1. Motor Carrier Operations

2. Issue Areas FMCSA oversight of passenger carriers
Non-FMVSS-compliant vehicles in the United States

3. Issue Areas Motor Carrier Operations
Leasing agreements
Scope of operating authority
New Entrant Safety Assurance Program
FMVSS compliance and vehicle inspections
Vehicle importation
Vehicle registration

4. Motor Carrier Operations

5. Capricorn Bus Lines Capricorn was originally Flores Charters and Tours
Operated a “regular route” bus service from Houston, Texas, to Monterrey, Mexico
Lost insurance in 2003 due to 2002 fatal accident in Mexico
Started Capricorn in February 2004

6. Capricorn Bus Lines Unable to secure insurance coverage
June 2005 – leasing agreement with Transportes Chavez for operating authority
Met the definition of a passenger motor carrier – 49 CFR 390.5

7. Capricorn Bus Lines
2006 and 2007 – lease agreement with International Charter Services
Capricorn was operating in interstate commerce under International’s operating authority and insurance coverage

8. Capricorn Bus Lines
International effectively relinquished operational control of Capricorn
- Hiring drivers
- Maintaining/registering vehicles
- Complying will all DOT regulations
Capricorn not responsible for post-accident compliance review rating

9. International Charter Services
In June 2005, applied for interstate operating authority
New Entrant Safety Audit –November 2005
Permanent operating authority – November 2006
Operated one motorcoach

10. Company Lease Agreements
Flores Charter and Tours
Capricorn Bus Services
Operating authority
International Charter Services
(U.S. DOT Operating Authority)
Lease agreement 10 10

11. Company Lease Agreements
Capricorn
- Drivers
- Vehicle maintenance
- FMCSR Compliance
International lost operational control

12. Scope of Operating Authority
Applicants must specify
- Regular Route Service – scheduled bus service over regular routes
- Charter and Special Transportation – all other types of bus service

13. Scope of Operating Authority
Capricorn’s mode of operation in violation of International’s authority
International’s scope of authority was Charter and Special Transportation
Capricorn’s bus operation met definition of Regular Route Service

14. FMCSA Oversight Conducted Compliance Review on International
- Unsatisfactory – Driver category
- Conditional – Vehicle category
- Overall rating – Conditional
- Fine – $5,840
- Recommendation H-99-6

15. FMCSA Oversight FMCSA aware of leasing agreement
- 49 CFR Part 376 – Leases – applies to cargo carriers only
- Capricorn avoided any negative consequences
Decreases the effectiveness of FMCSA’s New Entrant vetting process

17. New Entrant Safety Assurance Program

18. New Entrant Safety Assurance Program
Created January 2003
To identify at-risk carriers prior to granting permanent operating authority
To identify “reincarnated carriers”
- Operate as a new entity
- Evade FMCSA enforcement action

19. New Entrant Safety Assurance Program
18-month safety monitoring program
Educational material
Safety audit
Monitoring of roadside inspection and crash data

20. New Entrant Safety Assurance Program
Passenger Carrier Vetting Process (PCVP)
- Evasion Detection Algorithm
- Poorly performing carriers since 2003
- Matched data may result in denied authority

21. Leasing and the Vetting Process
July 15, 2008, through August 13, 2009
- 873 applications
- 326 proceeding successfully
- 101 dismissed
- 17 withdrawn by applicant
- 1 “Show Cause” order
- 428 awaiting processing

22. PCVP Limitations Leasing with existing carrier
Shields nonauthorized carrier
Circumvents New Entrant vetting data points
Current leasing regulations do not apply to passenger carriers

23. PCVP Limitations
Evasion Detection Algorithm – only compares applicant carriers to poor carriers back to 2003
Ignores potential reincarnated carriers who may already exist

25. Federal Motor Vehicle Safety Standards (FMVSSs)

26. Non-FMVSS Accident Vehicle
Relationship of the FMVSSs to the FMCSRs and vehicle inspections
How the accident vehicle was brought into the United States
How the accident vehicle obtained U.S. license plates

27. FMVSSs National Traffic and Motor Vehicle Safety Act - 1966 49 CFR 571
Minimum level of safety
FMVSS vehicles only on U.S. Roads

28. FMVSS Certification Vehicle manufacturer must certify
This vehicle conforms to all applicable Federal Motor Vehicle Safety Standards (FMVSSs) in effect on the date of manufacture shown above
Certification on or near VIN plate
VIN is NOT coded for FMVSS conformity

29. 36

31. FMVSSs and Vehicle Inspections
Inspections are conducted using CVSA inspection criteria
Based on Federal Motor Carrier Safety Regulations - FMCSRs
No inspection criteria for FMVSS compliance certification

32. FMVSSs and Vehicle Inspections
Not all FMVSSs included in FMCSRs
Many inspection criteria do not incorporate FMVSS verification
Designed for operational defect detection, not FMVSS compliance

33. FMVSSs and Vehicle Inspections
FMCSA aware of vehicles entering the country that were non-FMVSS compliant
FMCSA lacks specific authority to place a vehicle out of service for non-FMVSS compliance

34. FMVSSs and Operating Authority
Carrier conditions for granting operating authority
Violations can result in vehicle and/or company out-of-service orders
Mexico-domiciled carriers must certify only FMVSS-compliant vehicles
U.S. carriers do not have to certify

36. Vehicle Importation

37. Vehicle Importation
National Highway Traffic Safety Administration (NHTSA) — Regulations for the importation of vehicles
Customs and Border Protection Agency (CBP) — Regulations for the importation of cargo and processing vehicles

38. Vehicle Importation 49 U.S.C. 30112
A person may not manufacture for sale, sell, offer for sale, introduce or deliver for introduction in interstate commerce, or import into the United States any motor vehicle…unless the vehicle complies with the FMVSS

39. Vehicle Importation Title 19 CFR 12.80(a) entry restrictions
A motor vehicle manufactured for sale or importation or use in interstate commerce is not permitted entry into the Customs territory of the United States unless it conformed to FMVSS standards when it was manufactured
Hinders enforcement efforts

40. Rulemaking FMCSA and NHTSA 2002 Notice of Proposed Rulemaking
Define “import” for enforcement purposes
Require FMVSS certification statement on all commercial vehicles for enforcement purposes
Withdrawn in 2005

41. Accident Vehicle Importation
Purchased in Mexico
- Mexico registration and plates
- Failed to declare for importation
September to December 2007, crossed border 28 times

42. Accident Vehicle Importation
- No declaration by carrier
- Used in international trade
Customs
FMCSA
- Had operating authority
No out-of-service violations
FMCSA – no legal authority
Should have been denied entry

44. Vehicle Registration

45. Vehicle Registration Intrastate registration Interstate registration
- International Registration Plan - IRP
- United States and Canada
- Register in home state
- Apportioned plates
- Operate in any state or province
- Mexico is not part of the IRP

46. Vehicle Registration

47. Vehicle Registration 47

48. Vehicle Registration
Originally had Mexico registration and license plates only
Ticket October 2006
October 2007 ─ owner of Green River Buses helped Capricorn register non-FMVSS motorcoaches in California

49. Vehicle Registration
California did not require FMVSS verification for IRP registration
Transferred California registration to Texas
Same process used in registering three other non-FMVSS buses