FMCSA Asks Congress for Power to Penalize Broker Fraud
Anyone with a passing knowledge of how the United States federal government works knows about the three branches, in the case for this store: the FMCSA (executive), Congress (legislative), and Administrative Law Judges (judicial) are in a bit of a battle over the ability to assess punishments for broker fraud.
Details
In 2019, an Administrative Law Judge working in part for the Department of Transportation said that as it stands the FMCSA does not have the authority to levy fines and other penalties, but that it can gain them if Congress allows it. Now, the FMCSA is asking for just that.
The Federal Motor Carrier Safety Administration posted a letter to Congress under requirements set under the Consolidated Appropriations Act of 2023. In it, the FMCSA explains that it needs this power so as to deter fraudsters.
“Unless a regulated entity that violates FMCSA’s commercial regulations voluntarily resolves its noncompliance, FMCSA must refer cases to DOJ for enforcement of those regulations…The need to refer cases to DOJ for the assessment of civil penalties for violations of commercial regulations creates a significant barrier to enforcement, including for unauthorized brokerage violations” it says in the letter.
Conclusion
As it stands currently, the FMCSA sets the rules for what qualifies as broker requirements, but cannot crack down directly on those violating broker requirements. The FMCSA can either send a notice of violation or a letter of probable violation, both of which the broker has 30 days to respond before the FMCSA refers them to the Department of Justice.
All of this is to say that giving the FMCSA the power to directly enforce its regulations would cut down on the bureaucratic red tape, but would also give the FMCSA more power. Additionally, anything Congress wishes to enact would have to be approved by the president if not by a supermajority: this may become a topic of strong discussion if there is a change in political party after the 2024 election as well, since different political parties have differing opinions on government size. Until then, it is likely that the three branches of government will continue to butt heads on this problem.
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