FMCSA Proposes to Raise Standard

New Entrant Motor Carrier Companies

The Federal Motor Carrier Safety Administration (FMCSA) has issued a proposed rule which would amend the New Entrant Safety Assurance Process to raise the standard of compliance for new entrant motor carrier owners and operators to pass the safety audit necessary to operate in interstate commerce.

Comments must be received by February 20, 2007.

(The FMCSA requires each motor carrier owner and operator granted new operating authority to undergo a safety review within 18 months of starting operations in order to operate in interstate commerce. The safety audit educates the company on compliance with FMCSA regulations and Hazardous Materials Regulations (HMRs) and determines if the carrier company is exercising basic safety management controls.)

FMCSA Proposes Compliance with 11 Regulations to Pass Safety Audit

FMCSA has identified 11 regulations that it believes are essential elements of basic safety management controls necessary to operate in interstate commerce and proposes that failure to comply with any one of the 11 regulations would result in automatic failure of the audit.

FMCSA proposes that committing any one of the following 11 regulatory violations would result in an automatic failure of the safety audit:

Failing to implement an alcohol and/or controlled substances testing program (domestic and foreign motor carriers, respectively);

Using a driver who has refused to submit to an alcohol or controlled substances test required under 49 CFR Part 382;

Using a driver known to have tested positive for a controlled substance;

Knowingly allowing, requiring, permitting, or authorizing an employee with a commercial driver's license which is suspended, revoked, or canceled by a State or who is disqualified to operate a commercial motor vehicle;

Knowingly allowing, requiring, permitting, or authorizing a driver to drive who is disqualified to drive a commercial motor vehicle;

Operating a motor vehicle without having in effect the required minimum levels of financial responsibility coverage;

Using a disqualified driver;

Using a physically unqualified driver;

Failing to require a driver to make a record of duty status;

Requiring or permitting the operation of a commercial motor vehicle declared "out-of-service" before repairs are made; and/or

Using a commercial motor vehicle not periodically inspected.

(FMCSA notes that most of these 11 regulations correspond to requirements necessary for Mexico-domiciled long-haul carriers to obtain authority to operate in the U.S.)

FMCSA Proposes Additional Changes that Do Not Affect Safety Audit or Impose Additional Operational Requirements, Etc.

FMCSA also proposes additional requirements for new entrants for which failure to comply would not impact the outcome of the safety audit. These changes would also not impose additional operational requirements on any new entrant carrier. FMCSA states that all new entrants would continue to receive educational information on how to comply with the safety regulations and be given an opportunity to correct any deficiencies found.

These proposed additional requirements are: (1) that carriers be subject to the current safety audit evaluation criteria in Appendix A of 49 CFR Part 385; (2) that new entrants be subject to expedited actions to correct deficiencies if a roadside inspection discloses certain violations; (3) to eliminate Form MCS-150A (Safety Certification for Application for USDOT Number); (4) to check compliance with the Americans with Disabilities Act and certain household goods-related requirements in the new entrant safety audit, if they apply to the new entrant's operation.

FMCSA Proposes Clarifying Changes, Separate Program for Non-North America-Domiciled Carriers

FMCSA also proposes to make clarifying changes to some of the existing new entrant regulations and to establish a separate new entrant application procedure and safety oversight program for non-North America-domiciled motor carriers.

-comments must be received by February 20, 2007

FMCSA contact - Arturo Ramirez (202) 366-8088

FMCSA proposed rule (D/N FMCSA-2001-11061, FR Pub 12/21/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-9759.pdf