• 27
  • October
    2011

A proposed new federal regulation - 49 CFR 385.306 - could have a significant impact on the trucking industry and the motoring public, especially those who have been injured in a trucking accident.

It is relatively easy to start up a business in the trucking industry. It's also easy to shut a company down and then to reopen it under a new name and DOT number. This is one way that unscrupulous trucking company owners evade responsibility and hide bad safety records. It makes it difficult for injured people to pursue justice and compensation.

There are currently four identification and registrations systems. The Federal Motor Carrier Safety Administration (FMCSA) proposes to create a unified registration system that requires an applicant registering a new business to disclose related companies and individuals. Any safety violations and outstanding orders to cease operation found against those related companies will be linked to the new company in the FMCSA database.

If the company provides false information on its registration application, its registration will be revoked. And the FMCSA would no longer transfer operating authority from one owner to another.

Companies would need to register in the new system and then update their information every two years. The new system would make information more accessible to the public, which would help in the investigation of legal claims against the trucking company.

The FMCSA hopes that the new system will prevent "chameleon" truck companies from operating. If a trucking company owner shuts down to evade paying on a claim, they cannot reopen a new company with impunity.

It will be at least two years before the final rule is issued and the new registration system is implemented.

Source: "FMCSA makes move to prevent operation of chameleon carriers, bus companies," TheTrucker.com, 10/26/11.