WASHINGTON — Fraudulent operators in the transportation industry are being targeted in proposed legislation that has found support from several trucking associations.

The bill, introduced by Congressmen Russ Carnahan (D-MO) and Frank Guinta (R-NH), would address issues of fraud that plague the marketplace.

The Transportation Intermediaries Association, Owner-Operator Independent Drivers Association, and the American Trucking Associations have all voiced their support for the Fighting Fraud in Transportation Act 2011, H.R. 2357.

It will introduce a number of new provisions designed to weed out unscrupulous operators that victimized both brokers and carriers.

Key provisions of the proposed legislation would require brokers and freight forwarders to:

Carry a $100,000 bond;

Provide strict regulation of broker surety companies so that they must fulfill their obligations to brokers and forwarders;

Provide greater transparency for those seeking to become brokers or forwarders; and

Establish significant penalties including unlimited liability for freight charges for those operating without the required authority.

The bill also clarifies that a motor carrier may provide transportation of property with self-propelled motor vehicles owned or leased by the motor carrier or through interchanges as permitted under regulation issued by the Secretary provided some conditions are met.

The originating carrier must physically transport the cargo at some point, and retains liability for the cargo and payment of interchanged carriers and require that there must be at least one corporate officer who has met minimum training standards or equivalent experience.

The Fighting Fraud in Transportation Act is nearly identical to last year’s Senate Bill, the Motor Carrier Protection Act, minus a provision on cargo insurance, which the FMCSA ended earlier this year, and some minor word changes.