability

If any provision of this Program, or its application to any person or circumstance, is held invalid, the remainder of the Program shall not be affected and shall remain in full force and effect.

Section 410(h). Closing Intent

The intent of this Section is to ensure that interstate trucking is conducted by entities capable of understanding and managing the financial, contractual, and operational responsibilities inherent in transporting the nation’s freight, and that safety failures driven by ignorance or exploitation are no longer treated as acceptable collateral damage.