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† HR 4348 EAS 
termine whether such amounts are sufficient to pro-
vide adequate financial security, and shall be author-
ized to increase those amounts, if necessary, based 
upon that determination. 
‘‘(c) FREIGHT FORWARDER FINANCIAL SECURITY RE-
QUIREMENTS.— 
‘‘(1) REQUIREMENTS.— 
‘‘(A) IN GENERAL.—The Secretary may reg-
ister a person as a freight forwarder under sec-
tion 13903 only if the person files with the Sec-
retary a surety bond, proof of trust fund, other 
financial security, or a combination of such in-
struments, in a form and amount, and from a 
provider, determined by the Secretary to be ade-
quate to ensure financial responsibility. 
‘‘(B) USE
OF
A
GROUP
SURETY
BOND, 
TRUST FUND, OR OTHER FINANCIAL SECURITY.— 
In implementing the standards established under 
subparagraph (A), the Secretary may authorize 
the use of a group surety bond, trust fund, other 
financial security, or a combination of such in-
struments, that meets the requirements of this 
subsection. 
‘‘(C) SURETY BONDS.—A surety bond ob-
tained under this section may only be obtained
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† HR 4348 EAS 
from a bonding company that has been approved 
by the Secretary of the Treasury. 
‘‘(D) PROOF OF TRUST OR OTHER FINAN-
CIAL SECURITY.—For purposes of subparagraph 
(A), a trust fund or other financial security may 
not be accepted by the Secretary unless the trust 
fund or other financial security consists of assets 
readily available to pay claims without resort to 
personal guarantees or collection of pledged ac-
counts receivable. 
‘‘(2) SCOPE OF FINANCIAL RESPONSIBILITY.— 
‘‘(A) PAYMENT OF CLAIMS.—A surety bond, 
trust fund, or other financial security obtained 
under paragraph (1) shall be available to pay 
any claim against a freight forwarder arising 
from its failure to pay freight charges under its 
contracts, agreements, or arrangements for trans-
portation subject to jurisdiction under chapter 
135 if–– 
‘‘(i) subject to the review by the surety 
provider, the freight forwarder consents to 
the payment; 
‘‘(ii) in the case the freight forwarder 
does not respond to adequate notice to ad-
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† HR 4348 EAS 
dress the validity of the claim, the surety 
provider determines the claim is valid; or 
‘‘(iii) the claim— 
‘‘(I) is not resolved within a rea-
sonable period of time following a rea-
sonable attempt by the claimant to re-
solve the claim under clauses (i) and 
(ii); and 
‘‘(II) is reduced to a judgment 
against the freight forwarder. 
‘‘(B) RESPONSE OF SURETY PROVIDERS TO 
CLAIMS.—If a surety provider receives notice of 
a claim described in subparagraph (A), the sur-
ety provider shall–– 
‘‘(i) respond to the claim on or before 
the 30th day following receipt of the notice; 
and 
‘‘(ii) in the case of a denial, set forth 
in writing for the claimant the grounds for 
the denial. 
‘‘(C) COSTS
AND
ATTORNEY’S
FEES.—In 
any action against a surety provider to recover 
on a claim described in subparagraph (A), the 
prevailing party shall be entitled to recover its 
reasonable costs and attorney’s fees.
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† HR 4348 EAS 
‘‘(3) FREIGHT FORWARDER INSURANCE.— 
‘‘(A) IN GENERAL.—The Secretary may reg-
ister a person as a freight forwarder under sec-
tion 13903 only if the person files with the Sec-
retary a surety bond, insurance policy, or other 
type of financial security that meets standards 
prescribed by the Secretary. 
‘‘(B) LIABILITY
INSURANCE.—A financial 
security filed by a freight forwarder under sub-
paragraph (A) shall be sufficient to pay an 
amount, not to exceed the amount of the finan-
cial security, for each final judgment against the 
freight forwarder for bodily injury to, or death 
of, an individual, or loss of, or damage to, prop-
erty (other than property referred to in subpara-
graph (C)), resulting from the negligent oper-
ation, maintenance, or use of motor vehicles by, 
or under the direction and control of, the freight 
forwarder while providing transfer, collection, or 
delivery service under this part. 
‘‘(C) CARGO
INSURANCE.—The Secretary 
may require a registered freight forwarder to file 
with the Secretary a surety bond, insurance pol-
icy, or other type of financial security approved 
by the Secretary, that will pay an amount, not
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† HR 4348 EAS 
to exceed the amount of the financial security, 
for loss of, or damage to, property for which the 
freight forwarder provides service. 
‘‘(4) 
MINIMUM
FINANCIAL
SECURITY.—Each 
freight forwarder subject to the requirements of this 
section shall provide financial security of $100,000, 
regardless of the number of branch offices or sales 
agents of the freight forwarder. 
‘‘(5) CANCELLATION NOTICE.—If a financial se-
curity required under this subsection is canceled–– 
‘‘(A) the holder of the financial security 
shall provide electronic notification to the Sec-
retary of the cancellation not later than 30 days 
before the effective date of the cancellation; and 
‘‘(B) the Secretary shall immediately post 
such notification on the public Internet web site 
of the Department of Transportation. 
‘‘(6) SUSPENSION.—The Secretary shall imme-
diately suspend the registration of a freight forwarder 
issued under this chapter if its available financial se-
curity falls below the amount required under this sub-
section. 
‘‘(7) PAYMENT OF CLAIMS IN CASES OF FINAN-
CIAL
FAILURE
OR
INSOLVENCY.—If a freight for-
warder registered under this chapter experiences fi-
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† HR 4348 EAS 
nancial failure or insolvency, the surety provider of 
the freight forwarder shall–– 
‘‘(A) submit a notice to cancel the financial 
security to the Administrator in accordance with 
paragraph (5); 
‘‘(B) publicly advertise for claims for 60 
days beginning on the date of publication by the 
Secretary of the notice to cancel the financial se-
curity; and 
‘‘(C) pay, not later than 30 days after the 
expiration of the 60-day period for submission of 
claims–– 
‘‘(i) all uncontested claims received 
during such period; or 
‘‘(ii) a pro rata share of such claims if 
the total amount of such claims exceeds the 
financial security available. 
‘‘(8) PENALTIES.— 
‘‘(A) CIVIL ACTIONS.—Either the Secretary 
or the Attorney General may bring a civil action 
in an appropriate district court of the United 
States to enforce the requirements of this sub-
section or a regulation prescribed or order issued 
under this subsection. The court may award ap-
propriate relief, including injunctive relief.
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† HR 4348 EAS 
‘‘(B) CIVIL
PENALTIES.—If the Secretary 
determines, after notice and opportunity for a 
hearing, that a surety provider of a freight for-
warder registered under this chapter has violated 
the requirements of this subsection or a regula-
tion prescribed under this subsection, the surety 
provider shall be liable to the United States for 
a civil penalty in an amount not to exceed 
$10,000. 
‘‘(C) ELIGIBILITY.—If the Secretary deter-
mines, after notice and opportunity for a hear-
ing, that a surety provider of a freight forwarder 
registered under this chapter has violated the re-
quirements of this subsection or a regulation pre-
scribed under this subsection, the surety provider 
shall be ineligible to provide freight forwarder fi-
nancial security for 3 years. 
‘‘(9) FINANCIAL
SECURITY
AND
INSURANCE 
AMOUNT ASSESSMENT.—Not less frequently than once 
every 5 years, the Secretary— 
‘‘(A) shall review, with public notice and 
comment, the amount of the financial security 
and insurance required under this subsection to 
determine whether such amounts are sufficient to 
provide adequate financial security; and
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† HR 4348 EAS 
‘‘(B) may increase such amounts, if nec-
essary, based upon the determination under sub-
paragraph (A).’’. 
(b) RULEMAKING.—Not later than 1 year after the date 
of enactment of this Act, the Secretary shall issue regula-
tions to implement and enforce the requirements under sub-
sections (b) and (c) of section 13906 of title 49, United 
States Code, as amended by subsection (a). 
(c) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on the date that is 1 year after 
the date of enactment of this Act. 
SEC. 32920. UNLAWFUL BROKERAGE ACTIVITIES. 
(a) IN GENERAL.—Chapter 149 is amended by adding 
at the end the following: 
‘‘§ 14916. Unlawful brokerage activities 
‘‘(a) PROHIBITED ACTIVITIES.—Any person that acts 
as a broker, other than a non-vessel-operating common car-
rier (as defined in section 40102(16) of title 46) or an ocean 
freight forwarder providing brokerage as part of an inter-
national through movement involving ocean transportation 
between the United States and a foreign port, is prohibited 
from providing interstate brokerage services as a broker un-
less that person–– 
‘‘(1) is registered under, and in compliance with, 
section 13903; and
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† HR 4348 EAS 
‘‘(2) has satisfied the financial security require-
ments under section 13904. 
‘‘(b) CIVIL PENALTIES AND PRIVATE CAUSE OF AC-
TION.—Any person who knowingly authorizes, consents to, 
or permits, directly or indirectly, either alone or in con-
junction with any other person, a violation of subsection 
(a) is liable–– 
‘‘(1) to the United States Government for a civil 
penalty in an amount not to exceed $10,000 for each 
violation; and 
‘‘(2) to the injured party for all valid claims in-
curred without regard to amount. 
‘‘(c) LIABLE PARTIES.—The liability for civil pen-
alties and for claims under this section for unauthorized 
brokering shall apply, jointly and severally–– 
‘‘(1) to any corporate entity or partnership in-
volved; and 
‘‘(2) to the individual officers, directors, and 
principals of such entities.’’. 
(b) CLERICAL AMENDMENT.—The analysis for chapter 
149 is amended by adding at the end the following: 
‘‘14916. Unlawful brokerage activities.’’. 
PART II—HOUSEHOLD GOODS TRANSPORTATION 
SEC. 32921. ADDITIONAL REGISTRATION REQUIREMENTS 
FOR HOUSEHOLD GOODS MOTOR CARRIERS. 
(a) Section 13902(a)(2) is amended—
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† HR 4348 EAS 
(1) in subparagraph (B), by striking ‘‘section 
13702(c);’’ and inserting ‘‘section 13702(c); and’’; 
(2) by amending subparagraph (C) to read as 
follows: 
‘‘(C) demonstrates, before being registered, 
through successful completion of a proficiency ex-
amination established by the Secretary, knowl-
edge and intent to comply with applicable Fed-
eral laws relating to consumer protection, esti-
mating, consumers’ rights and responsibilities, 
and options for limitations of liability for loss 
and damage.’’; and 
(3) by striking subparagraph (D). 
(b) COMPLIANCE REVIEWS
OF NEW HOUSEHOLD 
GOODS MOTOR CARRIERS.—Section 31144(g), as amended 
by section 32102 of this Act, is amended by adding at the 
end the following: 
‘‘(6) ADDITIONAL REQUIREMENTS FOR HOUSE-
HOLD GOODS MOTOR CARRIERS.—(A) In addition to 
the requirements of this subsection, the Secretary shall 
require, by regulation, each registered household goods 
motor carrier to undergo a consumer protection 
standards review not later than 18 months after the 
household goods motor carrier begins operations under 
such authority.
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† HR 4348 EAS 
‘‘(B) ELEMENTS.—In the regulations issued 
pursuant to subparagraph (A), the Secretary 
shall establish the elements of the consumer pro-
tections standards review, including basic man-
agement controls. In establishing the elements, 
the Secretary shall consider the effects on small 
businesses and shall consider establishing alter-
nate locations where such reviews may be con-
ducted for the convenience of small businesses.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect 2 years after the date of enactment 
of this Act. 
SEC. 32922. FAILURE TO GIVE UP POSSESSION OF HOUSE-
HOLD GOODS. 
(a) INJUNCTIVE
RELIEF.—Section 14704(a)(1) is 
amended by striking ‘‘and 14103’’ and inserting ‘‘, 14103, 
and 14915(c)’’. 
(b) CIVIL PENALTIES.—Section 14915(a)(1) is amend-
ed by adding at the end the following: 
‘‘The United States may assign all or a portion of the 
civil penalty to an aggrieved shipper. The Secretary of 
Transportation shall establish criteria upon which such as-
signments shall be made. The Secretary may order, after 
notice and an opportunity for a proceeding, that a person
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† HR 4348 EAS 
found holding a household goods shipment hostage return 
the goods to an aggrieved shipper.’’. 
SEC. 32923. SETTLEMENT AUTHORITY. 
(a) SETTLEMENT OF GENERAL CIVIL PENALTIES.— 
Section 14901 is amended by adding at the end the fol-
lowing: 
‘‘(h) SETTLEMENT OF HOUSEHOLD GOODS CIVIL PEN-
ALTIES.—Nothing in this section shall be construed to pro-
hibit the Secretary from accepting partial payment of a 
civil penalty as part of a settlement agreement in the public 
interest, or from holding imposition of any part of a civil 
penalty in abeyance.’’. 
(b) SETTLEMENT OF HOUSEHOLD GOODS CIVIL PEN-
ALTIES.—Section 14915(a) is amended by adding at the 
end the following: 
‘‘(4) SETTLEMENT AUTHORITY.—Nothing in this 
section shall be construed as prohibiting the Secretary 
from accepting partial payment of a civil penalty as 
part of a settlement agreement in the public interest, 
or from holding imposition of any part of a civil pen-
alty in abeyance.’’. 
SEC. 32924. HOUSEHOLD GOODS TRANSPORTATION ASSIST-
ANCE PROGRAM. 
(a) JOINT ASSISTANCE PROGRAM.—Not later than 18 
months after the date of enactment of this Act, the Secretary
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† HR 4348 EAS 
shall develop and implement a joint assistance program, 
through the Federal Motor Carrier Safety Administra-
tion— 
(1) to educate consumers about the household 
goods motor carrier industry pursuant to the rec-
ommendations of the task force established under sec-
tion 32925 of this Act; 
(2) to improve the Federal Motor Carrier Safety 
Administration’s implementation, monitoring, and 
coordination of Federal and State household goods en-
forcement activities; 
(3) to assist a consumer with the timely resolu-
tion of an interstate household goods hostage situa-
tion, as appropriate; and 
(4) to conduct other enforcement activities as 
designated by the Secretary. 
(b) JOINT ASSISTANCE PROGRAM PARTNERSHIP.—The 
Secretary— 
(1) may partner with 1 or more household goods 
motor carrier industry groups to implement the joint 
assistance program under subsection (a); and 
(2) shall ensure that each participating house-
hold goods motor carrier industry group— 
(A) implements the joint assistance pro-
gram in the best interest of the consumer;