Prevention of chameleon carriers

(a) Registration of motor carriers Section 13902(a) of title 49, United States Code, is amended— (1) in paragraph (1)(C) by inserting, under penalty of perjury, after has disclosed; and (2) by adding at the end the following: (7) Common ownership relationship (A) Considerations for relationship disclosure In determining whether a person has disclosed a relationship under paragraph (1)(C), the Secretary may only consider a familial relationship to be relevant when accompanied by facts indicating common ownership, management, control, operation, or financing between the person and other applicant. (B) Chameleon carrier The Secretary shall deny registration to an applicant if the Secretary determines that the applicant is a chameleon carrier whose registration was revoked during the 3-year period preceding the date of the filing of the application for registration. (C) Waiver The Secretary may waive the requirement under paragraph (1)(C) upon a finding that the applicant is a bona fide independent entity and is not being used to evade a Federal safety requirement. (D) Registration system updates The Secretary shall update Department of Transportation registration systems to collect such unique identifying information as is reasonably necessary to identify chameleon carriers and prevent evasion of registration sanctions. (E) Chameleon carrier defined In this paragraph, the term chameleon carrier means a motor carrier, intermodal equipment provider, broker, or freight forwarder, or an officer, employee, agent, authorized representative, or other affiliated party of such an entity, that has, directly or indirectly, operated or attempted to operate a motor carrier, intermodal equipment provider, broker, or freight forwarder under a new identity or as an affiliated entity to— (i) avoid complying with a Federal Motor Carrier Safety Administration order; (ii) avoid complying with a statutory or regulatory requirement; (iii) avoid paying a civil penalty; (iv) avoid responding to an enforcement action; (v) avoid being linked with a negative compliance history; (vi) avoid or evade increased insurance premiums, policy cancellations, or underwriting restrictions by obtaining or attempting to obtain insurance coverage under a new or materially different identity, ownership structure, or corporate form; (vii) misrepresent ownership, control, management, or operational continuity to an insurer, broker, or underwriter for the purpose of securing lower insurance rates or favorable coverage terms; or (viii) reincorporate, re-register, or otherwise reconstitute a carrier entity following the denial, nonrenewal, or cancellation of an insurance policy due to safety, claims, or compliance history.. (b) Knowing evasion Federal motor carrier safety sanctions (1) In general Chapter 149 of title 49, United States Code, is amended by adding at the end the following: 14917. Knowing evasion of Federal motor carrier safety sanctions Any person who knowingly makes a materially false statement or conceals a material relationship under section 13902(a)(1)(C), or uses a successor or affiliated entity for the purpose of evading a registration revocation or other Federal motor carrier safety sanction, shall, notwithstanding section 3571 of title 18, United States Code, be fined not more than $25,000 for each violation of this section, or imprisoned not more than 1 year, or both.. (2) Clerical amendment The analysis for chapter 149 of title 49, United States Code, is amended by adding at the end the following: 14917. Knowing evasion of Federal motor carrier safety sanctions..