Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Motor Carrier Protection Act of
2010''.

SEC. 2. REGISTRATION REQUIREMENTS.

(a) In General.--
(1) Annual registration fee.--Each freight forwarder or
freight broker that registers under chapter 139 of title 49,
United States Code, shall--
(A) pay an annual registration renewal fee in an
amount to be determined by the Secretary;
(B) provide updated information for each
registration; and
(C) submit proof that the registrant is in
compliance with the applicable surety and insurance
requirements under such chapter 139.
(2) Use of fees.--All new fees collected by the Secretary
as a result of the new licensing requirements under this Act
and the amendments made by this Act shall be used to administer
and enforce the registration and related requirements under
chapter 139 of title 49, United States Code.
(3) Consequence of noncompliance.--Not later than 30 days
after the date on which a broker, freight forwarder, or motor
carrier fails to comply with this subsection, such entity shall
be listed as inactive on all relevant Department of
Transportation Internet websites.
(b) Amendments.--Section 13901 of title 49, United States Code, is
amended--
(1) by striking ''A person'' and inserting the following:
''(a) In General.--A person''; and
(2) by adding at the end the following:
''(b) Registration Numbers.--
''(1) In general.--If the Administrator of the Federal
Motor Carrier Administration registers a person under this
chapter for 1 or more activities or services, including motor
carrier, freight forwarder, or broker activities or services,
the Administrator shall issue a distinctive registration number
to the person for each such activity or service for which the
person is registered.
''(2) Activity or service type indicator.--Each number
issued under paragraph (1) shall include an indicator of the
type of activity or service for which the registration number
is issued, including whether the registration number is issued
for registration of a motor carrier, freight forwarder, or
broker activity or service.
''(c) Authority.--For each shipment for which a registered person
seeks compensation, the registered person shall specify, in writing,
the operating authority under which it is providing the services
required.''.

SEC. 3. REGISTRATION OF MOTOR CARRIERS.

Section 13902 of title 49, United States Code, is amended--
(1) in subsection (a)--
(A) in paragraph (1), by inserting ''using vehicles
the motor carrier owns or leases'' after ''motor
carrier''; and
(B) by adding at the end the following:
''(6) Separate registration required.--A motor carrier may
not broker transportation services unless the motor carrier has
registered as a broker under this chapter.''; and
(2) in subsection (f), by adding at the end the following:
''(4) Insurance requirements.--A motor carrier registered
under this section shall maintain insurance for property damage
required under section 13906(a)(4) for all shipments
transported under its operating authority.''.

SEC. 4. REGISTRATION AND SECURITY OF FREIGHT FORWARDERS AND BROKERS.

(a) In General.--
(1) Amendment.--Chapter 139 of title 49, United States
Code, is amended by striking sections 13903 and 13904 and
inserting the following:
''Sec. 13903. Registration of freight forwarders and brokers
''(a) In General.--A person may not act as a freight forwarder by
providing service subject to the jurisdiction under subchapter III of
chapter 135 or as a broker unless the person holds a freight
forwarder's permit or a broker's license, as the case may be, issued by
the Federal Motor Carrier Safety Administration.
''(b) Issuance of Permit or License.--
''(1) Eligibility requirements.--The Administrator of the
Federal Motor Carrier Safety Administration shall issue a
freight forwarder's permit or broker's license to any person
that the Administration determines--
''(A) to be qualified by experience and character
to act as a freight forwarder or broker, respectively;
and
''(B) to be fit, willing, and able to provide the
service and to comply with this part and applicable
regulations of the Secretary.
''(2) Duration.--The permit or license issued under
paragraph (1) shall remain in effect only as long as the
freight forwarder or broker is in compliance with section
13904.
''(c) Registration as Motor Carrier Required.--
''(1) Freight forwarders.--A freight forwarder may not
provide transportation as a motor carrier unless the freight
forwarder--
''(A) has registered separately to provide
transportation as a motor carrier; and
''(B) has met all the requirements under this
chapter applicable to motor carriers.
''(2) Brokers.--A broker may not provide transportation as
a motor carrier unless the broker--
''(A) has registered separately to provide
transportation as a motor carrier; and
''(B) has met all of the requirements under this
chapter applicable to motor carriers.
''(d) Registration as Freight Forwarder or Broker Required.--A
motor carrier registered under this chapter--
''(1) may only provide transportation of property with
motor vehicles owned or leased by the motor carrier; and
''(2) may not arrange such transportation unless the motor
carrier has obtained a separate freight forwarder's permit or
broker's license under this section.
''Sec. 13904. Security of freight forwarders and brokers
''(a) Requirements.--
''(1) In general.--A person may not act as a freight
forwarder or broker unless the person furnishes a bond, proof
of trust fund, or other surety, or combination of such
sureties, in a form and amount, and from a provider, determined
by the Administrator of the Federal Motor Carrier Safety
Administration to be adequate to insure financial
responsibility.
''(2) Standards.--The Administrator may authorize the use
of a group bond, trust fund, or other surety, or combination of
such securities that meet the cash and legal requirements under
section 13904(d). The Administrator may not accept proof of
security from any person whose surety or surety provider does
not meet the standards established by the Administrator, by
regulation. Bonds issued under this section may only be offered
by a bonding company that has been approved by the Secretary of
the Treasury.
''(b) Scope of Financial Responsibility.--A bond, trust fund, or
other surety obtained under this section shall be available to pay any
claim against a freight forwarder or broker arising from its failure to
pay freight charges in its contracts, agreements, or arrangements for
transportation subject to regulation under this chapter--
''(1) with the consent of the insured freight forwarder or
broker, subject to review by the surety company;
''(2) if the claim is deemed valid by the surety company
after the freight forwarder or broker has failed to respond to
adequate notice to address the validity of the claim; or
''(3) if the claimant made a reasonable attempt to resolve
the claim under paragraphs (1) and (2), but the claim was not
resolved within a reasonable period of time.
''(c) Freight Forwarder Insurance.--
''(1) In general.--The Administrator of the Federal Motor
Carrier Safety Administration may not register a person as a
freight forwarder under section 13903 unless the person files
with the Administrator a bond, insurance policy, or other type
of security, in accordance with the standards established by
the Administrator under this section.
''(2) Liability insurance.--A security filed under
paragraph (1) shall be sufficient to pay an amount, not to
exceed the amount of the security, for each final judgment
against the freight forwarder for bodily injury to, or death
of, an individual, or loss of, or damage to, property (other
than property referred to in paragraph (3)), resulting from the
negligent operation, maintenance, or use of motor vehicles by,
or under the direction and control of, the freight forwarder
when providing transfer, collection, or delivery service under
this part.
''(3) Cargo insurance.--The Administrator may require a
registered freight forwarder to file with the Administrator a
bond, insurance policy, or other type of security approved by
the Secretary, that will pay an amount, not to exceed the
amount of the security, for loss of, or damage to, property for
which the freight forwarder provides service.
''(d) Additional Requirements.--
''(1) Reissuance of licenses and permits.--Not later than 4
years after the date of the enactment of the Motor Carrier
Protection Act of 2010, freight forwarders and brokers shall
acquire new licenses and permits from the Federal Motor Carrier
Safety Administration that are subject to the terms and
conditions under this subsection. Such licenses and permits
shall expire 5 years after the date of issuance and may be
renewed as provided under this chapter.
''(2) Experience or training requirement.--Each freight
forwarder and broker shall employ, as an officer, an individual
who--
''(A) has at least 3 years of relevant experience;
or
''(B) provides the Administrator with satisfactory
evidence of certified training.
''(3) Online.--The Administrator shall make information on
permits, licenses, and financial security publicly available
online, including--
''(A) the names and addresses of the principals of
each entity holding a permit or license; and
''(B) the electronic address of its surety for the
submission of claims.
''(4) Minimum financial security.--Each freight forwarder
and broker shall provide financial security of at least
$100,000, regardless of the number of branch offices or sales
agents of such entities.
''(5) Specific performance standards.--The Administrator
shall set specific performance standards for bonds or other
acceptable surety, including requirements that--
''(A) at least $10,000 be deposited with the surety
in cash;
''(B) the balance of the surety amount consists of
assets readily available to pay valid claims without
resort to personal guarantees or collection of pledged
accounts receivable; and
''(C) the surety is ultimately financially
responsible for any failure to make the required
payments.
''(6) Notice to cancel.--If a surety required under this
subsection is canceled--
''(A) the holder of the surety shall provide
electronic notification to the Administrator of such
cancellation not later than 30 days before the
effective date of such cancellation; and
''(B) the Administrator shall immediately post such
notification on its public website.
''(7) Suspension.--The Administrator shall immediately
suspend the registration of a freight forwarder or broker if
its available security falls below the amount required under
this subsection.
''(8) Payment of claims.--If a registered freight forwarder
or broker experiences financial failure or insolvency, the
freight forwarder's or broker's surety shall--
''(A) submit a notice to cancel the surety to the
Administrator in accordance with paragraph (6);
''(B) publicly advertise for claims for 60 days
beginning on the date of publication by the
Administrator of the notice to cancel the surety; 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.
''(9) List of claims paid.--Each surety under this
subsection shall--
''(A) publish, on the surety's website, a list of
the claims paid by the surety immediately upon payment;
and
''(B) immediately submit a copy of such list to the
Administrator.
''(10) Penalties.--
''(A) In general.--Any surety that fails to comply
with the requirements under this subsection--
''(i) shall be liable to the United States
Government for a civil penalty in an amount not
to exceed $10,000; and
''(ii) shall be ineligible to offer broker
and forwarder security under this chapter.
''(B) Wilful violations.--Any surety that knowingly
and willfully violates the posting and notification
requirements under this subsection shall be held
financially liable for all valid claims submitted
against the broker or forwarder involved, regardless of
the amount of the security.
''(11) Deduction of costs prohibited.--The amount of the
financial security required under this subsection may not be
reduced by deducting attorney's fees or administrative costs.
''(12) Audit.--Claim payments by sureties shall be annually
audited by a public accounting firm. The results of such audits
shall be made publicly available on the surety's website.''.
(2) Rulemaking.--Not later than 270 days after the date of
the enactment of this Act, the Administrator of the Federal
Motor Carrier Safety Administration shall issue regulations to
enforce the requirements under section 13904(d) of title 49,
United States Code, as added by paragraph (1).
(3) Effective date.--Section 13904(d) of title 49, United
States Code, as added by paragraph (1), shall take effect on
the date that is 270 days after the date of the enactment of
this Act.
(b) Clerical Amendments.--The table of sections for chapter 139 of
title 49, United States Code, is amended--
(1) by striking the item relating to section 13903 and
inserting the following:

''Sec. 13903. Registration of freight forwarders and brokers.'';
and
(2) by striking the item relating to section 13904 and
inserting the following:

''Sec. 13904. Security of freight forwarders and brokers.''.

SEC. 5. REVIEW.

(a) Review by Inspector General.--Not later than 15 months after
the date of the enactment of this subsection, the Inspector General of
the Department of Transportation shall--
(1) review the regulations and enforcement practices of the
Federal Motor Carrier Safety Administration under section
13904(d) of title 49, United States Code, as added by section
4(a); and
(2) make any recommendations to the Secretary of
Transportation that may be necessary to improve the enforcement
of such regulations.
(b) Security and Insurance Amount Assessment.--Every 5 years, the
Administrator of the Federal Motor Carrier Safety Administration shall
review, with public notice and comment, the amount of the security and
insurance required under section 13904 of title 49, United States Code,
to determine whether such amounts are sufficient to provide adequate
financial security.

SEC. 6. UNLAWFUL BROKERAGE ACTIVITIES.

(a) In General.--Chapter 149 of title 49, United States Code, is
amended by adding at the end the following:
''Sec. 14916. Unlawful brokerage activities
''(a) Prohibited Activities.--Any person that acts as a broker,
other than a non-vessel-operating common carrier (as defined in section
40102(16) of title 46), or an ocean freight forwarder providing
brokerage as part of an international through movement involving ocean
transportation between the United States and a foreign port, is
prohibited from providing interstate brokerage services as a broker
unless that person--
''(1) is registered under, and in compliance with, section
13903; and
''(2) has satisfied the financial security requirements
under section 13904.
''(b) Civil Penalties and Private Cause of Action.--Any person who
knowingly authorizes, consents to, or permits, directly or indirectly,
either alone or in conjunction 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 incurred
without regard to amount.
''(c) Liable Parties.--The liability for civil penalties and for
claims under this section for unauthorized brokering shall apply,
jointly and severally--
''(1) to any corporate entity or partnership involved; and
''(2) to the individual officers, directors, and principals
of such entities.''.
(b) Clerical Amendment.--The table of sections for chapter 149 of
title 49, United States Code, is amended by adding at the end the
following:

''Sec. 14916. Unlawful brokerage activities.''.
Output:
Motor Carrier Protection Act of 2010 - Requires each freight forwarder or freight broker registered with the Federal Motor Carrier Safety Administration (FMCSA) to: (1) pay an annual registration renewal fee in an amount determined by the Secretary of Transportation (DOT); (2) provide updated registration information; and (3) submit proof of compliance with applicable surety and insurance requirements.

Requires noncompliant brokers, freight forwarders, or motor carriers to be listed as inactive on all relevant DOT websites.

Requires the FMCSA Administrator to issue a distinctive registration number for each activity or service of a person (including motor carrier, freight forwarder, or broker) registered to provide one or more such activities or services. Requires a registrant to specify, in writing, the authority under which it is providing required services for each shipment for which it seeks compensation.

Revises federal motor carrier registration requirements to prohibit a motor carrier from brokering transportation services unless registered as a broker. Requires registered motor carriers to maintain insurance for property damage when transporting property.

Revises and consolidates federal registration and security requirements for freight forwarders and brokers. Prohibits a person from acting as a freight forwarder or broker unless that person: (1) holds a freight forwarder's permit or broker's license issued by the FMCSA; and (2) furnishes a bond or other surety from a provider determined by the FMCSA Administrator to be adequate to insure financial responsibility of at least $100,000.

Prohibits a person acting as a broker (other than a non-vessel-operating common carrier), or an ocean freight forwarder providing brokerage as part of an international through movement involving ocean transportation between the United States and a foreign port, from providing interstate brokerage services unless that person: (1) is registered under and in compliance with this Act; and (2) has satisfied financial security requirements. Prescribes civil penalties for violators of such requirements.