[Title 49 CFR ]
[Code of Federal Regulations (annual edition) - October 1, 2009 Edition]
[From the U.S. Government Printing Office]



[[Page i]]



          49


          Parts 300 to 399

                         Revised as of October 1, 2009


          Transportation




________________________

          Containing a codification of documents of general 
          applicability and future effect

          As of October 1, 2009
          With Ancillaries
                    Published by
                    Office of the Federal Register
                    National Archives and Records
                    Administration
                    A Special Edition of the Federal Register

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 49:
    SUBTITLE B--Other Regulations Relating to Transportation 
      (Continued)
          Chapter III--Federal Motor Carrier Safety 
          Administration, Department of Transportation               5
  Finding Aids:
      Table of CFR Titles and Chapters........................     553
      Alphabetical List of Agencies Appearing in the CFR......     573
      Redesignation Table.....................................     583
      List of CFR Sections Affected...........................     585

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                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 49 CFR 303.1 refers 
                       to title 49, part 303, 
                       section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

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evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

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collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
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OBSOLETE PROVISIONS

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INCORPORATION BY REFERENCE

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    (c) The incorporating document is drafted and submitted for 
publication in accordance with 1 CFR part 51.
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the revision dates of the 50 CFR titles.




[[Page vii]]



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    Raymond A. Mosley,
    Director,
    Office of the Federal Register.
    October 1, 2009.







[[Page ix]]



                               THIS TITLE

    Title 49--Transportation is composed of nine volumes. The parts in 
these volumes are arranged in the following order: Parts 1-99, parts 
100-185, parts 186-199, parts 200-299, parts 300-399, parts 400-571, 
parts 572-999, parts 1000-1199, and part 1200 to end. The first volume 
(parts 1-99) contains current regulations issued under subtitle A--
Office of the Secretary of Transportation; the second volume (parts 100-
185) and the third volume (parts 186-199) contain the current 
regulations issued under chapter I--Pipeline and Hazardous Materials 
Safety Administration (DOT); the fourth volume (parts 200-299) contains 
the current regulations issued under chapter II--Federal Railroad 
Administration (DOT); the fifth volume (parts 300-399) contains the 
current regulations issued under chapter III--Federal Motor Carrier 
Safety Administration (DOT); the sixth volume (parts 400-571) contains 
the current regulations issued under chapter IV--Coast Guard (DHS), and 
some of chapter V--National Highway Traffic Safety Administration (DOT); 
the seventh volume (parts 572-999) contains the rest of the regulations 
issued under chapter IV, and the current regulations issued under 
chapter VI--Federal Transit Administration (DOT), chapter VII--National 
Railroad Passenger Corporation (AMTRAK), and chapter VIII--National 
Transportation Safety Board; the eighth volume (parts 1000-1199) 
contains the current regulations issued under chapter X--Surface 
Transportation Board and the ninth volume (part 1200 to end) contains 
the current regulations issued under chapter X--Surface Transportation 
Board, chapter XI--Research and Innovative Technology Administration, 
and chapter XII--Transportation Security Administration, Department of 
Transportation. The contents of these volumes represent all current 
regulations codified under this title of the CFR as of October 1, 2009.

    In the volume containing parts 100-185, see Sec.  172.101 for the 
Hazardous Materials Table. The Federal Motor Vehicle Safety Standards 
appear in part 571.

    Redesignation tables for chapter III--Federal Motor Carrier Safety 
Administration, Department of Transportation and chapter XII--
Transportation Security Administration, Department of Transportation 
appear in the Finding Aids section of the fifth and ninth volumes.

    For this volume, Robert J. Sheehan, III was Chief Editor. The Code 
of Federal Regulations publication program is under the direction of 
Michael L. White, assisted by Ann Worley.


[[Page 1]]



                        TITLE 49--TRANSPORTATION




                  (This book contains parts 300 to 399)

  --------------------------------------------------------------------

  SUBTITLE B--Other Regulations Relating to Transportation (Continued)

                                                                    Part

chapter iii--Federal Motor Carrier Safety Administration, 
  Department of Transportation..............................         303

[[Page 3]]

  Subtitle B--Other Regulations Relating to Transportation (Continued)

[[Page 5]]



CHAPTER III--FEDERAL MOTOR CARRIER SAFETY ADMINISTRATION, DEPARTMENT OF 
                             TRANSPORTATION




  --------------------------------------------------------------------


  Editorial Note: Nomenclature changes to chapter III appear at 59 FR 
60323, Nov. 23, 1994, 60 FR 38742, July 28, 1995, and 69 FR 18803, Apr. 
9, 2004.

                    SUBCHAPTER A--GENERAL REGULATIONS
Part                                                                Page
300-302

[Reserved]

303             Civil rights................................           7
325             Compliance with interstate motor carrier 
                    noise emission standards................           7
         SUBCHAPTER B--FEDERAL MOTOR CARRIER SAFETY REGULATIONS
350             Commercial Motor Carrier Safety Assistance 
                    program.................................          19
355             Compatibility of State laws and regulations 
                    affecting interstate motor carrier 
                    operations..............................          33
356             Motor carrier routing regulations...........          36
360             Fees for motor carrier registration and 
                    insurance...............................          37
365             Rules governing applications for operating 
                    authority...............................          41
366             Designation of process agent................          52
367             Standards for registration with States......          53
368             Application for a certificate of 
                    registration to operate in 
                    municipalities in the United States on 
                    the United States-Mexico international 
                    border or within the commercial zones of 
                    such municipalities.....................          58
369             Reports of motor carriers...................          60
370             Principles and practices for the 
                    investigation and voluntary disposition 
                    of loss and damage claims and processing 
                    salvage.................................          66
371             Brokers of property.........................          69
372             Exemptions, commercial zones, and terminal 
                    areas...................................          70
373             Receipts and bills..........................          84
374             Passenger carrier regulations...............          85

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375             Transportation of household goods in 
                    interstate commerce; consumer protection 
                    regulations.............................          92
376             Lease and interchange of vehicles...........         133
377             Payment of transportation charges...........         140
378             Procedures governing the processing, 
                    investigation, and disposition of 
                    overcharge, duplicate payment, or 
                    overcollection claims...................         144
379             Preservation of records.....................         147
380             Special training requirements...............         152
381             Waivers, exemptions, and pilot programs.....         162
382             Controlled substances and alcohol use and 
                    testing.................................         169
383             Commercial driver's license standards; 
                    requirements and penalties..............         187
384             State compliance with commercial driver's 
                    license program.........................         218
385             Safety fitness procedures...................         228
386             Rules of practice for motor carrier, 
                    intermodal equipment provider, broker, 
                    freight forwarder, and hazardous 
                    materials proceedings...................         269
387             Minimum levels of financial responsibility 
                    for motor carriers......................         298
388             Cooperative agreements with States..........         322
389             Rulemaking procedures--Federal motor carrier 
                    safety regulations......................         323
390             Federal motor carrier safety regulations; 
                    general.................................         327
391             Qualifications of drivers and longer 
                    combination vehicle (LCV) driver 
                    instructors.............................         343
392             Driving of commercial motor vehicles........         378
393             Parts and accessories necessary for safe 
                    operation...............................         386
394

[Reserved]

395             Hours of service of drivers.................         478
396             Inspection, repair, and maintenance.........         492
397             Transportation of hazardous materials; 
                    driving and parking rules...............         499
398             Transportation of migrant workers...........         516
399             Employee safety and health standards........         523
Appendix A to Subchapter B [Reserved]
Appendix B to Subchapter B--Special Agents..................         526
Appendixes C-E to Subchapter B [Reserved]
Appendix F to Subchapter B--Commercial Zones................         527
Appendix G to Subchapter B--Minimum Periodic Inspection 
  Standards.................................................         545

[[Page 7]]



                    SUBCHAPTER A_GENERAL REGULATIONS



                        PARTS 300	302 [RESERVED]



PART 303_CIVIL RIGHTS--Table of Contents




Sec.
303.1 Purpose.
303.3 Application of this part.

    Authority: Public Law 105-159, 113 Stat. 1748, Title I, sections 
107(a) and 106 (Dec. 9, 1999) (49 U.S.C. 113); 42 U.S.C. 2000d, et seq.; 
and 49 CFR 1.73.

    Source: 70 FR 7414, Feb. 14, 2005, unless otherwise noted.



Sec. 303.1  Purpose.

    The purpose of this part is to provide guidelines and procedures for 
implementing the Federal Motor Carrier Safety Administration's (FMCSA) 
Title VI program under Title VI of the Civil Rights Act of 1964 and 
related civil rights laws and regulations. For FMCSA-only programs or 
activities, Federal financial assistance recipients or grantees will 
continue to apply and use the Departmental Title VI provisions at 49 CFR 
part 21. For joint and multi-agency programs/projects, FMCSA Federal 
assistance recipients or grantees must use the Title VI requirements at 
49 CFR part 21, unless agreement is reached by the Federal funding 
agencies for the recipients to use the Title VI procedures of another 
agency.



Sec. 303.3  Application of this part.

    The provisions of this part are applicable to all elements of the 
FMCSA and to any program or activity for which Federal financial 
assistance is authorized under a law administered by the FMCSA. This 
part provides Title VI guidelines for State Departments of 
Transportation and local State agencies, including their sub-recipients, 
to implement Title VI. It also applies to money paid, property 
transferred, or other Federal financial assistance extended under any 
program of the FMCSA after the date of this part.



PART 325_COMPLIANCE WITH INTERSTATE MOTOR CARRIER NOISE EMISSION 
STANDARDS--Table of Contents




                      Subpart A_General Provisions

Sec.
325.1 Scope of the rules in this part.
325.3 Effective date.
325.5 Definitions.
325.7 Allowable noise levels.
325.9 Measurement tolerances.

                   Subpart B_Administrative Provisions

325.11 Issuance, amendment, and revocation of the rules in this part.
325.13 Inspection and examination of motor vehicles.

                        Subpart C_Instrumentation

325.21 Scope of the rules in this subpart.
325.23 Type of measurement systems which may be used.
325.25 Calibration of measurement systems.
325.27 Use of a windscreen.

      Subpart D_Measurement of Noise Emissions; Highway Operations

325.31 Scope of the rules in this subpart.
325.33 Site characteristics; highway operations.
325.35 Ambient conditions; highway operations.
325.37 Location and operation of sound level measurement system; highway 
          operations.
325.39 Measurement procedure; highway operations.

        Subpart E_Measurement of Noise Emissions; Stationary Test

325.51 Scope of the rules in this subpart.
325.53 Site characteristics; stationary test.
325.55 Ambient conditions; stationary test.
325.57 Location and operation of sound level measurement systems; 
          stationary test.
325.59 Measurement procedure; stationary test.

                      Subpart F_Correction Factors

325.71 Scope of the rules in this subpart.
325.73 Microphone distance correction factors.
325.75 Ground surface correction factors.
325.77 Computation of open site requirements--nonstandard sites.
325.79 Application of correction factors.

[[Page 8]]

                   Subpart G_Exhaust Systems and Tires

325.91 Exhaust systems.
325.93 Tires.

    Authority: 42 U.S.C. 4917; 49 U.S.C. 301; 49 CFR 1.73.

    Source: 40 FR 42437, Sept. 12, 1975, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 325 appear at 66 FR 
49869, Oct. 1, 2001.



                      Subpart A_General Provisions



Sec. 325.1  Scope of the rules in this part.

    (a) The rules in this part prescribe procedures for inspection, 
surveillance, and measurement of motor vehicles and motor vehicle 
equipment operated by motor carriers to determine whether those vehicles 
and that equipment conform to the Interstate Motor Carrier Noise 
Emission Standards of the Environmental Protection Agency, 40 CFR part 
202.
    (b) Except as provided in paragraph (c) of this section, the rules 
in this part apply to motor carriers engaged in interstate commerce. The 
rules apply at any time or under any condition of highway grade, load, 
acceleration or deceleration.
    (c) The rules in this part do not apply to--
    (1) A motor vehicle that has a Gross Vehicle Weight Rating (GVWR) of 
10,000 pounds (4,536 kg.) or less;
    (2) A combination of motor vehicles that has a Gross Combination 
Weight Rating (GCWR) of 10,000 pounds (4,536 kg.) or less;
    (3) The sound generated by a warning device, such as a horn or 
siren, installed in a motor vehicle, unless such device is intentionally 
sounded in order to preclude an otherwise valid noise emission 
measurement;
    (4) An emergency motor vehicle, such as a fire engine, an ambulance, 
a police van, or a rescue van, when it is responding to an emergency 
call;
    (5) A snow plow in operation; or
    (6) The sound generated by auxiliary equipment which is normally 
operated only when the motor vehicle on which it is installed is stopped 
or is operating at a speed of 5 miles per hour (8 kph) or less, unless 
such device is intentionally operated at speeds greater than 5 mph (8 
kph) in order to preclude an otherwise valid noise measurement. Examples 
of that type of auxiliary equipment include, but are not limited to, 
cranes, asphalt, spreaders, ditch diggers, liquid or slurry pumps, 
auxiliary air compressors, welders, and trash compactors.



Sec. 325.3  Effective date.

    The rules in this part are effective on October 15, 1975.



Sec. 325.5  Definitions.

    (a) Statutory definitions. All terms defined in the Noise Control 
Act of 1972 (Pub. L. 92-574, 86 Stat. 1234) are used as they are defined 
in that Act.
    (b) Definitions in standards. All terms defined in Sec. 202.10 of 
the Interstate Motor Carrier Noise Emission Standards, 40 CFR 202.10, 
are used as they are defined in that section.
    (c) Additional definitions. (1) Hard test site means any test site 
having the ground surface covered with concrete, asphalt, packed dirt, 
gravel, or similar reflective material for more than \1/2\ the distance 
between the microphone target point and the microphone location point.
    (2) Soft test site means any test site having the ground surface 
covered with grass, other ground cover, or similar absorptive material 
for \1/2\ or more of the distance between the microphone target point 
and the microphone location point.
    (3) Ground cover means any of various low, dense-growing plants, 
such as ivy, myrtle, low weeds, or brush.
    (4) Traffic railing means any longitudinal highway traffic barrier 
system installed along the side or median of a highway. For the purpose 
of this part, a traffic railing must have at least 35 percent of its 
vertical height, from the ground surface to the top of the railing, open 
to free space in order to qualify as an acceptable object within a noise 
measurement test site. Further, for the purposes of this part, posts or 
other discrete supports shall be ignored when ascertaining open free 
space.
    (5) Relatively flat when used to describe a noise measurement site 
means a site which does not contain significant concave curvatures or 
slope reversals that may result in the focusing of

[[Page 9]]

sound waves toward the microphone location point.



Sec. 325.7  Allowable noise levels.

    Motor vehicle noise emissions, when measured according to the rules 
of this part, shall not exceed the values specified in Table 1.

                      Table 1--Maximum Permissible Sound Level Readings (Decibel (A)) \1,2\
----------------------------------------------------------------------------------------------------------------
                                                        Highway operation test               Stationary tests
                                             -------------------------------------------------------------------
                                                    Soft site             Hard Site
                                             --------------------------------------------
                                               35 mi/h    Above 35   35 mi/h    Above 35   Soft site   Hard site
                                               or less      mi/h     or less      mi/h
----------------------------------------------------------------------------------------------------------------
If the distance between the microphone
 location point and the microphone target
 point is--
    31 ft ( 9.5m) or more but less than 35           87         91         89         93          89          91
     ft (10.7m).............................
    35 ft (10.7m) or more but less than 39           86         90         88         92          88          90
     ft (11.9m).............................
    39 ft (11.9m) or more but less than 43           85         89         87         91          87          89
     ft (13.1m).............................
    43 ft (13.1m) or more but less than 48           84         88         86         90          86          88
     ft (14.6m).............................
    48 ft (14.6m) or more but less than 58           83         87         85         89          85          87
     ft (17.1m).............................
    58 ft (17.1m) or more but less than 70           82         86         84         88          84          86
     ft (21.3m).............................
    70 ft (21.3m) or more but less than 83           81         85         83         87          83          85
     ft (25.3m).............................
----------------------------------------------------------------------------------------------------------------
\1\ The speeds shown refer to measurements taken at sites having speed limits as indicated. These speed limits
  do not necessarily have to be posted.
\2\ This table is based on motor carrier noise emission requirements specified in 40 CFR 202.20 and 40 CFR
  202.21.


[40 FR 42437, Sept. 12, 1975, as amended at 54 FR 50385, Dec. 6, 1989]



Sec. 325.9  Measurement tolerances.

    (a) Measurement tolerances will be allowed to take into account the 
effects of the following factors:
    (1) The consensus standard practice of reporting filed sound level 
measurements to the nearest whole decibel.
    (2) Variations resulting from commercial instrument tolerances.
    (3) Variations resulting from the topography of the noise 
measurement site.
    (4) Variations resulting from atmospheric conditions such as wind, 
ambient temperature, and atmospheric pressure.
    (5) Variations resulting from reflected sound from small objects 
allowed within the test site.
    (6) The interpretation of the effects of the above cited factors by 
enforcement personnel.
    (b) Measurement tolerances shall not exceed 2 decibels for a given 
measurement.



                   Subpart B_Administrative Provisions



Sec. 325.11  Issuance, amendment, and revocation of the rules in this part.

    The procedures specified in part 389 of this chapter for the 
issuance, amendment, or revocation of the Federal Motor Carrier Safety 
Regulations apply to rulemaking proceedings for the issuance, amendment, 
or revocation of the rules in this part.



Sec. 325.13  Inspection and examination of motor vehicles.

    (a) Any special agent of the Federal Motor Carrier Safety 
Administration (designated in appendix B to subchapter B of this 
chapter) is authorized to inspect, examine, and test a motor vehicle 
operated by a motor carrier in accordance with the procedures specified 
in this part for the purpose of ascertaining whether the motor vehicle 
and equipment installed on the motor vehicle conforms to the Interstate

[[Page 10]]

Motor Carrier Noise Emission Standards of the Environmental Protection 
Agency, 40 CFR part 202.
    (b) A motor carrier, its officers, drivers, agents, and employees 
must, at any time, submit a motor vehicle used in its operations for 
inspection, examination, and testing for the purpose of ascertaining 
whether the motor vehicle and equipment installed on it conforms to the 
Interstate Motor Carrier Noise Emission Standards of the Environmental 
Protection Agency, 40 CFR part 202.
    (c) Prescribed inspection report. Form MCS-141, Noise Level 
Compliance Check shall be used to record findings from motor vehicles 
selected for noise emission inspection by authorized employees.
    (d) Motor carrier's disposition of form MCS-141. (1) The driver of 
any motor vehicle receiving a Form MCS-141 shall deliver such MCS-141 to 
the motor carrier operating the vehicle upon his/her arrival at the next 
terminal or facility of the motor carrier, if such arrival occurs within 
twenty-four (24) hours. If the driver does not arrive at a terminal or 
facility of the motor carrier operating the vehicle within twenty-four 
(24) hours he/she shall immediately mail the Form MCS-141 to the motor 
carrier. For operating convenience, motor carriers may designate any 
shop, terminal, facility, or person to which it may instruct its drivers 
to deliver or forward Form MCS-141. It shall be the sole responsibility 
of the motor carrier that Form MCS-141 is returned to the Federal 
Highway Administration, in accordance with the terms prescribed thereon 
and in paragraphs (d) (2) and (3) of this section. A driver, if himself/
herself a motor carrier, shall return Form MCS-141 to the Federal Motor 
carrier Safety Administration , in accordance with the terms prescribed 
thereon and in paragraphs (d) (2) and (3) of this section.
    (2) Motor carriers shall carefully examine Forms MCS-141. 
Appropriate corrective action shall be taken on vehicles found to be not 
in compliance with the requirements of this part.
    (3) Motor carriers must complete the ``Motor Carrier Certification 
of Action Taken'' on Form MCS-141 in accordance with the terms 
prescribed thereon. Motor carriers must return Forms MCS-141 to the 
Division Office at the address indicated on Form MCS-141 within fifteen 
(15) days following the date of the vehicle inspection.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10226, Mar. 10, 1976; 
54 FR 50385, Dec. 6, 1989; 60 FR 38743, July 28, 1995; 66 FR 49869, Oct. 
1, 2001]



                        Subpart C_Instrumentation



Sec. 325.21  Scope of the rules in this subpart.

    The rules in this subpart specify criteria for sound level 
measurement systems which are used to make the sound level measurements 
specified in subpart D and subpart E of this part.



Sec. 325.23  Type of measurement systems which may be used.

    The sound level measurement system must meet or exceed the 
requirements of American National Standard Specification for Sound Level 
Meters (ANSI S1.4-1971), approved April 27, 1971, issued by the American 
National Standards Institute, \1\ throughout the applicable frequency 
range for either:
---------------------------------------------------------------------------

    \1\ Copies of the specification may be secured from the American 
National Standards Institute, 1430 Broadway, New York, New York, 10018.
---------------------------------------------------------------------------

    (a) A Type 1 sound level meter;
    (b) A Type 2 sound level meter; or
    (c) A Type S sound level meter which has--
    (1) A weighing frequency response;
    (2) Fast dynamic characteristics of its indicating instrument; and
    (3) A relative response level tolerance consistent with those of 
either a Type 1 or Type 2 sound level meter, as specified in section 3.2 
of ANSI S1.4-1971.



Sec. 325.25  Calibration of measurement systems.

    (a)(1) The sound level measurement system must be calibrated and 
appropriately adjusted at one or more frequencies in the range from 250 
to 1,000 Hz at the beginning of each series of measurements and at 
intervals of 5-15 minutes thereafter, until it has been determined that 
the sound level measurement system has not significantly drifted from 
its calibrated level. Once

[[Page 11]]

this fact has been established, calibrations may be made at intervals 
once every hour. A significant drift shall be considered to have 
occurred if a 0.3 dB or more excursion is noted from the system's 
predetermined reference calibration level. In the case of systems using 
displays with whole decibel increments, the operator may visually judge 
when the 0.3 dB drift has been met or exceeded.
    (2) The sound level measurement system must be checked periodically 
by its manufacturer, a representative of its manufacturer, or a person 
of equivalent special competence to verify that its accuracy meets the 
manufacturer's design criteria.
    (b) An acoustical calibrator of the microphone coupler type designed 
for the sound level measurement system in use shall be used to calibrate 
the sound level measurement system in accordance with paragraph (a) of 
this section. The calibration must meet or exceed the accuracy 
requirements specified in section 5.4.1 of the American National 
Standard Institute Standard Methods for Measurements of Sound Pressure 
Levels (ANSI S1.13-1971) for field method measurements.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10227, Mar. 10, 1976]



Sec. 325.27  Use of a windscreen.

    A properly installed windscreen, of the type recommended by the 
manufacturer of the Sound Level Measurement System, shall be used during 
the time that noise emission measurements are being taken.



      Subpart D_Measurement of Noise Emissions; Highway Operations



Sec. 325.31  Scope of the rules in this subpart.

    The rules in this subpart specify conditions and procedures for 
measurement of the sound level generated by a motor vehicle engaged in a 
highway operation for the purpose of ascertaining whether the motor 
vehicle conforms to the Standards for Highway Operations set forth in 40 
CFR 202.20.



Sec. 325.33  Site characteristics; highway operations.

    (a) Measurement shall be made at a test site which is adjacent to, 
and includes a portion of, a traveled lane of a public highway. A 
microphone target point shall be established on the centerline of the 
traveled lane of the highway, and a microphone location point shall be 
established on the ground surface not less than 31 feet (9.5 m) or more 
than 83 feet (25.3 m) from the microphone target point and on a line 
that is perpendicular to the centerline of the traveled lane of the 
highway and that passes through the microphone target point. In the case 
of a standard test site, the microphone location point is 50 feet (15.2 
m) from the microphone target point. Within the test site is a 
triangular measurement area. A plan view diagram of a standard test 
site, having an open site within a 50-foot (15.2 m) radius of both the 
microphone target point and the microphone location point, is shown in 
Figure 1. Measurements may be made at a test site having smaller or 
greater dimensions in accordance with the rules in subpart F of this 
part.
[GRAPHIC] [TIFF OMITTED] TC01AP91.010

    (b) The test site must be an open site, essentially free of large 
sound-reflecting objects. However, the following objects may be within 
the test site, including the triangular measurement area:
    (1) Small cylindrical objects such as fire hydrants or telephone or 
utility poles.
    (2) Rural mailboxes.

[[Page 12]]

    (3) Traffic railings of any type of construction except solid 
concrete barriers (see Sec. 325.5(c)(4)).
    (4) One or more curbs having a vertical height of 1 foot (.3 m) or 
less.
    (c) The following objects may be within the test site if they are 
outside of the triangular measurement area of the site:
    (1) Any vertical surface (such as billboard), regardless of size, 
having a lower edge more than 15 feet (4.6 m) higher than the surface of 
the traveled lane of the highway.
    (2) Any uniformly smooth sloping surface slanting away from the 
highway (such as a rise in grade alongside the highway) with a slope 
that is less than 45 degrees above the horizontal.
    (3) Any surface slanting away from the highway that is 45 degrees or 
more and not more than 90 degrees above the horizontal, if all points on 
the surface are more than 15 feet (4.6 m) above the surface of the 
traveled lane of the highway.
    (d) The surface of the ground within the measurement area must be 
relatively flat (see Sec. 325.5(c)(5)). The site shall be a ``soft'' 
test site. However, if the site is determined to be ``hard,'' the 
correction factor specified in Sec. 325.75(a) of this part shall be 
applied to the measurement.
    (e) The traveled lane of the highway within the test site must be 
dry, paved with relatively smooth concrete or asphalt, and substantially 
free of--
    (1) Holes or other defects which would cause a motor vehicle to emit 
irregular tire, body, or chassis impact noise; and
    (2) Loose material, such as gravel or sand.
    (f) The traveled lane of the highway on which the microphone target 
point is situated must not pass through a tunnel or underpass located 
within 200 feet (61 m) of that point.

[40 FR 42437, Sept. 12, 1975, as amended at 54 FR 50385, Dec. 6, 1989]



Sec. 325.35  Ambient conditions; highway operations.

    (a)(1) Sound. The ambient A-weighted sound level at the microphone 
location point shall be measured, in the absence of motor vehicle noise 
emanating from within the clear zone, with fast meter response using a 
sound level measurement system that conforms to the rules of Sec. 
325.23.
    (2) The measured ambient level must be 10 dB(A) or more below that 
level specified in Sec. 325.7, Table 1, which corresponds to the 
maximum permissible sound level reading which is applicable at the test 
site at the time of testing.
    (b) Wind. The wind velocity at the test shall be measured at the 
beginning of each series of noise measurements and at intervals of 5-15 
minutes thereafter until it has been established that the wind velocity 
is essentially constant. Once this fact has been established, wind 
velocity measurements may be made at intervals of once every hour. Noise 
measurements may only be made if the measured wind velocity is 12 mph 
(19.3 kph) or less. Gust wind measurements of up to 20 mph (33.2 kph) 
are allowed.
    (c) Precipitation. Measurements are prohibited under any condition 
of precipitation, however, measurements may be made with snow on the 
ground. The ground surface within the measurement area must be free of 
standing water.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10227, Mar. 10, 1976; 
41 FR 28267, July 9, 1976]



Sec. 325.37  Location and operation of sound level measurement system;
highway operations.

    (a) The microphone of a sound level measurement system that conforms 
to the rules in Sec. 325.23 of this part shall be located at a height 
of not less than 2 feet (.6 m) nor more than 6 feet (1.8 M) above the 
plane of the roadway surface and not less than 3\1/2\ feet (1.1 m) above 
the surface on which the microphone stands. The preferred microphone 
height on flat terrain is 4 feet (1.2 m).
    (b)(1) When the sound level measurement system is hand-held or is 
otherwise monitored by a person located near its microphone, the holder 
must orient himself/herself relative to the highway in a manner 
consistent with the recommendation of the manufacturer of the sound 
level measurement system.
    (2) In no case shall the holder or observer be closer than 2 feet 
(.6 m) from the system's microphone, nor shall he/

[[Page 13]]

she locate himself/herself between the microphone and the vehicle being 
measured.
    (c) The microphone of the sound level measurement system shall be 
oriented toward the traveled lane of the highway at the microphone 
target point at an angle that is consistent with the recommendation of 
the system's manufacturer. If the manufacturer of the system does not 
recommend an angle of orientation for its microphone, the microphone 
shall be oriented toward the highway at an angle of not less than 70 
degrees and not more than perpendicular to the horizontal plane of the 
traveled lane of the highway at the microphone target point.
    (d) The sound level measurement system shall be set to the A-
weighting network and ``fast'' meter response mode.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10227, Mar. 10, 1976]



Sec. 325.39  Measurement procedure; highway operations.

    (a) In accordance with the rules in this subpart, a measurement 
shall be made of the sound level generated by a motor vehicle operating 
through the measurement area on the traveled lane of the highway within 
the test site, regardless of the highway grade, load, acceleration or 
deceleration.
    (b) The sound level generated by the motor vehicle is the highest 
reading observed on the sound level measurement system as the vehicle 
passes through the measurement area, corrected, when appropriate, in 
accordance with the rules in subpart F of this part. (Table 1 in Sec. 
325.7 lists the range of maximum permissible sound level readings for 
various test conditions.) The sound level of the vehicle being measured 
must be observed to rise at least 6 dB(A) before the maximum sound level 
occurs and to fall at least 6 dB(A) after the maximum sound level occurs 
in order to be considered a valid sound level reading.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10227, Mar. 10, 1976]



        Subpart E_Measurement of Noise Emissions; Stationary Test



Sec. 325.51  Scope of the rules in this subpart.

    (a) The rules in this subpart specify conditions and procedures for 
measuring the sound level generated by a vehicle when the vehicle's 
engine is rapidly accelerated from idle to governed speed at wide open 
throttle with the vehicle stationary, its transmission in neutral, and 
its clutch engaged, for the purpose of ascertaining whether the motor 
vehicle conforms to the Standard for Operation Under Stationary Test, 40 
CFR 202.21.
    (b) The rules in this subpart apply only to a motor vehicle that is 
equipped with an engine speed governor.
    (c) Tests conducted in accordance with the rules of this subpart may 
be made on either side of the vehicle.



Sec. 325.53  Site characteristics; stationary test.

    (a)(1) The motor vehicle to be tested shall be parked on the test 
site. A microphone target point shall be established on the ground 
surface of the site on the centerline of the lane in which the motor 
vehicle is parked at a point that is within 3 feet (.9 m) of the 
longitudinal position of the vehicle's exhaust system outlet(s). A 
microphone location point shall be established on the ground surface not 
less than 31 feet (9.5 m) and not more than 83 feet (25.3 m) from the 
microphone target point. Within the test site is a triangular 
measurement area. A plan view diagram of a standard test site, having an 
open site within a 50-foot (15.2 m) radius of both the microphone target 
point and the microphone location point, is shown in Figure 2.

[[Page 14]]

[GRAPHIC] [TIFF OMITTED] TC01AP91.011

    (2) Measurements may be made at a test site having smaller or 
greater dimensions in accordance with the rules in subpart F of this 
part.
    (b) The test site must be an open site, essentially free of large 
sound-reflecting objects. However, the following objects may be within 
the test site, including the triangular measurement area:
    (1) Small cylindrical objects such as fire hydrants or telephone or 
utility poles.
    (2) Rural mailboxes.
    (3) Traffic railings of any type of construction except solid 
concrete barriers (see Sec. 325.5(c)(4)).
    (4) One or more curbs having a height of 1 foot (.3 m) or less.
    (c) The following objects may be within the test site if they are 
outside of the triangular measurement area of the site:
    (1) Any vertical surface, regardless of size (such as a billboard), 
having a lower edge more than 15 feet (4.6 m) above the ground.
    (2) Any uniformly smooth surface slanting away from the vehicle with 
a slope that is less than 45 degrees above the horizontal.
    (3) Any surface slanting away from the vehicle that is 45 degrees or 
more and not more than 90 degrees above the horizontal, if all points on 
the surface are more than 15 feet (4.6 m) above the surface of the 
ground in the test site.
    (d) The surface of the ground within the measurement area must be 
relatively flat. (See Sec. 325.5(c)(5)). The site shall be a ``hard'' 
site. However, if the site is determined to be ``soft,'' the correction 
factor specified in Sec. 325.75(b) of this part shall be applied to the 
measurement.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10227, Mar. 10, 1976; 
54 FR 50385, Dec. 6, 1989]



Sec. 325.55  Ambient conditions; stationary test.

    (a)(1) Sound. The ambient A-weighted sound level at the microphone 
location point shall be measured, in the absence of motor vehicle noise 
emanating from within the clear zone, with fast meter response using a 
sound level measurement system that conforms to the rules of Sec. 
325.23.
    (2) The measured ambient level must be 10 dB(A) or more below that 
level specified in Sec. 325.7, Table 1, which corresponds to the 
maximum permissible sound level reading which is applicable at the test 
site at the time of testing.
    (b) Wind. The wind velocity at the test site shall be measured at 
the beginning of each series of noise measurements and at intervals of 
5-15 minutes thereafter until it has been established that the wind 
velocity is essentially constant. Once this fact has been established, 
wind velocity measurements may be made at intervals of once every hour. 
Noise measurements may only be made if the measured wind velocity is 12 
mph (19.3 kph) or less. Gust wind measurements of up to 20 mph (33.2 
kph) are allowed.
    (c) Precipitation. Measurements are prohibited under any conditions 
of precipitation, however, measurements may be made with snow on the 
ground. The ground within the measurement area must be free of standing 
water.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 28267, July 9, 1976]



Sec. 325.57  Location and operation of sound level measurement systems;
stationary test.

    (a) The microphone of a sound level measurement system that conforms 
to the rules in Sec. 325.23 shall be located at a height of not less 
than 2 feet (.6 m) nor more than 6 feet (1.8 m) above the plane of the 
roadway surface and not less than 3\1/2\ feet (1.1 m) above the surface 
on which the microphone stands. The preferred microphone height on flat 
terrain is 4 feet (1.2 m).

[[Page 15]]

    (b) When the sound level measurement system is hand-held or 
otherwise monitored by a person located near its microphone, the holder 
must orient himself/herself relative to the highway in a manner 
consistent with the recommendation of the manufacturer of the sound 
level measurement system. In no case shall the holder or observer be 
closer than 2 feet (.6 m) from the system's microphone, nor shall he/she 
locate himself/herself between the microphone and the vehicle being 
measured.
    (c) The microphone of the sound level measurement system shall be 
oriented toward the vehicle at an angle that is consistent with the 
recommendation of the system's manufacturer. If the manufacturer of the 
system does not recommend an angle of orientation for its microphone, 
the microphone shall be oriented at an angle of not less than 70 degrees 
and not more than perpendicular to the horizontal plane of the test site 
at the microphone target point.
    (d) The sound level measurement system shall be set to the A-
weighting network and ``fast'' meter response mode.

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10227, Mar. 10, 1976]



Sec. 325.59  Measurement procedure; stationary test.

    In accordance with the rules in this subpart, a measurement shall be 
made of the sound level generated by a stationary motor vehicle as 
follows:
    (a) Park the motor vehicle on the test site as specified in Sec. 
325.53 of this subpart. If the motor vehicle is a combination 
(articulated) vehicle, park the combination so that the longitudinal 
centerlines of the towing vehicle and the towed vehicle or vehicles are 
in substantial alinement.
    (b) Turn off all auxiliary equipment which is installed on the motor 
vehicle and which is designed to operate under normal conditions only 
when the vehicle is operating at a speed of 5 mph (8 kph) or less. 
Examples of such equipment include cranes, asphalt spreaders, liquid or 
slurry pumps, auxiliary air compressors, welders, and trash compactors.
    (c) If the motor vehicle's engine radiator fan drive is equipped 
with a clutch or similar device that automatically either reduces the 
rotational speed of the fan or completely disengages the fan from its 
power source in response to reduced engine cooling loads, park the 
vehicle before testing with its engine running at high idle or any other 
speed the operator may choose, for sufficient time but not more than 10 
minutes, to permit the engine radiator fan to automatically disengage 
when the vehicle's noise emissions are measured under stationary test.
    (d) With the motor vehicle's transmission in neutral and its clutch 
engaged, rapidly accelerate the vehicle's engine from idle to its 
maximum governed speed with wide open throttle. Return the engine's 
speed to idle.
    (e) Observe the maximum reading on the sound level measurement 
system during the time the procedures specified in paragraph (d) of this 
section are followed. Record that reading, if the reading has not been 
influenced by extraneous noise sources such as motor vehicles operating 
on adjacent roadways.
    (f) Repeat the procedures specified in paragraphs (d) and (e) of 
this section until the first two maximum sound level readings that are 
within 2 dB(A) of each other are recorded. Numerically average those two 
maximum sound level readings. When appropriate, correct the average 
figure in accordance with the rules in subpart F of this part.
    (g) The average figure, corrected as appropriate, contained in 
accordance with paragraph (f) of this section, is the sound level 
generated by the motor vehicle for the purpose of determining whether it 
conforms to the Standard for Operation Under Stationary Test, 40 CFR 
202.21. (Table 1 in Sec. 325.7 lists the range of maximum permissible 
sound level readings for various test conditions.)

[40 FR 42437, Sept. 12, 1975, as amended at 41 FR 10226, Mar. 10, 1976]

[[Page 16]]



                      Subpart F_Correction Factors



Sec. 325.71  Scope of the rules in this subpart.

    (a) The rules in this subpart specify correction factors which are 
added to, or subtracted from, the reading of the sound level generated 
by a motor vehicle, as displayed on a sound level measurement system, 
during the measurement of the motor vehicle's sound level emissions at a 
test site which is not a standard site.
    (b) The purpose of adding or subtracting a correction factor is to 
equate the sound level reading actually generated by the motor vehicle 
to the sound level reading it would have generated if the measurement 
had been made at a standard test site.



Sec. 325.73  Microphone distance correction factors. \1\
---------------------------------------------------------------------------

    \1\ Table 1, in Sec. 325.7 is a tabulation of the maximum allowable 
sound level readings taking into account both the distance correction 
factors contained in Sec. 325.73 and the ground surface correction 
factors contained in Sec. 325.75.
---------------------------------------------------------------------------

    If the distance between the microphone location point and the 
microphone target point is other than 50 feet (15.2 m), the maximum 
observed sound level reading generated by the motor vehicle in 
accordance with Sec. 325.39 of this part or the numerical average of 
the recorded maximum observed sound level readings generated by the 
motor vehicle in accordance with Sec. 325.59 of this part shall be 
corrected as specified in the following table:

                  Table 2--Distance Correction Factors
------------------------------------------------------------------------
                                                               The value
                                                               dB(A) to
                                                              be applied
                                                                to the
  If the distance between the microphone location point and    observed
               the microphone target point is                    sound
                                                                 level
                                                                reading
                                                                 is--
------------------------------------------------------------------------
31 feet (9.5 m) or more but less than 35 feet (10.7 m)......          -4
35 feet (10.7 m) or more but less than 39 feet (11.9 m).....          -3
39 feet (11.9 m) or more but less than 43 feet (13.1 m).....          -2
43 feet (13.1 m) or more but less than 48 feet (14.6 m).....          -1
48 feet (14.6 m) or more but less than 58 feet (17.7 m).....           0
58 feet (17.7 m) or more but less than 70 feet (21.3 m).....          +1
70 feet (21.3 m) or more but less than 83 feet (25.3 m).....          +2
------------------------------------------------------------------------


[40 FR 42437, Sept. 12, 1975, as amended at 54 FR 50385, Dec. 6, 1989]



Sec. 325.75  Ground surface correction factors. \1\
---------------------------------------------------------------------------

    \1\ Table 1, in Sec. 325.7 is a tabulation of the maximum allowable 
sound level readings taking into account both the distance correction 
factors contained in Sec. 325.73 and the ground surface correction 
factors contained in Sec. 325.75.
---------------------------------------------------------------------------

    (a) Highway operations. When measurements are made in accordance 
with the rules in subpart D of this part upon a test site which is 
``hard,'' a correction factor of 2 dB(A) shall be subtracted from the 
maximum observed sound level reading generated by the motor vehicle to 
determine whether the motor vehicle conforms to the Standards for 
Highway Operations, 40 CFR 202.20.
    (b) Stationary test. When measurements are made in accordance with 
the rules in subpart E of this part upon a test site which is ``soft,'' 
a correction factor of 2 dB(A) shall be added to the numerical average 
of the recorded maximum observed sound level readings generated by the 
motor vehicle to determine whether the motor vehicle conforms to the 
Standard for Operation Under Stationary Test, 40 CFR 202.21.



Sec. 325.77  Computation of open site requirements--nonstandard sites.

    (a) If the distance between the microphone location point and the 
microphone target point is other than 50 feet (15.2 m), the test site 
must be an open site within a radius from both points which is equal to 
the distance between the microphone location point and the microphone 
target point.

[[Page 17]]

    (b) Plan view diagrams of nonstandard test sites are shown in 
Figures 3 and 4. Figure 3 illustrates a test site which is larger than a 
standard test site and is based upon a 60-foot (18.3 m) distance between 
the microphone location point and the microphone target point. (See 
Sec. 325.79(b)(1) for an example of the application of the correction 
factor to a sound level reading obtained at such a site.) Figure 4 
illustrates a test site which is smaller than a standard test site and 
is based upon a 35-foot (10.7 m) distance between the microphone 
location point and the microphone target point. (See Sec. 325.79(b)(2) 
for an example of the application of the correction factor to a sound 
level reading obtained at such a site.)
[GRAPHIC] [TIFF OMITTED] TC01AP91.012

[GRAPHIC] [TIFF OMITTED] TC01AP91.013



Sec. 325.79  Application of correction factors.

    (a) If two correction factors apply to a measurement they are 
applied cumulatively.
    (b) The following examples illustrate the application of correction 
factors to sound level measurement readings:
    (1) Example 1--Highway operations. Assume that a motor vehicle 
generates a maximum observed sound level reading of 86 dB(A) during a 
measurement in accordance with the rules in subpart D of this part. 
Assume also that the distance between the microphone location point and 
the microphone target point is 60 feet (18.3 m) and that the measurement 
area of the test site is acoustically ``hard.'' The corrected sound 
level generated by the motor vehicle would be 85 dB(A), calculated as 
follows:

 86 dB(A) Uncorrected reading
+1 dB(A) Distance correction factor
-2 dB(A) Ground surface correction factor
----------
 85 dB(A) Corrected reading

    (2) Example 2--Stationary test. Assume that a motor vehicle 
generates maximum sound level readings which average 88 dB(A) during a 
measurement in accordance with the rules in subpart E of this part. 
Assume also that the distance between the microphone location point and 
the microphone target point is 35 feet (10.7 m), and that the 
measurement area of the test site is acoustically ``soft.'' The 
corrected sound level generated by the motor vehicle would be 87 dB(A), 
calculated as follows:

 88 dB(A) Uncorrected average of readings
-3 dB(A) Distance correction factor
+2 dB(A) Ground surface correction factor
----------

 87 dB(A) Corrected reading



                   Subpart G_Exhaust Systems and Tires



Sec. 325.91  Exhaust systems.

    A motor vehicle does not conform to the visual exhaust system 
inspection requirements, 40 CFR 202.22, of the Interstate Motor Carrier 
Noise Emission Standards, if inspection of the exhaust system of the 
motor vehicle discloses that the system--

[[Page 18]]

    (a) Has a defect which adversely affects sound reduction, such as 
exhaust gas leaks or alteration or deterioration of muffler elements, 
(small traces of soot on flexible exhaust pipe sections shall not 
constitute a violation of this subpart);
    (b) Is not equipped with either a muffler or other noise dissipative 
device, such as a turbocharger (supercharger driven by exhaust gases); 
or
    (c) Is equipped with a cut-out, by-pass, or similar device, unless 
such device is designed as an exhaust gas driven cargo unloading system.



Sec. 325.93  Tires.

    (a) Except as provided in paragraph (b) of this section, a motor 
vehicle does not conform to the visual tire inspection requirements, 40 
CFR 202.23, of the Interstate Motor Carrier Noise Emissions Standards, 
if inspection of any tire on which the vehicle is operating discloses 
that the tire has a tread pattern composed primarily of cavities in the 
tread (excluding sipes and local chunking) which are not vented by 
grooves to the tire shoulder or circumferentially to each other around 
the tire.
    (b) Paragraph (a) of this section does not apply to a motor vehicle 
operated on a tire having a tread pattern of the type specified in that 
paragraph, if the motor carrier who operates the motor vehicle 
demonstrates to the satisfaction of the Administrator or his/her 
designee that either--
    (1) The tire did not have that type of tread pattern when it was 
originally manufactured or newly remanufactured; or
    (2) The motor vehicle generates a maximum sound level reading of 90 
dB(A) or less when measured at a standard test site for highway 
operations at a distance of 15.3 meters (50 feet) and under the 
following conditions:
    (i) The measurement must be made at a time and place and under 
conditions specified by the Administrator or his/her designee.
    (ii) The motor vehicle must be operated on the same tires that were 
installed on it when the inspection specified in paragraph (a) of this 
section occurred.
    (iii) The motor vehicle must be operated on a highway having a 
posted speed limit of more than 56.3 kph (35 mph).
    (iv) The sound level measurement must be made while the motor 
vehicle is operating at the posted speed limit.

[40 FR 42437, Sept. 12, 1975, as amended at 60 FR 38743, July 28, 1995]

[[Page 19]]



          SUBCHAPTER B_FEDERAL MOTOR CARRIER SAFETY REGULATIONS





PART 350_COMMERCIAL MOTOR CARRIER SAFETY ASSISTANCE PROGRAM--Table of
Contents




                            Subpart A_General

Sec.
350.101 What is the Motor Carrier Safety Assistance Program (MCSAP)?
350.103 What is the purpose of this part?
350.105 What definitions are used in this part?
350.107 What jurisdictions are eligible for MCSAP funding?
350.109 What are the national program elements?
350.111 What constitutes traffic enforcement for the purpose of the 
          MCSAP?

                Subpart B_Requirements for Participation

350.201 What conditions must a State meet to qualify for Basic Program 
          Funds?
350.203 [Reserved]
350.205 How and when does a State apply for MCSAP funding?
350.207 What response does a State receive to its CVSP submission?
350.209 How does a State demonstrate that it satisfies the conditions 
          for Basic Program funding?
350.211 What is the format of the certification required by Sec. 
          350.209?
350.213 What must a State CVSP include?
350.215 What are the consequences for a State that fails to perform 
          according to an approved CVSP or otherwise fails to meet the 
          conditions of this part?

                            Subpart C_Funding

350.301 What level of effort must a State maintain to qualify for MCSAP 
          funding?
350.303 What are the State and Federal shares of expenses incurred under 
          an approved CVSP?
350.305 Are U.S. Territories subject to the matching funds requirement?
350.307 How long are MCSAP funds available to a State?
350.309 What activities are eligible for reimbursement under the MCSAP?
350.311 What specific items are eligible for reimbursement under the 
          MCSAP?
350.313 How are MCSAP funds allocated?
350.315 How may Basic Program Funds be used?
350.317 What are Incentive Funds and how may they be used?
350.319 What are permissible uses of High Priority Activity Funds?
350.321 How may a State or local agency qualify for High Priority or New 
          Entrant Funds?
350.323 What criteria are used in the Basic Program Funds allocation?
350.325 [Reserved]
350.327 How may States qualify for Incentive Funds?
350.329 How may a State or local agency qualify for High Priority or 
          Border Activity Funds?
350.331 How does a State ensure its laws and regulations are compatible 
          with the FMCSRs and HMRs?
350.333 What are the guidelines for the compatibility review?
350.335 What are the consequences if my State has laws or regulations 
          incompatible with the Federal regulations?
350.337 How may State laws and regulations governing motor carriers, CMV 
          drivers, and CMVs in interstate commerce differ from the 
          FMCSRs and still be considered compatible?
350.339 What are tolerance guidelines?
350.341 What specific variances from the FMCSRs are allowed for State 
          laws and regulations governing motor carriers, CMV drivers, 
          and CMVs engaged in intrastate commerce and not subject to 
          Federal jurisdiction?
350.343 How may a State obtain a new exemption for State laws and 
          regulations for a specific industry involved in intrastate 
          commerce?
350.345 How does a State apply for additional variances from the FMCSRs?

    Authority: 49 U.S.C. 13902, 31100-31104, 31108, 31136, 31140-31141, 
31144, 31161, 31310-31311, 31502; and 49 CFR 1.73.

    Source: 65 FR 15102, Mar. 21, 2000, unless otherwise noted.



                            Subpart A_General



Sec. 350.101  What is the Motor Carrier Safety Assistance Program 
(MCSAP)?

    The MCSAP is a Federal grant program that provides financial 
assistance to States to reduce the number and severity of accidents and 
hazardous materials incidents involving commercial motor vehicles (CMV). 
The goal of the MCSAP is to reduce CMV-involved accidents, fatalities, 
and injuries through consistent, uniform, and effective CMV

[[Page 20]]

safety programs. Investing grant monies in appropriate safety programs 
will increase the likelihood that safety defects, driver deficiencies, 
and unsafe motor carrier practices will be detected and corrected before 
they become contributing factors to accidents. The MCSAP also sets forth 
the conditions for participation by States and local jurisdictions and 
promotes the adoption and uniform enforcement of safety rules, 
regulations, and standards compatible with the Federal Motor Carrier 
Safety Regulations (FMCSRs) and Federal Hazardous Material Regulations 
(HMRs) for both interstate and intrastate motor carriers and drivers.



Sec. 350.103  What is the purpose of this part?

    The purpose of this part is to ensure the Federal Motor Carrier 
Safety Administration (FMCSA), States, and other political jurisdictions 
work in partnership to establish programs to improve motor carrier, CMV, 
and driver safety to support a safe and efficient transportation system.



Sec. 350.105  What definitions are used in this part?

    10-year average accident rate means for each State, the aggregate 
number of large truck-involved fatal crashes (as reported in the 
Fatality Analysis Reporting System (FARS)) for a 10-year period divided 
by the aggregate vehicle miles traveled (VMT) (as defined by the Federal 
Motor Carrier Safety Administration (FMCSA) ) for the same 10-year 
period.
    Accident rate means for each State, the total number of fatal 
crashes involving large trucks (as measured by the FARS for each State) 
divided by the total VMT as defined by the FMCSA for each State for all 
vehicles.
    Agency means Federal Motor Carrier Safety Administration.
    Administrative Takedown Funds means funds deducted by the FMCSA each 
fiscal year from the amount made available for the MCSAP for expenses 
incurred in the administration of the MCSAP, including expenses to train 
State and local government employees.
    Administrator means Federal Motor Carrier Safety Administrator.
    Basic Program Funds means the total MCSAP funds less the High 
Priority Activity, Border Activity, Administrative Takedown, and 
Incentive Funds.
    Border Activity Funds means funds provided to States, local 
governments, and other persons carrying out programs, activities, and 
projects relating to CMV safety and regulatory enforcement supporting 
the North American Free Trade Agreement (NAFTA) at the U.S. border. Up 
to 5 percent of total MCSAP funds are available for these activities.
    Commercial motor vehicle (CMV) means a motor vehicle that has any of 
the following characteristics:
    (1) A gross vehicle weight (GVW), gross vehicle weight rating 
(GVWR), gross combination weight (GCW), or gross combination weight 
rating (GCWR) of 4,537 kilograms (10,001 pounds) or more.
    (2) Regardless of weight, is designed or used to transport 16 or 
more passengers, including driver.
    (3) Regardless of weight, is used in the transportation of hazardous 
materials and is required to be placarded pursuant to 49 CFR part 172, 
subpart F.
    Commercial vehicle safety plan (CVSP) means the document outlining 
the State's CMV safety objectives, strategies, activities and 
performance measures.
    Compatible or Compatibility means State laws and regulations 
applicable to interstate commerce and to intrastate movement of 
hazardous materials are identical to the FMCSRs and the HMRs or have the 
same effect as the FMCSRs. State laws applicable to intrastate commerce 
are either identical to, or have the same effect as, the FMCSRs or fall 
within the established limited variances under Sec. 350.341.
    High Priority Activity Funds means funds provided for carrying out 
high-priority activities and projects that improve CMV safety and 
compliance with CMV safety regulations (including activities and 
projects that are national in scope), increase public awareness and 
education, demonstrate new technologies, and reduce the number and rate 
of accidents involving CMVs.
    Incentive Funds means funds awarded to States achieving reductions 
in CMV

[[Page 21]]

involved fatal accidents, CMV fatal accident rate, or meeting specified 
CMV safety program performance criteria.
    Large truck means a truck over 10,000 pounds gross vehicle weight 
rating including single unit trucks and truck tractors (FARS 
definition).
    Motor carrier means a for-hire motor carrier or private motor 
carrier. The term includes a motor carrier's agents, officers, or 
representatives responsible for hiring, supervising, training, 
assigning, or dispatching a driver or concerned with the installation, 
inspection, and maintenance of motor vehicle equipment or accessories or 
both.
    New Entrant Funds means funds provided to State and local 
governments to conduct safety audits on New Entrant motor carriers under 
the New Entrant Safety Assurance Program.
    North American Standard Inspection means the methodology used by 
State CMV safety inspectors to conduct safety inspections of CMVs. This 
consists of various levels of inspection of the vehicle or driver or 
both. The inspection criteria are developed by the FMCSA in conjunction 
with the Commercial Vehicle Safety Alliance (CVSA), an association of 
States, Canadian Provinces, and Mexico whose members agree to adopt 
these standards for inspecting CMVs in their jurisdiction.
    Operating authority means the registration required by 49 U.S.C. 
13902, 49 CFR part 365, 49 CFR part 368, and 49 CFR 392.9a.

[65 FR 15102, Mar. 21, 2000, as amended at 71 FR 50866, Aug. 28, 2006; 
72 FR 36769, July 5, 2007]



Sec. 350.107  What jurisdictions are eligible for MCSAP funding?

    All of the States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Commonwealth of the Northern Mariana Islands, American 
Samoa, Guam, and the Virgin Islands are eligible to receive MCSAP grants 
directly from the FMCSA. For purposes of this subpart, all references to 
``State'' or ``States'' include these jurisdictions.



Sec. 350.109  What are the national program elements?

    The national program elements include the following five activities:
    (a) Driver/vehicle inspections.
    (b) Traffic enforcement.
    (c) Compliance reviews.
    (d) Public education and awareness.
    (e) Data collection.



Sec. 350.111  What constitutes traffic enforcement for the purpose of 
the MCSAP?

    Traffic enforcement means enforcement activities of State or local 
officials, including the stopping of vehicles operating on highways, 
streets, or roads for moving violations of State or local motor vehicle 
or traffic laws (e.g., speeding, following too closely, reckless 
driving, improper lane changes).

[72 FR 36769, July 5, 2007]



                Subpart B_Requirements for Participation



Sec. 350.201  What conditions must a State meet to qualify for Basic 
Program Funds?

    Each State must meet the following twenty-two conditions:
    (a) Assume responsibility for improving motor carrier safety and 
adopting and enforcing State safety laws and regulations that are 
compatible with the FMCSRs (49 CFR parts 390-397) and the HMRs (49 CFR 
parts 107 (subparts F and G only), 171-173, 177, 178 and 180), except as 
may be determined by the Administrator to be inapplicable to a State 
enforcement program.
    (b) Implement performance-based activities, including deployment of 
technology to enhance the efficiency and effectiveness of CMV safety 
programs.
    (c) Designate, in its State Certification, the lead State agency 
responsible for implementing the CVSP.
    (d) Ensure that only agencies having the legal authority, resources, 
and qualified personnel necessary to enforce the FMCSRs and HMRs or 
compatible State laws or regulations are assigned to perform functions 
in accordance with the approved CVSP.
    (e) Allocate adequate funds for the administration of the CVSP 
including the enforcement of the FMCSRs, HMRs, or compatible State laws 
or regulations.
    (f) Maintain the aggregate expenditure of funds by the State and its 
political subdivisions, exclusive of Federal

[[Page 22]]

funds, for CMV safety programs eligible for funding under this part, at 
a level at least equal to the average level of expenditure for the 3 
full fiscal years beginning after October 1 of the year 5 years prior to 
the beginning of each Government fiscal year.
    (g) Provide legal authority for a right of entry and inspection 
adequate to carry out the CVSP.
    (h) Prepare and submit to the FMCSA, upon request, all reports 
required in connection with the CVSP or other conditions of the grant.
    (i) Adopt and use the reporting standards and forms required by the 
FMCSA to record work activities performed under the CVSP.
    (j) Require registrants of CMVs to declare, at the time of 
registration, their knowledge of applicable FMCSRs, HMRs, or compatible 
State laws or regulations.
    (k) Grant maximum reciprocity for inspections conducted under the 
North American Standard Inspection through the use of a nationally 
accepted system that allows ready identification of previously inspected 
CMVs.
    (l) Conduct CMV size and weight enforcement activities funded under 
this program only to the extent those activities do not diminish the 
effectiveness of other CMV safety enforcement programs.
    (m) Coordinate the CVSP, data collection and information systems, 
with State highway safety programs under title 23 United States Code 
(U.S.C.).
    (n) Ensure participation in SAFETYNET and other information systems 
by all appropriate jurisdictions receiving funding under this section.
    (o) Ensure information is exchanged with other States in a timely 
manner.
    (p) Emphasize and improve enforcement of State and local traffic 
laws and regulations related to CMV safety.
    (q) Promote activities in support of the national program elements 
listed in Sec. 350.109, including the following three activities:
    (1) Activities aimed at removing impaired CMV drivers from the 
highways through adequate enforcement of restrictions on the use of 
alcohol and controlled substances and by ensuring ready roadside access 
to alcohol detection and measuring equipment.
    (2) Activities aimed at providing an appropriate level of training 
to MCSAP personnel to recognize drivers impaired by alcohol or 
controlled substances.
    (3) Interdiction activities affecting the transportation of 
controlled substances by CMV drivers and training on appropriate 
strategies for carrying out those interdiction activities.
    (r) Enforce requirements relating to the licensing of CMV drivers, 
including checking the status of commercial drivers' licenses (CDL).
    (s) Establish a program to ensure that accurate, complete, and 
timely motor carrier safety data are collected and reported, and ensure 
the State's participation in a national motor carrier safety data 
correction system prescribed by FMCSA.
    (t)(1) Enforce registration (i.e., operating authority) requirements 
under 49 U.S.C. 13902, 49 CFR part 365, 49 CFR part 368, and 49 CFR 
392.9a by prohibiting the operation of (i.e., placing out of service) 
any vehicle discovered to be operating without the required operating 
authority or beyond the scope of the motor carrier's operating 
authority.
    (2) Enforce financial responsibility requirements under 49 U.S.C. 
13906, 31138, 31139, and 49 CFR part 387.
    (u) Adopt and maintain consistent, effective, and reasonable 
sanctions for violations of CMV, driver, and hazardous materials 
regulations.
    (v) Ensure that MCSAP agencies have policies that stipulate roadside 
inspections will be conducted at locations that are adequate to protect 
the safety of drivers and enforcement personnel.
    (w) Include in the training manual for the licensing examination to 
drive a CMV and the training manual for the licensing examination to 
drive a non-CMV information on best practices for driving safely in the 
vicinity of non-CMVs and CMVs.
    (x) Conduct comprehensive and highly visible traffic enforcement and 
CMV safety inspection programs in high-risk locations and corridors.
    (y) Except in the case of an imminent or obvious safety hazard, 
ensure that an inspection of a vehicle transporting

[[Page 23]]

passengers for a motor carrier of passengers is conducted at a station, 
terminal, border maintenance facility, destination, or other location 
where a motor carrier may make a planned stop.

[65 FR 15102, Mar. 21, 2000, as amended at 67 FR 55165, Aug. 28, 2002; 
67 FR 61820, Oct. 2, 2002; 71 FR 50866, Aug. 28, 2006; 72 FR 36769, July 
5, 2007]



Sec. 350.203  [Reserved]



Sec. 350.205  How and when does a State apply for MCSAP funding?

    (a) The lead agency, designated by the Governor, must submit the 
State's CVSP to the Motor Carrier State Director, FMCSA, on or before 
August 1 of each year.
    (b) This deadline may, for good cause, be extended by the State 
Director for a period not to exceed 30 calendar days.
    (c) For a State to receive funding, the CVSP must be complete and 
include all required documents.



Sec. 350.207  What response does a State receive to its CVSP submission?

    (a) The FMCSA will notify the State, in writing, within 30 days of 
receipt of the CVSP whether:
    (1) The plan is approved.
    (2) Approval of the plan is withheld because the CVSP does not meet 
the requirements of this part, or is not adequate to ensure effective 
enforcement of the FMCSRs and HMRs or compatible State laws and 
regulations.
    (b) If approval is withheld, the State will have 30 days from the 
date of the notice to modify and resubmit the plan.
    (c) Disapproval of a resubmitted plan is final.
    (d) Any State aggrieved by an adverse decision under this section 
may seek judicial review under 5 U.S.C. chapter 7.



Sec. 350.209  How does a State demonstrate that it satisfies the
conditions for Basic Program funding?

    (a) The Governor, the State's Attorney General, or other State 
official specifically designated by the Governor, must execute a State 
Certification as described in Sec. 350.211.
    (b) The State must submit the State Certification along with its 
CVSP, and supplement it with a copy of any State law, regulation, or 
form pertaining to CMV safety adopted since the State's last 
certification that bears on the items contained in Sec. 350.201 of this 
subpart.



Sec. 350.211  What is the format of the certification required by 
Sec. 350.209?

    The State's certification must be consistent with the following 
content:

    I (name), (title), on behalf of the State (or Commonwealth) of 
(State), as requested by the Administrator as a condition of approval of 
a grant under the authority of 49 U.S.C. 31102, as amended, do hereby 
certify as follows:
    1. The State has adopted commercial motor carrier and highway 
hazardous materials safety rules and regulations that are compatible 
with the FMCSRs and the HMRs.
    2. The State has designated (name of State CMV safety agency) as the 
lead agency to administer the CVSP for the grant sought and (names of 
agencies) to perform defined functions under the plan. These agencies 
have the legal authority, resources, and qualified personnel necessary 
to enforce the State's commercial motor carrier, driver, and highway 
hazardous materials safety laws or regulations.
    3. The State will obligate the funds or resources necessary to 
provide a matching share to the Federal assistance provided in the grant 
to administer the plan submitted and to enforce the State's commercial 
motor carrier safety, driver, and hazardous materials laws or 
regulations in a manner consistent with the approved plan.
    4. The laws of the State provide the State's enforcement officials 
right of entry and inspection sufficient to carry out the purposes of 
the CVSP, as approved, and provide that the State will grant maximum 
reciprocity for inspections conducted pursuant to the North American 
Standard Inspection procedure, through the use of a nationally accepted 
system allowing ready identification of previously inspected CMVs.
    5. The State requires that all reports relating to the program be 
submitted to the appropriate State agency or agencies, and the State 
will make these reports available, in a timely manner, to the FMCSA on 
request.
    6. The State has uniform reporting requirements and uses FMCSA 
designated forms for record keeping, inspection, and other enforcement 
activities.
    7. The State has in effect a requirement that registrants of CMVs 
declare their knowledge of the applicable Federal or State CMV safety 
laws or regulations.
    8. The State must maintain the average aggregate expenditure of the 
State and its political subdivisions, exclusive of Federal

[[Page 24]]

assistance and State matching funds, for CMV safety programs eligible 
for funding under the Basic program at a level at least equal to the 
average level of expenditure for the 3 full fiscal years beginning after 
October 1 of the year 5 years prior to the beginning of each Government 
fiscal year. These expenditures must cover at least the following four 
program areas, as applicable:
    a. Motor carrier safety programs in accordance with 49 CFR 350.109.
    b. Size and weight enforcement programs in accordance with 49 CFR 
350.309(c)(1).
    c. Drug interdiction enforcement programs in accordance with 49 CFR 
350.309(c)(2).
    d. Traffic safety programs in accordance with 49 CFR 350.309(d).
    9. The State will ensure that CMV size and weight enforcement 
activities funded with MCSAP funds will not diminish the effectiveness 
of other CMV safety enforcement programs.
    10. The State will ensure that violation fines imposed and collected 
by the State are consistent, effective, and equitable.
    11. The State will establish a program to provide FMCSA with 
accurate, complete, and timely reporting of motor carrier safety 
information that includes documenting the effects of the State's CMV 
safety programs; participate in a national motor carrier safety data 
correction program (DataQs); participate in SAFETYNET; and ensure 
information is exchanged in a timely manner with other States.
    12. The State will ensure that the CVSP, data collection, and 
information systems are coordinated with the State highway safety 
program under title 23, U.S. Code. The name of the Governor's highway 
safety representative (or other authorized State official through whom 
coordination was accomplished) is ------------. (Name)
    13. The State has undertaken efforts to emphasize and improve 
enforcement of State and local traffic laws as they pertain to CMV 
safety.
    14. The State will ensure that MCSAP agencies have departmental 
policies stipulating that roadside inspections will be conducted at 
locations that are adequate to protect the safety of drivers and 
enforcement personnel.
    15. The State will ensure that requirements relating to the 
licensing of CMV drivers are enforced, including checking the status of 
CDLs.
    16. The State will ensure that MCSAP-funded personnel, including 
sub-grantees, meet the minimum Federal standards set forth in 49 CFR 
part 385, subpart C for training and experience of employees performing 
safety audits, compliance reviews, or driver/vehicle roadside 
inspection.
    17. The State will enforce operating authority requirements under 49 
CFR 392.9a by prohibiting the operation of any vehicle discovered to be 
operating without the required operating authority or beyond the scope 
of the motor carrier's operating authority.
    18. The State will enforce the financial responsibility requirements 
under 49 CFR part 387 as applicable to CMVs subject to the provisions of 
49 CFR 392.9a.
    19. The State will include, in the training manual for the licensing 
examination to drive a non-CMV and the training manual for the licensing 
examination to drive a CMV, information on best practices for safe 
driving in the vicinity of noncommercial and commercial motor vehicles.
    20. The State will conduct comprehensive and highly visible traffic 
enforcement and CMV safety inspection programs in high-risk locations 
and corridors.
    21. The State will ensure that, except in the case of an imminent or 
obvious safety hazard, an inspection of a vehicle transporting 
passengers for a motor carrier of passengers is conducted at a station, 
terminal, border crossing, maintenance facility, destination, or other 
location where motor carriers may make planned stops.

 Date___________________________________________________________________
 Signature______________________________________________________________

[65 FR 15102, Mar. 21, 2000, as amended at 67 FR 12779, Mar. 19, 2002; 
67 FR 61820, Oct. 2, 2002; 72 FR 36770, July 5, 2007]



Sec. 350.213  What must a State CVSP include?

    The State's CVSP must reflect a performance-based program, and 
contain the following eighteen items:
    (a) A general overview section that must include the following two 
items:
    (1) A statement of the State agency goal or mission.
    (2) A program summary of the effectiveness of the prior years' 
activities in reducing CMV accidents, injuries and fatalities, and 
improving driver and motor carrier safety performance. Data periods used 
must be consistent from year to year. This may be calendar year or 
fiscal year or any 12-month period of time for which the State's data is 
current. The summary must show trends supported by safety and program 
performance data collected over several years. It must identify safety 
or performance problems in the State and those problems must be 
addressed in the new or modified CVSP.
    (b) A brief narrative describing how the State program addresses the 
national program elements listed in Sec. 350.109. The plan must address 
these elements even if there are no planned

[[Page 25]]

activities in a program area. The rationale for the resource allocation 
decision must be explained. The narrative section must include a 
description of how the State supports the activities identified in Sec. 
350.201(q) and (t).
    (1) Activities aimed at removing impaired CMV drivers from the 
highways through adequate enforcement of restrictions on the use of 
alcohol and controlled substances and by ensuring ready roadside access 
to alcohol detection and measuring equipment.
    (2) Activities aimed at providing an appropriate level of training 
to MCSAP personnel to recognize drivers impaired by alcohol or 
controlled substances.
    (3) Interdiction activities affecting the transportation of 
controlled substances by CMV drivers and training on appropriate 
strategies for carrying out those interdiction activities.
    (4) Activities to enforce registration requirements under 49 U.S.C. 
13902 and 49 CFR part 365 and financial responsibility requirements 
under 49 U.S.C. 13906, 31138 and 31139 and 49 CFR part 387.
    (c) A definitive problem statement for each objective, supported by 
data or other information. The CVSP must identify the source of the 
data, and who is responsible for its collection, maintenance, and 
analysis.
    (d) Performance objectives, stated in quantifiable terms, to be 
achieved through the State plan. Objectives must include a measurable 
reduction in highway accidents or hazardous materials incidents 
involving CMVs. The objective may also include documented improvements 
in other program areas (e.g., legislative or regulatory authority, 
enforcement results, or resource allocations).
    (e) Strategies to be employed to achieve performance objectives. 
Strategies may include education, enforcement, legislation, use of 
technology and improvements to safety infrastructure.
    (f) Specific activities intended to achieve the stated strategies 
and objectives. Planned activities must be eligible under this program 
as defined in Sec. Sec. 350.309 and 350.311.
    (g) Specific quantifiable performance measures, as appropriate. 
These performance measures will be used to assist the State in 
monitoring the progress of its program and preparing an annual 
evaluation.
    (h) A description of the State's method for ongoing monitoring of 
the progress of its plan. This should include who will conduct the 
monitoring, the frequency with which it will be carried out, and how and 
to whom reports will be made.
    (i) An objective evaluation that discusses the progress towards 
individual objectives listed under the ``Performance Objectives'' 
section of the previous year's CVSP and identifies any safety or 
performance problems discovered. States will identify those problems as 
new objectives or make modifications to the existing objectives in the 
next CVSP.
    (j) A budget which supports the CVSP, describing the expenditures 
for allocable costs such as personnel and related costs, equipment 
purchases, printing, information systems costs, and other eligible costs 
consistent with Sec. Sec. 350.311 and 350.309.
    (k) A budget summary form including planned expenditures for that 
fiscal year and projected number of activities in each national program 
element, except data collection.
    (l) The results of the annual review to determine the compatibility 
of State laws and regulations with the FMCSRs and HMRs.
    (m) A copy of any new law or regulation affecting CMV safety 
enforcement that was enacted by the State since the last CVSP was 
submitted.
    (n) Executed State Certification as outlined in Sec. 350.211.
    (o) Executed MCSAP-1 form.
    (p) List of MCSAP contacts.
    (q) Annual Certification of Compatibility, Sec. 350.331.
    (r) State Training Plan.

[65 FR 15102, Mar. 21, 2000, as amended at 67 FR 61820, Oct. 2, 2002; 67 
FR 63019, Oct. 9, 2002]



Sec. 350.215  What are the consequences for a State that fails to 
perform according to an approved CVSP or otherwise fails to meet the 

conditions of this part?

    (a) If a State is not performing according to an approved plan or 
not adequately meeting conditions set forth in Sec. 350.201, the 
Administrator may issue a

[[Page 26]]

written notice of proposed determination of nonconformity to the 
Governor of the State or the official designated in the plan. The notice 
will set forth the reasons for the proposed determination.
    (b) The State will have 30 days from the date of the notice to 
reply. The reply must address the deficiencies or incompatibility cited 
in the notice and provide documentation as necessary.
    (c) After considering the State's reply, the Administrator will make 
a final decision.
    (d) In the event the State fails timely to reply to a notice of 
proposed determination of nonconformity, the notice becomes the 
Administrator's final determination of nonconformity.
    (e) Any adverse decision will result in immediate cessation of 
Federal funding under this part.
    (f) Any State aggrieved by an adverse decision under this section 
may seek judicial review under 5 U.S.C. chapter 7.



                            Subpart C_Funding



Sec. 350.301  What level of effort must a State maintain to qualify for
MCSAP funding?

    (a) The State must maintain the average aggregate expenditure of the 
State and its political subdivisions, exclusive of Federal funds and 
State matching funds, for CMV safety programs eligible for funding under 
this part at a level at least equal to the average level of expenditure 
for the 3 full fiscal years beginning after October 1 of the year 5 
years prior to the beginning of each Government fiscal year.
    (b) Determination of a State's level of effort must not include the 
following three things:
    (1) Federal funds received for support of motor carrier and 
hazardous materials safety enforcement.
    (2) State matching funds.
    (3) State funds used for federally sponsored demonstration or pilot 
CMV safety programs.
    (c) The State must include costs associated with activities 
performed during the base period by State or local agencies currently 
receiving or projected to receive funds under this part. It must include 
only those activities which meet the current requirements for funding 
eligibility under the grant program.

[65 FR 15102, Mar. 21, 2000, as amended at 72 FR 36770, July 5, 2007]



Sec. 350.303  What are the State and Federal shares of expenses incurred
under an approved CVSP?

    (a) The FMCSA will reimburse up to 80 percent of the eligible costs 
incurred in the administration of an approved CVSP.
    (b) In-kind contributions are acceptable in meeting the State's 
matching share if they represent eligible costs as established by 49 CFR 
part 18 or agency policy.



Sec. 350.305  Are U.S. Territories subject to the matching funds 
requirement?

    The Administrator waives the requirement for matching funds for the 
Virgin Islands, American Samoa, Guam, and the Commonwealth of the 
Northern Mariana Islands.



Sec. 350.307  How long are MCSAP funds available to a State?

    The funds obligated to a State will remain available for the rest of 
the fiscal year in which they were obligated and the next full fiscal 
year. The State must account for any prior year's unexpended funds in 
the annual CVSP. Funds must be expended in the order in which they are 
obligated.



Sec. 350.309  What activities are eligible for reimbursement under 
the MCSAP?

    The primary activities eligible for reimbursement are:
    (a) The five national program elements listed in Sec. 350.109 of 
this part.
    (b) Sanitary food transportation inspections performed under 49 
U.S.C. 5708.
    (c) The following two activities, when accompanied by an appropriate 
North American Standard Inspection and inspection report:
    (1) Enforcement of CMV size and weight limitations at locations 
other than fixed weight facilities; at specific locations such as steep 
grades or mountainous terrains where the weight of a CMV can 
significantly affect the safe operation of the vehicle; or at ports

[[Page 27]]

where intermodal shipping containers enter and leave the United States.
    (2) Detection of the unlawful presence of a controlled substance in 
a CMV or on the person of any occupant (including the operator) of the 
vehicle.
    (d) Documented enforcement of State traffic laws and regulations 
designed to promote the safe operation of CMVs, including documented 
enforcement of such laws and regulations relating to non-CMVs when 
necessary to promote the safe operation of CMVs, if the number of motor 
carrier safety activities (including roadside safety inspections) 
conducted in the State is maintained at a level at least equal to the 
average level of such activities conducted in the State in fiscal years 
2003, 2004, and 2005. The State may not use more than 5 percent of its 
MCSAP Basic Program funds for enforcement activities relating to non-
CMVs unless the Administrator determines that a higher percentage will 
result in significant increases in CMV safety.

[65 FR 15102, Mar. 21, 2000, as amended at 72 FR 36770, July 5, 2007]



Sec. 350.311  What specific items are eligible for reimbursement under
the MCSAP?

    All reimbursable items must be necessary, reasonable, allocable to 
the approved CVSP, and allowable under this part and 49 CFR part 18. The 
eligibility of specific items is subject to review by the FMCSA. The 
following six types of expenses are eligible for reimbursement:
    (a) Personnel expenses, including recruitment and screening, 
training, salaries and fringe benefits, and supervision.
    (b) Equipment and travel expenses, including per diem, directly 
related to the enforcement of safety regulations, including vehicles, 
uniforms, communications equipment, special inspection equipment, 
vehicle maintenance, fuel, and oil.
    (c) Indirect expenses for facilities, except fixed scales, used to 
conduct inspections or house enforcement personnel, support staff, and 
equipment to the extent they are measurable and recurring (e.g., rent 
and overhead).
    (d) Expenses related to data acquisition, storage, and analysis that 
are specifically identifiable as program-related to develop a data base 
to coordinate resources and improve efficiency.
    (e) Clerical and administrative expenses, to the extent necessary 
and directly attributable to the MCSAP.
    (f) Expenses related to the improvement of real property (e.g., 
installation of lights for the inspection of vehicles at night). 
Acquisition of real property, land, or buildings are not eligible costs.



Sec. 350.313  How are MCSAP funds allocated?

    (a) After deducting administrative expenses authorized in 49 U.S.C. 
31104(e), the MCSAP funds are allocated as follows:
    (1) An amount of the MCSAP funds appropriated for each fiscal year 
up to the maximum allowed by law may be distributed for High Priority 
Activities and Projects at the discretion of the Administrator.
    (2) An amount of the MCSAP funds appropriated for each fiscal year 
up to the maximum allowed by law may be distributed for safety audits of 
New Entrant motor carriers under the New Entrant Safety Assurance 
Program at the discretion of the Administrator.
    (3) The remaining funds will be allocated among qualifying States in 
two ways:
    (i) As Basic Program Funds in accordance with Sec. 350.323 of this 
part,
    (ii) As Incentive Funds in accordance with Sec. 350.327 of this 
part.
    (b) The funding provided in paragraphs (a)(1) and (a)(2) of this 
section may be awarded through contract, cooperative agreement, or 
grant. The FMCSA will notify States if it intends to solicit State grant 
proposals for any portion of this funding.
    (c) The funding provided under paragraph (a)(1) of this section may 
be made available to State agencies, local governments, and 
organizations representing government agencies or officials that use and 
train qualified officers and employees in coordination with State motor 
vehicle safety agencies. At least 90 percent of the amount set aside in 
a fiscal year shall be awarded in grants to State agencies and local 
government agencies.
    (d) The funding provided under paragraph (a)(2) of this section may 
be

[[Page 28]]

made available to State and local governments. If the Administrator 
determines that a State or local government is not able to use 
government employees to conduct New Entrant motor carrier audits, the 
Administrator may use the funds under paragraph (a)(2) to conduct audits 
for such State or local governments.

[65 FR 15102, Mar. 21, 2000, as amended at 72 FR 36770, July 5, 2007]



Sec. 350.315  How may Basic Program Funds be used?

    Basic Program Funds may be used for any eligible activity or item 
consistent with Sec. Sec. 350.309 and 350.311.



Sec. 350.317  What are Incentive Funds and how may they be used?

    Incentive Funds are monies, in addition to Basic Program Funds, 
provided to States that achieve reduction in CMV-involved fatal 
accidents, CMV fatal accident rate, or that meet specified CMV safety 
performance criteria. Incentive Funds may be used for any eligible 
activity or item consistent with Sec. Sec. 350.309 and 350.311.



Sec. 350.319  What are permissible uses of High Priority Activity
Funds?

    (a) The FMCSA may generally use these funds to support, enrich, or 
evaluate State CMV safety programs and to accomplish the five objectives 
listed below:
    (1) Implement, promote, and maintain national programs to improve 
CMV safety.
    (2) Increase compliance with CMV safety regulations.
    (3) Increase public awareness about CMV safety.
    (4) Provide education on CMV safety and related issues.
    (5) Demonstrate new safety related technologies.
    (b) These funds will be allocated, at the discretion of the FMCSA, 
to States, local governments, and other organizations that use and train 
qualified officers and employees in coordination with State safety 
agencies.
    (c) The FMCSA will notify the States when such funds are available.
    (d) The Administrator may set aside an amount of MCSAP funding up to 
the maximum allowed by law for these projects and activities in each 
fiscal year.
    (e) FMCSA will reimburse up to 80 percent of the eligible costs in 
the administration of an approved project plan, except that approved 
public information and education activities may be reimbursed up to 100 
percent of the eligible costs.

[65 FR 15102, Mar. 21, 2000, as amended at 72 FR 36771, July 5, 2007]



Sec. 350.321  What are permissible uses of New Entrant Funds?

    (a) These funds may be used to conduct safety audits on New Entrant 
motor carriers under the New Entrant Safety Assurance Program.
    (b) New Entrant funds will be allocated, at the discretion of FMCSA, 
to State and local governments.
    (c) FMCSA will notify States when such funds are available.
    (d) The Administrator may designate up to the maximum amount allowed 
by law of MCSAP funding for these projects in each fiscal year. FMCSA 
will reimburse up to 100 percent of the eligible costs in the 
administration of an approved project plan.

[72 FR 36771, July 5, 2007]



Sec. 350.323  What criteria are used in the Basic Program Funds
allocation?

    (a) The funds are distributed proportionally to the States using the 
following four, equally weighted (25 percent), factors.
    (1) 1997 Road miles (all highways) as defined by the FMCSA.
    (2) All vehicle miles traveled (VMT) as defined by the FMCSA.
    (3) Population--annual census estimates as issued by the U.S. Census 
Bureau.
    (4) Special fuel consumption (net after reciprocity adjustment) as 
defined by the FMCSA.
    (b) Distribution of Basic Program Funds is subject to a maximum and 
minimum allocation as illustrated in the Table to this section, as 
follows:

[[Page 29]]



  Table to Sec.  350.323(b)--Basic Program Fund Allocation Limitations
------------------------------------------------------------------------
          Recipient            Maximum allocation    Minimum allocation
------------------------------------------------------------------------
States and Puerto Rico......  4.944% of the Basic   $350,000 or 0.44% of
                               Program Funds.        Basic Program
                                                     Funds, whichever is
                                                     greater.
------------------------------------------------------------------------
U.S. Territories............            $350,000 (fixed amount)
------------------------------------------------------------------------



Sec. 350.325  [Reserved]



Sec. 350.327  How may States qualify for Incentive Funds?

    (a) A State may qualify for Incentive Funds if it can demonstrate 
that its CMV safety program has shown improvement in any or all of the 
following five categories:
    (1) Reduction of large truck-involved fatal accidents.
    (2) Reduction of large truck-involved fatal accident rate or 
maintenance of a large truck-involved fatal accident rate that is among 
the lowest 10 percent of such rates of MCSAP recipients.
    (3) Upload of CMV accident reports in accordance with current FMCSA 
policy guidelines.
    (4) Verification of CDLs during all roadside inspections.
    (5) Upload of CMV inspection data in accordance with current FMCSA 
policy guidelines.
    (b) Incentive Funds will be distributed based upon the five 
following safety and program performance factors:
    (1) Five shares will be awarded to States that reduce the number of 
large truck-involved fatal accidents for the most recent calendar year 
for which data are available when compared to the 10-year average number 
of large truck-involved fatal accidents ending with the preceding year. 
The 10-year average will be computed from the number of large truck-
involved fatal crashes, as reported by the FARS, administered by the 
National Highway Traffic Safety Administration (NHTSA).
    (2) Four shares will be awarded to States that reduce the fatal-
accident rate for the most recent calendar year for which data are 
available when compared to each State's average fatal accident rate for 
the preceding 10-year period. States with the lowest 10 percent of 
accident rates in the most recent calendar year for which data are 
available will be awarded three shares if the rate for the State is the 
same as its average accident rate for the preceding 10-year period.
    (3) Two shares will be awarded to States that upload CMV accident 
data within FMCSA policy guidelines.
    (4) Two shares will be awarded to States that certify their MCSAP 
inspection agencies have departmental policies that stipulate CDLs are 
verified, as part of the inspection process, through Commercial Driver's 
License Information System (CDLIS), National Law Enforcement Tracking 
System (NLETS), or the State licensing authority.
    (5) Two shares will be awarded to States that upload CMV inspection 
reports within current FMCSA policy guidelines.
    (c) The total of all States' shares awarded will be divided into the 
dollar amount of Incentive Funds available, thereby establishing the 
value of one share. Each State's incentive allocation will then be 
determined by multiplying the State's percentage participation in the 
formula allocation of Basic Program Funds, by the number of shares it 
received that year, multiplied by the dollar value of one share.
    (d) States may use Incentive Funds for any eligible CMV safety 
purpose.
    (e) Incentive Funds are subject to the same State matching 
requirements as Basic Program Funds.
    (f) A State must annually certify compliance with the applicable 
incentive criteria to receive Incentive Funds. A State must submit the 
required certification as part of its CVSP or as a separate document.



Sec. 350.329  How may a State or local agency qualify for High Priority 
or Border Activity Funds?

    (a) States must meet the requirements of Sec. 350.201, as 
applicable.

[[Page 30]]

    (b) Local agencies must meet the following nine conditions:
    (1) Prepare a proposal in accordance with Sec. 350.213, as 
applicable.
    (2) Coordinate the proposal with the State lead MCSAP agency to 
ensure the proposal is consistent with State and national CMV safety 
program priorities.
    (3) Certify that your local jurisdiction has the legal authority, 
resources, and trained and qualified personnel necessary to perform the 
functions specified in the proposal.
    (4) Designate a person who will be responsible for implementation, 
reporting, and administering the approved proposal and will be the 
primary contact for the project.
    (5) Agree to fund up to 20 percent of the proposed request.
    (6) Agree to prepare and submit all reports required in connection 
with the proposal or other conditions of the grant.
    (7) Agree to use the forms and reporting criteria required by the 
State lead MCSAP agency and/or the FMCSA to record work activities to be 
performed under the proposal.
    (8) Certify that the local agency will impose sanctions for 
violations of CMV and driver laws and regulations that are consistent 
with those of the State.
    (9) Certify participation in national data bases appropriate to the 
project.



Sec. 350.331  How does a State ensure its laws and regulations are 
compatible with the FMCSRs and HMRs?

    (a) A State must review any new law or regulation affecting CMV 
safety as soon as possible, but in any event immediately after enactment 
or issuance, for compatibility with the FMCSRs and HMRs.
    (b) If the review determines that the new law or regulation is 
incompatible with the FMCSRs and/or HMRs, the State must immediately 
notify the Motor Carrier State Director.
    (c) A State must conduct an annual review of its laws and 
regulations for compatibility and report the results of that review in 
the annual CVSP in accordance with Sec. 350.213(l) along with a 
certification of compliance, no later than August 1 of each year. The 
report must include the following two items:
    (1) A copy of the State law, regulation, or policy relating to CMV 
safety that was adopted since the State's last report.
    (2) A certification, executed by the State's Governor, Attorney 
General, or other State official specifically designated by the 
Governor, stating that the annual review was performed and that State 
CMV safety laws remain compatible with the FMCSRs and HMRs. If State CMV 
laws are no longer compatible, the certifying official shall explain.
    (d) As soon as practical after the effective date of any newly 
enacted regulation or amendment to the FMCSRs or HMRs, but no later than 
three years after that date, the State must amend its laws or 
regulations to make them compatible with the FMCSRs and/or HMRs, as 
amended.



Sec. 350.333  What are the guidelines for the compatibility review?

    (a) The State law or regulation must apply to all segments of the 
motor carrier industry (i.e., for-hire and private motor carriers of 
property and passengers).
    (b) Laws and regulations reviewed for the CDL compliance report are 
excluded from the compatibility review.
    (c) Definitions of words or terms must be consistent with those in 
the FMCSRs and HMRs.
    (d) A State must identify any law or regulation that is not the same 
as the corresponding Federal regulation and evaluate it in accordance 
with the table to this section as follows:

            Table to Sec.  350.333--Guidelines for the State Law and Regulation Compatibility Review
----------------------------------------------------------------------------------------------------------------
 Law or regulation has same effect    Applies to interstate  Less stringent or more
as corresponding Federal regulation  or intrastate commerce         stringent             Action authorized
----------------------------------------------------------------------------------------------------------------
(1) Yes............................  ......................  ......................  Compatible--Interstate and
                                                                                      intrastate commerce
                                                                                      enforcement authorized.
(2) No.............................  Intrastate............  ......................  Refer to Sec.  350.341

[[Page 31]]

 
(3) No.............................  Interstate............  Less stringent........  Enforcement prohibited.
(4) No.............................  Interstate............  More stringent........  Enforcement authorized if
                                                                                      the State can demonstrate
                                                                                      the law or regulation has
                                                                                      a safety benefit or does
                                                                                      not create an undue burden
                                                                                      upon interstate commerce
                                                                                      (See 49 CFR Part 355).
----------------------------------------------------------------------------------------------------------------



Sec. 350.335  What are the consequences if my State has laws or 
regulations incompatible with the Federal regulations?

    (a) A State that currently has compatible CMV safety laws and 
regulations pertaining to interstate commerce (i.e., rules identical to 
the FMCSRs and HMRs) and intrastate commerce (i.e., rules identical to 
or within the tolerance guidelines for the FMCSRs and identical to the 
HMRs) but enacts a law or regulation which results in an incompatible 
rule will not be eligible for Basic Program Funds nor Incentive Funds.
    (b) A State that fails to adopt any new regulation or amendment to 
the FMCSRs or HMRs within three years of its effective date will be 
deemed to have incompatible regulations and will not be eligible for 
Basic Program nor Incentive Funds.
    (c) Those States with incompatible laws or regulations pertaining to 
intrastate commerce and receiving 50 percent of their basic formula 
allocation on April 20, 2000 will continue at that level of funding 
until those incompatibilities are removed, provided no further 
incompatibilities are created.
    (d) Upon a finding by the FMCSA, based upon its own initiative or 
upon a petition of any person, including any State, that your State law, 
regulation or enforcement practice pertaining to CMV safety, in either 
interstate or intrastate commerce, is incompatible with the FMCSRs or 
HMRs, the FMCSA may initiate a proceeding under Sec. 350.215 for 
withdrawal of eligibility for all Basic Program and Incentive Funds.
    (e) Any decision regarding the compatibility of your State law or 
regulation with the HMRs that requires an interpretation will be 
referred to the Research and Special Programs Administration of the DOT 
for such interpretation before proceeding under Sec. 350.215.



Sec. 350.337  How may State laws and regulations governing motor 
carriers, CMV drivers, and CMVs in interstate commerce differ from the

FMCSRs and still be considered compatible?

    States are not required to adopt 49 CFR parts 398 and 399, subparts 
A through E and H of part 107, and Sec. Sec. 171.15 and 171.16, as 
applicable to either interstate or intrastate commerce.



Sec. 350.339  What are tolerance guidelines?

    Tolerance guidelines set forth the limited deviations from the 
FMCSRs allowed in your State's laws and regulations. These variances 
apply only to motor carriers, CMV drivers and CMVs engaged in intrastate 
commerce and not subject to Federal jurisdiction.



Sec. 350.341  What specific variances from the FMCSRs are allowed for
State laws and regulations governing motor carriers, CMV drivers, and 

CMVs engaged in intrastate commerce and not subject to Federal
jurisdiction?

    (a) A State may exempt a CMV from all or part of its laws or 
regulations applicable to intrastate commerce, provided that neither the 
GVW, GVWR, GCW, nor GCWR of the vehicle equals or exceeds 11,801 kg 
(26,001 lbs.). However, a State may not exempt a CMV from such laws or 
regulations if the vehicle:
    (1) Transports hazardous materials requiring a placard.

[[Page 32]]

    (2) Is designed or used to transport 16 or more people, including 
the driver.
    (b) State laws and regulations applicable to intrastate commerce may 
not grant exemptions based upon the type of transportation being 
performed (e.g., for-hire, private, etc.).
    (c) A State may retain those exemptions from its motor carrier 
safety laws and regulations that were in effect before April, 1988, are 
still in effect, and apply to specific industries operating in 
intrastate commerce.
    (d) State laws and regulations applicable to intrastate commerce 
must not include exemptions based upon the distance a motor carrier or 
driver operates from the work reporting location. This prohibition does 
not apply to those exemptions already contained in the FMCSRs nor to the 
extension of the mileage radius exemption contained in 49 CFR 395.1(e) 
from 100 to 150 miles.
    (e) Hours of service--State hours-of-service limitations applied to 
intrastate transportation may vary to the extent of allowing the 
following:
    (1) A 12-hour driving limit, provided driving a CMV after having 
been on duty more than 16 hours is prohibited.
    (2) Driving prohibitions for drivers who have been on duty 70 hours 
in 7 consecutive days or 80 hours in 8 consecutive days.
    (f) Age of CMV driver--All CMV drivers must be at least 18 years of 
age.
    (g) Grandfather clauses--States may provide grandfather clauses in 
their rules and regulations if such exemptions are uniform or in 
substantial harmony with the FMCSRs and provide an orderly transition to 
full regulatory adoption at a later date.
    (h) Driver qualifications:
    (1) Intrastate drivers who do not meet the physical qualification 
standards in 49 CFR 391.41 may continue to be qualified to operate a CMV 
in intrastate commerce if the following three conditions are met:
    (i) The driver was qualified under existing State law or regulation 
at the time the State adopted physical qualification standards 
compatible with the Federal standards in 49 CFR 391.41.
    (ii) The otherwise non-qualifying medical or physical condition has 
not substantially worsened.
    (iii) No other non-qualifying medical or physical condition has 
developed.
    (2) The State may adopt or continue programs granting variances to 
intrastate drivers with medical or physical conditions that would 
otherwise be non-qualifying under the State's equivalent of 49 CFR 
391.41 if the variances are based upon sound medical judgment combined 
with appropriate performance standards ensuring no adverse affect on 
safety.



Sec. 350.343  How may a State obtain a new exemption for State laws
and regulations for a specific industry involved in intrastate

commerce?

    The FMCSA strongly discourages exemptions for specific industries, 
but will consider such requests if the State submits documentation 
containing information supporting evaluation of the following 10 
factors:
    (a) Type and scope of the industry exemption requested, including 
percentage of industry affected, number of vehicles, mileage traveled, 
number of companies involved.
    (b) Type and scope of the requirement to which the exemption would 
apply.
    (c) Safety performance of that specific industry (e.g., accident 
frequency, rates and comparative figures).
    (d) Inspection information (e.g., number of violations per 
inspection, driver and vehicle out-of-service information).
    (e) Other CMV safety regulations enforced by other State agencies 
not participating in the MCSAP.
    (f) Commodity transported (e.g., livestock, grain).
    (g) Similar variations granted and the circumstances under which 
they were granted.
    (h) Justification for the exemption.
    (i) Identifiable effects on safety.
    (j) State's economic environment and its ability to compete in 
foreign and domestic markets.



Sec. 350.345  How does a State apply for additional variances from the 
FMCSRs?

    Any State may apply to the Administrator for a variance from the 
FMCSRs for intrastate commerce. The variance will be granted only if the 
State satisfactorily demonstrates that the State

[[Page 33]]

law, regulation or enforcement practice:
    (a) Achieves substantially the same purpose as the similar Federal 
regulation.
    (b) Does not apply to interstate commerce.
    (c) Is not likely to have an adverse impact on safety.



PART 355_COMPATIBILITY OF STATE LAWS AND REGULATIONS AFFECTING INTERSTATE
MOTOR CARRIER OPERATIONS--Table of Contents




             Subpart A_General Applicability and Definitions

Sec.
355.1 Purpose.
355.3 Applicability.
355.5 Definitions.

                         Subpart B_Requirements

355.21 Regulatory review.
355.23 Submission of results.
355.25 Adopting and enforcing compatible laws and regulations.

Appendix A to Part 355--Guidelines for the Regulatory Review

    Authority: 49 U.S.C. 504 and 31101 et seq.; 49 CFR 1.73.

    Source: 57 FR 40962, Sept. 8, 1992, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 355 appear at 66 FR 
49870, Oct. 1, 2001.



             Subpart A_General Applicability and Definitions



Sec. 355.1  Purpose.

    (a) To promote adoption and enforcement of State laws and 
regulations pertaining to commercial motor vehicle safety that are 
compatible with appropriate parts of the Federal Motor Carrier Safety 
Regulations.
    (b) To provide guidelines for a continuous regulatory review of 
State laws and regulations.
    (c) To establish deadlines for States to achieve compatibility with 
appropriate parts of the Federal Motor Carrier Safety Regulations with 
respect to interstate commerce.



Sec. 355.3  Applicability.

    These provisions apply to any State that adopts or enforces laws or 
regulations pertaining to commercial motor vehicle safety in interstate 
commerce.



Sec. 355.5  Definitions.

    Unless specifically defined in this section, terms used in this part 
are subject to the definitions in 49 CFR 390.5.
    Compatible or Compatibility means that State laws and regulations 
applicable to interstate commerce and to intrastate movement of 
hazardous materials are identical to the FMCSRs and the HMRs or have the 
same effect as the FMCSRs; and that State laws applicable to intrastate 
commerce are either identical to, or have the same effect as, the FMCSRs 
or fall within the established limited variances under Sec. Sec. 
350.341, 350.343, and 350.345 of this subchapter.
    Federal Hazardous Materials Regulations (FMHRs) means those safety 
regulations which are contained in parts 107, 171-173, 177, 178 and 180, 
except part 107 and Sec. Sec. 171.15 and 171.16.
    Federal Motor Carrier Safety Regulations (FMCSRs) means those safety 
regulations which are contained in parts 390, 391, 392, 393, 395, 396, 
and 397 of this subchapter.
    State means a State of the United States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Commonwealth of the Northern 
Mariana Islands, American Samoa, Guam and the Virgin Islands.

[57 FR 40962, Sept. 8, 1992, as amended at 65 FR 15109, Mar. 21, 2000]



                         Subpart B_Requirements



Sec. 355.21  Regulatory review.

    (a) General. Each State shall annually analyze its laws and 
regulations, including those of its political subdivisions, which 
pertain to commercial motor vehicle safety to determine whether its laws 
and regulations are compatible with the Federal Motor Carrier Safety 
Regulations. Guidelines for the regulatory review are provided in the 
appendix to this part.

[[Page 34]]

    (b) Responsibility. The State agency designated as lead agency for 
the administration of grants made pursuant to part 350 of this 
subchapter is responsible for reviewing and analyzing State laws and 
regulations for compliance with this part. In the absence of an 
officially designated Motor Carrier Safety Assistance Program (MCSAP) 
lead agency or in its discretion, the State shall designate another 
agency responsible to review and determine compliance with these 
regulations.
    (c) State review. (1) The State shall determine which of its laws 
and regulations pertaining to commercial motor vehicle safety are the 
same as the Federal Motor Carrier Safety or Federal Hazardous Materials 
Regulations. With respect to any State law or regulation which is not 
the same as the FMCSRs (FHMRs must be identical), the State shall 
identify such law or regulation and determine whether:
    (i) It has the same effect as a corresponding section of the Federal 
Motor Carrier Safety Regulations;
    (ii) It applies to interstate commerce;
    (iii) It is more stringent than the FMCSRs in that it is more 
restrictive or places a greater burden on any entity subject to its 
provisions.
    (2) If the inconsistent State law or regulation applies to 
interstate commerce and is more stringent than the FMCSRs, the State 
shall determine:
    (i) The safety benefits associated with such State law or 
regulation; and
    (ii) The effect of the enforcement of such State law or regulation 
on interstate commerce.
    (3) If the inconsistent State law or regulation does not apply to 
interstate commerce or is less stringent than the FMCSRs, the guidelines 
for participation in the Motor Carrier Safety Assistance Program in 
Sec. Sec. 350.341, 350.343, and 350.345 of this subchapter shall apply.

[57 FR 40962, Sept. 8, 1992, as amended at 65 FR 15109, Mar. 21, 2000]



Sec. 355.23  Submission of results.

    Each State shall submit the results of its regulatory review 
annually with its certification of compliance under Sec. 350.209 of 
this subchapter. It shall submit the results of the regulatory review 
with the certification no later than August 1 of each year with the 
Commercial Vehicle Safety Plan (CVSP). The State shall include copies of 
pertinent laws and regulations.

[65 FR 15109, Mar. 21, 2000]



Sec. 355.25  Adopting and enforcing compatible laws and regulations.

    (a) General. No State shall have in effect or enforce any State law 
or regulation pertaining to commercial motor vehicle safety in 
interstate commerce which the Administrator finds to be incompatible 
with the provisions of the Federal Motor Carrier Safety Regulations.
    (b) New state requirements. No State shall implement any changes to 
a law or regulation which makes that or any other law or regulation 
incompatible with a provision of the Federal Motor Carrier Safety 
Regulations.
    (c) Enforcement. To enforce compliance with this section, the 
Administrator will initiate a rulemaking proceeding under part 389 of 
this subchapter to declare the incompatible State law or regulation 
pertaining to commercial motor vehicle safety unenforceable in 
interstate commerce.
    (d) Waiver of determination. Any person (including any State) may 
petition for a waiver of a determination made under paragraph (c) of 
this section. Such petition will also be considered in a rulemaking 
proceeding under part 389. Waivers shall be granted only upon a 
satisfactory showing that continued enforcement of the incompatible 
State law or regulation is not contrary to the public interest and is 
consistent with the safe operation of commercial motor vehicles.
    (e) Consolidation of proceedings. The Administrator may consolidate 
any action to enforce this section with other proceedings required under 
this section if the Administrator determines that such consolidation 
will not adversely affect any party to any such proceeding.



    Sec. Appendix A to Part 355--Guidelines for the Regulatory Review

    Each State shall review its laws and regulations to achieve 
compatibility with the Federal Motor Carrier Safety Regulations

[[Page 35]]

(FMCSRs). Each State shall consider all related requirements on 
enforcement of the State's motor carrier safety regulations. The 
documentation shall be simple and brief.

                                  Scope

    The State review required by Sec. 355.21 may be limited to those 
laws and regulations previously determined to be incompatible in the 
report of the Commercial Motor Vehicle Safety Regulatory Review Panel 
issued in August 1990, or by subsequent determination by the 
Administrator under this part, and any State laws or regulations enacted 
or issued after August 1990.

                              Applicability

    The requirements must apply to all segments of the motor carrier 
industry common, contract, and private carriers of property and for-hire 
carriers of passengers.

                               Definitions

    Definitions of terms must be consistent with those in the FMCSRs.

                          Driver Qualifications

    Require a driver to be properly licensed to drive a commercial motor 
vehicle; require a driver to be in good physical health, at least 21 
years of age, able to operate a vehicle safely, and maintain a good 
driving record; prohibit drug and alcohol abuse; require a motor carrier 
to maintain a driver qualification file for each driver; and require a 
motor carrier to ensure that a driver is medically qualified.

    Note: The requirements for testing apply only to drivers of 
commercial motor vehicles as defined in 49 CFR part 383.

                        Driving of Motor Vehicles

    Prohibit possession, use, or driving under the influence of alcohol 
or other controlled substances (while on duty); and establish 0.04 
percent as the level of alcohol in the blood at which a driver is 
considered under the influence of alcohol.

           Parts and Accessories Necessary for Safe Operation

    Require operational lights and reflectors; require systematically 
arranged and installed wiring; and require brakes working at the 
required performance level, and other key components included in 49 CFR 
part 393.

                       Hours of Service of Drivers

    Prohibit a motor carrier from allowing or requiring any driver to 
drive: More than 10 hours following 8 consecutive hours off duty; after 
being on duty 15 hours, after being on duty more than 60 hours in any 7 
consecutive days; or after being on duty more than 70 hours in any 8 
consecutive days.
    Require a driver to prepare a record-of-duty status for each 24-hour 
period. The driver and motor carrier must retain the records.

                       Inspection and Maintenance

    Prohibit a commercial motor vehicle from being operated when it is 
likely to cause an accident or a breakdown; require the driver to 
conduct a walk-around inspection of the vehicle before driving it to 
ensure that it can be safely operated; require the driver to prepare a 
driver vehicle inspection report; and require commercial motor vehicles 
to be inspected at least annually.

                           Hazardous Materials

    Require a motor carrier or a person operating a commercial motor 
vehicle transporting hazardous materials to follow the safety and 
hazardous materials requirements.

                          State Determinations

    1. Each State must determine whether its requirements affecting 
interstate motor carriers are ``less stringent'' than the Federal 
requirements. ``Less stringent'' requirements represent either gaps in 
the State requirements in relation to the Federal requirements as 
summarized under item number one in this appendix or State requirements 
which are less restrictive than the Federal requirements.
    a. An example of a gap is when a State does not have the authority 
to regulate the safety of for-hire carriers of passengers or has the 
authority but chooses to exempt the carrier.
    b. An example of a less restrictive State requirement is when a 
State allows a person under 21 years of age to operate a commercial 
motor vehicle in interstate commerce.
    2. Each State must determine whether its requirements affecting 
interstate motor carriers are ``more stringent'' than the Federal 
requirements: ``More stringent'' requirements are more restrictive or 
inclusive in relation to the Federal requirements as summarized under 
item number one in this appendix. For example, a requirement that a 
driver must have 2 days off after working 5 consecutive days. The State 
would demonstrate that its more stringent requirements:
    a. Have a ``safety benefit;'' for example, result in fewer accidents 
or reduce the risk of accidents;
    b. do not create ``an undue burden on interstate commerce,'' e.g., 
do not delay, interfere with, or increase that cost or the 
administrative burden for a motor carrier transporting property or 
passengers in interstate commerce; and
    c. Are otherwise compatible with Federal safety requirements.

[[Page 36]]

    3. A State must adopt and enforce in a consistent manner the 
requirements referenced in the above guidelines in order for the FMCSA 
to accept the State's determination that it has compatible safety 
requirements affecting interstate motor carrier operations. Generally, 
the States would have up to 3 years from the effective date of the new 
Federal requirement to adopt and enforce compatible requirements. The 
FMCSA would specify the deadline when promulgating future Federal safety 
requirements. The requirements are considered of equal importance.

[57 FR 40962, Sept. 8, 1992, as amended by 58 FR 33776, June 21, 1993; 
62 FR 37151, July 11, 1997; 65 FR 15110, Mar. 21, 2000]



PART 356_MOTOR CARRIER ROUTING REGULATIONS--Table of Contents




Sec.
356.1 Authority to serve a particular area--construction.
356.3 [Reserved]
356.5 Traversal authority.
356.7 Tacking.
356.9 Elimination of routing restrictions--regular route carriers.
356.11 Elimination of gateways--regular and irregular route carriers.
356.13 Redesignated highways.

    Authority: 5 U.S.C. 553; 49 U.S.C. 13301 and 13902; and 49 CFR 1.73.

    Source: 62 FR 32041, June 12, 1997, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 356 appear at 66 FR 
49870, Oct. 1, 2001.



Sec. 356.1  Authority to serve a particular area--construction.

    (a) Service at municipality. A motor carrier of property, motor 
passenger carrier of express, and freight forwarder authorized to serve 
a municipality may serve all points within that municipality's 
commercial zone not beyond the territorial limits, if any, fixed in such 
authority.
    (b) Service at unincorporated community. A motor carrier of 
property, motor passenger carrier of express, and freight forwarder, 
authorized to serve an unincorporated community having a post office of 
the same name, may serve all points in the United States not beyond the 
territorial limits, if any, fixed in such authority, as follows:
    (1) All points within 3 miles of the post office in such 
unincorporated community if it has a population of less than 2,500; 
within 4 miles if it has a population of 2,500 but less than 25,000; and 
within 6 miles if it has a population of 25,000 or more;
    (2) At all points in any municipality any part of which is within 
the limits described in paragraph (b)(1) of this section; and
    (3) At all points in any municipality wholly surrounded, or so 
surrounded except for a water boundary, by any municipality included 
under the terms of paragraph (b)(2) of this section.



Sec. 356.3  [Reserved]



Sec. 356.5  Traversal authority.

    (a) Scope. An irregular route motor carrier may operate between 
authorized service points over any reasonably direct or logical route 
unless expressly prohibited.
    (b) Requirements. Before commencing operations, the carrier must, 
regarding each State traversed:
    (1) Notify the State regulatory body in writing, attaching a copy of 
its operating rights;
    (2) Designate a process agent; and
    (3) Comply with 49 CFR 387.315.



Sec. 356.7  Tacking.

    Unless expressly prohibited, a motor common carrier of property 
holding separate authorities which have common service points may join, 
or tack, those authorities at the common point, or gateway, for the 
purpose of performing through service as follows:
    (a) Regular route authorities may be tacked with one another;
    (b) Regular route authority may be tacked with irregular route 
authority;
    (c) Irregular route authorities may be tacked with one another if 
the authorities were granted pursuant to application filed on or before 
November 23, 1973, and the distance between the points at which service 
is provided, when measured through the gateway point, is 300 miles or 
less; and
    (d) Irregular route authorities may be tacked with one another if 
the authorities involved contain a specific provision granting the right 
to tack.

[[Page 37]]



Sec. 356.9  Elimination of routing restrictions--regular route carriers.

    (a) Regular route authorities--construction. All certificates that, 
either singly or in combination, authorize the transportation by a motor 
common carrier of property over:
    (1) A single regular route or;
    (2) Over two or more regular routes that can lawfully be tacked at a 
common service point, shall be construed as authorizing transportation 
between authorized service points over any available route.
    (b) Service at authorized points. A common carrier departing from 
its authorized service routes under paragraph (a) of this section shall 
continue to serve points authorized to be served on or in connection 
with its authorized service routes.
    (c) Intermediate point service. A common carrier conducting 
operations under paragraph (a) of this section may serve points on, and 
within one airline mile of, an alternative route it elects to use if all 
the following conditions are met:
    (1) The carrier is authorized to serve all intermediate points 
(without regard to nominal restrictions) on the underlying service 
route;
    (2) The alternative route involves the use of a superhighway (i.e., 
a limited access highway with split-level crossings);
    (3) The alternative superhighway route, including highways 
connecting the superhighway portion of the route with the carrier's 
authorized service route,
    (i) Extends in the same general direction as the carrier's 
authorized service route and
    (ii) Is wholly within 25 airline miles of the carrier's authorized 
service route; and
    (4) Service is provided in the same manner as, and subject to any 
restrictions that apply to, service over the authorized service route.



Sec. 356.11  Elimination of gateways--regular and irregular route 
carriers.

    A motor common carrier of property holding separate grants of 
authority (including regular route authority), one or more of which 
authorizes transportation over irregular routes, where the authorities 
have a common service point at which they can lawfully be tacked to 
perform through service, may perform such through service over any 
available route.



Sec. 356.13  Redesignated highways.

    Where a highway over which a regular route motor common carrier of 
property is authorized to operate is assigned a new designation, such as 
a new number, letter, or name, the carrier shall advise the FMCSA by 
letter, and shall provide information concerning the new and the old 
designation, the points between which the highway is redesignated, and 
each place where the highway is referred to in the carrier's authority. 
The new designation of the highway will be shown in the carrier's 
certificate when the FMCSA has occasion to reissue it.



PART 360_FEES FOR MOTOR CARRIER REGISTRATION AND INSURANCE--Table of 
Contents




Sec.
360.1 Fees for records search, review, copying, certification, and 
          related services.
360.3 Filing fees.
360.5 Updating user fees.

    Authority: 31 U.S.C. 9701; 49 U.S.C. 13908(c) and 14504(c)(2); and 
49 CFR 1.73.

    Source: 64 FR 7137, Feb. 12, 1999, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 360 appear at 66 FR 
49870, Oct. 1, 2001.



Sec. 360.1  Fees for records search, review, copying, certification, 
and related services.

    Certifications and copies of public records and documents on file 
with the Federal Motor Carrier Safety Administration will be furnished 
on the following basis, pursuant to the Freedom of Information Act 
regulations at 49 CFR Part 7:
    (a) Certificate of the Director, Office of Data Analysis and 
Information Systems, as to the authenticity of documents, $9.00;
    (b) Service involved in checking records to be certified to 
determine authenticity, including clerical work, etc., incidental 
thereto, at the rate of $16.00 per hour;

[[Page 38]]

    (c) Copies of the public documents, at the rate of $.80 per letter 
size or legal size exposure. A minimum charge of $5.00 will be made for 
this service; and
    (d) Search and copying services requiring ADP processing, as 
follows:
    (1) A fee of $42.00 per hour for professional staff time will be 
charged when it is required to fulfill a request for ADP data.
    (2) The fee for computer searches will be set at the current rate 
for computer service. Information on those charges can be obtained from 
the Office of Data Analysis and Information Systems (MC-PSDRIS).
    (3) Printing shall be charged at the rate of $.10 per page of 
computer generated output with a minimum charge of $.25. A charge of $30 
per reel of magnetic tape will be made if the tape is to be permanently 
retained by the requestor.



Sec. 360.3  Filing fees.

    (a) Manner of payment. (1) Except for the insurance fees described 
in the next sentence, all filing fees will be payable at the time and 
place the application, petition, or other document is tendered for 
filing. The service fee for insurance, surety or self-insurer accepted 
certificate of insurance, surety bond or other instrument submitted in 
lieu of a broker surety bond must be charged to an insurance service 
account established by the Federal Motor Carrier Safety Administration 
in accordance with paragraph (a)(2) of this section.
    (2) Billing account procedure. A written request must be submitted 
to the Office of Enforcement and Compliance, Insurance Compliance 
Division (MC-PSDECI) to establish an insurance service fee account.
    (i) Each account will have a specific billing date within each month 
and a billing cycle. The billing date is the date that the bill is 
prepared and printed. The billing cycle is the period between the 
billing date in one month and the billing date in the next month. A bill 
for each account which has activity or an unpaid balance during the 
billing cycle will be sent on the billing date each month. Payment will 
be due 20 days from the billing date. Payments received before the next 
billing date are applied to the account. Interest will accrue in 
accordance with 4 CFR 102.13.
    (ii) The Debt Collection Act of 1982, including disclosure to the 
consumer reporting agencies and the use of collection agencies, as set 
forth in 4 CFR 102.5 and 102.6 will be utilized to encourage payment 
where appropriate.
    (iii) An account holder who files a petition in bankruptcy or who is 
the subject of a bankruptcy proceeding must provide the following 
information to theOffice of Enforcement and Compliance, Insurance 
Division (MC-PSDECI):
    (A) The filing date of the bankruptcy petition;
    (B) The court in which the bankruptcy petition was filed;
    (C) The type of bankruptcy proceeding;
    (D) The name, address, and telephone number of its representative in 
the bankruptcy proceeding; and
    (E) The name, address, and telephone number of the bankruptcy 
trustee, if one has been appointed.
    (3) Fees will be payable to the Federal Motor Carrier Safety 
Administration by a check payable in United States currency drawn upon 
funds deposited in a United States or foreign bank or other financial 
institution, money order payable in United States' currency, or credit 
card (VISA or MASTERCARD).
    (b) Any filing that is not accompanied by the appropriate filing fee 
is deficient except for filings that satisfy the deferred payment 
procedures in paragraph (a) of this section.
    (c) Fees not refundable. Fees will be assessed for every filing in 
the type of proceeding listed in the schedule of fees contained in 
paragraph (f) of this section, subject to the exceptions contained in 
paragraphs (d) and (e) of this section. After the application, petition, 
or other document has been accepted for filing by the Federal Motor 
Carrier Safety Administration, the filing fee will not be refunded, 
regardless of whether the application, petition, or other document is 
granted or approved, denied, rejected before docketing, dismissed, or 
withdrawn.
    (d) Related or consolidated proceedings. (1) Separate fees need not 
be paid for related applications filed by the same applicant which would 
be the subject of

[[Page 39]]

one proceeding. (This does not mean requests for multiple types of 
operating authority filed on forms in the OP-1 series under the 
regulations at 49 CFR part 365. A separate filing fee is required for 
each type of authority sought in each transportation mode, e.g., common, 
contract, and broker authority for motor property carriers.)
    (2) Separate fees will be assessed for the filing of temporary 
operating authority applications as provided in paragraph (f)(6) of this 
section, regardless of whether such applications are related to an 
application for corresponding permanent operating authority.
    (3) The Federal Motor Carrier Safety Administration may reject 
concurrently filed applications, petitions, or other documents asserted 
to be related and refund the filing fee if, in its judgment, they 
embrace two or more severable matters which should be the subject of 
separate proceedings.
    (e) Waiver or reduction of filing fees. It is the general policy of 
the Federal Motor Carrier Safety Administration not to waive or reduce 
filing fees except as described as follows:
    (1) Filing fees are waived for an application or other proceeding 
which is filed by a Federal government agency, or a State or local 
government entity. For purposes of this section the phrases ``Federal 
government agency'' or ``government entity'' do not include a quasi-
governmental corporation or government subsidized transportation 
company.
    (2) In extraordinary situations the Federal Motor Carrier Safety 
Administration will accept requests for waivers or fee reductions in 
accordance with the following procedure:
    (i) When to request. At the time that a filing is submitted to the 
Federal Motor Carrier Safety Administration the applicant may request a 
waiver or reduction of the fee prescribed in this part. Such request 
should be addressed to the Director, Office of Data Analysis and 
Information Systems.
    (ii) Basis. The applicant must show the waiver or reduction of the 
fee is in the best interest of the public, or that payment of the fee 
would impose an undue hardship upon the requestor.
    (iii) Federal Motor Carrier Safety Administration action. The 
Director, Office of Data Analysis and Information Systems, will notify 
the applicant of the decision to grant or deny the request for waiver or 
reduction.
    (f) Schedule of filing fees.

----------------------------------------------------------------------------------------------------------------
           Type of Proceeding                                                                     Fee
----------------------------------------------------------------------------------------------------------------
Part I: Licensing:
  (1)...................................  An application for motor carrier operating  $300
                                           authority, a certificate of registration
                                           for certain foreign carriers, property
                                           broker authority, or freight forwarder
                                           authority.
  (2)...................................  A petition to interpret or clarify an       3,000
                                           operating authority.
  (3)...................................  A request seeking the modification of       50
                                           operating authority only to the extent of
                                           making a ministerial correction, when the
                                           original error was caused by applicant, a
                                           change in the name of the shipper or
                                           owner of a plant site, or the change of a
                                           highway name or number.
  (4)...................................  A petition to renew authority to transport  250
                                           explosives.
  (5)...................................  An application for authority to deviate     150
                                           from authorized regular-route authority.
  (6)...................................  An application for motor carrier temporary  100
                                           authority issued in an emergency
                                           situation.
  (7)...................................  Request for name change of a motor          14
                                           carrier, property broker, or freight
                                           forwarder.
  (8)...................................  An application involving the merger,        300
                                           transfer, or lease of the operating
                                           rights of motor passenger and property
                                           carriers, property brokers, and household
                                           goods freight forwarders under 49 U.S.C.
                                           10321 and 10926.
  (9)-(49)..............................  [Reserved]................................  ..........................
Part II: Insurance:
  (50)..................................  (i) An application for original             4,200
                                           qualification as self-insurer for bodily
                                           injury and property damage insurance
                                           (BI&PD).
                                          (ii) An application for original            420
                                           qualification as self-insurer for cargo
                                           insurance.
  (51)..................................  A service fee for insurer, surety, or self- $10 per accepted
                                           insurer accepted certificate of             certificate, surety bond
                                           insurance, surety bond, and other           or other instrument
                                           instrument submitted in lieu of a broker    submitted in lieu of a
                                           surety bond.                                broker surety bond.
  (52)..................................  A petition for reinstatement of revoked     80
                                           operating authority.

[[Page 40]]

 
  (53)-(79).............................  [Reserved]................................
Part III: Services:
  (80)..................................  Request for service or pleading list for    13 per list
                                           proceedings.
  (81)..................................  Faxed copies of operating authority to      5
                                           applicants or their representatives who
                                           did not receive a served copy.
----------------------------------------------------------------------------------------------------------------

    (g) Returned check policy. (1) If a check submitted to the FMCSA for 
a filing or service fee is dishonored by a bank or financial institution 
on which it is drawn, the FMCSA will notify the person who submitted the 
check that:
    (i) All work will be suspended on the filing or proceeding, until 
the check is made good;
    (ii) A returned check charge of $6.00 and any bank charges incurred 
by the FMCSA as a result of the dishonored check must be submitted with 
the filing fee which is outstanding; and
    (iii) If payment is not made within the time specified by the FMCSA, 
the proceeding will be dismissed or the filing may be rejected.
    (2) If a person repeatedly submits dishonored checks to the FMCSA 
for filing fees, the FMCSA may notify the person that all future filing 
fees must be submitted in the form of a certified or cashier's check, 
money order, or credit card.

[64 FR 7137, Feb. 12, 1999, as amended at 67 FR 61820, Oct. 2, 2002]



Sec. 360.5  Updating user fees.

    (a) Update. Each fee established in this part may be updated in 
accordance with this section as deemed necessary by the FMCSA.
    (b) Publication and effective dates. Updated fees shall be published 
in the Federal Register and shall become effective 30 days after 
publication.
    (c) Payment of fees. Any person submitting a filing for which a fee 
is established shall pay the fee in effect at the time of the filing.
    (d) Method of updating fees. Each fee shall be updated by updating 
the cost components comprising the fee. Cost components shall be updated 
as follows:
    (1) Direct labor costs shall be updated by multiplying base level 
direct labor costs by percentage changes in average wages and salaries 
of FMCSA employees. Base level direct labor costs are direct labor costs 
determined by the cost study in Regulations Governing Fees For Service, 
1 I.C.C. 2d 60 (1984), or subsequent cost studies. The base period for 
measuring changes shall be April 1984 or the year of the last cost 
study.
    (2) Operations overhead shall be developed each year on the basis of 
current relationships existing on a weighted basis, for indirect labor 
applicable to the first supervisory work centers directly associated 
with user fee activity. Actual updating of operations overhead will be 
accomplished by applying the current percentage factor to updated direct 
labor, including current governmental overhead costs.
    (3)(i) Office general and administrative costs shall be developed 
each year on the basis of current levels costs, i.e., dividing actual 
office general and administrative costs for the current fiscal year by 
total office costs for the office directly associated with user fee 
activity. Actual updating of office general and administrative costs 
will be accomplished by applying the current percentage factor to 
updated direct labor, including current governmental overhead and 
current operations overhead costs.
    (ii) FMCSA general and administrative costs shall be developed each 
year on the basis of current level costs; i.e., dividing actual FMCSA 
general and administrative costs for the current fiscal year by total 
agency expenses for the current fiscal year. Actual updating of FMCSA 
general and administrative costs will be accomplished by applying the 
current percentage factor to updated direct labor, including current 
governmental overhead, operations overhead and office general and 
administrative costs.
    (4) Publication costs shall be adjusted on the basis of known 
changes in the costs applicable to publication of material in the 
Federal Register or FMCSA Register.

[[Page 41]]

    (This rounding procedures excludes copying, printing and search 
fees.)
    (e) Rounding of updated fees. Updated fees shall be rounded in the 
following manner:
    (1) Fees between $1 and $30 will be rounded to the nearest $1;
    (2) Fees between $30 and $100 will be rounded to the nearest $10;
    (3) Fees between $100 and $999 will be rounded to the nearest $50; 
and
    (4) Fees above $1,000 will be rounded to the nearest $100.



PART 365_RULES GOVERNING APPLICATIONS FOR OPERATING AUTHORITY--Table
of Contents




             Subpart A_How To Apply for Operating Authority

Sec.
365.101 Applications governed by these rules.
365.103 Modified procedure.
365.105 Starting the application process: Form OP-1.
365.107 Types of applications.
365.109 FMCSA review of the application.
365.111 Appeals to rejections of the application.
365.113 Changing the request for authority or filing supplementary 
          evidence after the application is filed.
365.115 After publication in the FMCSA Register.
365.117 Obtaining a copy of the application.
365.119 Opposed applications.
365.121 Filing a reply statement.
365.123 Applicant withdrawal.

             Subpart B_How To Oppose Requests for Authority

365.201 Definitions.
365.203 Time for filing.
365.205 Contents of the protest.
365.207 Withdrawal.

        Subpart C_General Rules Governing the Application Process

365.301 Applicable rules.
365.303 Contacting another party.
365.305 Serving copies of pleadings.
365.307 Replies to motions.
365.309 FAX filings.

      Subpart D_Transfer of Operating Rights Under 49 U.S.C. 10926

365.401 Scope of rules.
365.403 Definitions.
365.405 Applications.
365.407 Notice.
365.409 FMCSA action and criteria for approval.
365.411 Responsive pleadings.
365.413 Procedures for changing the name or business form of a motor 
          carrier, freight forwarder, or property broker.

      Subpart E_Special Rules for Certain Mexico-Domiciled Carriers

365.501 Scope of rules.
365.503 Application.
365.505 Re-registration and fee waiver for certain applicants.
365.507 FMCSA action on the application.
365.509 Requirement to notify FMCSA of change in applicant information.
365.511 Requirement for CVSA inspection of vehicles during first three 
          consecutive years of permanent operating authority.

Appendix A to Subpart E--Explanation of Pre-Authorization Safety Audit 
          Evaluation Criteria for Mexico-Domiciled Motor Carriers

    Authority: 5 U.S.C. 553 and 559; 16 U.S.C. 1456; 49 U.S.C. 13101, 
13301, 13901-13906, 14708, 31138, and 31144; 49 CFR 1.73.

    Source: 59 FR 63728, Dec. 9, 1994, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.

    Editorial Note: Nomenclature changes to part 365 appear at 66 FR 
49870, Oct. 1, 2001.



             Subpart A_How To Apply for Operating Authority



Sec. 365.101  Applications governed by these rules.

    These rules govern the handling of applications for operating 
authority of the following type:
    (a) Applications for certificates and permits to operate as a motor 
common or contract carrier of property or passengers.
    (b) Applications for permits to operate as a freight forwarder.
    (c) [Reserved]
    (d) Applications for licenses to operate as a broker of motor 
vehicle transportation.
    (e) Applications for certificates under 49 U.S.C. 13902(b)(3) to 
operate as a motor carrier of passengers in intrastate commerce over 
regular routes if such intrastate transportation is to be provided on a 
route over which the carrier provides interstate transportation of 
passengers.
    (f) [Reserved]

[[Page 42]]

    (g) Applications for temporary motor carrier authority.
    (h) Applications for Mexico-domiciled motor carriers to operate in 
foreign commerce as common, contract or private motor carriers of 
property (including exempt items) between Mexico and all points in the 
United States. Under NAFTA Annex I, page I-U-20, a Mexico-domiciled 
motor carrier may not provide point-to-point transportation services, 
including express delivery services, within the United States for goods 
other than international cargo.
    (i) Applications for non-North America-domiciled motor carriers to 
operate in foreign commerce as for-hire motor carriers of property and 
passengers within the United States.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1995; 62 
FR 49940, Sept. 24, 1997; 67 FR 12714, Mar. 19, 2002; 67 FR 61820, Oct. 
2, 2002; 73 FR 76488, Dec. 16, 2008; 74 FR 2901, Jan. 16, 2009]



Sec. 365.103  Modified procedure.

    The FMCSA will handle licensing application proceedings using the 
modified procedure, if possible. The applicant and protestants send 
statements made under oath (verified statements) to each other and to 
the FMCSA. There are no personal appearances or formal hearings.



Sec. 365.105  Starting the application process: Form OP-1.

    (a) Each applicant must file the appropriate form in the OP-1 
series. Form OP-1 must be filed when requesting authority to operate as 
a motor property carrier, a broker of general freight, or a broker of 
household goods; Form OP-1(P) must be filed when requesting authority to 
operate as a motor passenger carrier; Form OP-1(FF) must be filed when 
requesting authority to operate as a freight forwarder; Form OP-1(MX) 
must be filed by a Mexico-domiciled motor property, including household 
goods, carrier, or a motor passenger carrier requesting authority to 
operate within the United States; and effective December 16, 2009.

Form OP-1(NNA) must be filed by a non-North America-domiciled motor 
property, including household goods, carrier or a motor passenger 
carrier requesting authority to operate within the United States. A 
separate filing fee in the amount set forth at 49 CFR 360.3(f)(1) is 
required for each type of authority sought.
    (b) Obtain forms at a FMCSA Division Office in each State or at one 
of the FMCSA Service Centers. Addresses and phone numbers for the 
Division Offices and Service Centers can be found at: http://
www.fmcsa.dot.gov/aboutus/fieldoffices. The forms and information about 
filing procedures can be downloaded at: http://www.fmcsa.dot.gov/
factsfigs/formspubs; and from the do-it-yourself website at: http://
www.diy.dot.gov.

[66 FR 49870, Oct. 1, 2001, as amended at 67 FR 12714, Mar. 19, 2002; 67 
FR 61820, Oct. 2, 2002; 73 FR 76488, Dec. 16, 2008]



Sec. 365.107  Types of applications.

    (a) Fitness applications. Motor property applications and certain 
types of motor passenger applications require only the finding that the 
applicant is fit, willing and able to perform the involved operations 
and to comply with all applicable statutory and regulatory provisions. 
These applications can be opposed only on the grounds that applicant is 
not fit [e.g., is not in compliance with applicable financial 
responsibility and safety fitness requirements]. These applications are:
    (1) Motor common and contract carrier of property (except household 
goods) , Mexican motor property carriers that perform private carriage 
and transport exempt items, and motor contract carrier of passengers 
transportation.
    (2) Motor carrier brokerage of general commodities (except household 
goods).
    (3) Certain types of motor passenger applications as described in 
Form OP-1 (P).
    (b) Motor passenger ``public interest'' applications as described in 
Form OP-1 (P).
    (c) Intrastate motor passenger applications under 49 U.S.C. 
13902(b)(3) as described in Form OP-1, Schedule B.
    (d) Motor common carrier of household goods applications, including 
Mexican carrier applicants. These applications require a finding that:

[[Page 43]]

    (1) The applicant is fit, willing, and able to provide the involved 
transportation and to comply with all applicable statutory and 
regulatory provisions; and
    (2) The service proposed will serve a useful public purpose, 
responsive to a public demand or need.
    (e) Motor contract carrier of household goods, household goods 
property broker, and freight forwarder applications. These applications 
require a finding that:
    (1) The applicant is fit, willing, and able to provide the involved 
transportation and to comply with all applicable statutory and 
regulatory provisions; and
    (2) The transportation to be provided will be consistent with the 
public interest and the national transportation policy of 49 U.S.C. 
13101.
    (f) Temporary authority (TA) for motor and water carriers. These 
applications require a finding that there is or soon will be an 
immediate transportation need that cannot be met by existing carrier 
service.
    (g) In view of the expedited time frames established in this part 
for processing requests for permanent authority, applications for TA 
will be entertained only in exceptional circumstances (i.e., natural 
disasters or national emergencies) when evidence of immediate service 
need can be specifically documented in a narrative supplement appended 
to Form OP-1 for motor property carriers, Form OP-1MX for Mexican 
property carriers and, Form OP-1(P) for motor passenger carriers.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1995; 62 
FR 49940, Sept. 24, 1997; 67 FR 61820, Oct. 2, 2002]



Sec. 365.109  FMCSA review of the application.

    (a) FMCSA staff will review the application for correctness, 
completeness, and adequacy of the evidence (the prima facie case).
    (1) Minor errors will be corrected without notification to the 
applicant.
    (2) Materially incomplete applications will be rejected. 
Applications that are in substantial compliance with these rules may be 
accepted.
    (3) All motor carrier applications will be reviewed for consistency 
with the FMCSA's operational safety fitness policy. Applicants with 
``Unsatisfactory'' safety fitness ratings from DOT will have their 
applications rejected.
    (4) FMCSA staff will review completed applications that conform with 
the FMCSA's safety fitness policy and that are accompanied by evidence 
of adequate financial responsibility.
    (5) Financial responsibility is indicated by filing within 20 days 
from the date an application notice is published in the FMCSA Register:
    (i) Form BMC-91 or 91X or BMC 82 surety bond--Bodily injury and 
property damage (motor property and passenger carriers; household goods 
freight forwarders that provide pickup or delivery service directly or 
by using a local delivery service under their control).
    (ii) Form BMC-84--Surety bond or Form BMC-85--trust fund agreement 
(property brokers of general commodities and household goods).
    (iii) Form BMC-34 or BMC 83 surety bond--Cargo liability (motor 
property common carriers and household goods freight forwarders).
    (6) Applicants also must submit Form BOC-3--designation of legal 
process agents--within 20 days from the date an application notice is 
published in the FMCSA Register.
    (7) Applicants seeking to conduct operations for which tariffs are 
required may not commence such operations until tariffs are in effect.
    (8) All applications must be completed in English.
    (b) A summary of the application will be published as a preliminary 
grant of authority in the FMCSA Register to give notice to the public in 
case anyone wishes to oppose the application.

[59 FR 63728, Dec. 9, 1994, as amended at 60 FR 63981, Dec. 13, 1995; 67 
FR 61820, Oct. 2, 2002]



Sec. 365.111  Appeals to rejections of the application.

    (a) An applicant has the right to appeal rejection of the 
application. The appeal must be filed at the FMCSA within 10 days of the 
date of the letter of rejection.

[[Page 44]]

    (b) If the appeal is successful and the filing is found to be 
proper, the application shall be deemed to have been properly filed as 
of the decision date of the appeal.



Sec. 365.113  Changing the request for authority or filing supplementary
evidence after the application is filed.

    (a) Once the application is filed, the applicant may supplement 
evidence only with approval of the FMCSA.
    (b) Amendments to the application generally are not permitted, but 
in appropriate instances may be entertained at the discretion of the 
FMCSA.



Sec. 365.115  After publication in the FMCSA Register.

    (a) Interested persons have 10 days from the date of FMCSA Register 
publication to file protests. See Subpart B of this part.
    (b) If no one opposes the application, the grant published in the 
FMCSA Register will become effective by issuance of a certificate, 
permit, or license.



Sec. 365.117  Obtaining a copy of the application.

    After publication, interested persons may request a copy of the 
application by contacting the FMCSA-designated contract agent (as 
identified in the FMCSA Register).



Sec. 365.119  Opposed applications.

    If the application is opposed, opposing parties are required to send 
a copy of their protest to the applicant.



Sec. 365.121  Filing a reply statement.

    (a) If the application is opposed, applicant may file a reply 
statement. This statement is due within 20 days after FMCSA Register 
publication.
    (b) The reply statement may not contain new evidence. It shall only 
rebut or further explain matters previously raised.
    (c) The reply statement need not be notarized or verified. Applicant 
understands that the oath in the application form applies to all 
evidence submitted in the application. Separate legal arguments by 
counsel need not be notarized or verified.



Sec. 365.123  Applicant withdrawal.

    If the applicant wishes to withdraw an application, it shall request 
dismissal in writing.



             Subpart B_How To Oppose Requests for Authority



Sec. 365.201  Definitions.

    A person wishing to oppose a request for permanent authority files a 
protest. A person filing a valid protest becomes a protestant.



Sec. 365.203  Time for filing.

    A protest shall be filed (received at the FMCSA) within 10 days 
after notice of the application appears in the FMCSA Register. A copy of 
the protest shall be sent to applicant's representative at the same 
time. Failure timely to file a protest waives further participation in 
the proceeding.



Sec. 365.205  Contents of the protest.

    (a) All information upon which the protestant plans to rely is put 
into the protest.
    (b) A protest must be verified, as follows:

    I, --------------------, verify under penalty of perjury under laws 
of the United States of America, that the information above is true and 
correct. Further, I certify that I am qualified and authorized to file 
this protest. (See 18 U.S.C. 1001 and 18 U.S.C. 1621 for penalties.)

(Signature and Date)

    (c) A protest not in substantial compliance with applicable 
statutory standards or these rules may be rejected.
    (d) Protests must respond directly to the statutory standards for 
FMCSA review of the application. As these standards vary for particular 
types of applications, potential protestants should refer to the general 
criteria addressed at Sec. 365.107 and may consult the FMCSA at (202) 
366-9805 for further assistance in developing their evidence.

[59 FR 63728, Dec. 9, 1994. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 49940, Sept. 24, 1997]

[[Page 45]]



Sec. 365.207  Withdrawal.

    A protestant wishing to withdraw from a proceeding shall inform the 
FMCSA and applicant in writing.



        Subpart C_General Rules Governing the Application Process



Sec. 365.301  Applicable rules.

    Generally, all application proceedings are governed by the FMCSA's 
Rules of Practice at part 386 of this chapter except as designated 
below.



Sec. 365.303  Contacting another party.

    When a person wishes to contact a party or serve a pleading or 
letter on that party, it shall do so through its representative. The 
phone and FAX numbers and address of applicant's representative shall be 
listed in the FMCSA Register.



Sec. 365.305  Serving copies of pleadings.

    (a) An applicant must serve all pleadings and letters on the FMCSA 
and all known participants in the proceeding, except that a reply to a 
motion need only be served on the moving party.
    (b) A protestant need serve only the FMCSA and applicant with 
pleadings or letters.



Sec. 365.307  Replies to motions.

    Replies to motions filed under this part are due within 5 days of 
the date the motion is filed at the FMCSA.



Sec. 365.309  FAX filings.

    FAX filings of applications and supporting evidence are not 
permitted. To assist parties in meeting the expedited time frames 
established for protesting an application, however, the FMCSA will 
accept FAX filings of protests and any reply or rebuttal evidence. FAX 
filings of these pleadings must be followed by the original document, 
plus one copy for FMCSA recordkeeping purposes.



      Subpart D_Transfer of Operating Rights Under 49 U.S.C. 10926

    Source: 53 FR 4852, Feb. 18, 1988, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.



Sec. 365.401  Scope of rules.

    These rules define the procedures that enable motor passenger and 
property carriers,, property brokers, and household goods freight 
forwarders to obtain approval from the FMCSA to merge, transfer, or 
lease their operating rights in financial transactions not subject to 49 
U.S.C. 11343. Transactions covered by these rules are governed by 49 
U.S.C. 10321 and 10926. The filing fee is set forth at 49 CFR 
360.3(f)(8).

[53 FR 4852, Feb. 18, 1988, as amended at 67 FR 61820, Oct. 2, 2002]



Sec. 365.403  Definitions.

    For the purposes of this part, the following definitions apply:
    (a) Transfer. Transfers include all transactions (i.e., the sale or 
lease of interstate operating rights, \1\ or the merger of two or more 
carriers or a carrier into a noncarrier) subject to 49 U.S.C. 10926, as 
well as the sale of property brokers' licenses under 49 U.S.C. 10321.
---------------------------------------------------------------------------

    \1\ The execution of a chattel mortgage, deed of trust, or other 
similar document does not constitute a transfer or require the FMCSA's 
approval. However, a foreclosure for the purpose of transferring an 
operating right to satisfy a judgment or claim against the record holder 
may not be effected without approval of the FMCSA.
---------------------------------------------------------------------------

    (b) Operating rights. Operating rights include:
    (1) Certificates and permits issued to motor carriers;
    (2) Permits issued to freight forwarders;
    (3) Licenses issued to property brokers; and
    (4) Certificates of Registration issued to motor carriers. The term 
also includes authority held by virtue of the gateway elimination 
regulations published in the Federal Register as letter-notices.

[[Page 46]]

    (c) Certificate of registration. The evidence of a motor carrier's 
right to engage in interstate or foreign commerce within a single State 
is established by a corresponding State certificate.
    (d) Person. An individual, partnership, corporation, company, 
association, or other form of business, or a trustee, receiver, 
assignee, or personal representative of any of these.
    (e) Record holder. The person shown on the records of the FMCSA as 
the legal owner of the operating rights.
    (f) Control. A relationship between persons that includes actual 
control, legal control, and the power to exercise control, through or by 
common directors, officers, stockholders, a voting trust, a holding or 
investment company, or any other means.
    (g) Category 1 transfers. Transactions in which the person to whom 
the operating rights would be transferred is not an FMCSA carrier and is 
not affiliated with any FMCSA carrier.
    (h) Category 2 transfers. Transactions in which the person to whom 
the operating rights would be transferred is an FMCSA carrier and/or is 
affiliated with an FMCSA carrier.

[53 FR 4852, Feb. 18, 1988, as amended at 67 FR 61821, Oct. 2, 2002]



Sec. 365.405  Applications.

    (a) Procedural requirements. (1) At least 10 days before 
consummation, an original and two copies of a properly completed Form 
OP-FC-1 and any attachments (see paragraph (b)(1)(viii) of this section) 
must be filed with the Federal Motor Carrier Safety Administration, IT 
Operations Division (MC-RIO), 1200 New Jersey Ave., SE., Washington, DC 
20590-0001.
    (2) At any time after the expiration of the 10-day waiting period, 
applicants may consummate the transaction, subject to the subsequent 
approval of the application by the FMCSA, as described below. The 
transferee may commence operations under the rights acquired from the 
transferor upon its compliance with the FMCSA's regulations governing 
insurance, and process agents. See 49 CFR parts 387, subpart C, and 366, 
respectively. In the alternative, applicants may wait until the FMCSA 
has issued a decision on their application before transferring the 
operating rights. If the transferee wants the transferor's operating 
authority to be reissued in its name, it should furnish the FMCSA with a 
statement executed by both transferor and transferee indicating that the 
transaction has been consummated. Authority will not be reissued until 
after the FMCSA has approved the transaction.
    (b) Information required. (1) In category 1 and category 2 
transfers, applicants must furnish the following information:
    (i) Full name, address, and signatures of the transferee and 
transferor.
    (ii) A copy of the transferor's operating authority involved in the 
transfer proceeding.
    (iii) A short summary of the essential terms of the transaction.
    (iv) If relevant, the status of proceedings for the transfer of 
State certificate(s) corresponding to the Certificates of Registration 
being transferred.
    (v) A statement as to whether the transfer will or will not 
significantly affect the quality of the human environment.
    (vi) Certification by transferor and transferee of their current 
respective safety ratings by the United States Department of 
Transportation (i.e., satisfactory, conditional, unsatisfactory, or 
unrated).
    (vii) Certification by the transferee that it has sufficient 
insurance coverage under 49 U.S.C. 13906 for the service it intends to 
provide.
    (viii) Information to demonstrate that the proposed transaction is 
consistent with the national transportation policy and satisfies the 
criteria for approval set forth at Sec. 365.409 of this part. (Such 
information may be appended to the application form and, if provided, 
would be embraced by the oath and verification contained on that form.)
    (ix) If motor carrier operating rights are being transferred, 
certification by the transferee that it is not domiciled in Mexico nor 
owned or controlled by persons of that country.
    (2) Category 2 applicants must also submit the following additional 
information:
    (i) Name(s) of the carrier(s), if any, with which the transferee is 
affiliated.

[[Page 47]]

    (ii) Aggregate revenues of the transferor, transferee, and their 
carrier affiliates from interstate transportation sources for a 1-year 
period ending not earlier than 6 months before the date of the agreement 
of the parties concerning the transaction. If revenues exceed $2 
million, the transfer may be subject to 49 U.S.C. 14303 rather than 
these rules.

[53 FR 4852, Feb. 18, 1988, as amended at 54 FR 35343, Aug. 25, 1989; 62 
FR 49940, Sept. 24, 1997; 67 FR 61821, Oct. 2, 2002; 68 FR 56198, Sept. 
30, 2003; 72 FR 55699, Oct. 1, 2007]



Sec. 365.407  Notice.

    The FMCSA will give notice of approved transfer applications through 
publication in the FMCSA Register.



Sec. 365.409  FMCSA action and criteria for approval.

    A transfer will be approved under this section if:
    (a) The transaction is not subject to 49 U.S.C. 14303; and
    (b) The transaction is consistent with the public interest; however,
    (c) If the transferor or transferee has an ``Unsatisfactory'' safety 
fitness rating from DOT, the transfer may be denied. If an application 
is denied, the FMCSA will set forth the basis for its action in a 
decision or letter notice. If parties with ``Unsatisfactory'' safety 
fitness ratings consummate a transaction pursuant to the 10-day rule at 
Sec. 365.405 of this part prior to the notification of FMCSA action, 
they do so at their own risk and subject to any conditions we may impose 
subsequently. Transactions that have been consummated but later are 
denied by the FMCSA are null and void and must be rescinded. Similarly, 
if applications contain false or misleading information, they are void 
ab initio.

[53 FR 4852, Feb. 18, 1988, as amended at 56 FR 46735, Sept. 16, 1991; 
62 FR 49940, Sept. 24, 1997]



Sec. 365.411  Responsive pleadings.

    (a) Protests must be filed within 20 days after the date of 
publication of an approved transfer application in the FMCSA Register. 
Protests received prior to the notice will be rejected. Applicants may 
respond within 20 days after the due date of protests. Petitions for 
reconsideration of decisions denying applications must be filed within 
20 days after the date of service of such decisions.
    (b) Protests and petitions for reconsideration must be filed with 
the Federal Motor Carrier Safety Administration, IT Operations Division 
(MC-RIO), 1200 New Jersey Ave., SE., Washington, DC 20590-0001, and be 
served on appropriate parties.

[53 FR 4852, Feb. 18, 1988, as amended at 67 FR 61821, Oct. 2, 2002; 68 
FR 56198, Sept. 30, 2003; 72 FR 55699, Oct. 1, 2007]



Sec. 365.413  Procedures for changing the name or business form of a 
motor carrier, freight forwarder, or property broker.

    (a) Scope. These procedures apply in the following circumstances:
    (1) A change in the form of a business, such as the incorporation of 
a partnership or sole proprietorship;
    (2) A change in the legal name of a corporation or partnership or 
change in the trade name or assumed name of any entity;
    (3) A transfer of operating rights from a deceased or incapacitated 
spouse to the other spouse;
    (4) A reincorporation and merger for the purpose of effecting a name 
change;
    (5) An amalgamation or consolidation of a carrier and a noncarrier 
into a new carrier having a different name from either of the 
predecessor entities; and
    (6) A change in the State of incorporation accomplished by 
dissolving the corporation in one State and reincorporating in another 
State.
    (b) Procedures. To accomplish these changes, a letter must be sent 
to the Federal Motor Carrier Safety Administration, IT Operations 
Division (MC-RIO), 1200 New Jersey Ave., SE., Washington, DC 20590-0001. 
The envelope should be marked ``NAME CHANGE''. The applicant must 
provide:
    (1) The docket number(s) and name of the carrier requesting the 
change;
    (2) A copy of the articles of incorporation and the State 
certificate reflecting the incorporation;
    (3) The name(s) of the owner(s) of the stock and the distribution of 
the shares;

[[Page 48]]

    (4) The names of the officers and directors of the corporation; and
    (5) A statement that there is no change in the ownership, 
management, or control of the business. When this procedure is being 
used to transfer operating rights from a deceased or incapacitated 
spouse to the other spouse, documentation that the other spouse has the 
legal right to effect such change must be included with the request. The 
fee for filing a name change request is in Sec. 360.3(f) of this 
chapter.

[53 FR 4852, Feb. 18, 1988, as amended at 54 FR 47364, Nov. 14, 1989; 62 
FR 49940, Sept. 24, 1997; 68 FR 56198, Sept. 30, 2003; 72 FR 55699, Oct. 
1, 2007]



      Subpart E_Special Rules for Certain Mexico-domiciled Carriers

    Source: 67 FR 12714, Mar. 19, 2002, unless otherwise noted.



Sec. 365.501  Scope of rules.

    (a) The rules in this subpart govern the application by a Mexico-
domiciled motor carrier to provide transportation of property or 
passengers in interstate commerce between Mexico and points in the 
United States beyond the municipalities and commercial zones along the 
United States-Mexico international border.
    (b) A Mexico-domiciled carrier may not provide point-to-point 
transportation services, including express delivery services, within the 
United States for goods other than international cargo.



Sec. 365.503  Application.

    (a) Each applicant applying under this subpart must submit an 
application that consists of:
    (1) Form OP-1 (MX)--Application to Register Mexican Carriers for 
Motor Carrier Authority To Operate Beyond U.S. Municipalities and 
Commercial Zones on the U.S.-Mexico Border;
    (2) Form MCS-150--Motor Carrier Identification Report; and
    (3) A notification of the means used to designate process agents, 
either by submission in the application package of Form BOC-3--
Designation of Agents-Motor Carriers, Brokers and Freight Forwarders or 
a letter stating that the applicant will use a process agent service 
that will submit the Form BOC-3 electronically.
    (b) The Federal Motor Carrier Safety Administration (FMCSA) will 
only process your application if it meets the following conditions:
    (1) The application must be completed in English;
    (2) The information supplied must be accurate, complete, and include 
all required supporting documents and applicable certifications in 
accordance with the instructions to Form OP-1 (MX), Form MCS-150, and 
Form BOC-3;
    (3) The application must include the filing fee payable to the FMCSA 
in the amount set forth at 49 CFR 360.3(f)(1); and
    (4) The application must be signed by the applicant.
    (c) You must submit the application to the address provided in Form 
OP-1(MX).
    (d) You may obtain the application forms from any FMCSA Division 
Office or download it from the FMCSA website at: http://
www.fmcsa.dot.gov/factsfigs/formspubs.htm.



Sec. 365.505  Re-registration and fee waiver for certain applicants.

    (a) If you filed an application using Form OP-1(MX) before May 3, 
2002, you are required to file a new Form OP-1(MX). You do not need to 
submit a new fee when you file a new application under this subpart.
    (b) If you hold a Certificate of Registration issued before April 
18, 2002, authorizing operations beyond the municipalities along the 
United States-Mexico border and beyond the commercial zones of such 
municipalities, you are required to file an OP-1(MX) if you want to 
continue those operations. You do not need to submit a fee when you file 
an application under this subpart.
    (1) You must file the application by November 4, 2003.
    (2) The FMCSA may suspend or revoke the Certificate of Registration 
of any applicable holder that fails to comply with the procedures set 
forth in this section.
    (3) Certificates of Registration issued before April 18, 2002, will 
remain valid

[[Page 49]]

until the FMCSA acts on the OP-1(MX) application.

[67 FR 12714, Mar. 19, 2002, as amended at 68 FR 56198, Sept. 30, 2003]



Sec. 365.507  FMCSA action on the application.

    (a) The FMCSA will review and act on each application submitted 
under this subpart in accordance with the procedures set out in this 
part.
    (b) The FMCSA will validate the accuracy of information and 
certifications provided in the application by checking data maintained 
in databases of the governments of Mexico and the United States.
    (c) Pre-authorization safety audit. Every Mexico-domiciled carrier 
that applies under this part must satisfactorily complete an FMCSA-
administered safety audit before FMCSA will grant provisional operating 
authority to operate in the United States. The safety audit is a review 
by the FMCSA of the carrier's written procedures and records to validate 
the accuracy of information and certifications provided in the 
application and determine whether the carrier has established or 
exercises the basic safety management controls necessary to ensure safe 
operations. The FMCSA will evaluate the results of the safety audit 
using the criteria in Appendix A to this subpart.
    (d) If a carrier successfully completes the pre-authorization safety 
audit and the FMCSA approves its application submitted under this 
subpart, FMCSA will publish a summary of the application as a 
preliminary grant of authority in the FMCSA Register to give notice to 
the public in case anyone wishes to oppose the application, as required 
in Sec. 365.109(b) of this part.
    (e) If the FMCSA grants provisional operating authority to the 
applicant, it will assign a distinctive USDOT Number that identifies the 
motor carrier as authorized to operate beyond the municipalities in the 
United States on the U.S.-Mexico international border and beyond the 
commercial zones of such municipalities. In order to operate in the 
United States, a Mexico-domiciled motor carrier with provisional 
operating authority must:
    (1) Have its surety or insurance provider file proof of financial 
responsibility in the form of certificates of insurance, surety bonds, 
and endorsements, as required by Sec. 387.301 of this subchapter;
    (2) File a hard copy of, or have its process agent(s) electronically 
submit, Form BOC-3--Designation of Agents-Motor Carriers, Brokers and 
Freight Forwarders, as required by part 366 of this subchapter; and
    (3) Comply with all provisions of the safety monitoring system in 
subpart B of part 385 of this subchapter, including successfully passing 
CVSA Level I inspections at least every 90 days and having decals 
affixed to each commercial motor vehicle operated in the United States 
as required by Sec. 385.103(c) of this subchapter.
    (f) The FMCSA may grant permanent operating authority to a Mexico-
domiciled carrier no earlier than 18 months after the date that 
provisional operating authority is granted and only after successful 
completion to the satisfaction of the FMCSA of the safety monitoring 
system for Mexico-domiciled carriers set out in subpart B of part 385 of 
this subchapter. Successful completion includes obtaining a satisfactory 
safety rating as the result of a compliance review.



Sec. 365.509  Requirement to notify FMCSA of change in applicant 
information.

    (a) A motor carrier subject to this subpart must notify the FMCSA of 
any changes or corrections to the information in parts I, IA or II 
submitted on the Form OP-1(MX) or the Form BOC-3--Designation of 
Agents--Motor Carriers, Brokers and Freight Forwarders during the 
application process or after having been granted provisional operating 
authority. The carrier must notify the FMCSA in writing within 45 days 
of the change or correction.
    (b) If a carrier fails to comply with paragraph (a) of this section, 
the FMCSA may suspend or revoke its operating authority until it meets 
those requirements.



Sec. 365.511  Requirement for CVSA inspection of vehicles during first
three consecutive years of permanent operating authority.

    A Mexico-domiciled motor carrier granted permanent operating 
authority

[[Page 50]]

must have its vehicles inspected by Commercial Vehicle Safety Alliance 
(CVSA)-certified inspectors every three months and display a current 
inspection decal attesting to the successful completion of such an 
inspection for at least three consecutive years after receiving 
permanent operating authority from the FMCSA.



      Sec. Appendix A to Subpart E of Part 365--Explanation of Pre-
  Authorization Safety Audit Evaluation Criteria for Mexico-Domiciled 
                             Motor Carriers

                               I. General

    (a) Section 350 of the Fiscal Year 2002 DOT Appropriations Act (Pub. 
L. 107-87) directed the FMCSA to perform a safety audit of each Mexico-
domiciled motor carrier before the FMCSA grants the carrier provisional 
operating authority to operate beyond United States municipalities and 
commercial zones on the United States-Mexico international border.
    (b) The FMCSA will decide whether it will conduct the safety audit 
at the Mexico-domiciled motor carrier's principal place of business in 
Mexico or at a location specified by the FMCSA in the United States, in 
accordance with the statutory requirements that 50 percent of all safety 
audits must be conducted onsite and on-site inspections cover at least 
50 percent of estimated truck traffic in any year. All records and 
documents must be made available for examination within 48 hours after a 
request is made. Saturdays, Sundays, and Federal holidays are excluded 
from the computation of the 48-hour period.
    (c) The safety audit will include:
    (1) Verification of available performance data and safety management 
programs;
    (2) Verification of a controlled substances and alcohol testing 
program consistent with part 40 of this title;
    (3) Verification of the carrier's system of compliance with hours-
of-service rules in part 395 of this subchapter, including recordkeeping 
and retention;
    (4) Verification of proof of financial responsibility;
    (5) Review of available data concerning the carrier's safety 
history, and other information necessary to determine the carrier's 
preparedness to comply with the Federal Motor Carrier Safety 
Regulations, parts 382 through 399 of this subchapter, and the Federal 
Hazardous Material Regulations, parts 171 through 180 of this title;
    (6) Inspection of available commercial motor vehicles to be used 
under provisional operating authority, if any of these vehicles have not 
received a decal required by Sec. 385.103(d) of this subchapter;
    (7) Evaluation of the carrier's safety inspection, maintenance, and 
repair facilities or management systems, including verification of 
records of periodic vehicle inspections;
    (8) Verification of drivers' qualifications, including confirmation 
of the validity of the Licencia de Federal de Conductor of each driver 
the carrier intends to assign to operate under its provisional operating 
authority; and
    (9) An interview of carrier officials to review safety management 
controls and evaluate any written safety oversight policies and 
practices.
    (d) To successfully complete the safety audit, a Mexico-domiciled 
motor carrier must demonstrate to the FMCSA that it has the required 
elements in paragraphs (c)(2), (3), (4), (7), and (8) above and other 
basic safety management controls in place which function adequately to 
ensure minimum acceptable compliance with the applicable safety 
requirements. The FMCSA developed a ``safety audit evaluation 
criteria,'' which uses data from the safety audit and roadside 
inspections to determine that each applicant for provisional operating 
authority has basic safety management controls in place.
    (e) The safety audit evaluation process developed by the FMCSA is 
used to:
    (1) Evaluate basic safety management controls and determine if each 
Mexico-domiciled carrier and each driver is able to operate safely in 
the United States beyond municipalities and commercial zones on the 
United States-Mexico international border; and
    (2) Identify motor carriers and drivers who are having safety 
problems and need improvement in their compliance with the FMCSRs and 
the HMRs, before FMCSA grants the carriers provisional operating 
authority to operate beyond United States municipalities and commercial 
zones on the United States-Mexico international border.

     II. Source of the Data for the Safety Audit Evaluation Criteria

    (a) The FMCSA's evaluation criteria are built upon the operational 
tool known as the safety audit. The FMCSA developed this tool to assist 
auditors and investigators in assessing the adequacy of a Mexico-
domiciled carrier's basic safety management controls.
    (b) The safety audit is a review of a Mexico-domiciled motor 
carrier's operation and is used to:
    (1) Determine if a carrier has the basic safety management controls 
required by 49 U.S.C. 31144;
    (2) Meet the requirements of Section 350 of the DOT Appropriations 
Act; and
    (3) In the event that a carrier is found not to be in compliance 
with applicable FMCSRs and HMRs, the safety audit can be used to educate 
the carrier on how to comply with U.S. safety rules.

[[Page 51]]

    (c) Documents such as those contained in driver qualification files, 
records of duty status, vehicle maintenance records, and other records 
are reviewed for compliance with the FMCSRs and HMRs. Violations are 
cited on the safety audit. Performance-based information, when 
available, is utilized to evaluate the carrier's compliance with the 
vehicle regulations. Recordable accident information is also collected.

  III. Overall Determination of the Carrier's Basic Safety Management 
                                Controls

    (a) The carrier will not be granted provisional operating authority 
if the FMCSA fails to:
    (1) Verify a controlled substances and alcohol testing program 
consistent with part 40 of this title;
    (2) Verify a system of compliance with hours-of-service rules of 
this subchapter, including recordkeeping and retention;
    (3) Verify proof of financial responsibility;
    (4) Verify records of periodic vehicle inspections; and
    (5) Verify drivers' qualifications of each driver the carrier 
intends to assign to operate under such authority, as required by parts 
383 and 391 of this subchapter, including confirming the validity of 
each driver's Licencia de Federal de Conductor.
    (b) If the FMCSA confirms each item under II (a)(1) through (5) 
above, the carrier will be granted provisional operating authority, 
except if FMCSA finds the carrier has inadequate basic safety management 
controls in at least three separate factors described in part III below. 
If FMCSA makes such a determination, the carrier's application for 
provisional operating authority will be denied.

                 IV. Evaluation of Regulatory Compliance

    (a) During the safety audit, the FMCSA gathers information by 
reviewing a motor carrier's compliance with ``acute'' and ``critical'' 
regulations of the FMCSRs and HMRs.
    (b) Acute regulations are those where noncompliance is so severe as 
to require immediate corrective actions by a motor carrier regardless of 
the overall basic safety management controls of the motor carrier.
    (c) Critical regulations are those where noncompliance relates to 
management and/or operational controls. These are indicative of 
breakdowns in a carrier's management controls.
    (d) The list of the acute and critical regulations, which are used 
in determining if a carrier has basic safety management controls in 
place, is included in Appendix B, VII. List of Acute and Critical 
Regulations to part 385 of this subchapter.
    (e) Noncompliance with acute and critical regulations are indicators 
of inadequate safety management controls and usually higher than average 
accident rates.
    (f) Parts of the FMCSRs and the HMRs having similar characteristics 
are combined together into six regulatory areas called ``factors.'' The 
regulatory factors, evaluated on the adequacy of the carrier's safety 
management controls, are:
    (1) Factor 1--General: Parts 387 and 390;
    (2) Factor 2--Driver: Parts 382, 383 and 391;
    (3) Factor 3--Operational: Parts 392 and 395;
    (4) Factor 4--Vehicle: Part 393, 396 and inspection data for the 
last 12 months;
    (5) Factor 5--Hazardous Materials: Parts 171, 177, 180 and 397; and
    (6) Factor 6--Accident: Recordable Accident Rate per Million Miles.
    (g) For each instance of noncompliance with an acute regulation, 1.5 
points will be assessed.
    (h) For each instance of noncompliance with a critical regulation, 1 
point will be assessed.
    (i) Vehicle Factor. (1) When at least three vehicle inspections are 
recorded in the Motor Carrier Management Information System (MCMIS) 
during the twelve months before the safety audit or performed at the 
time of the review, the Vehicle Factor (part 396) will be evaluated on 
the basis of the Out-of-Service (OOS) rates and noncompliance with acute 
and critical regulations. The results of the review of the OOS rate will 
affect the Vehicle Factor as follows:
    (i) If the motor carrier has had at least three roadside inspections 
in the twelve months before the safety audit, and the vehicle OOS rate 
is 34 percent or higher, one point will be assessed against the carrier. 
That point will be added to any other points assessed for discovered 
noncompliance with acute and critical regulations of part 396 to 
determine the carrier's level of safety management control for that 
factor.
    (ii) If the motor carrier's vehicle OOS rate is less than 34 
percent, or if there are less than three inspections, the determination 
of the carrier's level of safety management controls will only be based 
on discovered noncompliance with the acute and critical regulations of 
part 396.
    (2) Over two million inspections occur on the roadside each year in 
the United States. This vehicle inspection information is retained in 
the MCMIS and is integral to evaluating motor carriers' ability to 
successfully maintain their vehicles, thus preventing them from being 
placed OOS during roadside inspections. Each safety audit will continue 
to have the requirements of part 396, Inspection, Repair, and 
Maintenance, reviewed as indicated by the above explanation.
    (j) Accident Factor. (1) In addition to the five regulatory factors, 
a sixth factor is included in the process to address the accident 
history of the motor carrier. This factor is

[[Page 52]]

the recordable accident rate, which the carrier has experienced during 
the past 12 months. Recordable accident, as defined in 49 CFR 390.5, 
means an accident involving a commercial motor vehicle operating on a 
public road in interstate or intrastate commerce which results in a 
fatality; a bodily injury to a person who, as a result of the injury, 
immediately receives medical treatment away from the scene of the 
accident; or one or more motor vehicles incurring disabling damage as a 
result of the accident requiring the motor vehicle to be transported 
away from the scene by a tow truck or other motor vehicle.
    (2) Experience has shown that urban carriers, those motor carriers 
operating entirely within a radius of less than 100 air miles (normally 
urban areas), have a higher exposure to accident situations because of 
their environment and normally have higher accident rates.
    (3) The recordable accident rate will be used in determining the 
carrier's basic safety management controls in Factor 6, Accident. It 
will be used only when a carrier incurs two or more recordable accidents 
within the 12 months before the safety audit. An urban carrier (a 
carrier operating entirely within a radius of 100 air miles) with a 
recordable rate per million miles greater than 1.7 will be deemed to 
have inadequate basic safety management controls for the accident 
factor. All other carriers with a recordable accident rate per million 
miles greater than 1.5 will be deemed to have inadequate basic safety 
management controls for the accident factor. The rates are the result of 
roughly doubling the United States national average accident rate in 
Fiscal Years 1994, 1995, and 1996.
    (4) The FMCSA will continue to consider preventability when a new 
entrant contests the evaluation of the accident factor by presenting 
compelling evidence that the recordable rate is not a fair means of 
evaluating its accident factor. Preventability will be determined 
according to the following standard: ``If a driver, who exercises normal 
judgment and foresight, could have foreseen the possibility of the 
accident that in fact occurred, and avoided it by taking steps within 
his/her control which would not have risked causing another kind of 
mishap, the accident was preventable.''
    (k) Factor Ratings. (1) The following table shows the five 
regulatory factors, parts of the FMCSRs and HMRs associated with each 
factor, and the accident factor. Each carrier's level of basic safety 
management controls with each factor is determined as follows:
    (i) Factor 1--General: Parts 390 and 387;
    (ii) Factor 2--Driver: Parts 382, 383, and 391;
    (iii) Factor 3--Operational: Parts 392 and 395;
    (iv) Factor 4--Vehicle: Parts 393, 396 and the Out of Service Rate;
    (v) Factor 5--Hazardous Materials: Part 171, 177, 180 and 397; and
    (vi) Factor 6--Accident: Recordable Accident Rate per Million Miles;
    (2) For paragraphs III (k)(1)(i) through (v) (Factors 1 through 5), 
if the combined violations of acute and or critical regulations for each 
factor is equal to three or more points, the carrier is determined not 
to have basic safety management controls for that individual factor.
    (3) For paragraphs III (k)(1)(vi), if the recordable accident rate 
is greater than 1.7 recordable accidents per million miles for an urban 
carrier (1.5 for all other carriers), the carrier is determined to have 
inadequate basic safety management controls.
    (l) Notwithstanding FMCSA verification of the items listed in part 
II (a)(1) through (5) above, if the safety audit determines the carrier 
has inadequate basic safety management controls in at least three 
separate factors described in part III, the carrier's application for 
provisional operating authority will be denied. For example, FMCSA 
evaluates a carrier finding:
    (1) One instance of noncompliance with a critical regulation in part 
387 scoring one point for Factor 1;
    (2) Two instances of noncompliance with acute regulations in part 
382 scoring three points for Factor 2;
    (3) Three instances of noncompliance with critical regulations in 
part 396 scoring three points for Factor 4; and
    (4) Three instances of noncompliance with acute regulations in parts 
171 and 397 scoring four and one-half (4.5) points for Factor 5.
    Under this example, the carrier will not receive provisional 
operating authority because it scored three or more points for Factors 
2, 4, and 5 and FMCSA determined the carrier had inadequate basic safety 
management controls in at least three separate factors.



PART 366_DESIGNATION OF PROCESS AGENT--Table of Contents




Sec.
366.1 Applicability.
366.2 Form of designation.
366.3 Eligible persons.
366.4 Required States.
366.5 Blanket designations.
366.6 Cancellation or change.

    Authority: 49 U.S.C. 13303, 13304, and 14704; and 49 CFR 1.73.

    Source: 55 FR 11197, Mar. 27, 1990, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.

[[Page 53]]


    Editorial Note: Nomenclature changes to part 366 appear at 66 FR 
49870, Oct. 1, 2001.



Sec. 366.1  Applicability.

    These rules, relating to the filing of designations of persons upon 
whom court process may be served, govern motor carriers and brokers and, 
as of the moment of succession, their fiduciaries (as defined at 49 CFR 
387.319(a)).

[55 FR 11197, Mar. 27, 1990. Redesignated at 61 FR 54707, Oct. 21, 1996; 
62 FR 49940, Sept. 24, 1997]



Sec. 366.2  Form of designation.

    Designations shall be made on Form BOC-3, Designation of Agent for 
Service of Process. Only one completed current form may be on file. It 
must include all States for which agent designations are required. One 
copy must be retained by the carrier or broker at its principal place of 
business.



Sec. 366.3  Eligible persons.

    All persons (as defined at 49 U.S.C. 13102(16)) designated must 
reside or maintain an office in the State for which they are designated. 
If a State official is designated, evidence of his willingness to accept 
service of process must be furnished.

[55 FR 11197, Mar. 27, 1990. Redesignated at 61 FR 54707, Oct. 21, 1996; 
62 FR 49940, Sept. 24, 1997]



Sec. 366.4  Required States.

    (a) Motor carriers. Every motor carrier (of property or passengers) 
shall make a designation for each State in which it is authorized to 
operate and for each State traversed during such operations. Every motor 
carrier (including private carriers) operating in the United States in 
the course of transportation between points in a foreign country shall 
file a designation for each State traversed.
    (b) Brokers. Every broker shall make a designation for each State in 
which its offices are located or in which contracts will be written.

[55 FR 11197, Mar. 27, 1990, as amended at 55 FR 47338, Nov. 13, 1990]



Sec. 366.5  Blanket designations.

    Where an association or corporation has filed with the FMCSA a list 
of process agents for each State, motor carriers may make the required 
designations by using the following statement:

    Those persons named in the list of process agents on file with the 
Federal Motor Carrier Safety Administration by ------------------------
------

________________________________________________________________________

(Name of association or corporation) and any subsequently filed 
revisions thereof, for the States in which this carrier is or may be 
authorized to operate, including States traversed during such 
operations, except those States for which individual designations are 
named.



Sec. 366.6  Cancellation or change.

    A designation may be canceled or changed only by a new designation 
except that, where a carrier or broker ceases to be subject to Sec. 
366.4 in whole or in part for 1 year, designation is no longer required 
and may be canceled without making another designation.

[55 FR 11197, Mar. 27, 1990. Redesignated at 61 FR 54707, Oct. 21, 1996; 
62 FR 49940, Sept. 24, 1997]



PART 367_STANDARDS FOR REGISTRATION WITH STATES--Table of Contents




               Subpart A_Single State Registration System

Sec.
367.1 Definitions.
367.2 Participation by States.
367.3 Selection of registration State.
367.4 Requirements for registration.
367.5 Registration receipts.
367.6 Registration State accounting.
367.7 Violations unlawful; criminal penalties and civil sanctions.

Appendix A to Subpart A--Uniform Application for Single State 
          Registration for Motor Carriers Registered with the Secretary 
          of Transportation

Subpart B_Fees Under the Unified Carrier Registration Plan and Agreement

367.20 Fees under the Unified Carrier Registration Plan and Agreement 
          for Each Registration Year.

    Authority: 49 U.S.C. 13301, 14504, 14504a; and 49 CFR 1.73.

    Source: 58 FR 28933, May 18, 1993, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.

[[Page 54]]


    Editorial Note: Nomenclature changes to part 367 appear at 66 FR 
49870, Oct. 1, 2001.



               Subpart A_Single State Registration System



Sec. 367.1  Definitions.

    (a) The Secretary. The Secretary of Transportation.
    (b) Motor carrier and carrier. A person authorized to engage in the 
transportation of passengers or property, as a common or contract 
carrier, in interstate or foreign commerce, under the provisions of 49 
U.S.C. 13902.
    (c) Motor vehicle. A self-propelled or motor driven vehicle operated 
by a motor carrier in interstate or foreign commerce under authority 
issued by the Secretary.
    (d) Principal place of business. A single location that serves as a 
motor carrier's headquarters and where it maintains or can make 
available its operational records.
    (e) State. A State of the United States or the District of Columbia.

[58 FR 28933, May 18, 1993. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15420, Apr. 1, 1997]



Sec. 367.2  Participation by States.

    (a) A State is eligible to participate as a registration State and 
to receive fee revenue only if, as of January 1, 1991, it charged or 
collected a fee for a vehicle identification stamp or a number pursuant 
to the provisions of the predecessor to this part.
    (b) An eligible State that intends either to commence or to cease 
participating in the registration program must publish notice of its 
intention by the 1st day of July of the year preceding the registration 
year in which it will commence or cease participating.



Sec. 367.3  Selection of registration State.

    (a) Each motor carrier required to register and pay filing fees must 
select a single participating State as its registration State. The 
carrier must select the State in which it maintains its principal place 
of business, if such State is a participating State. A carrier that 
maintains its principal place of business outside of a participating 
State must select the State in which it will operate the largest number 
of motor vehicles during the next registration year. In the event a 
carrier will operate the same largest number of vehicles in more than 
one State, it must select one of those States.
    (b) A carrier may not change its registration State unless it 
changes its principal place of business or its registration State ceases 
participating in the program, in which case the carrier must select a 
registration State for the next registration year under the standards of 
paragraph (a) of this section.
    (c) A carrier must give notice of its selection to the State 
commission of its selected registration State, and, the State commission 
of its prior registration State, within 30 days after it has made its 
selection. If a carrier changes its principal place of business during 
the annual registration period specified in Sec. 367.4(b)(2), the 
carrier may continue to use its prior registration State, if any, for 
the next registration year.
    (d) A carrier must give notice of its selection to its insurer or 
insurers as soon as practicable after it has made its selection.

[58 FR 28933, May 18, 1993. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15420, Apr. 1, 1997]



Sec. 367.4  Requirements for registration.

    (a) Except as provided in paragraph (c)(1) of this section with 
regard to a carrier operating under temporary authority, only a motor 
carrier holding a certificate or permit issued by the Secretary under 49 
U.S.C. 13902 shall be required to register under these standards.
    (b) A motor carrier operating in interstate or foreign commerce in 
one or more participating States under a certificate or permit issued by 
the Secretary shall be required to register annually with a single 
registration State, and such registration shall be deemed to satisfy the 
registration requirements of all participating States.
    (1) The registration year will be the calendar year.
    (2) A carrier must file its annual registration application between 
the 1st day of August and the 30th day of November of the year preceding 
the registration year. A carrier that intends to commence operating 
during the current registration year may register at

[[Page 55]]

any time, but it must do so before it commences operating.
    (3) The registration application must be in the form appended to 
this part and must contain the information and be accompanied by the 
fees specified in paragraph (c) of this section. There will be no 
prorating of fees to account for partial year operations.
    (4) A carrier that has changed its registration State since its last 
filing must identify the registration State with which it previously 
filed.
    (c) A motor carrier must file, or cause to be filed, the following 
with its registration State:
    (1) Copies of its certificates and/or permits. A carrier must 
supplement its filing by submitting copies of any new operating 
authorities as they are issued. Once a carrier has submitted copies of 
its authorities, it may thereafter satisfy the filing requirement by 
certifying that the copies are on file. A carrier may, with the 
permission of its registration State, submit a summary of its operating 
authorities in lieu of copies. A carrier granted emergency temporary 
authority or temporary authority having a duration of 120 days or less 
is not required to file evidence of such authority, but it must 
otherwise comply with the requirements of this section;
    (2) A copy of its proof of public liability security submitted to 
and accepted by the Secretary under 49 CFR part 387, subpart C or a copy 
of an order of the Secretary approving a public liability self-insurance 
application or other public liability security or agreement under the 
provisions of that part. A carrier must supplement its filings as 
necessary to ensure that current information is on file. Once a carrier 
has submitted, or caused to be submitted, a copy of its proof or order 
of the Secretary, it may thereafter satisfy the filing requirement by 
certifying that it has done so and that its security, self-insurance, or 
agreement remains in effect;
    (3) A copy of its designation of an agent or agents for service of 
process submitted to and accepted by the Secretary under 49 CFR part 
366. A carrier must supplement its filings as necessary to ensure that 
current information is on file. Once a carrier has submitted a copy of 
its designation, it may thereafter satisfy the filing requirement by 
certifying that its designation is on file; and
    (4) A fee for the filing of proof of insurance. In support of such 
fee, the carrier must submit the following information:
    (i) The number of motor vehicles it intends to operate in each 
participating State during the next registration year;
    (ii) The per vehicle fee each pertinent participating State charges, 
which fee must equal the fee, not to exceed $10, that such State 
collected or charged as of November 15, 1991;
    (iii) The total fee due each participating State; and
    (iv) The total of all fees specified in paragraph (c)(4)(iii) of 
this section.
    (d) Consistent with its obligations under paragraph (c)(2) of this 
section, a carrier must cause to be timely filed with its registration 
State copies of any notices of cancellation or of any replacement 
certificates of insurance, surety bonds, or other security filed with 
the Secretary under 49 CFR part 387, subpart C.
    (e) A carrier must make such supplemental filings at any time during 
the registration year as may be necessary to specify additional vehicles 
and/or States of operation and to pay additional fees.
    (f) A motor carrier must submit to its insurer or insurers a copy of 
the supporting information, including any supplemental information, 
filed with its registration State under paragraphs (c)(4) and (e) of 
this section.
    (g) The charging or collection of any fee that is not in accordance 
with the fee system established above is deemed a burden on interstate 
commerce. This includes fees for the registration or filing of evidence 
of insurance whether assessed directly upon the carrier or indirectly 
upon the insurance provider or other party who seeks reimbursement from 
the carrier.
    (h) To the extent any State registration requirement imposes 
obligations in excess of those specified in this part, the requirement 
is an unreasonable burden on transportation within the

[[Page 56]]

Secretary's jurisdiction under 49 U.S.C. 13501.

[58 FR 28933, May 18, 1993. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15420, Apr. 1, 1997]



Sec. 367.5  Registration receipts.

    (a) On compliance by a motor carrier with the annual or supplemental 
registration requirements of Sec. 367.4, the registration State must 
issue the carrier a receipt reflecting that the carrier has filed the 
required proof of insurance and paid fees in accordance with the 
requirements of that section. The registration State also must issue a 
number of official copies of the receipt equal to the number of motor 
vehicles for which fees have been paid.
    (1) The receipt and official copies must contain only information 
identifying the carrier and specifying the States for which fees were 
paid. Supplemental receipts and official copies need contain only 
information relating to their underlying supplemental registrations.
    (b) Receipts and official copies issued pursuant to a filing made 
during the annual registration period specified in Sec. 367.4(b)(2) 
must be issued within 30 days of filing of a fully acceptable 
registration application. All other receipts and official copies must be 
issued by the 30th day following the date of filing of a fully 
acceptable supplemental registration application. All receipts and 
official copies shall expire at midnight on the 31st day of December of 
the registration year for which they were issued.
    (c) A carrier is permitted to operate its motor vehicles only in 
those participating States with respect to which it has paid appropriate 
fees, as indicated on the receipts and official copies. It may not 
operate more motor vehicles in a participating State than the number for 
which it has paid fees.
    (d) A motor carrier may not copy or alter a receipt or an official 
copy of a receipt.
    (e) A motor carrier must maintain in each of its motor vehicles an 
official copy of its receipt indicating that it has filed the required 
proof of insurance and paid appropriate fees for each State in which it 
operates.
    (f) A motor carrier may transfer its official copies of its receipts 
from vehicles taken out of service to their replacement vehicles.
    (g) The driver of a motor vehicle must present an official copy of a 
receipt for inspection by any authorized government personnel on 
reasonable demand.
    (h) No registration State shall require decals, stamps, cab cards, 
or any other means of registering or identifying specific vehicles 
operated by a motor carrier.

[60 FR 30012, June 7, 1995. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15420, Apr. 1, 1997]



Sec. 367.6  Registration State accounting.

    (a) A participating State must, on or before the last day of each 
month, allocate and remit to each other participating State the 
appropriate portion of the fee revenue registrants submitted during the 
preceding month. Each remittance must be accompanied by a supporting 
statement identifying registrants and specifying the number of motor 
vehicles for which each registrant submitted fees. A participating State 
must submit a report of ``no activity'' to any other participating State 
for which it collected no fees during any month.
    (b) A participating State must maintain records of fee revenue 
received from and remitted to each other participating State. Such 
records must specify the fees received from and remitted to each 
participating State with respect to each motor carrier registrant. A 
participating State must retain such records for a minimum of 3 years.
    (c) A participating State must keep records pertaining to each of 
the motor carriers for which it acts as a registration State. The 
records must, at a minimum, include copies of annual and supplemental 
registration applications containing the information required by Sec. 
367.4(c). A registration State must retain all such records for a 
minimum of 3 years.

[58 FR 28933, May 18, 1993. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15420, Apr. 1, 1997]

[[Page 57]]



Sec. 367.7  Violations unlawful; criminal penalties and civil sanctions.

    Any violation of the provisions of these standards is unlawful. 
Nothing in these standards shall be construed to prevent a State from 
imposing criminal penalties or civil sanctions upon any person or 
organization violating any provision of them.



Sec. Appendix A to Subpart A of Part 367--Uniform Application for Single 
 State Registration for Motor Carriers Registered With the Secretary of 
                             Transportation

Motor Carrier Identification Numbers:

FMCSA MC No.(s.)________________________________________________________

US DOT No.______________________________________________________________
Applicant (Identical to name on FMCSA order):

Name:___________________________________________________________________

D/B/A___________________________________________________________________
Principal Place of Business Address: \1\
---------------------------------------------------------------------------

    \1\ A principal place of business is a single location that serves 
as a motor carrier's headquarters and where it maintains or can make 
available its operational records.
---------------------------------------------------------------------------

Street__________________________________________________________________

City____________________________________________________________________

State___________________________________________________________________

Zip_____________________________________________________________________
Mailing Address if Different From Business Address Above:

Street__________________________________________________________________

City____________________________________________________________________

State___________________________________________________________________

Zip_____________________________________________________________________
Type of Registration:
[ ] New Carrier Registration--The motor carrier has not previously 
          registered.
[ ] Annual Registration--The motor carrier is renewing its annual 
          registration.
[ ] Supplemental Registration--The motor carrier is adding additional 
          vehicles or States of travel after its annual registration.
[ ] New Registration State Selection--The motor carrier has changed its 
          principal place of business or its prior registration State 
          has left the registration program. The prior registration 
          State was --------------------.

[ ] Additional States not registered in prior years. List

________________________________________________________________________

________________________________________________________________________

Type of Motor Carrier: (Check one)
[ ] Individual [ ] Partnership [ ] Corporation
    If corporation, give State in which incorporated:------------------
--

List names of partners or officers:

Name:___________________________________________________________________

Title:__________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

Name:___________________________________________________________________

Title:__________________________________________________________________

Type of FMCSA Registered Authority:
Permanent Certificate or Permit [ ] Temporary Authority (TA) [ ] 
          Emergency Temporary Authority (ETA) [ ]

FMCSA Certificate(s) or Permit(s):
[ ] FMCSA Authority Order(s) attached for initial registration.
[ ] FMCSA Authority Order(s) attached for additional grants received.
[ ] No change from prior year registration.
Proof of Public Liability Security:
[ ] The applicant is filing, or causing to be filed, a copy of its proof 
          of public liability security submitted to and accepted by the 
          FMCSA under 49 CFR part 387, subpart C.
[ ] The applicant has filed, or caused to be filed, a copy of its proof 
          of public liability security submitted to and accepted by the 
          FMCSA under 49 CFR part 387, subpart C, and the security 
          remains in effect.

FMCSA Approved Self-Insurance or Other Securities:
[ ] FMCSA Insurance order attached for new carrier registration. (Check 
          one when completing for annual registration.)
[ ] The FMCSA Order approving the self-insurance plan or other security 
          is still in full force and effect, and the carrier is in full 
          compliance with all conditions imposed by the FMCSA Order.
[ ] The motor carrier is no longer approved under a self-insurance plan 
          or other security, and the motor carrier will file, or cause 
          to be filed, a copy of proof of public liability security with 
          this application in the registration State.

Hazardous Materials: (Check one)
[ ] The applicant will not haul hazardous materials in any quantity.
[ ] The applicant will haul hazardous materials that require the 
          following limits in accordance with Title 49 CFR 387.303:

(Check one)
[ ] Public Liability and Property Damage Insurance of $1 million.
[ ] Public Liability and Property Damage Insurance of $5 million.

Process Agents:
[ ] FMCSA Form No. BOC-3 or blanket designation attached for new 
          registration.

[[Page 58]]

[ ] FMCSA Form No. BOC-3 or blanket designation attached reflecting 
          changes of designation of process agents.
[ ] No change from prior year registration.

Certification:

    I, the undersigned, under penalty for false statement, certify that 
the above information is true and correct and that I am authorized to 
execute and file this document on behalf of the applicant. (Penalty 
provisions subject to the laws of the registration State.)

Name (Printed)__________________________________________________________

Signature_______________________________________________________________

Title___________________________________________________________________

Telephone Number________________________________________________________

Date____________________________________________________________________

[58 FR 28933, May 18, 1993. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15420, Apr. 1, 1997]



Subpart B_Fees Under the Unified Carrier Registration Plan and Agreement



Sec. 367.20  Fees under the Unified Carrier Registration Plan and Agreement for Each Registration Year.

            Fees Under the Unified Carrier Registration Plan and Agreement for Each Registration Year
----------------------------------------------------------------------------------------------------------------
                                                                             Fee per company
                                               Number of commercial motor   for exempt or non-
                                             vehicles owned or operated by     exempt motor     Fee per company
                  Bracket                      exempt or non-exempt motor     carrier, motor     for broker or
                                                 carrier, motor private      private carrier,   leasing company
                                             carrier, or freight forwarder      or freight
                                                                                forwarder
----------------------------------------------------------------------------------------------------------------
B1.........................................  0-2..........................                $39                $39
B2.........................................  3-5..........................                116
B3.........................................  6-20.........................                231
B4.........................................  21-100.......................                806
B5.........................................  101-1,000....................              3,840
B6.........................................  1,001 and above..............             37,500  .................
----------------------------------------------------------------------------------------------------------------


[72 FR 48590, Aug. 24, 2007, as amended at 73 FR 10158, Feb. 26, 2008]



  PART 368_APPLICATION FOR A CERTIFICATE OF REGISTRATION TO OPERATE IN
  MUNICIPALITIES IN THE UNITED STATES ON THE UNITED STATES-MEXICO 
  
  INTERNATIONAL BORDER OR WITHIN THE COMMERCIAL ZONES OF SUCH 
  MUNICIPALITIES.--Table of Contents




Sec.
368.1 Certificate of registration.
368.2 Definitions.
368.3 Applying for a certificate of registration.
368.4 Requirement to notify FMCSA of change in applicant information.
368.5 Re-registration of certain carriers holding certificates of 
          registration.
368.6 FMCSA action on an application.
368.7 Requirement to carry certificate of registration in the vehicle.
368.8 Appeals.

    Authority: 49 U.S.C. 13301 and 13902; Pub. L. 106-159, 113 Stat. 
1748; and 49 CFR 1.73.

    Source: 67 FR 12660, Mar. 19, 2002, unless otherwise noted.



Sec. 368.1  Certificate of registration.

    (a) A Mexico-domiciled motor carrier must apply to the FMCSA and 
receive a Certificate of Registration to provide interstate 
transportation in municipalities in the United States on the United 
States-Mexico international border or within the commercial zones of 
such municipalities as defined in 49 U.S.C. 13902(c)(4)(A).
    (b) A certificate of registration permits only interstate 
transportation of property in municipalities in the United States on the 
United States-Mexico international border or within the commercial zones 
of such municipalities. A holder of a Certificate of Registration who 
operates a vehicle beyond this area is subject to applicable penalties 
and out-of-service orders.



Sec. 368.2  Definitions.

    Interstate transportation means transportation described at 49 
U.S.C. 13501, and transportation in the United States otherwise exempt 
from the Secretary's jurisdiction under 49 U.S.C. 13506(b)(1).

[[Page 59]]

    Mexico-domiciled motor carrier means a motor carrier of property 
whose principal place of business is located in Mexico.



Sec. 368.3  Applying for a certificate of registration.

    (a) If you wish to obtain a certificate of registration under this 
part, you must submit an application that includes the following:
    (1) Form OP-2--Application for Mexican Certificate of Registration 
for Foreign Motor Carriers and Foreign Motor Private Carriers Under 49 
U.S.C. 13902;
    (2) Form MCS-150--Motor Carrier Identification Report; and
    (3) A notification of the means used to designate process agents, 
either by submission in the application package of Form BOC-3--
Designation of Agents--Motor Carriers, Brokers and Freight Forwarders or 
a letter stating that the applicant will use a process agent service 
that will submit the Form BOC-3 electronically.
    (b) The FMCSA will only process your application for a Certificate 
of Registration if it meets the following conditions:
    (1) The application must be completed in English;
    (2) The information supplied must be accurate and complete in 
accordance with the instructions to the Form OP-2, Form MCS-150 and Form 
BOC-3;
    (3) The application must include all the required supporting 
documents and applicable certifications set forth in the instructions to 
the Form OP-2, Form MCS-150 and Form BOC-3;
    (4) The application must include the filing fee payable to the FMCSA 
in the amount set forth in 49 CFR 360.3(f)(1); and
    (5) The application must be signed by the applicant.
    (c) If you fail to furnish the complete application as described 
under paragraph (b) of this section your application may be rejected.
    (d) If you submit false information under this section, you will be 
subject to applicable Federal penalties.
    (e) You must submit the application to the address provided in the 
instructions to the Form OP-2.
    (f) You may obtain the application described in paragraph (a) of 
this section from any FMCSA Division Office or download it from the 
FMCSA web site at: http://www.fmcsa.dot.gov/factsfigs/formspubs.htm.



Sec. 368.4  Requirement to notify FMCSA of change in applicant 
information.

    (a) You must notify the FMCSA of any changes or corrections to the 
information in Parts I, IA or II submitted on the Form OP-2 or the Form 
BOC-3--Designation of Agents--Motor Carriers, Brokers and Freight 
Forwarders during the application process or while you have a 
Certificate of Registration. You must notify the FMCSA in writing within 
45 days of the change or correction.
    (b) If you fail to comply with paragraph (a) of this section, the 
FMCSA may suspend or revoke the Certificate of Registration until you 
meet those requirements.



Sec. 368.5  Re-registration of certain carriers holding certificates of
registration.

    (a) Each holder of a certificate of registration that permits 
operations only in municipalities in the United States along the United 
States-Mexico international border or in commercial zones of such 
municipalities issued before April 18, 2002, who wishes to continue 
solely in those operations must submit an application according to 
procedures established under Sec. 368.3 of this part, except the filing 
fee in paragraph (b)(4) of that section is waived. You must file your 
application by October 20, 2003.
    (b) The FMCSA may suspend or revoke the certificate of registration 
of any registrant that fails to comply with the procedures set forth in 
this section.
    (c) Certificates of registration issued before April 18, 2002, 
remain valid until the FMCSA acts on the OP-2 application filed 
according to paragraph (a) of this section.



Sec. 368.6  FMCSA action on the application.

    (a) The Federal Motor Carrier Safety Administration will review the 
application for correctness, completeness, and adequacy of information. 
Non-material errors will be corrected without notice

[[Page 60]]

to the applicant. Incomplete applications may be rejected.
    (b) If the applicant does not require or is not eligible for a 
Certificate of Registration, the FMCSA will deny the application and 
notify the applicant.
    (c) The FMCSA will validate the accuracy of information and 
certifications provided in the application against data maintained in 
databases of the governments of Mexico and the United States.
    (d) If the FMCSA determines that the application and certifications 
demonstrate that the application is consistent with the FMCSA's safety 
fitness policy, it will issue a provisional Certificate of Registration, 
including a distinctive USDOT Number that identifies the motor carrier 
as permitted to provide interstate transportation of property solely in 
municipalities in the United States on the U.S.-Mexico international 
border or within the commercial zones of such municipalities.
    (e) The FMCSA may issue a permanent Certificate of Registration to 
the holder of a provisional Certificate of Registration no earlier than 
18 months after the date of issuance of the Certificate and only after 
completion to the satisfaction of the FMCSA of the safety monitoring 
system for Mexico-domiciled carriers set out in subpart B of part 385 of 
this subchapter.
    (f) Notice of the authority sought will not be published in either 
the Federal Register or the FMCSA Register. Protests or comments will 
not be allowed. There will be no oral hearings.



Sec. 368.7  Requirement to carry certificate of registration in the vehicle.

    A holder of a Certificate of Registration must maintain a copy of 
the Certificate of Registration in any vehicle providing transportation 
service within the scope of the Certificate, and make it available upon 
request to any State or Federal authorized inspector or enforcement 
officer.



Sec. 368.8  Appeals.

    An applicant has the right to appeal denial of the application. The 
appeal must be in writing and specify in detail why the agency's 
decision to deny the application was wrong. The appeal must be filed 
with the Director, Office of Data Analysis and Information Systems 
within 20 days of the date of the letter denying the application. The 
decision of the Director will be the final agency order.



PART 369_REPORTS OF MOTOR CARRIERS--Table of Contents




Sec.
369.1 Annual reports of motor carriers of property, motor carriers of 
          household goods, and dual property carriers.
369.2 Classification of carriers--motor carriers of property, household 
          goods carriers, and dual property carriers.
369.3 Classification of carriers--motor carriers of passengers.
369.4 Annual and quarterly reports of Class I carriers of passengers.
369.5 Records.
369.6 Address.
369.8 Requests for exemptions from filing.
369.9 Requests for exemptions from public release.
369.10 Public release of motor carrier of property data.
369.11 Quarterly reports of passenger revenues, expenses, and 
          statistics.

    Authority: 5 U.S.C. 553 and 559; 16 U.S.C. 1456; 49 U.S.C. 14123; 49 
CFR 1.73.



Sec. 369.1  Annual reports of motor carriers of property, motor carriers
of household goods, and dual property carriers.

    (a) Annual Report Form M. All class I and class II common and 
contract carriers of property, including household goods and dual 
property motor carriers, must file Motor Carrier Annual Report Form M 
(Form M). Carriers must file the annual report on or before March 31 of 
the year following the year to which it relates. For classification 
criteria, see Sec. 369.2.
    (b) Quarterly Report Form QFR. All class I common motor carriers of 
property and class I household goods motor carriers must file Motor 
Carrier Quarterly Report Form QFR (Form QFR). The quarterly accounting 
periods end on March 31, June 30, September 30, and December 31. The 
quarterly reports must be filed within 30 calendar days after the end of 
the reporting quarter.
    (c) Where to file reports. Carriers must file the quarterly and 
annual reports with the Federal Motor Carrier Safety Administration at 
the address in Sec. 369.6.

[[Page 61]]

You can obtain blank copies of the report forms from the Federal Motor 
Carrier Safety Administration.

[64 FR 13921, Mar. 23, 1999. Redesignated at 71 FR 45742, Aug. 10, 2006, 
and amended at 71 FR 45743, Aug. 10, 2006]



Sec. 369.2  Classification of carriers--motor carriers of property, 
household goods carriers, and dual property carriers.

    (a) Common and contract motor carriers of property are grouped into 
the following three classes:
    Class I. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of $10 million or more after 
applying the revenue deflator formula in Note A.
    Class II. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of at least $3 million but less 
than $10 million after applying the revenue deflator formula in Note A.
    Class III. Carriers having annual carrier operating revenues 
(including interstate and intrastate) of less than $3 million after 
applying the revenue deflator formula in Note A.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues (excluding revenues from private 
carriage, compensated intercorporate hauling, and leasing vehicles with 
drivers to private carriers) after applying the revenue deflator formula 
in Note A. Upward and downward classification will be effective as of 
January 1 of the year immediately following the third consecutive year 
of revenue qualification.
    (2) Any carrier which begins new operations by obtaining operating 
authority not previously held or extends its existing authority by 
obtaining additional operating rights shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in Note A.
    (3) When a business combination occurs such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the year when the combination 
occurred after applying the revenue deflator formula shown in Note A.
    (4) Carriers must notify the Federal Motor Carrier Safety 
Administration (FMCSA) of any change in classification or any change in 
annual operating revenues that would cause a change in classification. 
The carrier may request a waiver or an exception from these regulations 
in unusual or extenuating circumstances, where the classification 
process will unduly burden the carrier, such as partial liquidation or 
curtailment or elimination of contracted services. The request must be 
in writing, specifying the conditions justifying the waiver or 
exception. FMCSA will notify the carriers of any change in 
classification.
    (5) Carriers not required to file an Annual Report Form M may be 
required to file the Worksheet for Calculating Carrier Classification. 
All carriers will be notified of any classification changes.

    Note A: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
those revenues with the dollar revenue limits prescribed in paragraph 
(a) of this section. The PPI is published monthly by the Bureau of Labor 
Statistics. The formula to be applied is as follows:
[GRAPHIC] [TIFF OMITTED] TC03MR91.051


[52 FR 10383, Apr. 1, 1987, as amended at 59 FR 5111, Feb. 3, 1994; 59 
FR 49848, Sept. 30, 1994. Redesignated at 63 FR 52193, Sept. 30, 1998, 
and amended at 64 FR 13921, 13922, Mar. 23, 1999; 68 FR 4719, Jan. 30, 
2003. Resesignated at 71 FR 45742, Aug. 10, 2006, and amended at 71 FR 
45743, Aug. 10, 2006]

[[Page 62]]



Sec. 369.3  Classification of carriers--motor carriers of passengers.

    (a) Common and contract carriers of passengers are grouped into the 
following two classes:
    Class I--Carriers having average annual gross transportation 
operating revenues (including interstate and intrastate) of $5 million 
or more from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    Class II--Carriers having average annual gross transportation 
operating revenues (including interstate or intrastate) of less than $5 
million from passenger motor carrier operations after applying the 
revenue deflator formula as shown in the Note.
    (b)(1) The class to which any carrier belongs shall be determined by 
annual carrier operating revenues after applying the revenue deflator 
formula as shown in the Note. Upward and downward reclassification will 
be effective as of January 1 of the year immediately following the third 
consecutive year of revenue qualification.
    (2) Any carrier which begins new operations (obtains operating 
authority not previously held) or extends its existing authority 
(obtains additional operating rights) shall be classified in accordance 
with a reasonable estimate of its annual carrier operating revenues 
after applying the revenue deflator formula shown in the Note.
    (3) When a business combination occurs, such as a merger, 
reorganization, or consolidation, the surviving carrier shall be 
reclassified effective as of January 1 of the next calendar year on the 
basis of the combined revenues for the year when the combination 
occurred after applying the revenue deflator formula shown in the Note.
    (4) Carriers shall notify the FMCSA of any change in classification 
or when their annual operating revenues exceed the Class II limit by 
writing to the Federal Motor Carrier Safety Administration at the 
address in Sec. 369.6. In unusual circumstances where the 
classification regulations and reporting requirements will unduly burden 
the carrier, the carrier may request from the FMCSA a waiver from these 
regulations. This request shall be in writing specifying the conditions 
justifying the waiver. The FMCSA then shall notify carriers of any 
change in classification or reporting requirements.
    (c) For classification purposes, the FMCSA shall publish in the 
Federal Register annually an index number which shall be used for 
adjusting gross annual operating revenues. The index number (deflator) 
is based on the Producer Price Index of Finished Goods and is used to 
eliminate the effects of inflation from the classification process.

    Note: Each carrier's operating revenues will be deflated annually 
using the Producers Price Index (PPI) of Finished Goods before comparing 
them with the dollar revenue limits prescribed in paragraph (a) of this 
section. The PPI is published monthly by the Bureau of Labor Statistics. 
The formula to be applied is as follows:
[GRAPHIC] [TIFF OMITTED] TC03MR91.052


[53 FR 4029, Feb. 11, 1988. Redesignated at 63 FR 52193, Sept. 30, 1998, 
and amended at 68 FR 4719, Jan. 30, 2003. Redesignated at 71 FR 45742, 
Aug. 10, 2006, and amended at 71 FR 45743, Aug. 10, 2006]



Sec. 369.4  Annual and quarterly reports of Class I carriers of 
passengers.

    (a) All Class I motor carriers of passengers shall complete and file 
Motor Carrier Quarterly and Annual Report Form MP-1 for Motor Carriers 
of Passengers (Form MP-1). Other than Class I carriers are not required 
to file Form MP-1.
    (b) Motor Carrier Quarterly and Annual Report Form MP-1 shall be 
used to file both quarterly and annual selected motor carrier data. The 
annual accounting period shall be based either (1) on the 31st day of 
December in each

[[Page 63]]

year, or (2) an accounting year of thirteen 4-week periods ending at the 
close of the last 7 days of each calendar year. A carrier electing to 
adopt an accounting year of thirteen 4-week periods shall file with the 
FMCSA a statement showing the day on which its accounting year will 
close. A subsequent change in the accounting period may not be made 
except by authority of the FMCSA. The quarterly accounting period shall 
end on March 31, June 30, September 30, and December 31. The quarterly 
report shall be filed within 30 days after the end of the reporting 
quarter. The annual report shall be filed on or before March 31 of the 
year following the year to which it relates.
    (c) The quarterly and annual report shall be filed in duplicate to 
the Federal Motor Carrier Safety Administration at the address in Sec. 
369.6. Copies of Form MP-1 may be obtained from the FMCSA.

[52 FR 20400, June 1, 1987. Redesignated at 63 FR 52193, Sept. 30, 1998, 
as amended at 68 FR 4719, Jan. 30, 2003. Redesignated at 71 FR 45742, 
Aug. 10, 2006, and amended at 71 FR 45743, Aug. 10, 2006]



Sec. 369.5  Records.

    Books, records and carrier operating documents shall be retained as 
prescribed in 49 CFR part 379, Preservation of Records.

[52 FR 10383, Apr. 1, 1987. Redesignated at 63 FR 52193, Sept. 30, 1998. 
Redesignated at 71 FR 45742, Aug. 10, 2006, and amended at 71 FR 45743, 
Aug. 10, 2006]



Sec. 369.6  Address.

    The following address must be used by motor carriers when submitting 
a report, requesting an exemption from filing a report, or requesting an 
exemption from public release of a report: Federal Motor Carrier Safety 
Administration, Office of Information Technology (MC-RI), 1200 New 
Jersey Ave., SE., Washington, DC 20590-0001. This address may also be 
used for general correspondence regarding the data collection program 
described in this section.

[64 FR 13923, Mar. 23, 1999, as amended at 68 FR 4719, Jan. 30, 2003. 
Redesignated at 71 FR 45742, Aug. 10, 2006, and amended at 71 FR 45743, 
Aug. 10, 2006; 72 FR 55699, Oct. 1, 2007]



Sec. 369.8  Requests for exemptions from filing.

    (a) In General. This section governs requests for exemptions from 
filing of reports required under Sec. 369.1.
    (b) Criteria. The Federal Motor Carrier Safety Administration 
(FMCSA) may grant a request upon a proper showing that the exemption is 
necessary to preserve confidential business information that is not 
otherwise publicly available. Information is considered to be 
confidential when:
    (1) Disclosure of the information in the carrier's report would be 
likely to cause substantial harm to the carrier's competitive position; 
or
    (2) Disclosure of information in the report would be likely to 
impair protectable government interests.
    (c) Contents of a request. The contents of a request for an 
exemption from filing must contain, at a minimum, the contents that are 
required for a request for an exemption from public release contained in 
Sec. 369.9(c). A carrier's request may include any other grounds as to 
why the request should be granted.
    (d) When requests are due. The timing of a request for an exemption 
from filing is the same as the timing for a request for an exemption 
from public release contained in Sec. 369.9(d). The table below 
summarizes report and request due dates.

------------------------------------------------------------------------
                                                            Request due
            Report                    Report due by              by
------------------------------------------------------------------------
Annual Form M................  March 31..................  March 31
First Quarter Form QFR.......  April 30..................  March 31
Second Quarter Form QFR......  July 31...................  March 31
Third Quarter Form QFR.......  October 31................  March 31
Fourth Quarter Form QFR......  January 31................  March 31
------------------------------------------------------------------------


[[Page 64]]

    (e) Decision to grant or deny a request. (1) A request will be 
denied if it fails to provide all of the supporting information required 
in paragraph (c) of this section or if the supporting information is 
insufficient to establish that information in the carrier's report meets 
the criteria in paragraph (b) of this section.
    (2) FMCSA will grant or deny each request within a reasonable period 
of time. FMCSA will notify the carrier of its decision. The decision by 
FMCSA shall be administratively final.
    (f) Pendency. While a request is pending, the carrier is required to 
submit any reports required under Sec. 369.1.
    (g) Period of exemptions. If a request for an exemption under this 
section is granted, the carrier will be exempt from the reporting 
requirements of Sec. 369.1 for a period of three reporting years.
    (h) Modification of a decision to grant a request. If a request is 
granted it remains in effect in accordance with its terms, unless 
modified by a later finding that the decision was clearly erroneous. If 
FMCSA believes such a finding should be made, FMCSA will notify the 
requesting carrier in writing of the reasons for the modification. The 
carrier may seek reconsideration of the modification.

[64 FR 13922, Mar. 23, 1999. Redesignated at 71 FR 45742, Aug. 10, 2006, 
and amended at 71 FR 45743, Aug. 10, 2006]



Sec. 369.9  Requests for exemptions from public release.

    (a) In General. This section governs requests for exemptions from 
public release of reports filed under Sec. 369.1.
    (b) Criteria. The Federal Motor Carrier Safety Administration 
(FMCSA) will grant a request upon a proper showing that the carrier is 
not a publicly held corporation or that the carrier is not subject to 
financial reporting requirements of the Securities and Exchange 
Commission, and that the exemption is necessary to avoid competitive 
harm and to avoid the disclosure of information that qualifies as trade 
secret or privileged or confidential information under 5 U.S.C. 
552(b)(4). Information is considered to be confidential when:
    (1) Disclosure of the information in the carrier's report would be 
likely to cause substantial harm to the carrier's competitive position; 
or
    (2) Disclosure of information in the report would be likely to 
impair protectable government interests.
    (c) Contents of a request. A request for an exemption from public 
release must contain information supporting the claim. While the 
supporting information may contain opinions, the request must consist of 
objective data to the extent possible. General or nonspecific assertions 
or analysis will be insufficient to support a request if FMCSA is unable 
to find that the criteria are met. The supporting information must show:
    (1) That the information claimed to be confidential is a trade 
secret, or commercial or financial information that is privileged or 
confidential.
    (2) Measures taken by the carrier to ensure that the information has 
not been disclosed or otherwise made available to any person, company, 
or organization other then the carrier.
    (3) Insofar as is known by the carrier, the extent to which the 
information has been disclosed, or otherwise become available, to 
persons other than the carrier, and why such disclosure or availability 
does not compromise the confidential nature of the information.
    (4) If the carrier asserts that disclosure would be likely to result 
in substantial competitive harm, what the harmful effects of disclosure 
would be, why the effects should be viewed as substantial, and the 
causal relationship between the effects and disclosure.
    (5) If the carrier asserts that disclosure would be likely to impair 
protectable government interests, what the effects of disclosure are 
likely to be and why disclosure is likely to impair such interests.
    (d) When requests are due. (1) Requests for an exemption under this 
section may be made at any time during the year. However, a request will 
be deemed applicable to only those reports due on or after the date the 
request is received. Requests received after a report's due date will 
only be considered for the following year's report.

[[Page 65]]

    (2) A request will be deemed received on the date the request is 
physically received or, if it is sent by mail, on the date it is 
postmarked.
    (3) FMCSA will only allow a late request if there are extenuating 
circumstances and the carrier gives adequate notice within a reasonable 
time of the extenuating circumstances.
    (4) A carrier submitting a request relating to the annual report can 
also request that it cover the quarterly reports for the upcoming year. 
In this case FMCSA will decide both requests at the same time. Requests 
covering the quarterly reports must be received by the due date of the 
annual report which relates to the prior year. The table in paragraph 
(e) of this section summarizes report, request, and decision due dates.
    (e) Decision to grant or deny a request. (1) After each due date of 
each annual report specified in Sec. 369.1, FMCSA will publish a notice 
in the Federal Register requesting comments on any requests received 
under this section that are valid and pending.
    (2) A request will be granted only if it provides all of the 
supporting information required in paragraph (c) of this section and if 
the supporting information is sufficient to establish that information 
in the carrier's report meets the criteria in paragraph (b) of this 
section.
    (3) If the carrier fails to comply with the timing requirements of 
paragraph (d) of this section, the claim for confidentiality will be 
waived unless FMCSA is notified of extenuating circumstances before the 
information is disclosed to the public and FMCSA finds that the 
extenuating circumstances warrant consideration of the claim.
    (4) FMCSA will grant or deny each request no later than 90 days 
after the request's due date as defined in paragraph (d) of this 
section. The decision by FMCSA shall be administratively final. The 
table below summarizes report, request, and decision due dates.

----------------------------------------------------------------------------------------------------------------
             Report                         Report due                    Request due             Decision due
----------------------------------------------------------------------------------------------------------------
Annual Form M...................  March 31.....................  March 31.....................  June 30
First Quarter Form QFR..........  April 30.....................  March 31.....................  June 30
Second Quarter Form QFR.........  July 31......................  March 31.....................  June 30
Third Quarter Form QFR..........  October 31...................  March 31.....................  June 30
Fourth Quarter Form QFR.........  January 31...................  March 31.....................  June 30
----------------------------------------------------------------------------------------------------------------

    (5) If a request is granted, FMCSA will notify carrier of that 
decision and of any appropriate limitations.
    (6) If a request for confidentiality is denied, FMCSA will notify 
the carrier of that decision and that the information will be made 
available to the public not less than ten working days after the carrier 
has received notice of the denial. The notice will specify the reasons 
for denying the request.
    (f) Pendency. A request is deemed pending from the date it is 
received by FMCSA until it is granted or denied by FMCSA. FMCSA will not 
release publicly, unless otherwise required by law, any report for which 
a valid request for an exemption from public release is pending.
    (g) Period of exemptions. If a request for an exemption under this 
section is granted, FMCSA will not publicly release the reports covered 
by the granted exemption, unless otherwise required by law, for a period 
of three years from the report's due date.
    (h) Modification of a decision to grant a request. If a request is 
granted it remains in effect in accordance with its terms, unless 
modified by a later finding that the decision was clearly erroneous. If 
FMCSA believes such a finding should be made, FMCSA will notify the 
requesting carrier in writing of the reasons for the modification and 
that the carrier's report will be made available to the public in not 
less than ten working days from the date of receipt of notice under this 
paragraph. The carrier may seek reconsideration of the modification.

[64 FR 13922, Mar. 23, 1999. Redesignated at 71 FR 45742, Aug. 10, 2006, 
and amended at 71 FR 45743, Aug. 10, 2006]

[[Page 66]]



Sec. 369.10  Public release of motor carrier of property data.

    (a) In general. Unless otherwise provided in this section, the data 
contained in a report filed under Sec. 369.1 shall be made publicly 
available, but no sooner than the due date for the report.
    (b) Exceptions relating to exemptions from public release. (1) If a 
request for an exemption from public release is pending under Sec. 
369.9, FMCSA will not publicly release the reports covered by the 
request until at least the time that a decision to grant or deny the 
request is made.
    (2) If a carrier is granted an exemption from public release under 
Sec. 369.9, FMCSA will not publicly release the reports covered by the 
granted exemption for a period of three years from the report's due 
date.
    (c) Other exceptions. Notwithstanding any other provision of this 
part, information may be released:
    (1) If the data are included in aggregate industry statistics that 
do not identify the individual carrier;
    (2) To other components of the Department of Transportation for 
their internal use only;
    (3) If required by law;
    (4) With the consent of the carrier filing the report; or
    (5) To contractors, if necessary for the performance of a contract 
with FMCSA.

[64 FR 13923, Mar. 23, 1999, as amended at 68 FR 4719, Jan. 30, 2003. 
Redesignated at 71 FR 45742, Aug. 10, 2006, and amended at 71 FR 45743, 
Aug. 10, 2006]



Sec. 369.11  Quarterly reports of passenger revenues, expenses, and 
statistics.

    Commencing with reports for the quarter ended March 31, 1968, and 
for subsequent quarters thereafter, until further order, all class I 
common and contract motor carriers of passengers, as defined in Sec. 
369.3(a), shall compile and file quarterly reports in accordance with 
Motor Carrier Quarterly and Annual Report, Form MP-1. Such quarterly 
reports shall be filed in duplicate in the FMCSA Office of Information 
Management at the address in Sec. 369.6, within 30 days after the close 
of the period to which it relates.

[43 FR 46975, Oct. 12, 1978. Redesignated at 63 FR 52193, Sept. 30, 
1998, as amended at 68 FR 4719, Jan. 30, 2003. Redesignated at 71 FR 
45742, Aug. 10, 2006, and amended at 71 FR 45743, Aug. 10, 2006]



PART 370_PRINCIPLES AND PRACTICES FOR THE INVESTIGATION AND VOLUNTARY
DISPOSITION OF LOSS AND DAMAGE CLAIMS AND PROCESSING SALVAGE--Table 

of Contents




Sec.
370.1 Applicability of regulations.
370.3 Filing of claims.
370.5 Acknowledgment of claims.
370.7 Investigation of claims.
370.9 Disposition of claims.
370.11 Processing of salvage.

    Authority: 49 U.S.C. 13301 and 14706; and 49 CFR 1.73.

    Source: 62 FR 32042, June 12, 1997, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 370 appear at 66 FR 
49870, Oct. 1, 2001.



Sec. 370.1  Applicability of regulations.

    The regulations set forth in this part shall govern the processing 
of claims for loss, damage, injury, or delay to property transported or 
accepted for transportation, in interstate or foreign commerce, by each 
motor carrier, water carrier, and freight forwarder (hereinafter called 
carrier), subject to 49 U.S.C. subtitle IV, part B.



Sec. 370.3  Filing of claims.

    (a) Compliance with regulations. A claim for loss or damage to 
baggage or for loss, damage, injury, or delay to cargo, shall not be 
voluntarily paid by a carrier unless filed, as provided in paragraph (b) 
of this section, with the receiving or delivering carrier, or carrier 
issuing the bill of lading, receipt, ticket, or baggage check, or 
carrier on whose line the alleged loss, damage, injury, or delay 
occurred, within the specified time limits applicable thereto and as 
otherwise may be required by law, the terms of the bill of lading or 
other contract of carriage, and all tariff provisions applicable 
thereto.
    (b) Minimum filing requirements. A written or electronic 
communication

[[Page 67]]

(when agreed to by the carrier and shipper or receiver involved) from a 
claimant, filed with a proper carrier within the time limits specified 
in the bill of lading or contract of carriage or transportation and:
    (1) Containing facts sufficient to identify the baggage or shipment 
(or shipments) of property,
    (2) Asserting liability for alleged loss, damage, injury, or delay, 
and
    (3) Making claim for the payment of a specified or determinable 
amount of money, shall be considered as sufficient compliance with the 
provisions for filing claims embraced in the bill of lading or other 
contract of carriage; Provided, however, That where claims are 
electronically handled, procedures are established to ensure reasonable 
carrier access to supporting documents.
    (c) Documents not constituting claims. Bad order reports, appraisal 
reports of damage, notations of shortage or damage, or both, on freight 
bills, delivery receipts, or other documents, or inspection reports 
issued by carriers or their inspection agencies, whether the extent of 
loss or damage is indicated in dollars and cents or otherwise, shall, 
standing alone, not be considered by carriers as sufficient to comply 
with the minimum claim filing requirements specified in paragraph (b) of 
this section.
    (d) Claims filed for uncertain amounts. Whenever a claim is 
presented against a proper carrier for an uncertain amount, such as 
``$100 more or less,'' the carrier against whom such claim is filed 
shall determine the condition of the baggage or shipment involved at the 
time of delivery by it, if it was delivered, and shall ascertain as 
nearly as possible the extent, if any, of the loss or damage for which 
it may be responsible. It shall not, however, voluntarily pay a claim 
under such circumstances unless and until a formal claim in writing for 
a specified or determinable amount of money shall have been filed in 
accordance with the provisions of paragraph (b) of this section.
    (e) Other claims. If investigation of a claim develops that one or 
more other carriers has been presented with a similar claim on the same 
shipment, the carrier investigating such claim shall communicate with 
each such other carrier and, prior to any agreement entered into between 
or among them as to the proper disposition of such claim or claims, 
shall notify all claimants of the receipt of conflicting or overlapping 
claims and shall require further substantiation, on the part of each 
claimant of his/her title to the property involved or his/her right with 
respect to such claim.



Sec. 370.5  Acknowledgment of claims.

    (a) Each carrier shall, upon receipt in writing or by electronic 
transmission of a proper claim in the manner and form described in the 
regulations in the past, acknowledge the receipt of such claim in 
writing or electronically to the claimant within 30 days after the date 
of its receipt by the carrier unless the carrier shall have paid or 
declined such claim in writing or electronically within 30 days of the 
receipt thereof. The carrier shall indicate in its acknowledgment to the 
claimant what, if any, additional documentary evidence or other 
pertinent information may be required by it further to process the claim 
as its preliminary examination of the claim, as filed, may have 
revealed.
    (b) The carrier shall at the time each claim is received create a 
separate file and assign thereto a successive claim file number and note 
that number on all documents filed in support of the claim and all 
records and correspondence with respect to the claim, including the 
acknowledgment of receipt. At the time such claim is received the 
carrier shall cause the date of receipt to be recorded on the face of 
the claim document, and the date of receipt shall also appear in the 
carrier's acknowledgment of receipt to the claimant. The carrier shall 
also cause the claim file number to be noted on the shipping order, if 
in its possession, and the delivery receipt, if any, covering such 
shipment, unless the carrier has established an orderly and consistent 
internal procedure for assuring:
    (1) That all information contained in shipping orders, delivery 
receipts, tally sheets, and all other pertinent records made with 
respect to the transportation of the shipment on which claim

[[Page 68]]

is made, is available for examination upon receipt of a claim;
    (2) That all such records and documents (or true and complete 
reproductions thereof) are in fact examined in the course of the 
investigation of the claim (and an appropriate record is made that such 
examination has in fact taken place); and
    (3) That such procedures prevent the duplicate or otherwise unlawful 
payment of claims.



Sec. 370.7  Investigation of claims.

    (a) Prompt investigation required. Each claim filed against a 
carrier in the manner prescribed in this part shall be promptly and 
thoroughly investigated if investigation has not already been made prior 
to receipt of the claim.
    (b) Supporting documents. When a necessary part of an investigation, 
each claim shall be supported by the original bill of lading, evidence 
of the freight charges, if any, and either the original invoice, a 
photographic copy of the original invoice, or an exact copy thereof or 
any extract made therefrom, certified by the claimant to be true and 
correct with respect to the property and value involved in the claim; or 
certification of prices or values, with trade or other discounts, 
allowance, or deductions, of any nature whatsoever and the terms 
thereof, or depreciation reflected thereon; Provided, however, That 
where property involved in a claim has not been invoiced to the 
consignee shown on the bill of lading or where an invoice does not show 
price or value, or where the property involved has been sold, or where 
the property has been transferred at bookkeeping values only, the 
carrier shall, before voluntarily paying a claim, require the claimant 
to establish the destination value in the quantity, shipped, 
transported, or involved; Provided, further, That when supporting 
documents are determined to be a necessary part of an investigation, the 
supporting documents are retained by the carriers for possible FMCSA 
inspection.
    (c) Verification of loss. When an asserted claim for loss of an 
entire package or an entire shipment cannot be otherwise authenticated 
upon investigation, the carrier shall obtain from the consignee of the 
shipment involved a certified statement in writing that the property for 
which the claim is filed has not been received from any other source.



Sec. 370.9  Disposition of claims.

    (a) Each carrier subject to 49 U.S.C. subtitle IV, part B which 
receives a written or electronically transmitted claim for loss or 
damage to baggage or for loss, damage, injury, or delay to property 
transported shall pay, decline, or make a firm compromise settlement 
offer in writing or electronically to the claimant within 120 days after 
receipt of the claim by the carrier; Provided, however, That, if the 
claim cannot be processed and disposed of within 120 days after the 
receipt thereof, the carrier shall at that time and at the expiration of 
each succeeding 60-day period while the claim remains pending, advise 
the claimant in writing or electronically of the status of the claim and 
the reason for the delay in making final disposition thereof and it 
shall retain a copy of such advice to the claimant in its claim file 
thereon.
    (b) When settling a claim for loss or damage, a common carrier by 
motor vehicle of household goods as defined in Sec. 375.1(b)(1) of this 
chapter shall use the replacement costs of the lost or damaged item as a 
base to apply a depreciation factor to arrive at the current actual 
value of the lost or damaged item: Provided, That where an item cannot 
be replaced or no suitable replacement is obtainable, the proper measure 
of damages shall be the original costs, augmented by a factor derived 
from a consumer price index, and adjusted downward by a factor 
depreciation over average useful life.



Sec. 370.11  Processing of salvage.

    (a) Whenever baggage or material, goods, or other property 
transported by a carrier subject to the provisions in this part is 
damaged or alleged to be damaged and is, as a consequence thereof, not 
delivered or is rejected or refused upon tender thereof to the owner, 
consignee, or person entitled to receive such property, the carrier, 
after giving due notice, whenever practicable to do so, to the owner and 
other parties that may have an interest

[[Page 69]]

therein, and unless advised to the contrary after giving such notice, 
shall undertake to sell or dispose of such property directly or by the 
employment of a competent salvage agent. The carrier shall only dispose 
of the property in a manner that will fairly and equally protect the 
best interests of all persons having an interest therein. The carrier 
shall make an itemized record sufficient to identify the property 
involved so as to be able to correlate it to the shipment or 
transportation involved, and claim, if any, filed thereon. The carrier 
also shall assign to each lot of such property a successive lot number 
and note that lot number on its record of shipment and claim, if any 
claim is filed thereon.
    (b) Whenever disposition of salvage material or goods shall be made 
directly to an agent or employee of a carrier or through a salvage agent 
or company in which the carrier or one or more of its directors, 
officers, or managers has any interest, financial or otherwise, that 
carrier's salvage records shall fully reflect the particulars of each 
such transaction or relationship, or both, as the case may be.
    (c) Upon receipt of a claim on a shipment on which salvage has been 
processed in the manner prescribed in this section, the carrier shall 
record in its claim file thereon the lot number assigned, the amount of 
money recovered, if any, from the disposition of such property, and the 
date of transmittal of such money to the person or persons lawfully 
entitled to receive the same.



PART 371_BROKERS OF PROPERTY--Table of Contents




Sec.
371.1 Applicability.
371.2 Definitions.
371.3 Records to be kept by brokers.
371.7 Misrepresentation.
371.9 Rebating and compensation.
371.10 Duties and obligations of brokers.
371.13 Accounting.

    Authority: 49 U.S.C. 13301, 13501, and 14122; and 49 CFR 1.73.

    Source: 45 FR 68942, Oct. 17, 1980, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.



Sec. 371.1  Applicability.

    This part applies, to the extent provided therein, to all brokers of 
transportation by motor vehicle as defined in Sec. 371.2.

[32 FR 20034, Dec. 20, 1967, as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 371.2  Definitions.

    (a) Broker means a person who, for compensation, arranges, or offers 
to arrange, the transportation of property by an authorized motor 
carrier. Motor carriers, or persons who are employees or bona fide 
agents of carriers, are not brokers within the meaning of this section 
when they arrange or offer to arrange the transportation of shipments 
which they are authorized to transport and which they have accepted and 
legally bound themselves to transport.
    (b) Bona fide agents are persons who are part of the normal 
organization of a motor carrier and perform duties under the carrier's 
directions pursuant to a preexisting agreement which provides for a 
continuing relationship, precluding the exercise of discretion on the 
part of the agent in allocating traffic between the carrier and others.
    (c) Brokerage or brokerage service is the arranging of 
transportation or the physical movement of a motor vehicle or of 
property. It can be performed on behalf of a motor carrier, consignor, 
or consignee.
    (d) Non-brokerage service is all other service performed by a broker 
on behalf of a motor carrier, consignor, or consignee.



Sec. 371.3  Records to be kept by brokers.

    (a) A broker shall keep a record of each transaction. For purposes 
of this section, brokers may keep master lists of consignors and the 
address and registration number of the carrier, rather than repeating 
this information for each transaction. The record shall show:
    (1) The name and address of the consignor;
    (2) The name, address, and registration number of the originating 
motor carrier;
    (3) The bill of lading or freight bill number;

[[Page 70]]

    (4) The amount of compensation received by the broker for the 
brokerage service performed and the name of the payer;
    (5) A description of any non-brokerage service performed in 
connection with each shipment or other activity, the amount of 
compensation received for the service, and the name of the payer; and
    (6) The amount of any freight charges collected by the broker and 
the date of payment to the carrier.
    (b) Brokers shall keep the records required by this section for a 
period of three years.
    (c) Each party to a brokered transaction has the right to review the 
record of the transaction required to be kept by these rules.

[45 FR 68942, Oct. 17, 1980. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 371.7  Misrepresentation.

    (a) A broker shall not perform or offer to perform any brokerage 
service (including advertising), in any name other than that in which 
its registration is issued.
    (b) A broker shall not, directly or indirectly, represent its 
operations to be that of a carrier. Any advertising shall show the 
broker status of the operation.

[45 FR 68942, Oct. 17, 1980. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 371.9  Rebating and compensation.

    (a) A broker shall not charge or receive compensation from a motor 
carrier for brokerage service where:
    (1) The broker owns or has a material beneficial interest in the 
shipment or
    (2) The broker is able to exercise control over the shipment because 
the broker owns the shipper, the shipper owns the broker, or there is 
common ownership of the two.
    (b) A broker shall not give or offer to give anything of value to 
any shipper, consignor or consignee (or their officers or employees) 
except inexpensive advertising items given for promotional purposes.



Sec. 371.10  Duties and obligations of brokers.

    Where the broker acts on behalf of a person bound by law or the 
FMCSA regulation as to the transmittal of bills or payments, the broker 
must also abide by the law or regulations which apply to that person.

[45 FR 68943, Oct. 17, 1980, as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 371.13  Accounting.

    Each broker who engages in any other business shall maintain 
accounts so that the revenues and expenses relating to the brokerage 
portion of its business are segregated from its other activities. 
Expenses that are common shall be allocated on an equitable basis; 
however, the broker must be prepared to explain the basis for the 
allocation.

[45 FR 68943, Oct. 17, 1980]



PART 372_EXEMPTIONS, COMMERCIAL ZONES, AND TERMINAL AREAS--Table of 
Contents




                          Subpart A_Exemptions

Sec.
372.101 Casual, occasional, or reciprocal transportation of passengers 
          for compensation when such transportation is sold or arranged 
          by anyone for compensation.
372.103 Motor vehicles employed solely in transporting school children 
          and teachers to or from school.
372.107 Definitions.
372.109 Computation of tonnage allowable in nonfarm-non-member 
          transportation.
372.111 Nonmember transportation limitation and record keeping.
372.113 [Reserved]
372.115 Commodities that are not exempt under 49 U.S.C. 13506(a)(6).
372.117 Motor transportation of passengers incidental to transportation 
          by aircraft.

                       Subpart B_Commercial Zones

372.201 Albany, NY.
372.203 Beaumont, TX.
372.205 Charleston, SC.
372.207 Charleston, WV.
372.209 Lake Charles, LA.
372.211 Pittsburgh, PA.
372.213 Pueblo, CO.
372.215 Ravenswood, WV.
372.217 Seattle, WA.
372.219 Washington, DC.

[[Page 71]]

372.221 Twin Cities.
372.223 Consolidated governments.
372.225 Lexington-Fayette Urban County, KY.
372.227 Syracuse, NY.
372.229 Spokane, WA.
372.231 Tacoma, WA.
372.233 Chicago, IL.
372.235 New York, NY.
372.237 Cameron, Hidalgo, Starr, and Willacy Counties, TX.
372.239 Definitions.
372.241 Commercial zones determined generally, with exceptions.
372.243 Controlling distances and population data.

                        Subpart C_Terminal Areas

372.300 Distances and population data.
372.301 Terminal areas of motor carriers and freight forwarders at 
          municipalities served.
372.303 Terminal areas of motor carriers and freight forwarders at 
          unincorporated communities served.

    Authority: 49 U.S.C. 13504 and 13506; and 49 CFR 1.73.

    Editorial Note: Nomenclature changes to part 372 appear at 66 FR 
49870, Oct. 1, 2001.



                          Subpart A_Exemptions

    Source: 32 FR 20036, Dec. 20, 1967, unless otherwise noted. 
Redesignated at 61 FR 54708, Oct. 21, 1996.



Sec. 372.101  Casual, occasional, or reciprocal transportation of 
passengers for compensation when such transportation is sold or 

arranged by anyone for compensation.

    The partial exemption from regulation under the provisions of 49 
U.S.C. subtitle IV, part B of the casual, occasional, and reciprocal 
transportation of passengers by motor vehicle in interstate or foreign 
commerce for compensation as provided in 49 U.S.C. 13506(b) be, and it 
is hereby, removed to the extent necessary to make applicable all 
provisions of 49 U.S.C. subtitle IV, part B to such transportation when 
sold or offered for sale, or provided or procured or furnished or 
arranged for, by any person who sells, offers for sale, provides, 
furnishes, contracts, or arranges for such transportation for 
compensation or as a regular occupation or business.

[32 FR 20036, Dec. 20, 1967. Redesignated at 61 FR 54708, Oct. 21, 1996, 
as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 372.103  Motor vehicles employed solely in transporting school 
children and teachers to or from school.

    The exemption set forth in 49 U.S.C. 13506(a)(1) shall not be 
construed as being inapplicable to motor vehicles being used at the time 
of operation in the transportation of schoolchildren and teachers to or 
from school, even though such motor vehicles are employed at other times 
in transportation beyond the scope of the exemption.

[36 FR 9022, May 18, 1971, as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 372.107  Definitions.

    As used in the regulations in this part, the following terms shall 
have the meaning shown:
    (a) Cooperative association. The term ``cooperative association'' 
means an association which conforms to the following definition in the 
Agricultural Marketing Act, approved June 15, 1929, as amended (12 
U.S.C. 1141j):

    As used in this Act, the term cooperative association means any 
association in which farmers act together in processing, preparing for 
market, handling, and/or marketing the farm products of persons so 
engaged, and also means any association in which farmers act together in 
purchasing, testing, grading, processing, distributing, and/or 
furnishing farm supplies and/or farm business services. Provided, 
however, That such associations are operated for the mutual benefit of 
the members thereof as such producers or purchasers and conform to one 
or both of the following requirements:
    First. That no member of the association is allowed more than one 
vote because of the amount of stock or membership capital he may own 
therein; and
    Second. That the association does not pay dividends on stock or 
membership capital in excess of 8 per centum per annum.
    And in any case to the following:
    Third. That the association shall not deal in farm products, farm 
supplies and farm business services with or for nonmembers in an amount 
greater in value than the total amount of such business transacted by it 
with or for members. All business transacted by any cooperative 
association for or on behalf of the United States or any agency or

[[Page 72]]

instrumentality thereof shall be disregarded in determining the volume 
of member and nonmember business transacted by such association.


Associations which do not conform to such definition are not eligible to 
operate under the partial exemption of 49 U.S.C. 13506(a)(5).
    (b) Federation of cooperative associations. The term ``federation of 
cooperative associations'' means a federation composed of either two or 
more cooperative associations, or one or more farmers, which federation 
possesses no greater powers or purposes than a cooperative association 
as defined in paragraph (a) of this section. Federations of cooperative 
associations which do not conform to such definition are not eligible to 
operate under the partial exemption of 49 U.S.C. 13506(a)(5).
    (c) Member. The term ``member'' means any farmer or cooperative 
association which has consented to be, has been accepted as, and is a 
member in good standing in accordance with the constitution, bylaws, or 
rules of the cooperative association or federation of cooperative 
associations.
    (d) Farmer. The term ``farmer'' means any individual, partnership, 
corporation, or other business entity to the extent engaged in farming 
operations either as a producer of agricultural commodities or as a farm 
owner.
    (e) Interstate transportation. The term ``interstate 
transportation'' means transportation by motor vehicle in interstate or 
foreign commerce subject to the FMCSA's jurisdiction as set forth in 49 
U.S.C. 13501.
    (f) Member transportation. The term ``member transportation'' means 
transportation performed by a cooperative association or federation of 
cooperative associations for itself or for its members, but does not 
include transportation performed in furtherance of the nonfarm business 
of such members.
    (g) Nonmember transportation. The term ``nonmember transportation'' 
means transportation performed by a cooperative association or 
federation of cooperative associations other than member transportation 
as defined in paragraph (f) of this section.
    (h) Fiscal year. The term ``fiscal year'' means the annual 
accounting period adopted by the cooperative association or federation 
of cooperative associations for Federal income tax reporting purposes.

[43 FR 2397, Jan. 17, 1978, as amended at 45 FR 45524, July 3, 1980; 47 
FR 13353, Mar. 30, 1982; 47 FR 15142, Apr. 8, 1982]



Sec. 372.109  Computation of tonnage allowable in nonfarm-non-member 
transportation.

    Interstate transportation performed by a cooperative association or 
federation of cooperative associations for nonmembers who are not 
farmers, cooperative associations, or federations of associations or the 
United States Government for compensation, (except transportation 
otherwise exempt under subtitle IV, part B, chapter 135 of title 49 of 
the United States Code) shall be limited to that which is incidental to 
its primary transportation operation and necessary for its effective 
performance. It shall in no event exceed 25 percent of its total 
interstate transportation services in any fiscal year, measured in terms 
of tonnage. A cooperative association or federation of cooperative 
associations may transport its own property, its members' property, 
property of other farmers and the property of other cooperatives or 
federations in accordance with existing law, except where the provisions 
of Sec. 372.111 may be applicable to the limit on member/nonmember 
transportation.
    (a) The phrase ``incidental to its primary transportation operation 
and necessary for its effective performance'' means that the interstate 
transportation of the cooperative association or federation of 
cooperation association for nonmembers as described above is performed 
with the same trucks or tractors employed in a prior or subsequent trip 
in the primary transportation operation of the cooperative association 
or federation, that it is not economically feasible to operate the 
trucks or tractors empty on return trips (outbound trips in cases where 
the primary transportation operation is inbound to the association or 
federation), and that the additional income obtained from such 
transportation is necessary to make the primary transportation operation 
financially practicable. Transportation for nonmembers as described 
above performed by a

[[Page 73]]

cooperative or federation through the use of trucks or tractors trip-
leased for one-way movements with the cooperative association or 
federation acting as leasee, is not incidental and necessary;
    (b) The base tonnage to which the 25-percent limitation is applied 
is all tonnage of all kinds transported by the cooperative association 
or federation of cooperative associations in interstate or foreign 
commerce, whether for itself, its members or nonmembers, for or on 
behalf of the United States or any agency or instrumentality thereof, 
and that performed within the exemption provided by 49 U.S.C. 
13506(a)(5).

[43 FR 2397, Jan. 17, 1978, as amended at 43 FR 21894, May 22, 1978; 45 
FR 45524, July 3, 1980; 62 FR 49940, Sept. 24, 1997]



Sec. 372.111  Nonmember transportation limitation and record keeping.

    (a) Overall limitation of nonmember transportation. No cooperative 
association or federation of cooperative associations may engage in 
nonmember interstate transportation for compensation in any fiscal year 
which, measured in terms of tonnage, exceeds its total interstate member 
transportation in such fiscal year.
    (b) Records of interstate transportation when nonmember 
transportation is performed. Any cooperative association or federation 
of cooperative associations performing interstate transportation for 
nonmembers shall prepare and retain for a period of at least two years 
written records of all interstate transportation performed for members 
and nonmembers. These records shall contain:
    (1) The date of the shipment,
    (2) The names and addresses of the consignor and consignee,
    (3) The origin and destination of the shipment,
    (4) A description of the articles in the shipment,
    (5) The weight or volume of the shipment,
    (6) A description of the equipment used either by unit number or 
license number and, in the event this equipment is nonowned, the name 
and address of its owners and drivers,
    (7) The total charges collected,
    (8) A copy of all leases executed by the cooperative association or 
federation of cooperative associations to obtain equipment to perform 
transportation under 49 U.S.C. 13506(a)(5),
    (9) Whether the transportation performed is:
    (i) Member transportation,
    (ii) Nonmember transportation for nonmembers who are farmers, 
cooperative associations, or federations thereof,
    (iii) Other nonmember transportation, and if of class (iii), how the 
transportation was incidental and necessary as defined in Sec. 
372.109(a).

[43 FR 2397, Jan. 17, 1978, as amended at 45 FR 45524, July 3, 1980; 62 
FR 38036, July 16, 1997; 62 FR 49940, Sept. 24, 1997]



Sec. 372.113  [Reserved]



Sec. 372.115  Commodities that are not exempt under 49 U.S.C. 13506(a)(6).

    49 U.S.C. 13506(a)(6) provides an exemption from regulation for 
motor vehicles used in carrying ordinary livestock, fish, and 
unmanufactured agricultural commodities. Certain specific commodities 
have been statutorily determined to be non-exempt. Administrative Ruling 
No. 133, which is reproduced below, is a list of those commodities that 
are non-exempt by statute.

                      Administrative Ruling No. 133

   List of Commodities That Are Not Exempt by Statute Under 49 U.S.C. 
                               13506(a)(6)

Animal fats
Butter
Canned fruits and vegetables
Carnauba wax as imported in slabs or chunks
Cattle, slaughtered
Charcoal
Cheese
Coal
Cocoa beans
Coffee, beans, roasted, or instant
Copra meal
Cotton yarn
Cottonseed cake or meal
Diatomaceous earth
Dinners, frozen

Feeds:

    Alfalfa meal
    Alfalfa pellets
    Beet pulp
    Bran shorts
    Copra meal
    Corn gluten
    Distilled corn grain residues, with or without solubles added
    Fish meal

[[Page 74]]

    Hominy feed
    Middlings
    Pelletized ground refuse screenings
    Wheat bran
    Wheat shorts

Fertilizer, commercial

Fish:

    Canned or salted as a treatment for preserving
    Cooked or partially cooked fish or shrimp, frozen or unfrozen
    Hermetically sealed in containers as a treatment for preserving
    Oil from fishes
    Preserved, or treated for preserving, such as smoked, salted, 
pickled, spiced, corned or kippered

Flagstone
Flaxseed meal
Flour

Forest products:

    Resin products, such as turpentine

Fruits and Berries:

    Bananas, fresh, dried, dehydrated, or frozen
    Canned
    Frozen
    Hulls of oranges after juice extractions
    Juice, fruit, plain or concentrated
    Pies, frozen
    Preserved, such as jam
    Purees, strawberry and other, frozen

Grains:

    Oils extracted from grain
    Popcorn, popped
    Rice, precooked
    Wheat germ

Gravel
Hair, hog or other animal, product of slaughter of animal
Hay, sweetened with 3 percent molasses by weight
Hemp fiber
Hides, green and salted
Insecticides
Limestone, agricultural

Livestock:

    Monkeys
    Race horses
    Show horses
    Zoo animals

Lumber, rough sawed or planed
Maple syrup

Meal:

    Alfalfa
    Copra
    Cottonseed
    Fish
    Flaxseed
    Linseed
    Peanut
    Soybean

Meat and meat products, fresh, frozen or canned

Milk and Cream:

    Chocolate
    Condensed
    Sterilized in hermetically sealed cans

Molasses

Nuts (including peanuts):

    Peanut meal
    Roasted or boiled

Oil, mint
Oil, extracted from vegetables, grain, seed, fish or other commodity
Pelts
Pies, frozen
Pigeons, racing
Pulp, beet
Pulp, sugar cane
Rock (except natural crushed, vesicular rock to be used for decorative 
          purposes)
Rubber, crude, in bales
Rubber, latex, natural, liquid, from which water has been extracted and 
          to which ammonia has been added
Sand

Seeds:

    Oil extracted from seeds

Skins, animal
Soil, potting
Soil, top
Soup, frozen
Sugar
Sugar cane pulp
Sugar raw
Syrup, cane
Syrup, maple
Tea

Tobacco:

    Cigars and cigarettes
    Homogenized
    Smoking

Top Soil

Trees:

    Sawed into lumber

Vegetables:

    Candied sweet potatoes, frozen
    Canned
    Cooked
    French fried potatoes
    Oil, extracted from vegetables
    Soup, frozen
    Soybean meal

Wool imported from a foreign country
Wool tops and noils
Wool waste (carded, spun, woven, or knitted)
Wool yarn

    Note 1: Under 49 U.S.C. 13506(a)(6)(D), any listed fish or shellfish 
product that is not intended for human consumption is exempt.

[[Page 75]]

    Note 2: Under 49 U.S.C. 13506(a)(6)(E), any listed livestock feed, 
poultry feed, agricultural seeds, or plants that are transported to a 
site of agricultural production or to a business enterprise engaged in 
the sale to agricultural producers of goods used in agricultural 
production is exempt

[53 FR 17707, May 18, 1988, as amended at 62 FR 15421, Apr. 1, 1997]



Sec. 372.117  Motor transportation of passengers incidental to 
transportation by aircraft.

    (a) Passengers having an immediately prior or subsequent movement by 
air. The transportation of passengers by motor vehicle is transportation 
incidental to transportation by aircraft provided (1) that it is 
confined to the transportation of passengers who have had or will have 
an immediately prior or immediately subsequent movement by air and (2) 
that the zone within which motor transportation is incidental to 
transportation by aircraft, except as it may be individually determined 
as provided in section (c) herein, shall not exceed in size the area 
encompassed by a 25-mile radius of the boundary of the airport at which 
the passengers arrive or depart and by the boundaries of the commercial 
zones (as defined by the Secretary) of any municipalities any part of 
whose commercial zones falls within the 25-mile radius of the pertinent 
airport.
    (b) Substituted motor-for-air transportation due to emergency 
conditions. Transportation of passengers by motor vehicle is 
transportation incidental to transportation by aircraft if it 
constitutes substituted motor-for-air service performed at the expense 
of the air carrier in emergency situations arising from the inability of 
the air carrier to perform air transportation due to adverse weather 
conditions, equipment failure, or other causes beyond the control of the 
air carrier.
    (c) Individual determination of exempt zones. Upon its own motion or 
upon petition filed by any interested person, the Secretary may in an 
appropriate proceeding, determine whether the area within which the 
transportation by motor vehicle of passengers having an immediately 
prior or subsequent movement by air must be performed, in order to come 
within the provisions of paragraph (a) of this section, should be 
individually determined with respect to any particular airport or city 
served by an airport, and whether there should be established therefor 
appropriate boundaries differing in extent from this defined in 
paragraph (a)(2) of this section.
    (d) Exempt zones and operations--(1) Dulles and Baltimore-Washington 
International Airports. The transportation by motor vehicle, in 
interstate or foreign commerce, of passengers, having an immediately 
prior or subsequent movement by air, between Dulles International 
Airport, near Chantilly, Va., and Baltimore-Washington International 
Airport, near Baltimore, Md., is partially exempt from regulation under 
49 U.S.C. 13506(a)(8)(A).
    (2) Savannah, Ga., Airport. The transportation by motor vehicle, in 
interstate or foreign commerce, of passengers, having an immediately 
prior or subsequent movement by air, between Savannah, Ga., Airport and 
all points on Hilton Head Island, SC, is partially exempt from 
regulation under 49 U.S.C. 13506(a)(8)(A).
    (3) Chicago O'Hare International Airport (Chicago, Ill.). The 
transportation by motor vehicle, in interstate or foreign commerce, of 
passengers, having an immediately prior or subsequent movement by air, 
between O'Hare International Airport, at Chicago, Ill., on the one hand, 
and, on the other, points in Indiana on and north of U.S. Highway 30 and 
on and west of Indiana Highway 49, is partially exempt from regulation 
under 49 U.S.C. 13506(a)(8)(A).

[32 FR 20036, Dec. 20, 1967, as amended at 37 FR 5252, Mar. 11, 1972; 42 
FR 10003, Feb. 18, 1977; 42 FR 15705; Mar. 23, 1977; 62 FR 15421, Apr. 
1, 1997]



                       Subpart B_Commercial Zones

    Source: 41 FR 56653, Dec. 29, 1976, unless otherwise noted. 
Redesignated at 61 FR 54708, Oct. 21, 1996.



Sec. 372.201  Albany, NY.

    The zone adjacent to, and commercially a part of Albany, N.Y., 
within which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management,

[[Page 76]]

or arrangement for a continuous carriage or shipment to or from a point 
beyond such zone, is partially exempt from regulations under 49 U.S.C. 
13506(b)(1) includes and is comprised of all points as follows:
    (a) The municipality of Albany, N.Y., itself.
    (b) All points within a line drawn eight miles beyond the municipal 
limits of Albany.
    (c) All points in that area more than eight miles beyond the 
municipal limits of Albany bounded by a line as follows: Beginning at 
that point on the western boundary of Cohoes, N.Y., where it crosses the 
line described in paragraph (b) of this section, thence along the 
western and northern boundary of Cohoes to the Mohawk River thence along 
such river to the northern boundary of the Town of Waterford thence 
along the northern and eastern boundaries of the Town of Waterford to 
the northern boundary of the City of Troy (all of which city is included 
under the next provision).
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Albany or any other 
municipality included under the terms of paragraph (d) of this section.

[41 FR 56653, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.203  Beaumont, TX.

    The zone adjacent to, and commercially a part of Beaumont, Tex., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Beaumont, Tex., itself;
    (b) All points within a line drawn 8 miles beyond the municipal 
limits of Beaumont;
    (c) All points in Jefferson County and Orange County, Tex.;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Beaumont or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.205  Charleston, S.C.

    The zone adjacent to, and commercially a part of Charleston, S.C., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Charleston, S.C., itself;
    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Charleston;
    (c) Those points in Charleston County, S.C., which are not within 
the areas described in paragraph (b) of this section; and those points 
in Berkley County, S.C., which are not within the areas described in 
paragraph (b) of this section, and which are west of South Carolina 
Highway 41; and all points in Dorchester County, SC.
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Charleston or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976, as amended at 46 FR 28658, May 28, 1981; 62 
FR 15422, Apr. 1, 1997]



Sec. 372.207  Charleston, WV.

    The zone adjacent to, and commercially a part of Charleston, W. Va., 
within which transportation by motor

[[Page 77]]

vehicle in interstate or foreign commerce, not under common control, 
management, or arrangement for a continuous carriage or shipment to or 
from a point beyond such zone, is partially exempt from regulation under 
49 U.S.C. 13506(b)(1) includes and is comprised of all points as 
follows:
    (a) The municipality of Charleston, W. Va., itself;
    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Charleston;
    (c) Those points in Kanawha County, W. Va., which are not within the 
area described in paragraph (b) of this section; and those points in 
Putnam County, W. Va., south of West Virginia Highway 34;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Charleston or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.209  Lake Charles, LA.

    The zone adjacent to, and commercially a part of Lake Charles, La., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Lake Charles, La., itself;
    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Lake Charles;
    (c) Those points in Calcasieu Parish, La., which are not within the 
area described in paragraph (b) of this section; and which are east of 
Louisiana Highway 27 (western section);
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Lake Charles or by 
any other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56653, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.211  Pittsburgh, PA.

    The zone adjacent to, and commercially a part of Pittsburgh within 
which transportation by motor vehicle in interstate or foreign commerce, 
not under common control, management, or arrangement for a continuous 
carriage or shipment to or from a point beyond such zone, is partially 
exempt from regulation under 49 U.S.C. 13506(b)(1) includes and is 
comprised of all points as follows:
    (a) The municipality of Pittsburgh, Pa., itself;
    (b) All points within a line drawn 15 miles beyond the municipal 
limits of Pittsburgh;
    (c) Those points in Allegheny County, Pa., which are not within the 
area described in paragraph (b) of this section;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Pittsburgh by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56654, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.213  Pueblo, CO.

    The zone adjacent to, and commercially a part of Pueblo, Colo., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulations under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Pueblo, Colo., itself;

[[Page 78]]

    (b) All points within a line drawn 6 miles beyond the municipal 
limits of Pueblo;
    (c) Those points in Pueblo County, Colo., which are not within the 
area described in paragraph (b) of this section;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality included under the 
terms of paragraph (d) of this section.

[41 FR 56654, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.215  Ravenswood, WV.

    The zone adjacent to, and commercially a part of Ravenswood, W. Va., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Ravenswood, W. Va., itself;
    (b) All points within a line drawn 4 miles beyond the municipal 
limits of Ravenswood;
    (c) Those points in Jackson County, W. Va., which are not within the 
area described in paragraph (b) of this section, and which are north of 
U.S. Highway 33;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Ravenswood or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56654, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.217  Seattle, WA.

    The zone adjacent to, and commercially a part of Seattle, Wash., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Seattle, Wash., itself;
    (b) All points within a line drawn 15 miles beyond the municipal 
limits of Seattle;
    (c) Those points in King County, Wash., which are not within the 
area described in paragraph (b) of this section, and which are west of a 
line beginning at the intersection of the line described in paragraph 
(b) of this section and Washington Highway 18, thence northerly along 
Washington Highway 18 to junction of Interstate Highway 90, thence 
westerly along Interstate Highway 90 to junction Washington Highway 203, 
thence northerly along Washington Highway 203 to the King County line; 
and those points in Snohomish County, Wash., which are not within the 
area described in paragraph (b) of this section and which are west of 
Washington Highway 9; and those points in Kitsap County, Wash., which 
are not within the area described in paragraph (b) of this section lying 
within the area bounded by a line beginning at the intersection of the 
line described in paragraph (b) of this section and Washington Highway 3 
to the boundary of Olympic View Industrial Park/Bremerton-Kitsap County 
Airport, thence westerly, southerly, easterly, and northerly along the 
boundary of Olympic View Industrial Park/ Bremerton-Kitsap County 
Airport to its juncture with Washington Highway 3 to its intersection 
with the line described in paragraph (b) of this section.
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Seattle or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[41 FR 56654, Dec. 29, 1976, as amended at 46 FR 25314, May 6, 1981; 62 
FR 15422, Apr. 1, 1997]

[[Page 79]]



Sec. 372.219  Washington, DC

    The zone adjacent to, and commercially a part of Washington, D.C., 
within which transportation by motor vehicle in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
continuous carriage or shipment to or from a point beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1) includes 
and is comprised of all points as follows:
    (a) The municipality of Washington, D.C., itself;
    (b) All points within a line drawn 15 miles beyond the municipal 
limits of Washington, DC
    (c) All points in Fairfax and Loudoun Counties, VA, and all points 
in Prince William County, VA, including the City of Manassas, VA, and 
the City of Manassas Park, VA.
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Washington, D.C., or 
by any other municipality included under the terms of paragraph (d) of 
this section.

[41 FR 56654, Dec. 29, 1976, as amended at 46 FR 56424, Nov. 17, 1981; 
62 FR 15422, Apr. 1, 1997]



Sec. 372.221  Twin Cities.

    For the purpose of determining commercial zones, utilizing the 
general population-mileage formula as set forth in Sec. 372.241, each 
of the following combinations of cities shall be considered as a single 
municipality:
    (a) Having a population equal to the sum of their combined 
populations, and
    (b) Having boundaries comprised of their combined corporate limits, 
with the common portion thereof disregarded:
    (1) Bluefield, Va.-W. Va.
    (2) Bristol, Va.-Tenn.
    (3) Davenport, Iowa, and Rock Island and Moline, Ill.
    (4) Delmar, Del-Md.
    (5) Harrison, Ohio-West Harrison, Ind.
    (6) Junction City, Ark.-La.
    (7) Kansas City, Mo.-Kansas City, Kans.
    (8) Minneapolis-St. Paul, Minn.
    (9) St. Louis, Mo.-East St. Louis, Ill.
    (10) Texarkana, Ark.-Tex.
    (11) Texhoma, Tex.-Okla.
    (12) Union City, Ind.-Ohio.

[41 FR 56654, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.223  Consolidated governments.

    The zone adjacent to, and commercially a part of a consolidated 
government within which transportation by motor vehicle, in interstate 
or foreign commerce, not under common control, management, or 
arrangement for a continuous carriage or shipment to or from a point 
beyond the zone, is partially exempt from regulation under 49 U.S.C. 
13506(b)(1) includes and is comprised of all points as follows:
    (a) All points within the boundaries of the consolidated government.
    (b) All points beyond the boundaries of the consolidated government 
which were at any time within the commercial zone of the formerly 
independent core municipality.
    (c) When the present population of the formerly independent core 
municipality is identifiable, all points beyond the boundaries of the 
consolidated government which are within the territory determined by the 
most recent population-mileage formula measured from the limits of the 
formerly independent core municipality.
    (d) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the consolidated government or by any 
other municipality included under the terms of paragraphs (a), (b), or 
(c) of this section.

[41 FR 56654, Dec. 29, 1976, as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.225  Lexington-Fayette Urban County, KY.

    The zone adjacent to and commercially a part of Lexington-Fayette 
Urban County, Ky., within which transportation by motor vehicle, in 
interstate or foreign commerce, not under a common control, management, 
or arrangement for a continuous carriage or shipment to or from a point 
beyond the zone, is partially exempt from regulation under 49 U.S.C. 
13506(b)(1) includes

[[Page 80]]

and is comprised of all points as follows:
    (a) Lexington-Fayette Urban County, Ky., itself.
    (b) All other municipalities and unincorporated areas within 5 miles 
of the intersection of U.S. Highway 27 (Nicholasville Road) with the 
corporate boundary line between Jessamine County, Ky., and Lexington-
Fayette Urban County, Ky.

[39 FR 18769, May 30, 1974. Redesignated at 41 FR 56655, Dec. 29, 1976. 
Further redesignated at 55 FR 42198, Oct. 18, 1990, as amended at 62 FR 
15422, Apr. 1, 1997]



Sec. 372.227  Syracuse, NY.

    The zone adjacent to, and commercially a part of Syracuse, N.Y., 
within which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for 
shipment to or from points beyond such zone, is partially exempt from 
regulation under 49 U.S.C. 13506(b)(1) includes and is comprised of all 
points as follows:
    (a) The municipality of Syracuse, N.Y., itself;
    (b) All points within a line drawn 10 miles beyond the municipal 
limits of Syracuse;
    (c) Those points in the towns of Van Buren and Lysander, Onondaga 
County, N.Y., which are not within the area described in paragraph (b) 
of this section, but which are within an area bounded by a line 
beginning at the intersection of new New York Highway 48 with the line 
described in (b) of this sectio, thence northwesterly along new New York 
Highway 48 to junction New York Highway 370, thence westerly along New 
York Highway 370 to junction Emerick Road, thence northerly along 
Emerick Road to junction Dunham Road, thence northerly along Dunham road 
to junction New York Highway 192, thence easterly along New York Highway 
192 to junction new New York Highway 48, thence northerly along new New 
York Highway 48 to junction New York Highway 213, thence easterly along 
New York Highway 213 to junction New York Highway 213A, thence easterly 
along New York Highway 213A to junction New York Highway 37, thence 
southerly along New York Highway 37 to its intersection with the line in 
(b) above;
    (d) All of any municipality any part of which is within the limits 
of the combined area defined in (b) and (c) of this section, and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Syracuse or any 
other municipality included under the terms of (d) of this section.

[42 FR 44816, Sept. 7, 1977. Redesignated at 55 FR 42198, Oct. 18, 1990, 
as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.229  Spokane, WA.

    The zone adjacent to, and commercially a part of Spokane, WA, within 
which transportation by motor vehicle, in interstate or foreign 
commerce, not under control, management, or arrangement for shipment to 
or from points beyond such zone, is partially exempt from regulation 
under 49 U.S.C. 13506(b)(1) includes and is comprised of all points as 
follows:
    (a) The municipality of Spokane, WA, itself,
    (b) All points within a line drawn 8 miles beyond the municipal 
limits of Spokane;
    (c) All points within that area more than 8 miles beyond the 
municipal limits of Spokane bounded by a line as follows: From the 
intersection of the line described in (b) of this section and U.S. 
Highway 2, thence westerly along U.S. Highway 2 to junction Brooks Road, 
thence southerly along Brooks Road to junction Hallett Road, thence 
easterly along Hallett Road to its intersection with the line described 
in (b) of this section;
    (d) All of any municipality any part of which is within the limits 
of the combined areas in (b) and (c) of this section; and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Spokane or any other 
municipality included under the terms of (d) of this section.

[45 FR 62085, Sept. 18, 1980. Redesignated and amended at 55 FR 42198, 
Oct. 18, 1990; 62 FR 15422, Apr. 1, 1997]

[[Page 81]]



Sec. 372.231  Tacoma, WA.

    The zone adjacent to, and commercially a part of Tacoma, WA, within 
which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for 
shipment to or from points beyond such zone, is partially exempt from 
regulation under 49 U.S.C. 13506(b)(1), includes and is comprised of all 
points as follows:
    (a) The municipality of Tacoma, WA, itself;
    (b) All points within a line drawn 8 miles beyond the municipal 
limits of Tacoma;
    (c) Those points in Pierce County, WA, which are not within the area 
described in paragraph (b) of this section, but which are on Washington 
Highway 162 beginning at its intersection with the line described in 
paragraph (b) of this section, extending to and including Orting, WA, 
and all points within the Orting commercial zone.
    (d) All of any municipality any part of which is within the limits 
of the combined area defined in (b) and (c) of this section, and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality of Tacoma or any other 
municipality included under the terms of (d) of this section.

[45 FR 66460, Oct. 7, 1980. Redesignated at 55 FR 42198, Oct. 18, 1990, 
as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.233  Chicago, IL.

    The zone adjacent to, and commercially a part of Chicago, IL, within 
which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for a 
shipment to or from such zone, is partially exempt from regulation under 
49 U.S.C. 13506(b)(1), includes and is comprised of all points as 
follows:
    (a) The municipality of Chicago, IL, itself;
    (b) All points within a line drawn 20 miles beyond the municipal 
limits of Chicago;
    (c) All points in Lake County, IL.
    (d) All of any municipality any part of which is within the limits 
of the combined area defined in paragraphs (b) and (c) of this section, 
and
    (e) All of any municipality wholly surrounded, or so surrounded 
except for a water boundary, by the municipality included under the 
terms of paragraph (d) of this section.

[46 FR 11286, Feb. 6, 1981. Redesignated at 55 FR 42198, Oct. 18, 1990, 
as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.235  New York, NY.

    The zone adjacent to, and commercially a part of, New York, NY, 
within which transportation by motor vehicle, in interstate or foreign 
commerce, not under common control, management, or arrangement for 
shipment to or from points beyond such zone is partially exempt from 
regulation under 49 U.S.C. 13506(b)(1), includes and is comprised of all 
points as follows:
    (a) The municipality of New York, NY, itself;
    (b) All points within a line drawn 20 miles beyond the municipal 
limits of New York, NY;
    (c) All points in Morris County, NJ;
    (d) All of any municipality any part of which is within the limits 
of the combined areas defined in paragraphs (b) and (c); and
    (e) All of any municipality wholly surrounded, or so surrounded 
except by a water boundary, by the municipality of New York or by any 
other municipality included under the terms of paragraph (d) of this 
section.

[50 FR 34478, Aug. 26, 1985. Redesignated at 55 FR 42198, Oct. 18, 1990, 
as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.237  Cameron, Hidalgo, Starr, and Willacy Counties, TX.

    (a) Transportation within a zone comprised of Cameron, Hidalgo, 
Starr, and Willacy Counties, TX, by motor carriers of property, in 
interstate or foreign commerce, not under common control, management, or 
arrangement for shipment to or from points beyond such zone, is 
partially exempt from regulation under 49 U.S.C. 13506(b)(1).
    (b) To the extent that commercial zones of municipalities within the 
four counties (as determined under Sec. 372.241) extend beyond the 
boundaries of this four-county zone, the areas of such commercial zones 
shall be considered

[[Page 82]]

to be part of the zone and partially exempt from regulation under 49 
U.S.C. 13506(b)(1).

[51 FR 1815, Jan. 15, 1986. Redesignated at 55 FR 42198, Oct. 18, 1990, 
as amended at 62 FR 15422, Apr. 1, 1997]



Sec. 372.239  Definitions.

    For the purposes of this part, the following terms are defined:
    (a) Municipality means any city, town, village, or borough which has 
been created by special legislative act or which has been, otherwise, 
individually incorporated or chartered pursuant to general State laws, 
or which is recognized as such, under the Constitution or by the laws of 
the State in which located, and which has a local government. It does 
not include a town of the township or New England type.
    (b) Contiguous municipalities means municipalities, as defined in 
paragraph (a) of this section, which have at some point a common 
municipal or corporate boundary.
    (c) Unincorporated area means any area not within the corporate or 
municipal boundaries of any municipality as defined in paragraph (a) of 
this section.

[32 FR 20048, Dec. 20, 1967]



Sec. 372.241  Commercial zones determined generally, with exceptions.

    The commercial zone of each municipality in the United States, with 
the exceptions indicated in the note at the end of this section, within 
which the transportation of passengers or property, in interstate or 
foreign commerce, when not under a common control, management, or 
arrangement for a continuous carriage or shipment to or from a point 
without such zone, is exempt from all provisions of 49 U.S.C. subtitle 
IV, part B shall be deemed to consist of:
    (a) The municipality itself, hereinafter called the base 
municipality;
    (b) All municipalities which are contiguous to the base 
municipality;
    (c) All other municipalities and all unincorporated areas within the 
United States which are adjacent to the base municipality as follows:
    (1) When the base municipality has a population less than 2,500 all 
unincorporated areas within 3 miles of its corporate limits and all of 
any other municipality any part of which is within 3 miles of the 
corporate limits of the base municipality,
    (2) When the base municipality has a population of 2,500 but less 
than 25,000 all unincorporated areas within 4 miles of its corporate 
limits and all of any other municipality any part of which is within 4 
miles of the corporate limits of the base municipality.
    (3) When the base municipality has a population of 25,000 but less 
than 100,000 all unincorporated areas within 6 miles of its corporate 
limits and all of any other municipality any part of which is within 6 
miles of the corporate limits of the base municipality, and
    (4) When the base municipality has a population of 100,000 but less 
than 200,000 all unincorporated areas within 8 miles of its corporate 
limits and all of any other municipality any part of which is within 8 
miles of the corporate limits of the base municipality.
    (5) When the base municipality has a population of 200,000 but less 
than 500,000 all unincorporated areas within 10 miles of its corporate 
limits and all of any other municipality any part of which is within 10 
miles of the corporate limits of the base municipality.
    (6) When the base municipality has a population of 500,000 but less 
than 1 million, all unincorporated areas within 15 miles of its 
corporate limits and all of any other municipality any part of which is 
within 15 miles of the corporate limits of the base municipality.
    (7) When the base municipality has a population of 1 million or 
more, all unincorporated areas within 20 miles of its corporate limits 
and all of any other municipality any part of which is within 20 miles 
of the corporate limits of the base municipality, and
    (d) All municipalities wholly surrounded, or so surrounded except 
for a water boundary, by the base municipality, by any municipality 
contiguous thereto, or by any municipality adjacent thereto which is 
included in the commercial zone of such base municipality under the 
provisions of paragraph (c) of this section.


[[Page 83]]


    Note: Except: Municipalities the commercial zones of which have been 
or are hereafter individually or specially determined.

[32 FR 20048, Dec. 20, 1967, as amended at 34 FR 9870, June 26, 1969; 34 
FR 15482, Oct. 4, 1969; 41 FR 56655, Dec. 29, 1976; 62 FR 15422, Apr. 1, 
1997]



Sec. 372.243  Controlling distances and population data.

    In the application of Sec. 372.241:
    (a) Air-line distances or mileages about corporate limits of 
municipalities shall be used.
    (b) The population of any municipality shall be deemed to be the 
highest figure shown for that municipality in any decennial census since 
(and including) the 1940 decennial census.
    (c) Contraction of municipal boundaries will not alter the size of 
commercial zones.

[32 FR 20040, Dec. 20, 1967, as amended at 37 FR 15701, Aug. 4, 1972; 50 
FR 10233, Mar. 14, 1985; 62 FR 15422, Apr. 1, 1997]



                        Subpart C_Terminal Areas

    Source: 32 FR 20049, Dec. 20, 1967, unless otherwise noted. 
Redesignated at 61 FR 54708, Oct. 21, 1996.



Sec. 372.300  Distances and population data.

    In the application of this subpart, distances and population data 
shall be determined in the same manner as provided in 49 CFR 372.243. 
See also definitions in 49 CFR 372.239.

[62 FR 15422, Apr. 1, 1997]



Sec. 372.301  Terminal areas of motor carriers and freight forwarders 
at municipalities served.

    The terminal area within the meaning of 49 U.S.C. 13503 of any motor 
carrier of property or freight forwarder subject to 49 U.S.C. subtitle 
IV, part B at any municipality authorized to be served by such motor 
carrier of property or motor carrier of passengers in the transportation 
of express or freight forwarder, within which transportation by motor 
carrier in the performance of transfer, collection, or delivery services 
may be performed by, or for, such motor carrier of property or freight 
forwarder without compliance with the provisions of 49 U.S.C. subtitle 
IV, part B consists of and includes all points or places which are:
    (a) Within the commercial zone, as defined by the Secretary, of that 
municipality, and
    (b) Not beyond the limits of the operating authority of such motor 
carrier of property or freight forwarder.

[62 FR 15422, Apr. 1, 1997]



Sec. 372.303  Terminal areas of motor carriers and freight forwarders 
at unincorporated communities served.

    The terminal areas within the meaning of 49 U.S.C. 13503 of any 
motor carrier of property or freight forwarder subject to 49 U.S.C. 
subtitle IV, part B, at any unincorporated community having a post 
office of the same name which is authorized to be served by such motor 
carrier of property or motor carrier of passengers in the transportation 
of express or freight forwarder, within which transportation by motor 
vehicle in the performance of transfer, collection, or delivery services 
may be performed by, or for, such motor carrier of property or freight 
forwarder without compliance with the provisions of 49 U.S.C. subtitle 
IV, part B, consists of:
    (a) All points in the United States which are located within the 
limits of the operating authority of the motor carrier of property or 
freight forwarder involved, and within 3 miles of the post office at 
such authorized unincorporated point if it has a population less than 
2,500, within 4 miles if it has a population of 2,500 but less than 
25,000, or within 6 miles if it has a population of 25,000 or more;
    (b) All of any municipality any part of which is included under 
paragraph (a) of this section; and
    (c) Any municipality wholly surrounded by any municipality included 
under paragaph (b) of this section, or so wholly surrounded except for a 
water boundary.

[32 FR 20049, Dec. 20, 1967, as amended at 41 FR 56655, Dec. 29, 1976; 
51 FR 44297, Dec. 9, 1986; 62 FR 15423, Apr. 1, 1997]

[[Page 84]]



PART 373_RECEIPTS AND BILLS--Table of Contents




               Subpart A_Motor Carrier Receipts and Bills

Sec.
373.101 Motor carrier bills of lading.
373.103 Expense bills.
373.105 Low value packages.

              Subpart B_Freight Forwarders; Bills of Lading

373.201 Receipts and bills of lading for freight forwarders.

    Authority: 49 U.S.C. 13301, 13531 and 14706; and 49 CFR 1.73.



               Subpart A_Motor Carrier Receipts and Bills

    Source: 55 FR 11198, Mar. 27, 1990, unless otherwise noted. 
Redesignated at 61 FR 54708, Oct. 21, 1996.



Sec. 373.101  Motor carrier bills of lading.

    Every motor common carrier shall issue a receipt or bill of lading 
for property tendered for transportation in interstate or foreign 
commerce containing the following information:
    (a) Names of consignor and consignee.
    (b) Origin and destination points.
    (c) Number of packages.
    (d) Description of freight.
    (e) Weight, volume, or measurement of freight (if applicable to the 
rating of the freight).

The carrier shall keep a record of this information as prescribed in 49 
CFR part 379.

[55 FR 11198, Mar. 27, 1990, as amended at 56 FR 30874, July 8, 1991; 62 
FR 15423, Apr. 1, 1997]



Sec. 373.103  Expense bills.

    (a) Property. Every motor common carrier shall issue a freight or 
expense bill for each shipment transported containing the following 
information:
    (1) Names of consignor and consignee (except on a reconsigned 
shipment, not the name of the original consignor).
    (2) Date of shipment.
    (3) Origin and destination points (except on a reconsigned shipment, 
not the original shipping point unless the final consignee pays the 
charges from that point).
    (4) Number of packages.
    (5) Description of freight.
    (6) Weight, volume, or measurement of freight (if applicable to the 
rating of the freight).
    (7) Exact rate(s) assessed.
    (8) Total charges due, including the nature and amount of any 
charges for special service and the points at which such service was 
rendered.
    (9) Route of movement and name of each carrier participating in the 
transportation.
    (10) Transfer point(s) through which shipment moved.
    (11) Address where remittance must be made or address of bill 
issuer's principal place of business.

The shipper or receiver owing the charges shall be given the original 
freight or expense bill and the carrier shall keep a copy as prescribed 
at 49 CFR part 379. If the bill is electronically transmitted (when 
agreed to by the carrier and payor), a receipted copy shall be given to 
the payor upon payment.
    (b) Charter service. Every motor passenger common carrier providing 
charter service shall issue an expense bill containing the following 
information:
    (1) Serial number, consisting of one of a series of consecutive 
numbers assigned in advance and imprinted on the bill.
    (2) Name of carrier.
    (3) Names of payor and organization, if any, for which 
transportation is performed.
    (4) Date(s) transportation was performed.
    (5) Origin, destination, and general routing of trip.
    (6) Identification and seating capacity of each vehicle used.
    (7) Number of persons transported.
    (8) Mileage upon which charges are based, including any deadhead 
mileage, separately noted.
    (9) Applicable rates per mile, hour, day, or other unit.
    (10) Itemized charges for transportation, including special services 
and fees.
    (11) Total charges assessed and collected.

The carrier shall keep a copy of all expense bills issued for the period 
prescribed at 49 CFR part 379. If any expense bill is spoiled, voided, 
or unused

[[Page 85]]

for any reason, a copy or written record of its disposition shall be 
retained for a like period.

[55 FR 11198, Mar. 27, 1990, as amended at 59 FR 2303, Jan. 14, 1994; 61 
FR 19860, May 3, 1996; 62 FR 15423, Apr. 1, 1997]



Sec. 373.105  Low value packages.

    The carrier and shipper may elect to waive the above provisions and 
use a more streamlined recordkeeping or documentation system for 
distribution of ``low value'' packages. This includes the option of 
shipping such packages under the provisions of 49 U.S.C. 14706(c). The 
shipper is responsible ultimately for determining which packages should 
be designated as low value. A useful guideline for this determination is 
an invoice value less than or equal to the costs of preparing a loss or 
damage claim.

[55 FR 11198, Mar. 27, 1990. Redesignated at 61 FR 54708, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



              Subpart B_Freight Forwarders; Bills of Lading



Sec. 373.201  Receipts and bills of lading for freight forwarders.

    Each freight forwarder must issue the shipper a receipt or through 
bill of lading, covering transportation from origin to ultimate 
destination, on each shipment for which it arranges transportation in 
interstate commerce. Where a motor carrier receives freight at the 
origin and issues a receipt therefor on its form with a notation showing 
the freight forwarder's name, then the freight forwarder, upon receiving 
the shipment at the ``on line'' or consolidating station, must issue a 
receipt or through bill of lading on its form as of the date the carrier 
receives the shipment.

[74 FR 15393, Apr. 6, 2009]



PART 374_PASSENGER CARRIER REGULATIONS--Table of Contents




   Subpart A_Discrimination in Operations of Interstate Motor Common 
                         Carriers of Passengers

Sec.
374.101 Discrimination prohibited.
374.103 Notice to be printed on tickets.
374.105 Discrimination in terminal facilities.
374.107 Notice to be posted at terminal facilities.
374.109 Carriers not relieved of existing obligations.
374.111 Reports of interference with regulations.
374.113 Definitions.

Subpart B_Limitation of Smoking on Interstate Passenger Carrier Vehicles

374.201 Prohibition against smoking on interstate passenger-carrying 
          motor vehicles.

 Subpart C_Adequacy of Intercity Motor Common Carrier Passenger Service

374.301 Applicability.
374.303 Definitions.
374.305 Ticketing and information.
374.307 Baggage service.
374.309 Terminal facilities.
374.311 Service responsibility.
374.313 Equipment.
374.315 Transportation of passengers with disabilities.
374.317 Identification--bus and driver.
374.319 Relief from provisions.

 Subpart D_Notice of and Procedures for Baggage Excess Value Declaration

374.401 Minimum permissible limitations for baggage liability.
374.403 Notice of passenger's ability to declare excess value on 
          baggage.
374.405 Baggage excess value declaration procedures.

                   Subpart E_Incidental Charter Rights

374.501 Applicability.
374.503 Authority.
374.505 Exceptions.

    Authority: 49 U.S.C. 13301 and 14101; and 49 CFR 1.73.

    Editorial Note: Nomenclature changes to part 374 appear at 66 FR 
49871, Oct. 1, 2001.



   Subpart A_Discrimination in Operations of Interstate Motor Common 
                         Carriers of Passengers

    Source: 36 FR 1338, Jan. 28, 1971, unless otherwise noted. 
Redesignated at 61 FR 54709, Oct. 21, 1996.

[[Page 86]]



Sec. 374.101  Discrimination prohibited.

    No motor common carrier of passengers subject to 49 U.S.C. subtitle 
IV, part B shall operate a motor vehicle in interstate or foreign 
commerce on which the seating of passengers is based upon race, color, 
creed, or national origin.

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.103  Notice to be printed on tickets.

    Every motor common carrier of passengers subject to 49 U.S.C. 
subtitle IV, part B shall cause to be printed on every ticket sold by it 
for transportation on any vehicle operated in interstate or foreign 
commerce a plainly legible notice as follows: ``Seating aboard vehicles 
operated in interstate or foreign commerce is without regard to race, 
color, creed, or national origin.''

    Note: The following interpretation of the provisions of Sec. 
374.103 (formerly Sec. 1055.2) appears at 27 FR 230, Jan. 9, 1962:
    The words, ``Seating aboard vehicles operated in interstate or 
foreign commerce is without regard to race, color, creed, or national 
origin'', should appear on the face of every ticket coming within the 
purview of the section. If the ticket is in parts or consists of 
additional elements, such as coupons, identification stubs, or checks, 
it shall be sufficient for the purposes of Sec. 374.103 that the notice 
appear only once on the ticket and be placed on the face of that portion 
of the ticket which is held by the passenger.

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.105  Discrimination in terminal facilities.

    No motor common carrier of passengers subject to 49 U.S.C. subtitle 
IV, part B shall in the operation of vehicles in interstate or foreign 
commerce provide, maintain arrangements for, utilize, make available, 
adhere to any understanding for the availability of, or follow any 
practice which includes the availability of, any terminal facilities 
which are so operated, arranged, or maintained as to involve any 
separation of any portion thereof, or in the use thereof on the basis of 
race, color, creed, or national origin.

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.107  Notice to be posted at terminal facilities.

    No motor common carrier of passengers subject to 49 U.S.C. subtitle 
IV, part B shall in the operation of vehicles in interstate or foreign 
commerce utilize any terminal facility in which there is not 
conspicuously displayed and maintained so as to be readily visible to 
the public a plainly legible sign or placard containing the full text of 
these regulations. Such sign or placard shall be captioned: ``Public 
Notice: Regulations Applicable to Vehicles and Terminal Facilities of 
Interstate Motor Common Carriers of Passengers, by order of the 
Secretary, U.S. Department of Transportation.''

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.109  Carriers not relieved of existing obligations.

    Nothing in this regulation shall be construed to relieve any 
interstate motor common carrier of passengers subject to 49 U.S.C. 
subtitle IV, part B of any of its obligations under 49 U.S.C. subtitle 
IV, part B or its certificate(s) of public convenience and necessity.

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.111  Reports of interference with regulations.

    Every motor common carrier of passengers subject to 49 U.S.C. 
subtitle IV, part B operating vehicles in interstate or foreign commerce 
shall report to the Secretary, within fifteen (15) days of its 
occurrence, any interference by any person, municipality, county, 
parish, State, or body politic with its observance of the requirements 
of these regulations in this part. Such report shall include a statement 
of the action that

[[Page 87]]

such carrier may have taken to eliminate any such interference.

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.113  Definitions.

    For the purpose of these regulations the following terms and phrases 
are defined:
    (a) Terminal facilities. As used in these regulations the term 
``terminal facilities'' means all facilities, including waiting room, 
rest room, eating, drinking, and ticket sales facilities which a motor 
common carrier makes available to passengers of a motor vehicle operated 
in interstate or foreign commerce as a regular part of their 
transportation.
    (b) Separation. As used in Sec. 374.105, the term ``separation'' 
includes, among other things, the display of any sign indicating that 
any portion of the terminal facilities are separated, allocated, 
restricted, provided, available, used, or otherwise distinguished on the 
basis of race, color, creed, or national origin.

[36 FR 1338, Jan. 28, 1971. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Subpart B_Limitation of Smoking on Interstate Passenger Carrier Vehicles



Sec. 374.201  Prohibition against smoking on interstate 
passenger-carrying motor vehicles.

    (a) All motor common carriers of passengers subject to 49 U.S.C. 
subtitle IV, part B, shall prohibit smoking (including the carrying of 
lit cigars, cigarettes, and pipes) on vehicles transporting passengers 
in scheduled or special service in interstate commerce.
    (b) Each carrier shall take such action as is necessary to ensure 
that smoking by passengers, drivers, and other employees is not 
permitted in violation of this section. This shall include making 
appropriate announcements to passengers, the posting of the 
international no-smoking symbol, and the posting of signs in all 
vehicles transporting passengers in letters in sharp color contrast to 
the background, and of such size, shape, and color as to be readily 
legible. Such signs and symbols shall be kept and maintained in such a 
manner as to remain legible and shall indicate that smoking is 
prohibited by Federal regulation.
    (c) The provisions of paragraph (a) of this section shall not apply 
to charter operations as defined in Sec. 374.503 of this part.

[56 FR 1745, Jan. 17, 1991. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



 Subpart C_Adequacy of Intercity Motor Common Carrier Passenger Service

    Source: 55 FR 11199, Mar. 27, 1990, unless otherwise noted. 
Redesignated at 61 FR 54709, Oct. 21, 1996.



Sec. 374.301  Applicability.

    These rules govern only motor passenger common carriers conducting 
regular-route operations.



Sec. 374.303  Definitions.

    (a) Carrier means a motor passenger common carrier.
    (b) Bus means a passenger-carrying vehicle, regardless of design or 
seating capacity, used in a carrier's authorized operations.
    (c) Facility means any structure provided by or for a carrier at or 
near which buses pick up or discharge passengers.
    (d) Terminal means a facility operated or used by a carrier chiefly 
to furnish passengers transportation services and accommodations.
    (e) Station means a facility, other than a terminal, operated by or 
for a carrier to accommodate passengers.
    (f) Service means passenger transportation by bus over regular 
routes.
    (g) Commuter service, means passenger transportation wholly between 
points not more than 100 airline miles apart and not involving through-
bus, connecting, or interline services to or from points beyond 100 
airline miles. The usual characteristics of commuter service include 
reduced fare, multiple-ride, and commutation tickets, and peak morning 
and evening operations.

[[Page 88]]

    (h) Baggage means property a passenger takes with him for his 
personal use or convenience.
    (i) Restroom means a room in a bus or terminal equipped with a 
toilet, washbowl, soap or a reasonable alternative, mirror, wastebasket, 
and toilet paper.

[55 FR 11199, Mar. 27, 1990, as amended at 68 FR 56198, Sept. 30, 2003; 
74 FR 2901, Jan. 16, 2009]



Sec. 374.305  Ticketing and information.

    (a) Information service. (1) During business hours at each terminal 
or station, information shall be provided as to schedules, tickets, 
fares, baggage, and other carrier services.
    (2) Carrier agents and personnel who sell or offer to sell tickets, 
or who provide information concerning tickets and carrier services, 
shall be competent and adequately informed.
    (b) Telephone information service. Every facility where tickets are 
sold shall provide telephonic information to the traveling public, 
including current bus schedules and fare information, when open for 
ticket sales.
    (c) Schedules. Printed, regular-route schedules shall be provided to 
the traveling public at all facilities where tickets for such services 
are sold. Each schedule shall show the points along the carrier's 
route(s) where facilities are located or where the bus trips originate 
or terminate, and each schedule shall indicate the arrival or departure 
time for each such point.
    (d) Ticket refunds. Each carrier shall refund unused tickets upon 
request, consistent with its governing tariff, at each place where 
tickets are sold, within 30 days after the request.
    (e) Announcements. No scheduled bus (except in commuter service) 
shall depart from a terminal or station until a public announcement of 
the departure and boarding point has been given. The announcement shall 
be given at least 5 minutes before the initial departure and before 
departures from points where the bus is scheduled to stop for more than 
5 minutes.



Sec. 374.307  Baggage service.

    (a) Checking procedures. (1) Carriers shall issue receipts, which 
may be in the form of preprinted tickets, for all checked services 
baggage.
    (2)(i) If baggage checking service is not provided at the side of 
the bus, all baggage checked at a baggage checking counter at least 30 
minutes but not more than 1 hour before departure shall be transported 
on the same schedule as the ticketed passenger.
    (ii) If baggage checking service is provided at the side of the bus, 
passengers checking baggage at the baggage checking counter less than 30 
minutes before the scheduled departure shall be notified that their 
baggage may not travel on the same schedule. Such baggage must then be 
placed on the next available bus to its destination. All baggage checked 
at the side of the bus during boarding, or at alternative locations 
provided for such purpose, shall be transported on the same schedule as 
the ticketed passenger.
    (b) Baggage security. All checked baggage shall be placed in a 
secure or attended area prohibited to the public. Baggage being readied 
for loading shall not be left unattended.
    (c) Baggage liability. (1) No carrier may totally exempt its 
liability for articles offered as checked baggage, unless those articles 
have been exempted by the Secretary. (Other liability is subject to 
subpart D of this part). A notice listing exempted articles shall be 
prominently posted at every location where baggage is accepted for 
checking.
    (2) Carriers may refuse to accept as checked baggage and, if 
unknowingly accepted, may disclaim liability for loss or damage to the 
following articles:
    (i) Articles whose transportation as checked baggage is prohibited 
by law or regulation;
    (ii) Fragile or perishable articles, articles whose dimensions 
exceed the size limitations in the carrier's tariff, receptacles with 
articles attached or protruding, guns, and materials that have a 
disagreeable odor;
    (iii) Money; and
    (iv) Those other articles that the Secretary exempts upon petition 
by the carrier.
    (3) Carriers need not offer excess value coverage on articles of 
extraordinary value (including, but not limited to, negotiable 
instruments, papers,

[[Page 89]]

manuscripts, irreplaceable publications, documents, jewelry, and 
watches).
    (d) Express shipments. Passengers and their baggage always take 
precedence over express shipments.
    (e) Baggage at destination. All checked baggage shall be made 
available to the passenger within a reasonable time, not to exceed 30 
minutes, after arrival at the passenger's destination. If not, the 
carrier shall deliver the baggage to the passenger's local address at 
the carrier's expense.
    (f) Lost or delayed baggage. (1) Checked baggage that cannot be 
located within 1 hour after the arrival of the bus upon which it was 
supposed to be transported shall be designated as lost. The carrier 
shall notify the passenger at that time and furnish him with an 
appropriate tracing form.
    (2) Every carrier shall make available at each ticket window and 
baggage counter a single form suitable both for tracing and for filing 
claims for lost or misplaced baggage. The form shall be prepared in 
duplicate and signed by the passenger and carrier representative. The 
carrier or its agent shall receive the signed original, with any 
necessary documentation and additional information, and the claim check, 
for which a receipt shall be given. The passenger shall retain the 
duplicate copy.
    (3) The carrier shall make immediate and diligent efforts to recover 
lost baggage.
    (4) A passenger may fill out a tracing form for lost unchecked 
baggage. The carrier shall forward recovered unchecked baggage to the 
terminal or station nearest the address shown on the tracing form and 
shall notify the passenger that the baggage will be held on a will-call 
basis.
    (g) Settlement of claims. Notwithstanding 49 CFR 370.9, if lost 
checked baggage cannot be located within 15 days, the carrier shall 
immediately process the matter as a claim. The date on which the carrier 
or its agent received the tracing form shall be considered the first day 
of a 60-day period in which a claim must be resolved by a firm offer of 
settlement or by a written explanation of denial of the claim.

[55 FR 11199, Mar. 27, 1990. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.309  Terminal facilities.

    (a) Passenger security. All terminals and stations must provide 
adequate security for passengers and their attendants and be regularly 
patrolled.
    (b) Outside facilities. At terminals and stations that are closed 
when buses are scheduled to arrive or depart, there shall be available, 
to the extent possible, a public telephone, outside lighting, posted 
schedule information, overhead shelter, information on local 
accommodations, and telephone numbers for local taxi service and police.
    (c) Maintenance. Terminals shall be clean.



Sec. 374.311  Service responsibility.

    (a) Schedules. Carriers shall establish schedules that can be 
reasonably met, including connections at junction points, to serve 
adequately all points.
    (b) Continuity of service. No carrier shall change an existing 
regular-route schedule without first displaying conspicuously a notice 
in each facility and on each bus affected. Such notice shall be 
displayed for a reasonable time before it becomes effective and shall 
contain the carrier's name, a description of the proposed schedule 
change, the effective date thereof, the reasons for the change, the 
availability of alternate service, and the name and address of the 
carrier representative passengers may contact.
    (c) Trip interruptions. A carrier shall mitigate, to the extent 
possible, any passenger inconvenience it causes by disrupting travel 
plans.
    (d) Seating and reservations. A carrier shall provide sufficient 
buses to meet passengers' normal travel demands, including ordinary 
weekend and usual seasonal or holiday demand. Passengers (except 
commuters) shall be guaranteed, to the extent possible, passage and 
seating.
    (e) Inspection of rest stops. Each carrier shall inspect 
periodically all rest

[[Page 90]]

stops it uses to ensure that they are clean.

[55 FR 11199, Mar. 27, 1990. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997; 74 FR 2901, Jan. 16, 2009]



Sec. 374.313  Equipment.

    (a) Temperature control. A carrier shall maintain a reasonable 
temperature on each bus (except in commuter service).
    (b) Restrooms. Each bus (except in commuter service) seating more 
than 14 passengers (not including the driver) shall have a clean, 
regularly maintained restroom, free of offensive odor. A bus may be 
operated without a restroom if it makes reasonable rest stops.
    (c) Bus servicing. Each bus shall be kept clean, with all required 
items in good working order.



Sec. 374.315  Transportation of passengers with disabilities.

    Service provided by a carrier to passengers with disabilities is 
governed by the provisions of 42 U.S.C. 12101 et seq., and regulations 
promulgated thereunder by the Secretary of Transportation (49 CFR parts 
27, 37, and 38) and the Attorney General (28 CFR part 36), incorporating 
the guidelines established by the Architectural and Transportation 
Barriers Compliance Board (36 CFR part 1191).

[57 FR 35764, Aug. 11, 1992]



Sec. 374.317  Identification--bus and driver.

    Each bus and driver providing service shall be identified in a 
manner visible to passengers. The driver may be identified by name or 
company number.



Sec. 374.319  Relief from provisions.

    (a) Petitions. Where compliance with any rule would impose an undue 
burden on a carrier, it may petition the Federal Motor Carrier Safety 
Administration either to treat it as though it were conducting a 
commuter service or to waive the rule. The request for relief must be 
justified by appropriate verified statements.
    (b) Notice to the public. The carrier shall display conspicuously, 
for at least 30 days, in each facility and on each bus affected, a 
notice of the filing of any petition. The notice shall contain the 
carrier's name and address, a concise description of and reasons for the 
relief sought, and a statement that any interested person may file 
written comments with the Federal Motor Carrier Safety Administration 
(with one copy mailed to the carrier) on or before a specific date that 
is at least 30 days later than the date the notice is posted.

[55 FR 11199, Mar. 27, 1990. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



 Subpart D_Notice of and Procedures for Baggage Excess Value Declaration

    Source: 40 FR 1249, Jan. 7, 1975, unless otherwise noted. 
Redesignated at 61 FR 54709, Oct. 21, 1996.



Sec. 374.401  Minimum permissible limitations for baggage liability.

    (a) Motor common carriers of passengers and baggage subject to 49 
U.S.C. 13501 may not publish tariff provisions limiting their liability 
for loss or damage to baggage checked by a passenger transported in 
regular route or special operations unless:
    (1) The amount for which liability is limited is $250 or greater per 
adult fare, and
    (2) The provisions permit the passenger, for an additional charge, 
to declare a value in excess of the limited amount, and allow the 
passenger to recover the increased amount (but not higher than the 
actual value) in event of loss or damage. The carriers may publish a 
maximum value for which they will be liable, but that maximum value may 
not be less than $1,000. Appropriate identification must be attached 
securely by the passenger to each item of baggage checked, indicating in 
a clear and legible manner the name and address to which the baggage 
should be forwarded if lost and subsequently recovered. Identification 
tags shall be made immediately available by the carriers to passengers 
upon request.

[[Page 91]]

    (3) Carriers need not offer excess value coverage on articles listed 
in Sec. 374.307(c)(3).

(49 U.S.C. 10321, 5 U.S.C. 553)

[46 FR 22899, Apr. 22, 1981, as amended at 47 FR 21840, May 20, 1982; 62 
FR 15423, Apr. 1, 1997]



Sec. 374.403  Notice of passenger's ability to declare excess value on
baggage.

    (a) All motor common carriers of passengers and baggage subject to 
49 U.S.C. subtitle IV, part B, which provide in their tariffs for the 
declaration of baggage in excess of a free baggage allowance limitation, 
shall provide clear and adequate notice to the public of the opportunity 
to declare such excess value on baggage.
    (b) The notice referred to in paragraph (a) of this section shall be 
in large and clear print, and shall state as follows:

                        Notice--Baggage Liability

    This motor carrier is not liable for loss or damage to properly 
identified baggage in an amount exceeding $----. If a passenger desires 
additional coverage for the value of his baggage he may, upon checking 
his baggage, declare that his baggage has a value in excess of the above 
limitation and pay a charge as follows:

                          Identify Your Baggage

    Under FMCSA regulations, all baggage must be properly identified. 
Luggage tags should indicate clearly the name and address to which lost 
baggage should be forwarded. Free luggage tags are available at all 
ticket windows and baggage counters.


The statement of charges for excess value declaration shall be clear, 
and any other pertinent provisions may be added at the bottom in clear 
and readable print.
    (c) The notice referred to in paragraphs (a) and (b) of this section 
shall be (1) placed in a position near the ticket seller, sufficiently 
conspicuous to apprise the public of its provisions, (2) placed on a 
form to be attached to each ticket issued (and the ticket seller shall, 
where possible, provide oral notice to each ticket purchaser to read the 
form attached to the ticket), (3) placed in a position at or near any 
location where baggage may be checked, sufficiently conspicuous to 
apprise each passenger checking baggage of its provisions, and (4) 
placed in a position at each boarding point or waiting area used by the 
carrier at facilities maintained by the carrier or its agents, 
sufficiently conspicuous to apprise each boarding passenger of the 
provisions of the said notice.

[40 FR 1249, Jan. 7, 1975, as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.405  Baggage excess value declaration procedures.

    All motor common carriers of passengers and baggage subject to 49 
U.S.C. subtitle IV, part B, which provide in their tariffs for the 
declaration of baggage value in excess of a free baggage allowance 
limitation, shall provide for the declaration of excess value on baggage 
at any time or place where provision is made for baggage checking, 
including (a) at a baggage checking counter until 15 minutes before 
scheduled boarding time, and (b) at the side of the bus or at a baggage 
checking counter in reasonable proximity to the boarding area during 
boarding at a terminal or any authorized service point.

[40 FR 1249, Jan. 7, 1975, as amended at 62 FR 15423, Apr. 1, 1997]



                   Subpart E_Incidental Charter Rights

    Authority: 5 U.S.C. 553 and 559 and 49 U.S.C. 10321, 10922, and 
10932.

    Source: 54 FR 46619, Nov. 6, 1989, unless otherwise noted. 
Redesignated at 61 FR 54709, Oct. 21, 1996.



Sec. 374.501  Applicability.

    The regulations in this part apply to incidental charter rights 
authorized under 49 U.S.C. 13506 [49 U.S.C. 10932(c)]. These regulations 
do not apply to interpreting authority contained in a certificate to 
transport passengers in special and/or charter operations.

[54 FR 46619, Nov. 6, 1989. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 374.503  Authority.

    Motor carriers transporting passengers, in interstate or foreign 
commerce, over regular routes authorized

[[Page 92]]

in a certificate issued as a result of an application filed before 
January 2, 1967, may transport special or chartered parties, in 
interstate or foreign commerce, between any points and places in the 
United States (including Alaska and Hawaii). The term ``special or 
chartered party'' means a group of passengers who, with a common purpose 
and under a single contract, and at a fixed charge for the vehicle in 
accordance with the carrier's tariff, have acquired the exclusive use of 
a passenger-carrying motor vehicle to travel together as a group to a 
specified destination or for a particular itinerary.



Sec. 374.505  Exceptions.

    (a) Incidental charter rights do not authorize the transportation of 
passengers to whom the carrier has sold individual tickets or with whom 
the carrier has made separate and individual transportation 
arrangements.
    (b) Service provided under incidental charter rights may not be 
operated between the same points or over the same route so frequently as 
to constitute a regular-route service.
    (c) Passenger transportation within the Washington Metropolitan Area 
Transit District (as defined in the Washington Metropolitan Area 
Transportation Regulation Compact, Pub. L. No. 86-794, 74 Stat. 1031 
(1960), as amended by Pub. L. No. 87-767, 76 Stat. (1962) is not 
authorized by these regulations, but is subject to the jurisdiction and 
regulations of the Washington Metropolitan Area Transportation 
Commission.
    (d) A private or public recipient of governmental assistance (within 
the meaning of 49 U.S.C. 13902(b)(8)) may provide service under 
incidental charter rights only for special or chartered parties 
originating in the area in which the private or public recipient 
provides regularly scheduled mass transportation services under the 
specific qualifying certificate that confers its incidental charter 
rights.

[54 FR 46619, Nov. 6, 1989. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



PART 375_TRANSPORTATION OF HOUSEHOLD GOODS IN INTERSTATE COMMERCE; 
CONSUMER PROTECTION REGULATIONS--Table of Contents




                     Subpart A_General Requirements

Sec.
375.101 Who must follow these regulations in this part?
375.103 What are the definitions of terms used in this part?
375.105 What are the information collection requirements of this part?

           Subpart B_Before Offering Services to My Customers

                        Liability Considerations

375.201 What is my normal liability for loss and damage when I accept 
          goods from an individual shipper?
375.203 What actions of an individual shipper may limit or reduce my 
          normal liability?

                        General Responsibilities

375.205 May I have agents?
375.207 What items must be in my advertisements?
375.209 How must I handle complaints and inquiries?
375.211 Must I have an arbitration program?
375.213 What information must I provide to a prospective individual 
          shipper?

                    Collecting Transportation Charges

375.215 How must I collect charges?
375.217 May I collect charges upon delivery?
375.219 May I extend credit to shippers?
375.221 May I use a charge or credit card plan for payments?

                   Subpart C_Service Options Provided

375.301 What service options may I provide?
375.303 If I sell liability insurance coverage, what must I do?

                      Subpart D_Estimating Charges

375.401 Must I estimate charges?
375.403 How must I provide a binding estimate?
375.405 How must I provide a non-binding estimate?
375.407 Under what circumstances must I relinquish possession of a 
          collect-on-delivery shipment transported under a non-binding 
          estimate?
375.409 May household goods brokers provide estimates?

[[Page 93]]

            Subpart E_Pick Up of Shipments of Household Goods

                             Before Loading

375.501 Must I write up an order for service?
375.503 Must I write up an inventory?
375.505 Must I write up a bill of lading?

                          Weighing the Shipment

375.507 Must I determine the weight of a shipment?
375.509 How must I determine the weight of a shipment?
375.511 May I use an alternative method for shipments weighing 3,000 
          pounds or less?
375.513 Must I give the individual shipper an opportunity to observe the 
          weighing?
375.515 May an individual shipper waive his/her right to observe each 
          weighing?
375.517 May an individual shipper demand re-weighing?
375.519 Must I obtain weight tickets?
375.521 What must I do if an individual shipper wants to know the actual 
          weight or charges for a shipment before I tender delivery?

                  Subpart F_Transportation of Shipments

375.601 Must I transport the shipment in a timely manner?
375.603 When must I tender a shipment for delivery?
375.605 How must I notify an individual shipper of any service delays?
375.607 What must I do if I am able to tender a shipment for final 
          delivery more than 24 hours before a specified date?
375.609 What must I do for shippers who store household goods in 
          transit?

                     Subpart G_Delivery of Shipments

375.701 May I provide for a release of liability on my delivery receipt?
375.703 What is the maximum collect-on-delivery amount I may demand at 
          the time of delivery?
375.705 If a shipment is transported on more than one vehicle, what 
          charges may I collect at delivery?
375.707 If a shipment is partially lost or destroyed, what charges may I 
          collect at delivery?
375.709 If a shipment is totally lost or destroyed, what charges may I 
          collect at delivery?

                     Subpart H_Collection of Charges

375.801 What types of charges apply to subpart H?
375.803 How must I present my freight or expense bill?
375.805 If I am forced to relinquish a collect-on-delivery shipment 
          before the payment of ALL charges, how do I collect the 
          balance?
375.807 What actions may I take to collect the charges upon my freight 
          bill?

                           Subpart I_Penalties

375.901 What penalties do we impose for violations of this part?

Appendix A to Part 375--Your Rights and Responsibilities When You Move

    Authority: 5 U.S.C. 553; 49 U.S.C. 13102, 13301, 13704, 13707, 
14104, 14706, 14708; and 49 CFR 1.73.

    Source: 68 FR 35091, June 11, 2003 unless otherwise noted.



                     Subpart A_General Requirements



Sec. 375.101  Who must follow the regulations in this part?

    You, a household goods motor carrier engaged in the interstate 
transportation of household goods, must follow the regulations in this 
part when offering your services to individual shippers. You are subject 
to this part only when you transport household goods for individual 
shippers by motor vehicle in interstate commerce. Interstate commerce is 
defined in Sec. 390.5 of this subchapter.

[72 FR 36771, July 5, 2007]



Sec. 375.103  What are the definitions of terms used in this part?

    Terms used in this part are defined as follows. You may find other 
terms used in these regulations defined in 49 U.S.C. 13102. The 
definitions contained in this statute control. If terms are used in this 
part and the terms are neither defined here nor in 49 U.S.C. 13102, the 
terms will have the ordinary practical meaning of such terms.
    Advertisement means any communication to the public in connection 
with an offer or sale of any interstate household goods transportation 
service. This includes written or electronic database listings of your 
name, address, and telephone number in an on-line database. This 
excludes listings of your name, address, and telephone number in a 
telephone directory or similar publication. However, Yellow Pages 
advertising is included in the definition.

[[Page 94]]

    Cashier's check means a check that has all four of the following 
characteristics:
    (1) Drawn on a bank as defined in 12 CFR 229.2.
    (2) Signed by an officer or employee of the bank on behalf of the 
bank as drawer.
    (3) A direct obligation of the bank.
    (4) Provided to a customer of the bank or acquired from the bank for 
remittance purposes.
    Certified scale means any scale inspected and certified by an 
authorized scale inspection and licensing authority, and designed for 
weighing motor vehicles, including trailers or semi-trailers not 
attached to a tractor, or designed as a platform or warehouse type 
scale.
    Commercial shipper means any person who is named as the consignor or 
consignee in a bill of lading contract who is not the owner of the goods 
being transported but who assumes the responsibility for payment of the 
transportation and other tariff charges for the account of the 
beneficial owner of the goods. The beneficial owner of the goods is 
normally an employee of the consignor and/or consignee. A freight 
forwarder tendering a shipment to a carrier in furtherance of freight 
forwarder operations is also a commercial shipper. The Federal 
government is a government bill of lading shipper, not a commercial 
shipper.
    Force majeure means a defense protecting the parties in the event 
that a part of the contract cannot be performed due to causes which are 
outside the control of the parties and could not be avoided by exercise 
of due care.
    Government bill of lading shipper means any person whose property is 
transported under the terms and conditions of a government bill of 
lading issued by any department or agency of the Federal government to 
the carrier responsible for the transportation of the shipment.
    Household goods, as used in connection with transportation, means 
the personal effects or property used, or to be used, in a dwelling, 
when part of the equipment or supplies of the dwelling. Transportation 
of the household goods must be arranged and paid for by the individual 
shipper or by another individual on behalf of the shipper. Household 
goods includes property moving from a factory or store if purchased with 
the intent to use in a dwelling and transported at the request of the 
householder, who also pays the transportation charges.
    Household goods motor carrier means--
    (1) In general, a motor carrier that, in the ordinary course of its 
business of providing transportation of household goods, offers some or 
all of the following additional services:
    (i) Binding and nonbinding estimates;
    (ii) Inventorying;
    (iii) Protective packing and unpacking of individual items at 
personal residences;
    (iv) Loading and unloading at personal residences.
    (2) The term includes any person considered to be a household goods 
motor carrier under regulations, determinations, and decisions of the 
Federal Motor Carrier Safety Administration in effect on the date of 
enactment of the Household Goods Mover Oversight Enforcement and Reform 
Act of 2005 (August 10, 2005).
    (3) The term does not include any motor carrier providing 
transportation of household goods in containers or trailers that are 
entirely loaded and unloaded by an individual other than an employee or 
agent of the motor carrier.
    Individual shipper means any person who--
    (1) Is the shipper, consignor, or consignee of a household goods 
shipment;
    (2) Is identified as the shipper, consignor, or consignee on the 
face of the bill of lading;
    (3) Owns the goods being transported; and
    (4) Pays his or her own tariff transportation charges
    May means an option. You may do something, but it is not a 
requirement.
    Must means a legal obligation. You must do something.
    Order for service means a document authorizing you to transport an 
individual shipper's household goods.
    Reasonable dispatch means the performance of transportation on the 
dates, or during the period, agreed upon by you and the individual 
shipper and shown on the Order For Service/

[[Page 95]]

Bill of Lading. For example, if you deliberately withhold any shipment 
from delivery after an individual shipper offers to pay the binding 
estimate or 110 percent of a non-binding estimate, you have not 
transported the goods with reasonable dispatch. The term ``reasonable 
dispatch'' excludes transportation provided under your tariff provisions 
requiring guaranteed service dates. You will have the defenses of force 
majeure, i.e., superior or irresistible force, as construed by the 
courts.
    Should means a recommendation. We recommend you do something, but it 
is not a requirement.
    Surface Transportation Board means an agency within the Department 
of Transportation. The Surface Transportation Board regulates household 
goods carrier tariffs among other responsibilities.
    Tariff means an issuance (in whole or in part) containing rates, 
rules, regulations, classifications or other provisions related to a 
motor carrier's transportation services. The Surface Transportation 
Board requires a tariff contain specific items under Sec. 1312.3(a) of 
this title. These specific items include an accurate description of the 
services offered to the public and the specific applicable rates (or the 
basis for calculating the specific applicable rates) and service terms. 
A tariff must be arranged in a way that allows for the determination of 
the exact rate(s) and service terms applicable to any given shipment.
    We, us, and our means the Federal Motor Carrier Safety 
Administration (FMCSA).
    You and your means a household goods motor carrier engaged in the 
interstate transportation of household goods and its household goods 
agents.

[68 FR 35091, June 11, 2003, as amended at 72 FR 36771, July 5, 2007]



Sec. 375.105  What are the information collection requirements of this 
part?

    (a) The information collection requirements of this part have been 
reviewed by the Office of Management and Budget pursuant to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) and have been 
assigned OMB control number 2126-0025.
    (b) The information collection requirements are found in the 
following sections: Section 375.205, Section 375.207, Section 375.209, 
Section 375.211, Section 375.213, Section 375.215, Section 375.217, 
Section 375.303, Section 375.401, Section 375.403, Section 375.405, 
Section 375.409, Section 375.501, Section 375.503, Section 375.505, 
Section 375.507, Section 375.515, Section 375.519, Section 375.521, 
Section 375.605, Section 375.607, Section 375.609, Section 375.803, 
Section 375.805, and Section 375.807.

[69 FR 10575, Mar. 5, 2004]



           Subpart B_Before Offering Services to My Customers

                        Liability Considerations



Sec. 375.201  What is my normal liability for loss and damage when I 
accept goods from an individual shipper?

    (a) In general, you are legally liable for loss or damage if it 
happens during performance of any transportation of household goods and 
all related services identified on your lawful bill of lading.
    (b) Full Value Protection Obligation--In general, your liability is 
for the household goods that are lost, damaged, destroyed, or otherwise 
not delivered to the final destination in an amount equal to the 
replacement value of the household goods. The maximum amount is the 
declared value of the shipment. The declared value is subject to rules 
issued by the Surface Transportation Board (STB) and applicable tariffs.
    (c) If the shipper waives, in writing, your liability for the full 
value of the household goods, then you are liable for loss of, or damage 
to, any household goods to the extent provided in the STB released rates 
order. Contact the STB for a current copy of the Released Rates of Motor 
Carrier Shipments of Household Goods. The rate may be increased annually 
by the motor carrier based on the U.S. Department of Commerce's Cost of 
Living Adjustment.
    (d) As required by Sec. 375.303(g), you may have additional 
liability if you sell liability insurance and fail to issue a copy of 
the insurance policy or other appropriate evidence of insurance.

[[Page 96]]

    (e) You must, in a clear and concise manner, disclose to the 
individual shipper the limits of your liability.

[68 FR 35091, June 11, 2003, as amended at 72 FR 36771, July 5, 2007]



Sec. 375.203  What actions of an individual shipper may limit or reduce
my normal liability?

    (a) If an individual shipper includes perishable, dangerous, or 
hazardous articles in the shipment without your knowledge, you need not 
assume liability for those articles or for the loss or damage caused by 
their inclusion in the shipment. If the shipper requests that you accept 
such articles for transportation, you may elect to limit your liability 
for any loss or damage by appropriately published tariff provisions.
    (b) If an individual shipper agrees to ship household goods released 
at a value greater than 60 cents per pound ($1.32 per kilogram) per 
article, your liability for loss and damage may be limited to $100 per 
pound ($220 per kilogram) per article if the individual shipper fails to 
notify you in writing of articles valued at more than $100 per pound 
($220 per kilogram).
    (c) If an individual shipper notifies you in writing that an article 
valued at greater than $100 per pound ($220 per kilogram) will be 
included in the shipment, the shipper will be entitled to full recovery 
up to the declared value of the article or articles, not to exceed the 
declared value of the entire shipment.

                        General Responsibilities



Sec. 375.205  May I have agents?

    (a) You may have agents provided you comply with paragraphs (b) and 
(c) of this section. A household goods agent is defined as either one of 
the following two types of agents:
    (1) A prime agent provides a transportation service for you or on 
your behalf, including the selling of, or arranging for, a 
transportation service. You permit or require the agent to provide 
services under the terms of an agreement or arrangement with you. A 
prime agent does not provide services on an emergency or temporary 
basis. A prime agent does not include a household goods broker or 
freight forwarder.
    (2) An emergency or temporary agent provides origin or destination 
services on your behalf, excluding the selling of, or arranging for, a 
transportation service. You permit or require the agent to provide such 
services under the terms of an agreement or arrangement with you. The 
agent performs such services only on an emergency or temporary basis.
    (b) If you have agents, you must have written agreements between you 
and your prime agents. You and your retained prime agent must sign the 
agreements.
    (c) Copies of all your prime agent agreements must be in your files 
for a period of at least 24 months following the date of termination of 
each agreement.



Sec. 375.207  What items must be in my advertisements?

    (a) You and your agents must publish and use only truthful, 
straightforward, and honest advertisements.
    (b) You must include, and you must require each of your agents to 
include, in all advertisements for all services (including any 
accessorial services incidental to or part of interstate household goods 
transportation), the following two elements:
    (1) Your name or trade name, as it appears on our document assigning 
you a U.S. DOT number, or the name or trade name of the motor carrier 
under whose operating authority the advertised service will originate.
    (2) Your U.S. DOT number, assigned by us authorizing you to operate 
as a for-hire motor carrier transporting household goods.
    (c) Your FMCSA-assigned U.S. DOT number must be displayed only in 
the following form in every advertisement: U.S. DOT No. (assigned 
number).



Sec. 375.209  How must I handle complaints and inquiries?

    (a) You must establish and maintain a procedure for responding to 
complaints and inquiries from your individual shippers.
    (b) Your procedure must include all four of the following items:

[[Page 97]]

    (1) A communications system allowing individual shippers to 
communicate with your principal place of business by telephone.
    (2) A telephone number.
    (3) A clear and concise statement about who must pay for complaint 
and inquiry telephone calls.
    (4) A written or electronic record system for recording all 
inquiries and complaints received from an individual shipper by any 
means of communication.
    (c) You must produce a clear and concise written description of your 
procedure for distribution to individual shippers.



Sec. 375.211  Must I have an arbitration program?

    (a) You must have an arbitration program for individual shippers to 
resolve disputes about property loss and damage and disputes about 
whether carrier charges in addition to those collected at delivery must 
be paid. You must establish and maintain an arbitration program with the 
following 11 minimum elements:
    (1) You must design your arbitration program to prevent you from 
having any special advantage in any case where the claimant resides or 
does business at a place distant from your principal or other place of 
business.
    (2) Before execution of the order for service, you must provide 
notice to the individual shipper of the availability of neutral 
arbitration, including all three of the following items:
    (i) A summary of the arbitration procedure.
    (ii) Any applicable costs.
    (iii) A disclosure of the legal effects of election to use 
arbitration.
    (3) Upon the individual shipper's request, you must provide 
information and forms you consider necessary for initiating an action to 
resolve a dispute under arbitration.
    (4) You must require each person you authorize to arbitrate to be 
independent of the parties to the dispute and capable of resolving such 
disputes, and you must ensure the arbitrator is authorized and able to 
obtain from you or the individual shipper any material or relevant 
information to carry out a fair and expeditious decisionmaking process.
    (5) You must not charge the individual shipper more than one-half of 
the total cost for instituting the arbitration proceeding against you. 
In the arbitrator's decision, the arbitrator may determine which party 
must pay the cost or a portion of the cost of the arbitration 
proceeding, including the cost of instituting the proceeding.
    (6) You must refrain from requiring the individual shipper to agree 
to use arbitration before a dispute arises.
    (7) Arbitration must be binding for claims of $10,000 or less, if 
the individual shipper requests arbitration.
    (8) Arbitration must be binding for claims of more than $10,000, if 
the individual shipper requests arbitration and the carrier agrees to 
it.
    (9) If all parties agree, the arbitrator may provide for an oral 
presentation of a dispute by a party or representative of a party.
    (10) The arbitrator must render a decision within 60 days of receipt 
of written notification of the dispute, and a decision by an arbitrator 
may include any remedies appropriate under the circumstances.
    (11) The arbitrator may extend the 60-day period for a reasonable 
period if you or the individual shipper fail to provide, in a timely 
manner, any information the arbitrator reasonably requires to resolve 
the dispute.
    (b) You must produce and distribute a concise, easy-to-read, 
accurate summary of your arbitration program, including the items in 
this section.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10575, Mar. 5, 2004; 72 
FR 36772, July 5, 2007]



Sec. 375.213  What information must I provide to a prospective 
individual shipper?

    (a) When you provide the written estimate to a prospective 
individual shipper, you must also provide the individual shipper with a 
copy of Department of Transportation publication FMCSA-ESA-03-005 (or 
its successor publication) entitled ``Ready to Move?''.
    (b) Before you execute an order for service for a shipment of 
household

[[Page 98]]

goods, you must furnish to your prospective individual shipper all five 
of the following documents:
    (1) The contents of appendix A of this part, entitled ``Your Rights 
and Responsibilities When You Move'' (Department of Transportation 
publication FMCSA-ESA-03-006, or its successor publication).
    (2) A concise, easy-to-read, accurate estimate of your charges.
    (3) A notice of the availability of the applicable sections of your 
tariff for the estimate of charges, including an explanation that 
individual shippers may examine these tariff sections or have copies 
sent to them upon request.
    (4) A concise, easy-to-read, accurate summary of your arbitration 
program.
    (5) A concise, easy-to-read, accurate summary of your customer 
complaint and inquiry handling procedures. Included in this description 
must be both of the following two items:
    (i) The main telephone number the individual shipper may use to 
communicate with you.
    (ii) A clear and concise statement concerning who must pay for 
telephone calls.
    (c) To comply with paragraph (b)(1) of this section, you must ensure 
that the text and general order of the document you produce and 
distribute to prospective individual shippers are consistent with the 
text and general order of appendix A to this part. The following three 
items also apply:
    (1) If we, the Federal Motor Carrier Safety Administration, choose 
to modify the text or general order of appendix A, we will provide the 
public appropriate notice in the Federal Register and an opportunity for 
comment as required by part 389 of this chapter before making you change 
anything.
    (2) If you publish the document, you may choose the dimensions of 
the publication as long as the type font size is 10 points or larger and 
the size of the booklet is at least as large as 36 square inches (232 
square centimeters).
    (3) If you publish the document, you may choose the color and design 
of the front and back covers of the publication. The following words 
must appear prominently on the front cover in 12-point or larger bold or 
full-faced type: ``Your Rights and Responsibilities When You Move. 
Furnished by Your Mover, as Required by Federal Law.'' You may 
substitute your name or trade name in place of ``Your Mover'' if you 
wish (for example, Furnished by XYZ Van Lines, as Required by Federal 
Law).
    (d) Paragraphs (c)(2) and (c)(3) of this section do not apply to 
exact copies of appendix A published in the Federal Register or the Code 
of Federal Regulations.

[72 FR 36772, July 5, 2007]

                    Collecting Transportation Charges



Sec. 375.215  How must I collect charges?

    You must issue an honest, truthful freight or expense bill in 
accordance with subpart A of part 373 of this chapter. All rates and 
charges for the transportation and related services must be in 
accordance with your appropriately published tariff provisions in 
effect, including the method of payment.



Sec. 375.217  How must I collect charges upon delivery?

    (a) You must specify the form of payment when you prepare the 
estimate. You and your agents must honor the form of payment at 
delivery, except when a shipper agrees to a change in writing.
    (b) You must specify the same form of payment provided in paragraph 
(a) of this section when you prepare the order for service and the bill 
of lading.
    (c) Charge or credit card payments:
    (1) If you agree to accept payment by charge or credit card, you 
must arrange with the individual shipper for the delivery only at a time 
when you can obtain authorization for the shipper's credit card 
transaction.
    (2) Paragraph (c)(1) of this section does not apply to you when you 
have equipped your motor vehicle(s) to process card transactions.
    (d) You may maintain a tariff setting forth nondiscriminatory rules 
governing collect-on-delivery service and the collection of collect-on-
delivery funds.
    (e) If an individual shipper pays you at least 110 percent of the 
approximate costs of a non-binding estimate on a collect-on-delivery 
shipment, you must

[[Page 99]]

relinquish possession of the shipment at the time of delivery.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10575, Mar. 5, 2004]



Sec. 375.219  May I extend credit to shippers?

    You may extend credit to shippers, but, if you do, it must be in 
accordance with Sec. 375.807.



Sec. 375.221  May I use a charge or credit card plan for payments?

    (a) You may provide in your tariff for the acceptance of charge or 
credit cards for the payment of freight charges. Accepting charge or 
credit card payments is different than extending credit to shippers in 
Sec. Sec. 375.219 and 375.807. Once you provide an estimate you are 
bound by the provisions in your tariff regarding payment as of the 
estimate date, until completion of any transaction that results from 
that estimate, unless otherwise agreed with a shipper under Sec. 
375.217(a).
    (b) You may accept charge or credit cards whenever shipments are 
transported under agreements and tariffs requiring payment by cash, 
certified check, money order, or a cashier's check.
    (c) If you allow an individual shipper to pay for a freight or 
expense bill by charge or credit card, you are deeming such payment to 
be the same as payment by cash, certified check, money order, or a 
cashier's check.
    (d) The charge or credit card plans you participate in must be 
identified in your tariff rules as items permitting the acceptance of 
the charge or credit cards.
    (e) If an individual shipper causes a charge or credit card issuer 
to reverse a charge transaction, you may consider the individual 
shipper's action tantamount to forcing you to provide an involuntary 
extension of your credit. In such instances, the rules in Sec. 375.807 
apply.



                   Subpart C_Service Options Provided



Sec. 375.301  What service options may I provide?

    (a) You may design your household goods service to provide 
individual shippers with a wide range of specialized service and pricing 
features. Many carriers provide at least the following five service 
options:
    (1) Space reservation.
    (2) Expedited service.
    (3) Exclusive use of a vehicle.
    (4) Guaranteed service on or between agreed dates.
    (5) Liability insurance.
    (b) If you sell liability insurance, you must follow the 
requirements in Sec. 375.303.



Sec. 375.303  If I sell liability insurance coverage, what must I do?

    (a) You, your employee, or an agent may sell, offer to sell, or 
procure liability insurance coverage for loss or damage to shipments of 
any individual shipper only when the individual shipper releases the 
shipment for transportation at a value not exceeding 60 cents per pound 
($1.32 per kilogram) per article.
    (b) You may offer, sell, or procure any type of insurance policy on 
behalf of the individual shipper covering loss or damage in excess of 
the specified carrier liability.
    (c) If you sell, offer to sell, or procure liability insurance 
coverage for loss or damage to shipments:
    (1) You must issue to the individual shipper a policy or other 
appropriate evidence of the insurance that the individual shipper 
purchased.
    (2) You must provide a copy of the policy or other appropriate 
evidence to the individual shipper at the time you sell or procure the 
insurance.
    (3) You must issue policies written in plain English.
    (4) You must clearly specify the nature and extent of coverage under 
the policy.
    (5) Your failure to issue a policy, or other appropriate evidence of 
insurance purchased, to an individual shipper will subject you to full 
liability for any claims to recover loss or damage attributed to you.
    (6) You must provide in your tariff for the provision of selling, 
offering to sell, or procuring liability insurance coverage. The tariff 
must also provide for the base transportation charge, including your 
assumption of full liability for the value of the shipment. This

[[Page 100]]

would be in the event you fail to issue a policy or other appropriate 
evidence of insurance to the individual shipper at the time of purchase.

[69 FR 10575, Mar. 5, 2004]



                      Subpart D_Estimating Charges



Sec. 375.401  Must I estimate charges?

    (a) You must conduct a physical survey of the household goods to be 
transported and provide the prospective individual shipper with a 
written estimate, based on the physical survey, of the charges for the 
transportation and all related services. There are two exceptions to the 
requirement to conduct a physical survey:
    (1) If the household goods are located beyond a 50-mile radius of 
the location of the household goods motor carrier's agent preparing the 
estimate, the requirement to base the estimate on a physical survey does 
not apply.
    (2) An individual shipper may elect to waive the physical survey. 
The waiver agreement is subject to the following requirements:
    (i) It must be in writing;
    (ii) It must be signed by the shipper before the shipment is loaded; 
and
    (iii) The household goods motor carrier must retain a copy of the 
waiver agreement as an addendum to the bill of lading with the 
understanding that the waiver agreement will be subject to the same 
record retention requirements that apply to bills of lading, as provided 
in Sec. 375.505(d).
    (b) Before you execute an order for service for a shipment of 
household goods for an individual shipper, you must provide a written 
estimate of the total charges and indicate whether it is a binding or a 
non-binding estimate, as follows:
    (1) A binding estimate is an agreement made in advance with your 
individual shipper. It guarantees the total cost of the move based upon 
the quantities and services shown on your estimate, which shall be based 
on the physical survey of the household goods, if required. You may 
impose a charge for providing a written binding estimate. The binding 
estimate must indicate that you and the shipper are bound by the 
charges.
    (2) A non-binding estimate is what you believe the total cost will 
be for the move, based upon both the estimated weight or volume of the 
shipment and the accessorial services requested and the physical survey 
of the household goods, if required. A non-binding estimate is not 
binding on you. You will base the final charges upon the actual weight 
of the individual shipper's shipment and the tariff provisions in 
effect. You may not impose a charge for providing a non-binding 
estimate.
    (c) You must specify the form of payment you and your agent will 
honor at delivery. Payment forms may include, but are not limited to, 
cash, a certified check, a money order, a cashier s check, a specific 
charge card such as American Express\TM\, a specific credit card such as 
Visa\TM\, or your credit as allowed by Sec. 375.807.
    (d) For non-binding estimates, you must provide your reasonably 
accurate estimate of the approximate costs the individual shipper should 
expect to pay for the transportation and services of such shipments. If 
you provide an inaccurately low estimate, you may be limiting the amount 
you will collect at the time of delivery as provided in Sec. 375.407.
    (e) If you provide a shipper with an estimate based on volume that 
will later be converted to a weight-based rate, you must provide the 
shipper an explanation in writing of the formula used to calculate the 
conversion to weight. You must specify the final charges will be based 
on actual weight and services subject to the 110 percent rule at 
delivery.
    (f) You must determine charges for any accessorial services such as 
elevators, long carries, etc., before preparing the order for service 
and the bill of lading for binding or non-binding estimates. If you fail 
to ask the shipper about such charges and fail to determine such charges 
before preparing the order for service and the bill of lading, you must 
deliver the goods and bill the shipper after 30 days for the additional 
charges.
    (g) You and the individual shipper must sign the estimate of 
charges. You must provide a dated copy of the estimate of charges to the 
individual shipper at the time you sign the estimate.

[[Page 101]]

    (h) Before loading a household goods shipment, and upon mutual 
agreement of both you and the individual shipper, you may amend an 
estimate of charges. You may not amend the estimate after loading the 
shipment.

[68 FR 35091, June 11, 2003, as amended at 72 FR 36772, July 5, 2007]



Sec. 375.403  How must I provide a binding estimate?

    (a) You may provide a guaranteed binding estimate of the total 
shipment charges to the individual shipper, so long as it is provided 
for in your tariff. The individual shipper must pay the amount for the 
services included in your estimate. You must comply with the following 
11 requirements:
    (1) You must base the binding estimate on the physical survey unless 
one of the exceptions provided in Sec. 375.401(a)(1) and (2) applies.
    (2) You must provide the binding estimate in writing to the 
individual shipper or other person responsible for payment of the 
freight charges.
    (3) You must retain a copy of each binding estimate as an attachment 
to be made an integral part of the bill of lading contract.
    (4) You must clearly indicate upon each binding estimate's face that 
the estimate is binding upon you and the individual shipper. Each 
binding estimate must also clearly indicate on its face that the charges 
shown apply only to those services specifically identified in the 
estimate.
    (5) You must clearly describe binding-estimate shipments and all 
services you are providing.
    (6) If it appears an individual shipper has tendered additional 
household goods or requires additional services not identified in the 
binding estimate, you are not required to honor the estimate. If an 
agreement cannot be reached as to the price or service requirements for 
the additional goods or services, you are not required to service the 
shipment. However, if you do service the shipment, before loading the 
shipment you must do one of the following three things:
    (i) Reaffirm your binding estimate.
    (ii) Negotiate a revised written binding estimate listing the 
additional household goods or services.
    (iii) Agree with the individual shipper, in writing, that both of 
you will consider the original binding estimate as a non-binding 
estimate subject to Sec. 375.405.
    (7) Once you load a shipment, failure to execute a new binding 
estimate or a non-binding estimate signifies you have reaffirmed the 
original binding estimate. You may not collect more than the amount of 
the original binding estimate, except as provided in paragraphs (a)(8) 
and (9) of this section.
    (8) If you believe additional services are necessary to properly 
service a shipment after the bill of lading has been issued, you must 
inform the individual shipper what the additional services are before 
performing those services. You must allow the shipper at least one hour 
to determine whether he or she wants the additional services performed. 
If the individual shipper agrees to pay for the additional services, you 
must execute a written attachment to be made an integral part of the 
bill of lading contract and have the individual shipper sign the written 
attachment. This may be done through fax transmissions; e-mail; 
overnight courier; or certified mail, return receipt requested. You must 
bill the individual shipper for the additional services after 30 days 
from delivery. If the individual shipper does not agree to pay the 
additional services, the carrier should perform only those additional 
services as are required to complete the delivery, and bill the 
individual shipper for the additional services after 30 days from 
delivery, except that you may collect at delivery charges for 
impracticable operations that do not exceed 15 percent of all other 
charges due at delivery.
    (9) If the individual shipper requests additional services after the 
bill of lading has been issued, you must inform the individual shipper 
of the additional charges involved. You may require full payment at 
destination for these additional services and for 100 percent of the 
original binding estimate. If applicable, you also may require payment 
at delivery of charges for impracticable operations (as defined in your 
carrier tariff) not to exceed 15 percent of all other charges due at 
delivery. You

[[Page 102]]

must bill and collect from the individual shipper any applicable charges 
not collected at delivery in accordance with subpart H of this part.
    (10) Failure to relinquish possession of a shipment upon the 
individual shipper's offer to pay the binding estimate amount (or, in 
the case of a partial delivery, a prorated percentage of the binding 
estimate as set forth in paragraph (a)(11) of this section) plus charges 
for any additional services requested by the shipper after the bill of 
lading has been issued and charges, if applicable, for impracticable 
operations (subject to a maximum amount as set forth in paragraph 9 of 
this section), constitutes a failure to transport a shipment with 
``reasonable dispatch'' and subjects you to cargo delay claims pursuant 
to part 370 of this chapter.
    (11) If you make only a partial delivery of the shipment, you may 
not demand upon delivery full payment of the binding estimate. You may 
demand only a prorated percentage of the binding estimate. The prorated 
percentage must be the percentage of the weight of that portion of the 
shipment delivered relative to the total weight of the shipment. For 
example, if you deliver only 2,500 pounds of a shipment weighing 5,000 
pounds, you may demand payment at destination for only 50 percent of the 
binding estimate.
    (b) In accordance with Sec. 375.401(a), you may impose a charge for 
providing a written binding estimate. If you do not provide a binding 
estimate to an individual shipper, you must provide a non-binding 
estimate in accordance with Sec. 375.405.
    (c) You must retain a copy of the binding estimate for each move you 
perform for at least one year from the date you made the estimate and 
keep it as an attachment to be made an integral part of the bill of 
lading contract.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10575, Mar. 5, 2004; 69 
FR 17317, May 5, 2004; 72 FR 36773, July 5, 2007]



Sec. 375.405  How must I provide a non-binding estimate?

    (a) If you do not provide a binding estimate to an individual 
shipper in accordance with Sec. 375.403, you must provide a non-binding 
written estimate to the individual shipper.
    (b) If you provide a non-binding estimate to an individual shipper, 
you must provide your reasonably accurate estimate of the approximate 
costs the individual shipper should expect to pay for the transportation 
and services of the shipment. You must comply with the following ten 
requirements:
    (1) You must provide reasonably accurate non-binding estimates based 
upon both the estimated weight or volume of the shipment and services 
required and the physical survey of the household goods, if required. If 
you provide a shipper with an estimate based on volume that will later 
be converted to a weight-based rate, you must provide the shipper an 
explanation in writing of the formula used to calculate the conversion 
to weight.
    (2) You must explain to the individual shipper that final charges 
calculated for shipments moved on non-binding estimates will be those 
appearing in your tariffs applicable to the transportation. You must 
explain that these final charges may exceed the approximate costs 
appearing in your estimate.
    (3) You must furnish non-binding estimates without charge and in 
writing to the individual shipper or other person responsible for 
payment of the freight charges.
    (4) You must retain a copy of each non-binding estimate as an 
attachment to be made an integral part of the bill of lading contract.
    (5) You must clearly indicate on the face of a non-binding estimate 
that the estimate is not binding upon you and the charges shown are the 
approximate charges to be assessed for the service identified in the 
estimate. The estimate must clearly state that the shipper will not be 
required to pay more than 110 percent of the non-binding estimate at the 
time of delivery.
    (6) You must clearly describe on the face of a non-binding estimate 
the entire shipment and all services you are providing.
    (7) If it appears an individual shipper has tendered additional 
household goods or requires additional services not identified in the 
non-binding estimate, you are not required to honor the estimate. If an 
agreement cannot

[[Page 103]]

be reached as to the price or service requirements for the additional 
goods or services, you are not required to service the shipment. 
However, if you do service the shipment, before loading the shipment, 
you must do one of the following two things:
    (i) Reaffirm your non-binding estimate.
    (ii) Negotiate a revised written non-binding estimate listing the 
additional household goods or services.
    (8) Once you load a shipment, failure to execute a new non-binding 
estimate signifies you have reaffirmed the original non-binding 
estimate. You may not collect more than 110 percent of the amount of the 
original non-binding estimate at destination, except as provided in 
paragraphs (b)(9) and (10) of this section.
    (9) If you believe additional services are necessary to properly 
service a shipment after the bill of lading has been issued, you must 
inform the individual shipper what the additional services are before 
performing those services. You must allow the shipper at least one hour 
to determine whether he or she wants the additional services performed. 
If the individual shipper agrees to pay for the additional services, you 
must execute a written attachment to be made an integral part of the 
bill of lading contract and have the individual shipper sign the written 
attachment. This may be done through fax transmissions; e-mail; 
overnight courier; or certified mail, return receipt requested. You must 
bill the individual shipper for the additional services after 30 days 
from delivery. If the individual shipper does not agree to pay the 
additional services, the carrier should perform only those additional 
services as are required to complete the delivery, and bill the 
individual shipper for the additional services after 30 days from 
delivery, except that you may collect at delivery charges for 
impracticable operations that do not exceed 15 percent of all other 
charges due at delivery.
    (10) If the individual shipper requests additional services after 
the bill of lading has been issued, you must inform the individual 
shipper of the additional charges involved. You may require full payment 
at destination for these additional services and (unless you make only a 
partial delivery, in which case you must collect a prorated percentage 
of the original non-binding estimate as set forth in Sec. 375.407(c) of 
this part) for up to 110 percent of the original non-binding estimate. 
If applicable, you also may require payment at delivery of charges for 
impracticable operations (as defined in your carrier tariff) not to 
exceed 15 percent of all other charges due at delivery. You must bill 
and collect from the individual shipper any applicable charges not 
collected at delivery in accordance with subpart H of this part.
    (c) If you furnish a non-binding estimate, you must enter the 
estimated charges upon the order for service and upon the bill of 
lading.
    (d) You must retain a copy of the non-binding estimate for each move 
you perform for at least one year from the date you made the estimate 
and keep it as an attachment to be made an integral part of the bill of 
lading contract.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004; 72 
FR 36773, July 5, 2007]



Sec. 375.407  Under what circumstances must I relinquish possession
of a collect-on-delivery shipment transported under a non-binding 

estimate?

    (a) If an individual shipper pays you up to 110 percent of the non-
binding estimate on a collect-on-delivery shipment (or, in the case of a 
partial delivery, a prorated percentage of the non-binding estimate as 
set forth in paragraph (c) of this section), you must relinquish 
possession of the shipment at the time of delivery. If there are either 
charges for any additional services requested by the shipper after the 
bill of lading has been issued and/or charges, if applicable, for 
impracticable operations (subject to a maximum amount as set forth in 
paragraph (d) of this section), and the shipper also pays you for such 
charges, you must relinquish possession of the shipment at the time of 
delivery. You must accept the form of payment agreed to at the time of 
estimate, unless the shipper agrees in writing to a change in the form 
of payment.

[[Page 104]]

    (b) Failure to relinquish possession of a shipment after the 
individual shipper offers to pay you up to 110 percent of the 
approximate costs of a non-binding estimate plus any additional charges 
described in paragraph (a) of this section constitutes a failure to 
transport a shipment with ``reasonable dispatch'' and subjects you to 
cargo delay claims pursuant to part 370 of this chapter.
    (c) If you make only a partial delivery of the shipment, you may not 
demand full payment of the non-binding estimate. You may demand at 
delivery only a prorated percentage of the non-binding estimate (or a 
prorated percentage of an amount up to 110 percent of the non-binding 
estimate). The prorated percentage must be the percentage of the weight 
of that portion of the shipment delivered relative to the total weight 
of the shipment. For example, if you deliver only 2,500 pounds of a 
shipment weighing 5,000 pounds, you may demand payment of 50 percent of 
not more than 110 percent of the non-binding estimate.
    (d) You may not demand payment of charges for impracticable 
operations, as defined in your tariff, of more than 15 percent of all 
other charges due at delivery. You must bill and collect from the 
individual shipper charges for impracticable operations not collected at 
delivery in accordance with subpart H of this part.

[72 FR 36774, July 5, 2007]



Sec. 375.409  May household goods brokers provide estimates?

    A household goods broker must not provide an individual shipper with 
an estimate of charges for the transportation of household goods unless 
there is a written agreement between the broker and you, the carrier, 
adopting the broker's estimate as your own estimate. If you make such an 
agreement with a broker, you must ensure compliance with all 
requirements of this part pertaining to estimates, including the 
requirement that you must relinquish possession of the shipment if the 
shipper pays you 110 percent of a non-binding estimate at the time of 
delivery.



            Subpart E_Pick Up of Shipments of Household Goods

                             Before Loading



Sec. 375.501  Must I write up an order for service?

    (a) Before you receive a shipment of household goods you will move 
for an individual shipper, you must prepare an order for service. The 
order for service must contain the information described in the 
following 15 items:
    (1) Your name and address and the FMCSA U.S. DOT number assigned to 
the mover who is responsible for performing the service.
    (2) The individual shipper's name, address, and, if available, 
telephone number(s).
    (3) The name, address, and telephone number of the delivering 
mover's office or agent located at or nearest to the destination of the 
shipment.
    (4) A telephone number where the individual shipper/consignee may 
contact you or your designated agent.
    (5) One of the following three entries must be on the order for 
service:
    (i) The agreed pickup date and agreed delivery date of the move.
    (ii) The agreed period(s) of the entire move.
    (iii) If you are transporting the shipment on a guaranteed service 
basis, the guaranteed dates or periods for pickup, transportation, and 
delivery. You must enter any penalty or per diem requirements upon the 
agreement under this item.
    (6) The names and addresses of any other motor carriers, when known, 
who will participate in interline transportation of the shipment.
    (7) The form of payment you and your agents will honor at delivery. 
The payment information must be the same that was entered on the 
estimate.
    (8) The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    (9) The maximum amount you will demand at the time of delivery to 
obtain possession of the shipment, when you transport on a collect-on-
delivery basis.
    (10) A statement of the declared value of the shipment, which is the 
maximum amount of your liability to

[[Page 105]]

the individual shipper under your Full Value Protection for the 
replacement value of any household goods that are lost, damaged, 
destroyed, or otherwise not delivered to the final destination. If the 
individual shipper waives, in writing, your Full Value Protection 
liability, you must include a copy of the waiver; the Surface 
Transportation Board's required released rates valuation statement; and 
the charges, if any, for optional valuation coverage (other than Full 
Value Protection). The released rates may be increased annually by the 
motor carrier based on the U.S. Department of Commerce's Cost of Living 
Adjustment.
    (11) A complete description of any special or accessorial services 
ordered and minimum weight or volume charges applicable to the shipment, 
subject to the following two conditions:
    (i) If you provide service for individual shippers on rates based 
upon the transportation of a minimum weight or volume, you must indicate 
on the order for service the minimum weight- or volume-based rates, and 
the minimum charges applicable to the shipment.
    (ii) If you do not indicate the minimum rates and charges, your 
tariff must provide you will compute the final charges relating to such 
a shipment based upon the actual weight or volume of the shipment.
    (12) Any identification or registration number you assign to the 
shipment.
    (13) For non-binding estimates, your reasonably accurate estimate of 
the amount of the charges, the method of payment of total charges, and 
the maximum amount (no more than 110 percent of the non-binding 
estimate) you will demand at the time of delivery to relinquish 
possession of the shipment.
    (14) For binding estimates, the amount of charges you will demand 
based upon the binding estimate and the terms of payment under this 
estimate.
    (15) Whether the individual shipper requests notification of the 
charges before delivery. The individual shipper must provide you with 
the fax number(s) or address(es) where you will transmit the 
notifications by fax transmission; e-mail; overnight courier; or 
certified mail, return receipt requested.
    (b) You, your agent, or your driver must inform the individual 
shipper if you reasonably expect a special or accessorial service is 
necessary to safely transport a shipment. You must refuse to accept the 
shipment when you reasonably expect a special or accessorial service is 
necessary to safely transport a shipment and the individual shipper 
refuses to purchase the special or accessorial service. You must make a 
written note if the shipper refuses any special or accessorial services 
that you reasonably expect to be necessary.
    (c) You and the individual shipper must sign the order for service. 
You must provide a dated copy of the order for service to the individual 
shipper at the time you sign the order.
    (d)(1) You may provide the individual shipper with blank or 
incomplete estimates, orders for service, bills of lading, or any other 
blank or incomplete documents pertaining to the move.
    (2) You may require the individual shipper to sign an incomplete 
document at origin provided it contains all relevant shipping 
information except the actual shipment weight and any other information 
necessary to determine the final charges for all services performed.
    (e) You must provide the individual shipper the opportunity to 
rescind the order for service without any penalty for a three-day period 
after the shipper signs the order for service, if the shipper scheduled 
the shipment to be loaded more than three days after signing the order.
    (f) Before loading the shipment, and upon mutual agreement of both 
you and the individual shipper, you may amend an order for service.
    (g) You must retain a copy of the order for service for each move 
you perform for at least one year from the date you made the order for 
service and keep it as an attachment to be made an integral part of the 
bill of lading contract.
    (h) You have the option of placing the valuation statement on either 
the order for service or the bill of lading, provided the order for 
service or bill of

[[Page 106]]

lading states the appropriate valuation selected by the shipper.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004; 72 
FR 36774, July 5, 2007]



Sec. 375.503  Must I write up an inventory?

    (a) You must prepare a written, itemized inventory for each shipment 
of household goods you transport for an individual shipper. The 
inventory must identify every carton and every uncartoned item that is 
included in the shipment. When you prepare the inventory, an 
identification number that corresponds to the inventory must be placed 
on each article that is included in the shipment.
    (b) You must prepare the inventory before or at the time of loading 
in the vehicle for transportation in a manner that provides the 
individual shipper with the opportunity to observe and verify the 
accuracy of the inventory if he or she so requests.
    (c) You must furnish a complete copy of the inventory to the 
individual shipper before or at the time of loading the shipment. A copy 
of the inventory, signed by both you and the individual shipper, must be 
provided to the shipper, together with a copy of the bill of lading, 
before or at the time you load the shipment.
    (d) Upon delivery, you must provide the individual shipper with the 
opportunity to observe and verify that the same articles are being 
delivered and the condition of those articles. You must also provide the 
individual shipper the opportunity to note in writing any missing 
articles and the condition of any damaged or destroyed articles. In 
addition, you must also provide the shipper with a copy of all such 
notations.
    (e) You must retain inventories for each move you perform for at 
least one year from the date you made the inventory and keep it as an 
attachment to be made an integral part of the bill of lading contract.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004]



Sec. 375.505  Must I write up a bill of lading?

    (a) You must issue a bill of lading. The bill of lading must contain 
the terms and conditions of the contract. A bill of lading may be 
combined with an order for service to include all the items required by 
Sec. 375.501 of this subpart. You must furnish a partially complete 
copy of the bill of lading to the individual shipper before the vehicle 
leaves the residence at origin. The partially complete bill of lading 
must contain all relevant shipment information, except the actual 
shipment weight and any other information necessary to determine the 
final charges for all services performed.
    (b) On a bill of lading, you must include the following 14 items:
    (1) Your name and address, or the name and address of the motor 
carrier issuing the bill of lading.
    (2) The names and addresses of any other motor carriers, when known, 
who will participate in transportation of the shipment.
    (3) The name, address, and telephone number of your office (or the 
office of your agent) where the individual shipper can contact you in 
relation to the transportation of the shipment.
    (4) The form of payment you and your agents will honor at delivery. 
The payment information must be the same that was entered on the 
estimate and order for service.
    (5) When you transport on a collect-on-delivery basis, the name, 
address, and if furnished, the telephone number, facsimile number, or e-
mail address of a person to notify about the charges. The notification 
may also be made by overnight courier or certified mail, return receipt 
requested.
    (6) For non-guaranteed service, the agreed date or period of time 
for pickup of the shipment and the agreed date or period of time for the 
delivery of the shipment. The agreed dates or periods for pickup and 
delivery entered upon the bill of lading must conform to the agreed 
dates or periods of time for pickup and delivery entered upon the order 
for service or a proper amendment to the order for service.
    (7) For guaranteed service, subject to tariff provisions, the dates 
for pickup and delivery, and any penalty or per

[[Page 107]]

diem entitlements due the individual shipper under the agreement.
    (8) The actual date of pickup.
    (9) The company or carrier identification number of the vehicle(s) 
upon which you load the individual shipper's shipment.
    (10) The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    (11) The maximum amount you will demand at the time of delivery to 
obtain possession of the shipment, when you transport under a collect-
on-delivery basis.
    (12) A statement of the declared value of the shipment, which is the 
maximum amount of your liability to the individual shipper under your 
Full Value Protection for the replacement value of any household goods 
that are lost, damaged, destroyed, or otherwise not delivered to the 
final destination. If the individual shipper waives, in writing, your 
Full Value Protection liability for the declared value of the household 
goods, you must include a copy of the waiver; the Surface Transportation 
Board's required released rates valuation statement; and the charges, if 
any, for optional valuation coverage (other than Full Value Protection). 
The released rates may be increased annually by the motor carrier based 
on the U.S. Department of Commerce's Cost of Living Adjustment.
    (13) Evidence of any insurance coverage sold to or procured for the 
individual shipper from an independent insurer, including the amount of 
the premium for such insurance.
    (14) Each attachment to the bill of lading. Each attachment is an 
integral part of the bill of lading contract. If not provided elsewhere 
to the shipper, the following three items must be added as an attachment 
to the bill of lading.
    (i) The binding or non-binding estimate.
    (ii) The order for service.
    (iii) The inventory.
    (c) A copy of the bill of lading must accompany a shipment at all 
times while in your (or your agent's) possession. Before the vehicle 
leaves the residence of origin, the bill of lading must be in the 
possession of the driver responsible for the shipment.
    (d) You must retain bills of lading for each move you perform for at 
least one year from the date you created the bill of lading.
    (e) You have the option of placing the valuation statement on either 
the order for service or the bill of lading, provided the order for 
service or bill of lading states the appropriate valuation selected by 
the shipper.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004; 72 
FR 36774, July 5, 2007]

                          Weighing the Shipment



Sec. 375.507  Must I determine the weight of a shipment?

    (a) When you transport household goods on a non-binding estimate 
dependent upon the shipment weight, you must determine the weight of 
each shipment transported before the assessment of any charges.
    (b) You must weigh the shipment upon a certified scale.
    (c) You must provide a written explanation of volume to weight 
conversions, when you provide an estimate by volume and convert the 
volume to weight.



Sec. 375.509  How must I determine the weight of a shipment?

    (a) You must weigh the shipment by using one of the following two 
methods:
    (1) First method--origin weigh. You determine the difference between 
the tare weight of the vehicle before loading at the origin of the 
shipment and the gross weight of the same vehicle after loading the 
shipment.
    (2) Second method--back weigh. You determine the difference between 
the gross weight of the vehicle with the shipment loaded and the tare 
weight of the same vehicle after you unload the shipment.
    (b) The following three conditions must exist for both the tare and 
gross weighings:
    (1) The vehicle must have installed or loaded all pads, dollies, 
hand trucks, ramps, and other equipment required in the transportation 
of the shipment.
    (2) The driver and other persons must be off the vehicle at the time 
of either weighing.

[[Page 108]]

    (3) The fuel tanks on the vehicle must be full at the time of each 
weighing, or, in the alternative, when you use the first method--origin 
weigh, in paragraph (a)(1) of this section, where the tare weighing is 
the first weighing performed, you must refrain from adding fuel between 
the two weighings.
    (c) You may detach the trailer of a tractor-trailer vehicle 
combination from the tractor and have the trailer weighed separately at 
each weighing provided the length of the scale platform is adequate to 
accommodate and support the entire trailer at one time.
    (d) You must use the net weight of shipments transported in 
containers. You must calculate the difference between the tare weight of 
the container (including all pads, blocking and bracing used in the 
transportation of the shipment) and the gross weight of the container 
with the shipment loaded in the container.



Sec. 375.511  May I use an alternative method for shipments weighing 
3,000 pounds or less?

    For shipments weighing 3,000 pounds or less (1,362 kilograms or 
less), you may weigh the shipment upon a platform or warehouse certified 
scale before loading for transportation or after unloading.



Sec. 375.513  Must I give the individual shipper an opportunity to
observe the weighing?

    You must give the individual shipper or any other person responsible 
for the payment of the freight charges the right to observe all 
weighings of the shipment. You must advise the individual shipper, or 
any other person entitled to observe the weighings, where and when each 
weighing will occur. You must give the person who will observe the 
weighings a reasonable opportunity to be present to observe the 
weighings.



Sec. 375.515  May an individual shipper waive his/her right to observe
each weighing?

    (a) If an individual shipper elects not to observe a weighing, the 
shipper is presumed to have waived that right.
    (b) If an individual shipper elects not to observe a reweighing, the 
shipper must waive that right in writing. The individual shipper may 
send the waiver notification via fax transmission; e-mail; overnight 
courier; or certified mail, return receipt requested.
    (c) Waiver of the right to observe a weighing or re-weighing does 
not affect any other rights of the individual shipper under this part or 
otherwise.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004]



Sec. 375.517  May an individual shipper demand re-weighing?

    After you inform the individual shipper of the billing weight and 
total charges and before actually beginning to unload a shipment weighed 
at origin (first method under Sec. 375.509(a)(1)), the individual 
shipper may demand a re-weigh. You must base your freight bill charges 
upon the re-weigh weight.



Sec. 375.519  Must I obtain weight tickets?

    (a) You must obtain weight tickets whenever we require you to weigh 
the shipment in accordance with this subpart. You must obtain a separate 
weight ticket for each weighing. The weigh master must sign each weight 
ticket. Each weight ticket must contain the following six items:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) The identification of the weight entries as being the tare, 
gross, or net weights.
    (4) The company or carrier identification of the vehicle.
    (5) The last name of the individual shipper as it appears on the 
bill of lading.
    (6) The carrier's shipment registration or bill of lading number.
    (b) When both weighings are performed on the same scale, one weight 
ticket may be used to record both weighings.
    (c) As part of the file on the shipment, you must retain the 
original weight ticket or tickets relating to the determination of the 
weight of a shipment.
    (d) All freight bills you present to an individual shipper must 
include true copies of all weight tickets obtained in the determination 
of the shipment weight in order to collect any shipment

[[Page 109]]

charges dependent upon the weight transported.



Sec. 375.521  What must I do if an individual shipper wants to know 
the actual weight or charges for a shipment before I tender delivery?

    (a) If an individual shipper of a shipment being transported on a 
collect-on-delivery basis specifically requests notification of the 
actual weight or volume and charges on the shipment, you must comply 
with this request. This requirement is conditioned upon the individual 
shipper's supplying you with an address or telephone number where the 
individual shipper will receive the communication. You must make your 
notification by telephone; in person; fax transmissions; e-mail; 
overnight courier; or certified mail, return receipt requested.
    (b) The individual shipper must receive your notification at least 
one full 24-hour day before any tender of the shipment for delivery, 
excluding Saturdays, Sundays and Federal holidays.
    (c) You may disregard the 24-hour notification requirement on 
shipments in any one of the following three circumstances:
    (1) The shipment will be back weighed (i.e., weighed at 
destination).
    (2) Pickup and delivery encompass two consecutive weekdays, if the 
individual shipper agrees.
    (3) The shipment is moving under a non-binding estimate and the 
maximum payment required at time of delivery is 110 percent of the 
estimated charges, but only if the individual shipper agrees to waive 
the 24-hour notification requirement.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004]



                  Subpart F_Transportation of Shipments



Sec. 375.601  Must I transport the shipment in a timely manner?

    Yes. Transportation in a timely manner is also known as ``reasonable 
dispatch service.'' You must provide reasonable dispatch service to all 
individual shippers, except for transportation on the basis of 
guaranteed pickup and delivery dates.



Sec. 375.603  When must I tender a shipment for delivery?

    You must tender a shipment for delivery for an individual shipper on 
the agreed delivery date or within the period specified on the bill of 
lading. Upon the request or concurrence of the individual shipper, you 
may waive this requirement.



Sec. 375.605  How must I notify an individual shipper of any service 
delays?

    (a) When you are unable to perform either the pickup or delivery of 
a shipment on the dates or during the periods specified in the order for 
service and as soon as the delay becomes apparent to you, you must 
notify the individual shipper of the delay, at your expense, in one of 
the following six ways:
    (1) By telephone.
    (2) In person.
    (3) Fax transmissions.
    (4) E-mail.
    (5) Overnight courier.
    (6) Certified mail, return receipt requested.
    (b) You must advise the individual shipper of the dates or periods 
you expect to be able to pick up and/or deliver the shipment. You must 
consider the needs of the individual shipper in your advisement. You 
also must do the following four things:
    (1) You must prepare a written record of the date, time, and manner 
of notification.
    (2) You must prepare a written record of your amended date or period 
for pick-up or delivery.
    (3) You must retain these records as a part of your file on the 
shipment. The retention period is one year from the date of 
notification.
    (4) You must furnish a copy of the notice to the individual shipper 
by first class mail or in person if the individual shipper requests a 
copy of the notice.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10576, Mar. 5, 2004]



Sec. 375.607  What must I do if I am able to tender a shipment for
final delivery more than 24 hours before a specified date?

    (a) You may ask the individual shipper to accept an early delivery 
date. If the individual shipper does not concur

[[Page 110]]

with your request or the individual shipper does not request an early 
delivery date, you may, at your discretion, place a shipment in storage 
under your own account and at your own expense in a warehouse located 
near the destination of the shipment. If you place the shipment in 
storage, you must comply with paragraph (b) of this section. You may 
comply with paragraph (c) of this section, at your discretion.
    (b) You must immediately notify the individual shipper of the name 
and address of the warehouse where you place the shipment. You must make 
and keep a record of your notification as a part of your shipment 
records. You have responsibility for the shipment under the terms and 
conditions of the bill of lading. You are responsible for the charges 
for redelivery, handling, and storage until you make final delivery.
    (c) You may limit your responsibility under paragraph (b) of this 
section up to the agreed delivery date or the first day of the period of 
time of delivery as specified in the bill of lading.



Sec. 375.609  What must I do for shippers who store household goods 
in transit?

    (a) If you are holding goods for storage-in-transit (SIT) and the 
period of time is about to expire, you must comply with this section.
    (b) You must notify the individual shipper, in writing of the 
following four items:
    (1) The date of conversion to permanent storage.
    (2) The existence of a nine-month period after the date of 
conversion to permanent storage when the individual shipper may file 
claims against you for loss or damage occurring to the goods in transit 
or during the storage-in-transit period.
    (3) The fact your liability is ending.
    (4) The fact the individual shipper's property will be subject to 
the rules, regulations, and charges of the warehouseman.
    (c) You must make this notification at least 10 days before the 
expiration date of either one of the following two periods:
    (1) The specified period of time when the goods are to be held in 
storage.
    (2) The maximum period of time provided in your tariff for storage-
in-transit.
    (d) You must notify the individual shipper by facsimile 
transmission; e-mail; overnight courier; or certified mail, return 
receipt requested.
    (e) If you are holding household goods in storage-in-transit for a 
period of time less than 10 days, you must give notification to the 
individual shipper of the information specified in paragraph (b) of this 
section one day before the expiration date of the specified time when 
the goods are to be held in such storage.
    (f) You must maintain a record of notifications as part of the 
records of the shipment.
    (g) Your failure or refusal to notify the individual shipper will 
automatically effect a continuance of your carrier liability according 
to the applicable tariff provisions with respect to storage-in-transit, 
until the end of the day following the date when you actually gave 
notice.

[68 FR 35091, June 11, 2003, as amended at 69 FR 10577, Mar. 5, 2004]



                     Subpart G_Delivery of Shipments



Sec. 375.701  May I provide for a release of liability on my delivery
receipt?

    (a) Your delivery receipt or shipping document must not contain any 
language purporting to release or discharge you or your agents from 
liability.
    (b) The delivery receipt may include a statement the property was 
received in apparent good condition except as noted on the shipping 
documents.



Sec. 375.703  What is the maximum collect-on-delivery amount I may 
demand at the time of delivery?

    (a) On a binding estimate, the maximum amount is the exact estimate 
of the charges, plus charges for any additional services requested by 
the shipper after the bill of lading has been issued and charges, if 
applicable, for impracticable operations as defined in your carrier 
tariff. The maximum amount of charges for impracticable operations you 
may collect on delivery is an amount equal to 15 percent of all other 
charges due at delivery.

[[Page 111]]

    (b) On a non-binding estimate, the maximum amount is 110 percent of 
the non-binding estimate of the charges, plus charges for any additional 
services requested by the shipper after the bill of lading has been 
issued and charges, if applicable, for impracticable operations as 
defined in your carrier tariff. The maximum amount of charges for 
impracticable operations you may collect on delivery is an amount equal 
to 15 percent of all other charges due at delivery.

[72 FR 36774, July 5, 2007]



Sec. 375.705  If a shipment is transported on more than one vehicle, 
what charges may I collect at delivery?

    (a) At your discretion, you may do one of the following three 
things:
    (1) You may defer the collection of all charges until you deliver 
the entire shipment.
    (2) If you have determined the charges for the entire shipment, you 
may collect charges for the portion of the shipment tendered for 
delivery. You must determine the percentage of the charges for the 
entire shipment represented by the portion of the shipment tendered for 
delivery.
    (3) If you cannot reasonably calculate the charges for the entire 
shipment, you must determine the charges for the portion of the shipment 
being delivered. You must collect this amount. The total charges you 
assess for the transportation of the separate portions of the shipment 
must not be more than the charges due for the entire shipment.
    (b) In the event of the loss or destruction of any part of a 
shipment transported on more than one vehicle, you must collect the 
charges as provided in Sec. 375.707.



Sec. 375.707  If a shipment is partially lost or destroyed, what
charges may I collect at delivery?

    (a) (1) If a shipment is partially lost or destroyed, you may 
collect at delivery:
    (i) A prorated percentage of the binding estimate or a prorated 
percentage of up to 110 percent of the non-binding estimate. The 
prorated percentage is equal to the percentage of the weight of that 
portion of the shipment delivered relative to the total weight of the 
shipment. For example, if you deliver only 2,500 pounds of a shipment 
weighing 5,000 pounds, you may demand at destination, as applicable, 
only 50 percent of a binding estimate or 50 percent of not more than 110 
percent of a non-binding estimate;
    (ii) Charges for any additional services requested by the shipper 
after the bill of lading has been issued; and
    (iii) Charges for impracticable operations, if applicable, except 
that such charges must not exceed 15 percent of all other charges due at 
delivery.
    (iv) Any specific valuation charge due.
    (2) You must bill and collect from the individual shipper any 
remaining charges not collected at delivery in accordance with subpart H 
of this part.
    (b) You must determine, at your own expense, the proportion of the 
shipment, based on actual or constructive weight, not lost or destroyed 
in transit.
    (c) You may disregard paragraph (a)(1) of this section if loss or 
destruction was due to an act or omission of the individual shipper.
    (d) The individual shipper's rights are in addition to, and not in 
lieu of, any other rights the individual shipper may have with respect 
to a shipment of household goods you or your agent(s) partially lost or 
destroyed in transit. This applies whether or not the individual shipper 
exercises any rights to obtain a refund of the portion of your published 
freight charges corresponding to the portion of the lost or destroyed 
shipment (including any charges for accessorial or terminal services) at 
the time you dispose of claims for loss, damage, or injury to articles 
in the shipment under part 370 of this chapter.

[72 FR 36775, July 5, 2007]



Sec. 375.709  If a shipment is totally lost or destroyed, what 
charges may I collect at delivery?

    (a) You are forbidden from collecting, or requiring an individual 
shipper to pay, any freight charges (including any charges for 
accessorial or terminal services) when a household goods shipment is 
totally lost or destroyed in transit. The following two conditions also 
apply:

[[Page 112]]

    (1) You must collect any specific valuation charge due.
    (2) You may disregard paragraph (a) of this section if loss or 
destruction was due to an act or omission of the individual shipper.
    (b) The individual shipper's rights are in addition to, and not in 
lieu of, any other rights the individual shipper may have with respect 
to a shipment of household goods you or your agent(s) totally lost or 
destroyed in transit. This applies whether or not the individual shipper 
exercises its rights provided in paragraph (a) of this section.



                     Subpart H_Collection of Charges



Sec. 375.801  What types of charges apply to subpart H?

    This subpart applies to all shipments of household goods that:
    (a) Entail a balance due freight or expense bill, or
    (b) Are transported on an extension of credit basis.

[69 FR 10577, Mar. 5, 2004]



Sec. 375.803  How must I present my freight or expense bill?

    You must present your freight or expense bill in accordance with 
Sec. 375.807 of this subpart.

[69 FR 10577, Mar. 5, 2004]



Sec. 375.805  If I am forced to relinquish a collect-on-delivery 
shipment before the payment of ALL charges, how do I collect the 

balance?

    On ``collect-on-delivery'' shipments, you must present your freight 
bill for all transportation charges within 15 days as required by Sec. 
375.807.



Sec. 375.807  What actions may I take to collect the charges upon 
my freight bill?

    (a) You must present a freight bill within 15 days (excluding 
Saturdays, Sundays, and Federal holidays) of the date of delivery of a 
shipment at its destination.
    (b) The credit period must be seven days (including Saturdays, 
Sundays, and Federal holidays).
    (c) You must provide in your tariffs the following four things:
    (1) You must automatically extend the credit period to a total of 30 
calendar days for any shipper who has not paid your freight bill within 
the 7-day period. However, for charges for impracticable operations that 
are not collected at delivery, you may not extend the credit period 
beyond 30 days after you present your freight bill.
    (2) You will assess a service charge to each individual shipper 
equal to one percent of the amount of the freight bill, subject to a $20 
minimum charge, for the extension of the credit period. You will assess 
the service charge for each 30-day extension the charges go unpaid.
    (3) You must deny credit to any shipper who fails to pay a duly-
presented freight bill within the 30-day period. You may grant credit to 
the individual shipper when the individual shipper satisfies he/she will 
promptly pay all future freight bills duly presented.
    (4) You must ensure all payments of freight bills are strictly in 
accordance with the rules and regulations of this part for the 
settlement of your rates and charges.

[68 FR 35091, June 11, 2003, as amended at 72 FR 36775, July 5, 2007]



                           Subpart I_Penalties



Sec. 375.901  What penalties do we impose for violations of this part?

    The penalty provisions of 49 U.S.C. Chapter 149, Civil and Criminal 
Penalties apply to this part. These penalties do not overlap. 
Notwithstanding these civil penalties, nothing in this section shall 
deprive any holder of a receipt or a bill of lading any remedy or right 
of action under existing law.



 Sec. Appendix A to Part 375--Your Rights and Responsibilities When You 
                                  Move

OMB No. 2126-0025

           Furnished by Your Mover, as Required by Federal Law

    Authority: 49 U.S.C. 13301, 13704, 13707, and 14104; 49 CFR 1.73.

                   What Is Included in This Pamphlet?

In this pamphlet, you will find a discussion of each of these topics:
Why Was I Given This Pamphlet?
What Are the Most Important Points I Should Remember From This Pamphlet?
What If I Have More Questions?

[[Page 113]]

                     Subpart A--General Requirements

Who must follow the regulations?
What definitions are used in this Pamphlet?

          Subpart B--Before Requesting Services From Any Mover

What is my mover's normal liability for loss or damage when my mover 
accepts goods from me?
What actions by me limit or reduce my mover's normal liability?
What are dangerous or hazardous materials that may limit or reduce my 
mover's normal liability?
May my mover have agents?
What items must be in my mover's advertisements?
How must my mover handle complaints and inquiries?
Do I have the right to inspect my mover's tariffs (schedules of charges) 
applicable to my move?
Must my mover have an arbitration program?
Must my mover inform me about my rights and responsibilities under 
Federal Law?
What other information must my mover provide to me?
How must my mover collect charges?
May my mover collect charges upon delivery?
May my mover extend credit to me?
May my mover accept charge or credit cards for my payments?

                   Subpart C--Service Options Provided

What service options may my mover provide?
If my mover sells liability insurance coverage, what must my mover do?

                      Subpart D--estimating charges

Must my mover estimate the transportation and accessorial charges for my 
move?
How must my mover estimate charges under the regulations?
What payment arrangements must my mover have in place to secure delivery 
of my household goods shipment?

           Subpart E--Pickup of My Shipment of Household Goods

Must my mover write up an order for service?
Must my mover write up an inventory of the shipment?
Must my mover write up a bill of lading?
Should I reach an agreement with my mover about pickup and delivery 
times?
Must my mover determine the weight of my shipment?
How must my mover determine the weight of my shipment?
What must my mover do if I want to know the actual weight or charges for 
my shipment before delivery?

                Subpart F--Transportation of My Shipment

Must my mover transport the shipment in a timely manner?
What must my mover do if it is able to deliver my shipment more than 24 
hours before I am able to accept delivery?
What must my mover do for me when I store household goods in transit?



                   Subpart G--Delivery of My Shipment

May my mover ask me to sign a delivery receipt releasing it from 
liability?
What is the maximum collect-on-delivery amount my mover may demand I pay 
at the time of delivery?
If my shipment is transported on more than one vehicle, what charges may 
my mover collect at delivery?
If my shipment is partially or totally lost or destroyed, what charges 
may my mover collect at delivery?
How must my mover calculate the charges applicable to the shipment as 
delivered?

                    Subpart H--Collection of Charges

Does this subpart apply to most shipments?
How must my mover present its freight or expense bill to me?
If I forced my mover to relinquish a collect-on-delivery shipment before 
the payment of ALL charges, how must my mover collect the balance?
What actions may my mover take to collect from me the charges in its 
freight bill?
Do I have a right to file a claim to recover money for property my mover 
lost or damaged?

               Subpart I--Resolving Disputes With My Mover

What may I do to resolve disputes with my mover?

                     Why Was I Given This Pamphlet?

    The Federal Motor Carrier Safety Administration's (FMCSA) 
regulations protect consumers on interstate moves and define the rights 
and responsibilities of consumers and household goods carriers.
    The household goods carrier (mover) gave you this booklet to provide 
information about your rights and responsibilities as an individual 
shipper of household goods. Your primary responsibility is to select a 
reputable household goods carrier, ensure that you understand the terms 
and conditions of the contract, and understand and pursue the remedies 
that are available to you in case problems arise. You should talk to 
your mover if you have further questions. The mover will also furnish 
you with additional written information describing its procedure for 
handling your questions and complaints.

[[Page 114]]

The additional written information will include a telephone number you 
can call to obtain additional information about your move.

What Are the Most Important Points I Should Remember From This Pamphlet?

    1. Movers must give written estimates.
    2. Movers may give binding estimates.
    3. Non-binding estimates are not always accurate; actual charges may 
exceed the estimate.
    4. If your mover provides you (or someone representing you) with any 
partially complete document for your signature, you should verify the 
document is as complete as possible before signing it. Make sure the 
document contains all relevant shipping information, except the actual 
shipment weight and any other information necessary to determine the 
final charges for all services performed.
    5. You may request from your mover the availability of guaranteed 
pickup and delivery dates.
    6. Be sure you understand the mover's responsibility for loss or 
damage, and request an explanation of the difference between valuation 
and actual insurance.
    7. You have the right to be present each time your shipment is 
weighed.
    8. You may request a reweigh of your shipment.
    9. If you agree to move under a non-binding estimate, you should 
confirm with your mover--in writing--the method of payment at delivery 
as cash, certified check, cashier's check, money order, or credit card.
    10. Movers must offer a dispute settlement program as an alternative 
means of settling loss or damage claims. Ask your mover for details.
    11. You should ask the person you speak to whether he or she works 
for the actual mover or a household goods broker. A household goods 
broker must not represent itself as a mover. The broker is responsible 
only for arranging the transportation. It does not own the trucks used 
to transport the shipment and is required to find an authorized mover to 
provide the transportation. You should know that a household goods 
broker generally has no authority to provide you with an estimate for 
the move, unless the broker has a written agreement with the household 
goods carrier. If a household goods broker provides you with an estimate 
without a written agreement with the carrier, the estimate may not be 
binding and you may instead be required to pay the actual charges 
assessed by the mover. A household goods broker is not responsible for 
loss or damage.
    12. You may request complaint information about movers from the 
Federal Motor Carrier Safety Administration under the Freedom of 
Information Act. You may be assessed a fee to obtain this information. 
See 49 CFR part 7 for the schedule of fees.
    13. You should seek estimates from at least three different movers. 
You should not disclose any information to the different movers about 
their competitors, as it may affect the accuracy of their estimates.

                     What if I Have More Questions?

    If this pamphlet does not answer all of your questions about your 
move, do not hesitate to ask for additional information from your 
mover's representative who handled the arrangements for your move, the 
driver who transports your shipment, or the mover's main office.

                     Subpart A--General Requirements

    The primary responsibility for your protection lies with you in 
selecting a reputable household goods carrier, ensuring you understand 
the terms and conditions of your contract with your mover, and 
understanding and pursuing the remedies that are available to you in 
case problems arise.

                    Who Must Follow the Regulations?

    The regulations inform motor carriers engaged in the interstate 
transportation of household goods (household goods motor carriers or 
movers) what standards they must follow when offering services to you. 
You, an individual shipper, are not directly subject to the regulations. 
However, your mover may be required by the regulations to demand that 
you pay on time. The regulations apply only to a mover that both 
transports your household goods by motor vehicle in interstate 
commerce--that is, when you are moving from one State to another--and 
provides certain types of additional services. The regulations do not 
apply when your interstate move takes place within a single commercial 
zone. A commercial zone is roughly equivalent to the local metropolitan 
area of a city or town. For example, a move between Brooklyn, NY, and 
Hackensack, NJ, would be considered within the New York City commercial 
zone and would not be subject to these regulations. Commercial zones are 
defined in 49 CFR part 372.

               What Definitions Are Used in This Pamphlet?

    Accessorial (Additional) Services--These are services such as 
packing, appliance servicing, unpacking, or piano stair carries that you 
request be performed (or that are necessary because of landlord 
requirements or other special circumstances). Charges for these services 
may be in addition to the line-haul charges.
    Advanced Charges--These are charges for services performed by 
someone other than the mover. A professional, craftsman, or other third 
party may perform these services

[[Page 115]]

at your request. The mover pays for these services and adds the charges 
to your bill of lading charges.
    Advertisement--This is any communication to the public in connection 
with an offer or sale of any interstate household goods transportation 
service. This will include written or electronic database listings of 
your mover's name, address, and telephone number in an online database. 
This excludes listings of your mover's name, address, and telephone 
number in a telephone directory or similar publication. However, Yellow 
Pages advertising is included within the definition.
    Agent--A local moving company authorized to act on behalf of a 
larger, national company.
    Appliance Service by Third Party--The preparation of major 
electrical appliances to make them safe for shipment. Charges for these 
services may be in addition to the line-haul charges.
    Bill of Lading--The receipt for your goods and the contract for 
their transportation.
    Carrier--The mover transporting your household goods.
    Collect on Delivery (COD)--This means payment is required at the 
time of delivery at the destination residence (or warehouse).
    Certified Scale--Any scale designed for weighing motor vehicles, 
including trailers or semi-trailers not attached to a tractor, and 
certified by an authorized scale inspection and licensing authority. A 
certified scale may also be a platform or warehouse type scale that is 
properly inspected and certified.
    Estimate, Binding--This is a written agreement made in advance with 
your mover. It guarantees the total cost of the move based upon the 
quantities and services shown on the estimate.
    Estimate, Non-Binding--This is what your mover believes the cost 
will be, based upon the estimated weight of the shipment and the 
accessorial services requested. A non-binding estimate is not binding on 
the mover. The final charges will be based upon the actual weight of 
your shipment, the services provided, and the tariff provisions in 
effect.
    Expedited Service--This is an agreement with the mover to perform 
transportation by a set date in exchange for charges based upon a higher 
minimum weight.
    Flight Charge--A charge for carrying items up or down flights of 
stairs. Charges for these services may be in addition to the line-haul 
charges.
    Guaranteed Pickup and Delivery Service--An additional level of 
service featuring guaranteed dates of service. Your mover will provide 
reimbursement to you for delays. This premium service is often subject 
to minimum weight requirements.
    High-Value Article--These are items included in a shipment valued at 
more than $100 per pound ($220 per kilogram).
    Household Goods, as used in connection with transportation, means 
the personal effects or property used, or to be used, in a dwelling, 
when part of the equipment or supplies of the dwelling. Transportation 
of the household goods must be arranged and paid for by you or by 
another individual on your behalf. This may include items moving from a 
factory or store when you purchase them to use in your dwelling. You 
must request that these items be transported, and you (or another 
individual on your behalf) must pay the transportation charges to the 
mover.
    Household Goods Motor Carrier means a motor carrier that, in the 
ordinary course of its business of providing transportation of household 
goods, offers some or all of the following additional services: (1) 
Binding and non-binding estimates, (2) Inventory, (3) Protective packing 
and unpacking of individual items at personal residences, and (4) 
Loading and unloading at personal residences. The term does not include 
a motor carrier when the motor carrier provides transportation of 
household goods in containers or trailers that are entirely loaded and 
unloaded by an individual other than an employee or agent of the motor 
carrier.
    Individual Shipper--Any person who--
    1. Is the shipper, consignor, or consignee of a household goods 
shipment;
    2. Is identified as the shipper, consignor, or consignee on the face 
of the bill of lading;
    3. Owns the goods being transported; and
    4. Pays his or her own tariff transportation charges.
    Impracticable Operations generally refer to services required when 
operating conditions make it physically impossible for the motor carrier 
to perform pickup or delivery with its normally assigned road-haul 
equipment, so that the carrier must use smaller equipment and/or 
additional labor to complete pickup or delivery of the shipment. A mover 
may require payment of additional charges for impracticable operations 
even if you do not request these services. The specific services 
considered to be impracticable operations by your mover are defined in 
your mover's tariff.
    Inventory--The detailed descriptive list of your household goods 
showing the number and condition of each item.
    Line-Haul Charges--The charges for the vehicle transportation 
portion of your move. These charges, if separately stated, apply in 
addition to the accessorial service charges.
    Long Carry--A charge for carrying articles excessive distances 
between the mover's vehicle and your residence. Charges for these 
services may be in addition to the line-haul charges.
    May--An option. You or your mover may do something, but it is not a 
requirement.

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    Mover--A household goods motor carrier and its household goods 
agents.
    Must--A legal obligation. You or your mover must do something.
    Order for Service--The document authorizing the mover to transport 
your household goods.
    Order (Bill of Lading) Number--The number used to identify and track 
your shipment.
    Peak Season Rates--Higher line-haul charges applicable during the 
summer months.
    Pickup and Delivery Charges--Separate transportation charges 
applicable to transporting your shipment between the storage-in-transit 
warehouse and your residence.
    Reasonable Dispatch--The performance of transportation on the dates, 
or during the period of time, agreed upon by you and your mover and 
shown on the Order for Service/Bill of Lading. For example, if your 
mover deliberately withholds any shipment from delivery after you offer 
to pay the binding estimate or up to 110 percent of a non-binding 
estimate, plus any charges for additional services you requested that 
were not included in the estimate and/or permissible charges for 
impracticable operations, your mover has not transported the goods with 
reasonable dispatch. The term ''reasonable dispatch`` excludes 
transportation provided under your mover's tariff provisions requiring 
guaranteed service dates. Your mover will have the defense of force 
majeure, i.e., that the contract cannot be performed owing to causes 
that are outside the control of the parties and could not be avoided by 
exercise of due care.
    Should--A recommendation. We recommend you or your mover do 
something, but it is not a requirement.
    Shuttle Service--The use of a smaller vehicle to provide service to 
residences not accessible to the mover's normal line-haul vehicles.
    Storage-In-Transit (SIT)--The temporary warehouse storage of your 
shipment pending further transportation, with or without notification to 
you. If you (or someone representing you) cannot accept delivery on the 
agreed-upon date or within the agreed-upon time period (for example, 
because your home is not quite ready to occupy), your mover may place 
your shipment into SIT without notifying you. In those circumstances, 
you will be responsible for the added charges for SIT service, as well 
as the warehouse handling and final delivery charges. However, your 
mover also may place your shipment into SIT if your mover was able to 
make delivery before the agreed-upon date (or before the first day of 
the agreed-upon delivery period) but you did not concur with early 
delivery. In those circumstances, your mover must notify you immediately 
of the SIT, and your mover is fully responsible for redelivery charges, 
handling charges, and storage charges.
    Surface Transportation Board--An agency within the U.S. Department 
of Transportation that regulates household goods carrier tariffs, among 
other responsibilities. The Surface Transportation Board's address is 
395 E Street, SW., Washington, DC 20423-0001. Tele. 202-245-0245.
    Tariff--An issuance (in whole or in part) containing rates, rules, 
regulations, classifications, or other provisions. The Surface 
Transportation Board requires that a tariff contain three specific 
items. First, an accurate description of the services the mover offers 
to the public. Second, the specific applicable rates (or the basis for 
calculating the specific applicable rates) and service terms for 
services offered to the public. Third, the mover's tariff must be 
arranged in a way that allows you to determine the exact rate(s) and 
service terms applicable to your shipment.
    Valuation--The degree of worth of the shipment. The valuation charge 
compensates the mover for assuming a greater degree of liability than is 
provided for in its base transportation charges.
    Warehouse Handling--A charge may be applicable each time SIT service 
is provided. Charges for these services may be in addition to the line-
haul charges. This charge compensates the mover for the physical 
placement and removal of items within the warehouse.
    We, Us, and Our--The Federal Motor Carrier Safety Administration 
(FMCSA).
    You and Your--You are an individual shipper of household goods. You 
are a consignor or consignee of a household goods shipment and your 
mover identifies you as such in the bill of lading contract. You own the 
goods being transported and pay the transportation charges to the mover.
    Where may other terms used in this pamphlet be defined? You may find 
other terms used in this pamphlet defined in 49 U.S.C. 13102. The 
statute controls the definitions in this pamphlet. If terms are used in 
this pamphlet and the terms are defined neither here nor in 49 U.S.C. 
13102, the terms will have the ordinary practical meaning of such terms.

          Subpart B--Before Requesting Services From Any Mover

  What Is My Mover's Normal Liability for Loss or Damage When My Mover 
                         Accepts Goods From Me?

    In general, your mover is legally liable for loss or damage that 
occurs during performance of any transportation of household goods and 
of all related services identified on your mover's lawful bill of 
lading.
    Your mover is liable for loss of, or damage to, any household goods 
to the extent provided in the current Surface Transportation

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Board's Released Rates Order. You may obtain a copy of the current 
Released Rates Order by contacting the Surface Transportation Board at 
the address provided under the definition of the Surface Transportation 
Board. The rate may be increased annually by your mover based on the 
U.S. Department of Commerce's Cost of Living Adjustment. Your mover may 
have additional liability if your mover sells liability insurance to 
you.
    All moving companies are required to assume liability for the value 
of the goods transported. However, there are different levels of 
liability, and you should be aware of the amount of protection provided 
and the charges for each option.
    Basically, most movers offer two different levels of liability under 
the terms of their tariffs and the Surface Transportation Board's 
Released Rates Orders. These orders govern the moving industry. The 
levels of liability are as follows:
    (1) FULL VALUE PROTECTION (FVP). This is the most comprehensive 
option available for the protection of your goods. Unless you waive 
full-value protection in writing and agree to Release Value Protection 
as described below, your shipment will be transported under your mover's 
full (replacement) value level of liability. If any article is lost, 
destroyed, or damaged while in your mover's custody, your mover will, at 
its option, either: repair the article to the extent necessary to 
restore it to the same condition as when it was received by your mover, 
or pay you for the cost of such repairs; replace the article with an 
article of like kind; or pay you for the cost of a replacement article 
at the current market replacement value, regardless of the age of the 
lost or damaged article. Your mover will charge you for this level of 
protection, or you may select the Alternative Level of Liability 
described below.
    The cost for FVP is based on the value that you place on your 
shipment. For example, the valuation charge for a shipment valued at 
$25,000 would be about $250.00. However, the exact cost for full-value 
protection may vary by mover and may be further subject to various 
deductible levels of liability that could reduce your cost. Ask your 
mover for the details and cost of its specific plan.
    Under the FVP level of liability, movers are permitted to limit 
their liability for loss of, or damage to, articles of extraordinary 
value, unless you specifically list on the shipping documents such 
articles for which you want liability coverage. An article of 
extraordinary value is any item whose value exceeds $100 per pound (for 
example, jewelry, silverware, china, furs, antiques, oriental rugs and 
computer software). Ask your mover for a complete explanation of this 
limitation before your move. It is your responsibility to study this 
provision carefully and to make the necessary declaration.
    (2) RELEASED VALUE of 60 Cents Per Pound Per Article. This is the 
most economical protection option available; however, this no-cost 
option provides only minimal protection. Under this option, the mover 
assumes liability for no more than 60 cents per pound per article. Loss 
or damage claims are settled based on the weight of the article 
multiplied by 60 cents per pound. For example, if a 10-pound stereo 
component valued at $1,000 were lost or destroyed, the mover would be 
liable for no more than $6.00 (10 pounds x 60 cents per pound). 
Obviously, you should think carefully before agreeing to such an 
arrangement. There is no extra charge for this minimal protection, but 
you must sign a specific statement on the bill of lading agreeing to it. 
If you do not select this Alternative Level of Liability, your shipment 
will be transported at the Full (Replacement) Value level of liability 
and you will be assessed the applicable valuation charge.
    These two levels of liability are not insurance agreements governed 
by State insurance laws but instead are contractual tariff levels of 
liability authorized under Released Rates Orders of the Surface 
Transportation Board of the U.S. Department of Transportation.
    In addition to these options, some movers may also offer to sell, or 
procure for you, separate liability insurance from a third-party 
insurance company when you release your shipment for transportation at 
the minimum released value (60 cents per pound [$1.32 per kilogram] per 
article). This is not valuation coverage governed by Federal law but 
optional insurance regulated under State law. If you purchase this 
separate coverage and your mover is responsible for loss or damage, the 
mover is liable only for an amount not exceeding 60 cents per pound 
($1.32 per kilogram) per article, and the balance of the loss is 
recoverable from the insurance company up to the amount of insurance 
purchased. The mover's representative can advise you of the availability 
of such liability insurance, and the cost.
    If you purchase liability insurance from or through your mover, the 
mover is required to issue a policy or other written record of the 
purchase and to provide you with a copy of the policy or other document 
at the time of purchase. If the mover fails to comply with this 
requirement, the mover becomes fully liable for any claim for loss or 
damage attributed to its negligence.

     What Actions by Me Limit or Reduce My Mover's Normal Liability?

    Your actions may limit or reduce your mover's normal liability under 
the following three circumstances:
    (1) You include perishable, dangerous, or hazardous materials in 
your household goods without your mover's knowledge.

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    (2) You choose the alternative level of liability (60 cents per 
pound per article) but ship household goods valued at more than 60 cents 
per pound ($1.32 per kilogram) per article.
    (3) You fail to notify your mover in writing of articles valued at 
more than $100 per pound ($220 per kilogram). (If you do notify your 
mover, you will be entitled to full recovery up to the declared value of 
the article or articles, not to exceed the declared value of the entire 
shipment.)

 What Are Dangerous or Hazardous Materials That May Limit or Reduce My 
                        Mover's Normal Liability?

    Federal law forbids you to ship hazardous materials in your 
household goods boxes or luggage without informing your mover. A 
violation can result in 5 years' imprisonment and penalties of $250,000 
or more (49 U.S.C. 5124). You could also lose or damage your household 
goods by fire, explosion, or contamination.
    If you offer hazardous materials to your mover, you are considered a 
hazardous materials shipper and must comply with the hazardous materials 
requirements in 49 CFR parts 171, 172, and 173, including but not 
limited to package labeling and marking, shipping papers, and emergency 
response information. Your mover must comply with 49 CFR parts 171, 172, 
173, and 177 as a hazardous materials carrier.
    Hazardous materials include explosives, compressed gases, flammable 
liquids and solids, oxidizers, poisons, corrosives, and radioactive 
materials. Examples: Nail polish remover, paints, paint thinners, 
lighter fluid, gasoline, fireworks, oxygen bottles, propane cylinders, 
automotive repair and maintenance chemicals, and radio-pharmaceuticals.
    There are special exceptions for small quantities (up to 70 ounces 
total) of medicinal and toilet articles carried in your household goods 
and certain smoking materials carried on your person. For further 
information, contact your mover.

                        May My Mover Have Agents?

    Yes, your mover may have agents. If your mover has agents, your 
mover must have written agreements with its prime agents. Your mover and 
its retained prime agent must sign their agreements. Copies of your 
mover's prime agent agreements must be in your mover's files for a 
period of at least 24 months following the date of termination of each 
agreement.

            What Items Must Be in My Mover's Advertisements?

    Your mover must publish and use only truthful, straightforward, and 
honest advertisements. Your mover must include certain information in 
all advertisements for all services (including any accessorial services 
incidental to or part of interstate transportation). Your mover must 
require each of its agents to include the same information in its 
advertisements. The information must include the following two pieces of 
information about your mover:
    (1) Name or trade name of the mover under whose U.S. DOT number the 
advertised service will originate.
    (2) U.S. DOT number assigned by FMCSA authorizing your mover to 
operate. Your mover must display the information as: U.S. DOT No. 
(assigned number).
    You should compare the name or trade name of the mover and its U.S. 
DOT number to the name and U.S. DOT number on the sides of the truck(s) 
that arrive at your residence. The names and numbers should be 
identical. If the names and numbers are not identical, you should ask 
your mover immediately why they are not. You should not allow the mover 
to load your household goods on its truck(s) until you obtain a 
satisfactory response from the mover's local agent. The discrepancies 
may warn of problems you will have later in your business dealings with 
this mover.

           How Must My Mover Handle Complaints and Inquiries?

    All movers are expected to respond promptly to complaints or 
inquiries from you, the customer. Should you have a complaint or 
question about your move, you should first attempt to obtain a 
satisfactory response from the mover's local agent, the sales 
representative who handled the arrangements for your move, or the driver 
assigned to your shipment.
    If for any reason you are unable to obtain a satisfactory response 
from one of these persons, you should then contact the mover's principal 
office. When you make such a call, be sure to have available your copies 
of all documents relating to your move. Particularly important is the 
number assigned to your shipment by your mover.
    Interstate movers are also required to offer neutral arbitration as 
a means of resolving consumer disputes involving loss of or damage to 
your household goods shipment and disputes regarding charges that your 
mover billed in addition to those collected at delivery. Your mover is 
required to provide you with information regarding its arbitration 
program. You have the right to pursue court action under 49 U.S.C. 14706 
to seek judicial redress directly rather than participate in your 
mover's arbitration program.
    All interstate moving companies are required to maintain a complaint 
and inquiry procedure to assist their customers. At the time you make 
the arrangements for your move, you should ask the mover's 
representative for a description of the mover's procedure, the telephone 
number to be used to

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contact the mover, and whether the mover will pay for such telephone 
calls. Your mover's procedure must include the following four things:
    (1) A communications system allowing you to communicate with your 
mover's principal place of business by telephone.
    (2) A telephone number.
    (3) A clear and concise statement about who must pay for complaint 
and inquiry telephone calls.
    (4) A written or electronic record system for recording all 
inquiries and complaints received from you by any means of 
communication.
    Your mover must give you a clear and concise written description of 
its procedure. You may want to be certain that the system is in place.

Do I Have the Right to Inspect My Mover's Tariffs (Schedules of Charges) 
                         Applicable to My Move?

    Federal law requires your mover to advise you of your right to 
inspect your mover's tariffs (its schedules of rates or charges) 
governing your shipment. Movers' tariffs are made a part of the contract 
of carriage (bill of lading) between you and the mover. You may inspect 
the tariff at the mover's facility, or, upon request, the mover will 
furnish you a free copy of any tariff provision containing the mover's 
rates, rules, or charges governing your shipment.
    Tariffs may include provisions limiting the mover's liability. This 
is generally described in a section on declaring value on the bill of 
lading. A second tariff provision may set the periods for filing claims. 
This is generally described in Section 6 on the reverse side of a bill 
of lading. A third tariff provision may reserve your mover's right to 
assess additional charges for additional services performed. For non-
binding estimates, another tariff provision may base charges upon the 
exact weight of the goods transported. Your mover's tariff may contain 
other provisions that apply to your move. Ask your mover what they might 
be, and request a copy.

               Must My Mover Have an Arbitration Program?

    Your mover must have an arbitration program for your use in 
resolving disputes concerning loss of or damage to your household goods 
and disputes regarding charges that were billed to you in addition to 
those collected at delivery of your shipment. You have the right not to 
participate in the arbitration program. You may pursue court action 
under 49 U.S.C. 14706 to seek judicial remedies directly. Your mover 
must establish and maintain an arbitration program with the following 11 
minimum elements:
    (1) The arbitration program offered to you must prevent your mover 
from having any special advantage because you live or work in a place 
distant from the mover's principal or other place of business.
    (2) Before your household goods are tendered for transport, your 
mover must provide notice to you of the availability of neutral 
arbitration, including the following three things:
    (a) A summary of the arbitration procedure.
    (b) Any applicable costs.
    (c) A disclosure of the legal effects of electing to use 
arbitration.
    (3) Upon your request, your mover must provide information and forms 
it considers necessary for initiating an action to resolve a dispute 
under arbitration.
    (4) Each person authorized to arbitrate must be independent of the 
parties to the dispute and capable of resolving such disputes fairly and 
expeditiously. Your mover must ensure the arbitrator is authorized and 
able to obtain from you or your mover any material or relevant 
information to carry out a fair and expeditious decision-making process.
    (5) You must not be required to pay more than one-half of the 
arbitration's cost. The arbitrator may determine the percentage of 
payment of the costs for each party in the arbitration decision, but 
must not make you pay more than half.
    (6) Your mover must not require you to agree to use arbitration 
before a dispute arises.
    (7) You and your mover will be bound by arbitration for claims of 
$10,000 or less if you request arbitration.
    (8) You and your mover will be bound by arbitration for claims of 
more than $10,000 only if you request arbitration and your mover agrees 
to it.
    (9) If you and your mover both agree, the arbitrator may provide for 
an oral presentation of a dispute by a party or representative of a 
party.
    (10) The arbitrator must render a decision within 60 days of receipt 
of written notification of the dispute, and a decision by an arbitrator 
may include any remedies appropriate under the circumstances.
    (11) The 60-day period may be extended for a reasonable period if 
either you or your mover fails to provide information in a timely 
manner. Your mover must produce and distribute a concise, easy-to-read, 
accurate summary of its arbitration program.

   Must My Mover Inform Me About My Rights and Responsibilities Under 
                              Federal Law?

    Yes, your mover must inform you about your rights and 
responsibilities under Federal law. Your mover must produce and 
distribute this document. It should follow the general order and contain 
the text of appendix A to 49 CFR part 375.

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            What Other Information Must My Mover Provide Me?

    At the time your mover provides a written estimate, it must provide 
you with a copy of the U.S. Department of Transportation publication 
FMCSA-ESA-03-005 entitled ``Ready to Move?'' (or its successor 
publication). Before your mover executes an order for service for a 
shipment of household goods, your mover must furnish you with the 
following four documents:
    1. The contents of Appendix A, ''Your Rights and Responsibilities 
When You Move''--this booklet.
    2. A concise, easy-to-read, and accurate summary of your mover's 
arbitration program.
    3. A notice of availability of the applicable sections of your 
mover's tariff for the estimate of charges, including an explanation 
that you may examine the tariff sections or have copies sent to you upon 
request.
    4. A concise, easy-to-read, accurate summary of your mover's 
customer complaint and inquiry handling procedures. Included in this 
summary must be the following two items:
    (a) The main telephone number you may use to communicate with your 
mover.
    (b) A clear and concise statement concerning who must pay for 
telephone calls.
    Your mover may, at its discretion, provide additional information to 
you.

                   How Must My Mover Collect Charges?

    Your mover must issue you an honest, truthful freight or expense 
bill for each shipment transported. Your mover's freight or expense bill 
must contain the following 17 items:
    (1) Name of the consignor.
    (2) Name of the consignees.
    (3) Date of the shipment.
    (4) Origin point.
    (5) Destination points.
    (6) Number of packages.
    (7) Description of the freight.
    (8) Weight of the freight (if your shipment is moved under a non-
binding estimate).
    (9) Exact rate(s) assessed.
    (10) Disclosure of the actual rates, charges, and allowances for the 
transportation service, when your mover electronically presents or 
transmits freight or expense bills to you. These rates must be in 
accordance with the mover's applicable tariff.
    (11) An indication of whether adjustments may apply to the bill.
    (12) Total charges due and acceptable methods of payment.
    (13) The nature and amount of any special service charges.
    (14) The points where special services were rendered.
    (15) Route of movement and name of each mover participating in the 
transportation.
    (16) Transfer points where shipments moved.
    (17) Address where you must pay or address of bill issuer's 
principal place of business.
    Your mover must present its freight or expense bill to you within 15 
days of the date of delivery of a shipment at its destination. The 
computation of time excludes Saturdays, Sundays, and Federal holidays. 
If your mover lacks sufficient information to compute its charges, your 
mover must present its freight bill for payment within 15 days of the 
date when sufficient information does become available.

               May My Mover Collect Charges Upon Delivery?

    Yes. Your mover must specify the form of payment acceptable at 
delivery when the mover prepares an estimate and order for service. The 
mover and its agents must honor the form of payment at delivery, except 
when you mutually agree to a change in writing. The mover must also 
specify the same form of payment when it prepares your bill of lading, 
unless you agree to a change. See also ``May my mover accept charge or 
credit cards for my payments?''
    You must be prepared to pay 10 percent more than the estimated 
amount, if your goods are moving under a non-binding estimate. Every 
collect-on-delivery shipper must have available 110 percent of the 
estimate at the time of delivery. In addition, your mover may also 
collect at the time of delivery the charges for any additional services 
you requested after the contract with your mover was executed (charges 
therefore not included in the estimate) and any charges for 
impracticable operations needed to accomplish delivery, as defined by 
the carrier's tariff. Charges collected at the time of delivery for 
impracticable operations must not exceed 15 percent of all other charges 
due at the time of delivery. You must pay all remaining charges for 
impracticable operations within 30 days after you receive the mover's 
freight bill.

                    May My Mover Extend Credit to Me?

    Extending credit to you is not the same as accepting your charge or 
credit card(s) as payment. Your mover may extend credit to you in the 
amount of the tariff charges. If your mover extends credit to you, your 
mover becomes like a bank offering you a line of credit, whose size and 
interest rate are determined by your ability to pay its tariff charges 
within the credit period. Your mover must ensure you will pay its tariff 
charges within the credit period. Your mover may relinquish possession 
of freight before you pay its tariff charges, at its discretion.
    The credit period must begin on the day following presentation of 
your mover's freight bill to you. Under Federal regulation,

[[Page 121]]

the standard credit period is 7 days, excluding Saturdays, Sundays, and 
Federal holidays. Your mover must also extend the credit period to a 
total of 30 calendar days if the freight bill is not paid within the 7-
day period. A service charge equal to one percent of the amount of the 
freight bill, subject to a $20 minimum, will be assessed for this 
extension and for each additional 30-day period the charges go unpaid.
    Your failure to pay within the credit period will require your mover 
to determine whether you will comply with the Federal household goods 
transportation credit regulations in good faith in the future before 
extending credit again.

       May My Mover Accept Charge or Credit Cards for My Payments?

    Your mover may allow you to use a charge or credit card for payment 
of the freight charges. Your mover may accept charge or credit cards 
whenever you ship with it under an agreement and tariff requiring 
payment by cash or cash equivalents. Cash equivalents are a certified 
check, money order, or cashier's check (a check that a financial 
institution--bank, credit union, savings and loan--draws upon itself and 
that is signed by an officer of the financial institution).
    If your mover allows you to pay for a freight or expense bill by 
charge or credit card, your mover deems such a payment to be equivalent 
to payment by cash, certified check, or cashier's check. It must note in 
writing on the order for service and the bill of lading whether you may 
pay for the transportation and related services using a charge or credit 
card. You should ask your mover at the time the estimate is written 
whether it will accept charge or credit cards at delivery.
    The mover must specify what charge or credit cards it will accept, 
such as American Express\TM\, Discover\TM\, MasterCard \TM\, or 
Visa\TM\. If your mover agrees to accept payment by charge or credit 
card, you must arrange with your mover for the delivery only at a time 
when your mover can obtain authorization for your credit card 
transaction. If you cause a charge or credit card issuer to reverse a 
transaction, your mover may consider your action tantamount to forcing 
your mover to provide an involuntary extension of its credit.

                   Subpart C--Service Options Provided

               What Service Options May My Mover Provide?

    Your mover may provide any service options it chooses. It is 
customary for movers to offer several price and service options.
    The total cost of your move may increase if you want additional or 
special services. Before you agree to have your shipment moved under a 
bill of lading providing special service, you should have a clear 
understanding with your mover of what the additional cost will be. You 
should always consider whether other movers might provide the services 
you need without requiring you to pay the additional charges.
    One service option is a space reservation. If you agree to have your 
shipment transported under a space reservation agreement, you will pay 
for a minimum number of cubic feet of space in the moving van regardless 
of how much space in the van your shipment actually occupies.
    A second option is expedited service. This aids you if you must have 
your shipments transported on or between specific dates when the mover 
could not ordinarily agree to do so in its normal operations.
    A third customary service option is exclusive use of a vehicle. If 
for any reason you desire or require that your shipment be moved by 
itself on the mover's truck or trailer, most movers will provide such 
service.
    Another service option is guaranteed service on or between agreed 
dates. You enter into an agreement with the mover where the mover 
provides for your shipment to be picked up, transported to destination, 
and delivered on specific guaranteed dates. If the mover fails to 
provide the service as agreed, you are entitled to be compensated at a 
predetermined amount or a daily rate (per diem) regardless of the 
expense you might actually have incurred as a result of the mover's 
failure to perform.
    Before requesting or agreeing to any of these price and service 
options, be sure to ask the mover's representatives about the final 
costs you will pay.

             Transport of Shipments on Two or More Vehicles

    Although all movers try to move each shipment on one truck, it 
becomes necessary, at times, to divide a shipment among two or more 
trucks. This may occur if your mover has underestimated the cubic feet 
(meters) of space required for your shipment and it will not all fit on 
the first truck. Your mover will pick up the remainder, or ``leave 
behind,'' on a second truck at a later time, and this part of your 
shipment may arrive at the destination later than the first truck. When 
this occurs, your transportation charges will be determined as if the 
entire shipment had moved on one truck.
    If it is important for you to avoid this inconvenience of a ``leave 
behind,'' be sure your estimate includes an accurate calculation of the 
cubic feet (meters) required for your shipment. Ask your estimator to 
use a ``Table of Measurements'' form in making this calculation. 
Consider asking for a binding estimate. A binding estimate is more 
likely to be conservative with regard to

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cubic feet (meters) than a non-binding estimate. If the mover offers 
space reservation service, consider purchasing this service for the 
necessary amount of space plus some margin for error. In any case, you 
would be prudent to ``prioritize'' your goods in advance of the move so 
the driver will load the more essential items on the first truck if some 
are left behind.

 If My Mover Sells Liability Insurance Coverage, What Must My Mover Do?

    If your mover provides the service of selling additional liability 
insurance, your mover must follow certain regulations.
    Your mover, its employees, or its agents may sell, offer to sell, or 
procure additional liability insurance coverage for you for loss of or 
damage to your shipment if you release the shipment for transportation 
at a value not exceeding 60 cents per pound ($1.32 per kilogram) per 
article.
    Your mover may offer, sell, or procure any type of insurance policy 
covering loss or damage in excess of its specified liability.
    Your mover must issue you a policy or other appropriate evidence of 
the insurance you purchased. Your mover must provide a copy of the 
policy or other appropriate evidence to you at the time your mover sells 
or procures the insurance. Your mover must issue policies written in 
plain English.
    Your mover must clearly specify the nature and extent of coverage 
under the policy. Your mover's failure to issue you a policy, or other 
appropriate evidence of insurance you purchased, will subject your mover 
to full liability for any claims to recover loss or damage attributed to 
it.
    Your mover's tariff must provide for liability insurance coverage. 
The tariff must also provide for the base transportation charge, 
including its assumption of full liability for the value of the 
shipment. This would offer you a degree of protection in the event your 
mover fails to issue you a policy or other appropriate evidence of 
insurance at the time of purchase.

                      Subpart D--Estimating Charges

Must My Mover Estimate the Transportation and Accessorial Charges for My 
                                  Move?

    We require your mover to prepare a written estimate on every 
shipment transported for you. You are entitled to a copy of the written 
estimate when your mover prepares it. Your mover must provide you a 
written estimate of all charges, including transportation, accessorial, 
and advance charges. Your mover's ``rate quote'' is not an estimate. You 
and your mover must sign the estimate of charges. Your mover must 
provide you with a dated copy of the estimate of charges at the time you 
sign the estimate.
    If the location you are moving from is within a 50-mile radius of 
your mover's (or its agent's) place of business, the estimate that your 
mover provides you must be based on a physical survey of your goods. You 
have the right to waive the requirement for a physical survey if you 
choose, but your waiver must be in the form of a written agreement 
signed by you before your shipment is loaded.
    You should be aware that if you receive an estimate from a household 
goods broker, the mover may not be required to accept the estimate. Be 
sure to obtain a written estimate from a mover who tells you orally that 
it will accept the broker's estimate.
    Your mover must specify the form of payment the mover and its 
delivering agent will honor at delivery. Payment forms may include but 
are not limited to cash, certified check, money order, cashier's check, 
a specific charge card such as American Express\TM\, a specific credit 
card such as Visa\TM\, and your mover's own credit.
    Before loading your household goods, and upon mutual agreement 
between you and your mover, your mover may amend an estimate of charges. 
Your mover may not amend the estimate after loading the shipment.
    A binding estimate is a written agreement made in advance with your 
mover, indicating you and the mover are bound by the charges. It 
guarantees the total cost of the move based upon the quantities and 
services shown on your mover's estimate.
    A non-binding estimate is what your mover believes the total cost 
will be for the move, based upon the estimated weight of the shipment 
and the accessorial services requested. A non-binding estimate is not 
binding on your mover. Your mover will base the final charges upon the 
actual weight of your shipment, the services provided, and its tariff 
provisions in effect. You must be prepared to pay 10 percent more than 
the estimated amount at delivery.
    You must also be prepared to pay at delivery the charges for any 
additional services you requested after the contract was executed 
(charges therefore not included in the estimate) and any charges for 
impracticable operations. Impracticable operations are defined in your 
mover's tariff. You should ask to see the mover's tariff to determine 
what services constitute impracticable operations. Charges for 
impracticable operations due at delivery must not exceed 15 percent of 
all other charges due at delivery.

        How Must My Mover Estimate Charges Under the Regulations?

                            Binding Estimates

    Your mover may charge you for providing a binding estimate. The 
binding estimate must clearly describe the shipment and all services 
provided.

[[Page 123]]

    When you receive a binding estimate, you cannot be required to pay 
any more than the estimated amount at delivery. If you have requested 
the mover provide more services than those included in the estimate, 
your mover will collect the charges for those services when your 
shipment is delivered. However, charges for impracticable operations due 
at delivery must not exceed 15 percent of all other charges due at 
delivery.
    A binding estimate must be in writing, and a copy must be made 
available to you before you move.
    If you agree to a binding estimate, you are responsible for paying 
the charges due by cash, certified check, money order, or cashier's 
check. The charges are due your mover at the time of delivery unless 
your mover agrees, before you move, to extend credit or to accept 
payment by a specific charge card such as American Express\TM\ or a 
specific credit card such as Visa\TM\. If you are unable to pay at the 
time the shipment is delivered, the mover may place your shipment in 
storage at your expense until you pay the charges.
    Other requirements of binding estimates include the following eight 
elements:
    (1) Your mover must retain a copy of each binding estimate as an 
attachment to the bill of lading.
    (2) Your mover must clearly indicate upon each binding estimate's 
face that the estimate is binding upon you and your mover. Each binding 
estimate must also clearly indicate on its face that the charges shown 
are the charges to be assessed for only those services specifically 
identified in the estimate.
    (3) Your mover must clearly describe binding estimate shipments and 
all services to be provided.
    (4) If, before loading your shipment, your mover believes you are 
tendering additional household goods or are requiring additional 
services not identified in the binding estimate, and you and your mover 
cannot reach an agreement, your mover may refuse to service the 
shipment. If your mover agrees to service the shipment, your mover must 
do one of the following three things:
    (a) Reaffirm the binding estimate.
    (b) Negotiate a revised written binding estimate listing the 
additional household goods or services.
    (c) Add an attachment to the contract, in writing, stating you both 
will consider the original binding estimate as a non-binding estimate. 
Before you agree to this option, read the information about non-binding 
estimates in the next section of this pamphlet. Accepting a non-binding 
estimate may seriously affect how much you may pay for the entire move.
    (5) Once your mover loads your shipment, your mover's failure to 
execute a new binding estimate or to agree with you to treat the 
original estimate as a non-binding estimate signifies it has reaffirmed 
the original binding estimate. Your mover may not collect more than the 
amount of the original binding estimate, except as provided in the next 
two paragraphs.
    (6) If you request additional services after the bill of lading is 
executed, your mover will collect the charges for these additional 
services when your shipment is delivered.
    (7) If your mover must perform impracticable operations, as defined 
in its tariff, to accomplish the delivery of your shipment, your mover 
will collect the charges for these services when your shipment is 
delivered. However, charges for impracticable operations collected at 
delivery must not exceed 15 percent of all other charges due at 
delivery. Any remaining impracticable operations charges must be paid 
within 30 days after you receive the mover's freight bill.
    (8) Failure of your mover to relinquish possession of a shipment 
upon your offer to pay the binding estimate amount plus the cost of any 
additional services you requested after the bill of lading was executed 
and any charges for impracticable operations (not to exceed 15 percent 
of all other charges due at delivery) constitutes your mover's failure 
to transport a shipment with ``reasonable dispatch'' and subjects your 
mover to cargo delay claims pursuant to 49 CFR part 370.

                          Non-Binding Estimates

    Your mover is not permitted to charge you for giving a non-binding 
estimate.
    A non-binding estimate is not a bid or contract. Your mover provides 
it to you to give you a general idea of the cost of the move, but it 
does not bind your mover to the estimated cost. You should expect the 
final cost to be more than the estimate. The actual cost will be in 
accordance with your mover's tariffs. Federal law requires your mover to 
collect the charges shown in its tariffs, regardless of what your mover 
writes in its non-binding estimates. That is why it is important to ask 
for copies of the applicable portions of the mover's tariffs before 
deciding on a mover. The charges contained in movers' tariffs are 
essentially the same for shipments of equal weight moving equal 
distances. Even if you obtain different non-binding estimates from 
different movers, you must pay only the amount specified in your mover's 
tariff. Therefore, a non-binding estimate may differ substantially from 
the amount that you ultimately will pay.
    You must be prepared to pay 10 percent more than the estimated 
amount at the time of delivery. Every collect-on-delivery shipper must 
have available 110 percent of the estimate at the time of delivery. If 
you order additional services from your mover after the mover issues the 
bill of lading, the mover will collect the charges for those additional 
services when your shipment is delivered.

[[Page 124]]

    Non-binding estimates must be in writing and clearly describe the 
shipment and all services provided. Any time a mover provides such an 
estimate, the amount of the charges estimated must be on the order for 
service and bill of lading related to your shipment. When you are given 
a non-binding estimate, do not sign or accept the order for service or 
bill of lading unless the mover enters the amount estimated on each form 
it prepares.
    Other requirements of non-binding estimates include the following 10 
elements:
    (1) Your mover must provide reasonably accurate non-binding 
estimates based upon the estimated weight of the shipment and services 
required.
    (2) Your mover must explain to you that all charges on shipments 
moved under non-binding estimates will be those appearing in your 
mover's tariffs applicable to the transportation. If your mover provides 
a non-binding estimate of approximate costs, your mover is not bound by 
such an estimate.
    (3) Your mover must furnish non-binding estimates without charge and 
in writing to you.
    (4) Your mover must retain a copy of each non-binding estimate as an 
attachment to the bill of lading.
    (5) Your mover must clearly indicate on the face of a non-binding 
estimate that the estimate is not binding upon your mover and the 
charges shown are the approximate charges to be assessed for the 
services identified in the estimate.
    (6) Your mover must clearly describe on the face of a non-binding 
estimate the entire shipment and all services to be provided.
    (7) If, before loading your shipment, your mover believes you are 
tendering additional household goods or requiring additional services 
not identified in the non-binding estimate, and you and your mover 
cannot reach an agreement, your mover may refuse to service the 
shipment. If your mover agrees to service the shipment, your mover must 
do one of the following two things:
    (a) Reaffirm the non-binding estimate.
    (b) Negotiate a revised written non-binding estimate listing the 
additional household goods or services.
    (8) Once your mover loads your shipment, your mover's failure to 
execute a new estimate signifies it has reaffirmed the original non-
binding estimate. Your mover may not collect more than 110 percent of 
the amount of this estimate at destination for the services and 
quantities shown on the estimate.
    (9) If you request additional services after the bill of lading is 
executed, your mover will collect the charges for these additional 
services when your shipment is delivered.
    (10) If your mover must perform impracticable operations, as defined 
in its tariff, to accomplish the delivery of your shipment, your mover 
will collect the charges for these services when your shipment is 
delivered. However, charges for impracticable operations collected at 
delivery must not exceed 15 percent of all other charges due at 
delivery. Any remaining impracticable operations charges must be paid 
within 30 days after you receive the mover's freight bill.
    If your mover furnishes a non-binding estimate, your mover must 
enter the estimated charges upon the order for service and the bill of 
lading. Your mover must retain a record of all estimates of charges for 
each move performed for at least one year from the date your mover made 
the estimate.

What Payment Arrangements Must My Mover Have in Place To Secure Delivery 
                     of My Household Goods Shipment?

    If your total bill is 110 percent or less of the non-binding 
estimate, the mover can require payment in full upon delivery. If the 
bill exceeds 110 percent of the non-binding estimate, your mover must 
relinquish possession of the shipment at the time of delivery upon 
payment of 110 percent of the estimated amount, and defer billing for 
the remaining charges for at least 30 days.
    There are two exceptions to this requirement. Your mover may demand 
at the time of delivery payment of the charges for any additional 
services you requested after the bill of lading was executed (charges 
therefore not included in the estimate). Your mover may also require you 
to pay charges for impracticable operations at the time of delivery, 
provided these do not exceed 15 percent of all other charges due at 
delivery. Impracticable operations charges that exceed 15 percent of all 
other charges due at delivery are due within 30 days after you receive 
the mover's freight bill. Your mover should have specified its 
acceptable form of payment on the estimate, order for service, and bill 
of lading.
    Your mover's failure to relinquish possession of a shipment after 
you offer to pay 110 percent of the estimated charges, plus the charges 
for any additional services you requested after the bill of lading was 
executed (charges therefore not included in the estimate) and any 
charges for impracticable operations (not to exceed 15 percent of all 
other charges due at delivery), constitutes its failure to transport the 
shipment with ``reasonable dispatch'' and subjects your mover to your 
cargo delay claims under 49 CFR part 370.

           Subpart E--Pickup of My Shipment of Household Goods

              Must My Mover Write Up an Order for Service?

    We require your mover to prepare an order for service on every 
shipment transported for you. You are entitled to a copy of the order 
for service when your mover prepares it.

[[Page 125]]

    The order for service is not a contract. Should you cancel or delay 
your move or decide not to use the mover, you should promptly cancel the 
order.
    If you or your mover change any agreed-upon dates for pickup or 
delivery of your shipment, or agree to any change in the non-binding 
estimate, your mover may prepare a written change to the order for 
service. The written change must be attached to the order for service.
    The order for service must contain the following 15 elements:
    (1) Your mover's name and address and the U.S. DOT number assigned 
to your mover.
    (2) Your name, address and, if available, telephone number(s).
    (3) The name, address, and telephone number of the delivering 
mover's office or agent at or nearest to the destination of your 
shipment.
    (4) A telephone number where you may contact your mover or its 
designated agent.
    (5) One of the following three dates and times:
    (i) The agreed-upon pickup date and agreed delivery date of your 
move.
    (ii) The agreed-upon period(s) of the entire move.
    (iii) If your mover is transporting the shipment on a guaranteed 
service basis, the guaranteed dates or periods of time for pickup, 
transportation, and delivery. Your mover must enter any penalty or per 
diem requirements upon the agreement under this item.
    (6) The names and addresses of any other motor carriers, when known, 
that will participate in interline transportation of the shipment.
    (7) The form of payment your mover will honor at delivery. The 
payment information must be the same as was entered on the estimate.
    (8) The terms and conditions for payment of the total charges, 
including notice of any minimum charges.
    (9) The maximum amount your mover will demand, based on the mover's 
estimate, for you to obtain possession of the shipment at the time of 
delivery, when the household goods are transported on a collect-on-
delivery basis.
    (10) If not provided in the Bill of Lading, the Surface 
Transportation Board's required released rates valuation statement, and 
the charges, if any, for optional valuation coverage. The STB's required 
released rates may be increased annually by your mover based on the U.S. 
Department of Commerce's Cost of Living Adjustment.
    (11) A complete description of any special or accessorial services 
ordered and minimum weight or volume charges applicable to the shipment.
    (12) Any identification or registration number your mover assigns to 
the shipment.
    (13) For non-binding estimated charges, your mover's reasonably 
accurate estimate of the amount of the charges, the method of payment of 
total charges, and the maximum amount (110 percent of the non-binding 
estimate) your mover will demand at the time of delivery for you to 
obtain possession of the shipment.
    (14) For binding estimated charges, the amount of charges your mover 
will demand based upon the binding estimate and the terms of payment 
under the estimate.
    (15) An indication of whether you request notification of the 
charges before delivery. You must provide your mover with the telephone 
number(s) or address(es) where your mover will transmit such 
communications.
    You and your mover must sign the order for service. Your mover must 
provide a dated copy of the order for service to you at the time your 
mover signs the order. Your mover must provide you the opportunity to 
rescind the order for service without any penalty for a 3-day period 
after you sign the order for service, if you scheduled the shipment to 
be loaded more than 3 days after you sign the order.
    Your mover should provide you with documents that are as complete as 
possible, and with all charges clearly identified. However, as a 
practical matter, your mover usually cannot give you a complete bill of 
lading before transporting your goods. This is both because the shipment 
cannot be weighed until it is in transit and because other charges for 
service, such as unpacking, storage-in-transit, and various destination 
charges, cannot be determined until the shipment reaches its 
destination.
    Therefore, your mover can require you to sign a partially complete 
bill of lading if it contains all relevant information except the actual 
shipment weight and any other information necessary to determine the 
final charges for all services provided. Signing the bill of lading 
allows you to choose the valuation option, request special services, 
and/or acknowledge the terms and conditions of released valuation.
    Your mover also may provide you, strictly for informational 
purposes, with blank or incomplete documents pertaining to the move. 
Before loading your shipment, and upon mutual agreement between you and 
your mover, your mover may amend an order for service. Your mover must 
retain records of an order for service it transported for at least one 
year from the date your mover wrote the order.
    Your mover must inform you, before or at the time of loading, if the 
mover reasonably expects a special or accessorial service is necessary 
to transport a shipment safely. Your mover must refuse to accept the 
shipment when your mover reasonably expects a special or accessorial 
service is necessary to transport a shipment safely but you refuse

[[Page 126]]

to purchase the special or accessorial service. Your mover must make a 
written note if you refuse any special or accessorial services that your 
mover reasonably expects to be necessary.

          Must My Mover Write Up an Inventory of the Shipment?

    Yes. Your mover must prepare an inventory of your shipment before or 
at the time of loading. If your mover's driver fails to prepare an 
inventory, you should write a detailed inventory of your shipment 
listing any damage or unusual wear to any items. The purpose is to make 
a record of the existence and condition of each item.
    After completing the inventory, you should sign each page and ask 
the mover's driver to sign each page. Before you sign it, it is 
important you make sure that the inventory lists every item in the 
shipment and that the entries regarding the condition of each item are 
correct. You have the right to note any disagreement. If an item is 
missing or damaged when your mover delivers the shipment, your 
subsequent ability to dispute the items lost or damaged may depend upon 
your notations.
    You should retain a copy of the inventory. Your mover may keep the 
original if the driver prepared it. If your mover's driver completed an 
inventory, the mover must attach the complete inventory to the bill of 
lading as an integral part of the bill of lading.

                Must My Mover Write Up a Bill of Lading?

    The bill of lading is the contract between you and the mover. The 
mover is required by law to prepare a bill of lading for every shipment 
it transports. The information on a bill of lading is required to be the 
same information shown on the order for service. The driver who loads 
your shipment must give you a copy of the bill of lading before or at 
the time of loading your furniture and other household goods.
    It is your responsibility to read the bill of lading before you 
accept it. It is your responsibility to understand the bill of lading 
before you sign it. If you do not agree with something on the bill of 
lading, do not sign it until you are satisfied it is correct.
    The bill of lading requires the mover to provide the service you 
have requested. You must pay the charges set forth in the bill of 
lading. The bill of lading is an important document. Do not lose or 
misplace your copy. Have it available until your shipment is delivered, 
all charges are paid, and all claims, if any, are settled.
    A bill of lading must include the following 14 elements:
    (1) Your mover's name and address, or the name and address of the 
motor carrier issuing the bill of lading.
    (2) The names and addresses of any other motor carriers, when known, 
who will participate in the transportation of the shipment.
    (3) The name, address, and telephone number of the office of the 
motor carrier you must contact in relation to the transportation of the 
shipment.
    (4) The form of payment your mover will honor at delivery. The 
payment information must be the same that was entered on the estimate 
and order for service.
    (5) When your mover transports your shipment under a collect-on-
delivery basis, your name, address, and telephone number where the mover 
will notify you about the charges.
    (6) For non-guaranteed service, the agreed-upon date or period of 
time for pickup of the shipment and the agreed-upon date or period of 
time for the delivery of the shipment. The agreed-upon dates or periods 
for pickup and delivery entered upon the bill of lading must conform to 
the agreed-upon dates or periods of time for pickup and delivery entered 
upon the order for service or a proper amendment to the order for 
service.
    (7) For guaranteed service, the dates for pickup and delivery and 
any penalty or per diem entitlements due you under the agreement.
    (8) The actual date of pickup.
    (9) The identification number(s) of the vehicle(s) in which your 
mover loads your shipment.
    (10) The terms and conditions for payment of the total charges 
including notice of any minimum charges.
    (11) The maximum amount your mover, based on the estimate, will 
demand from you at the time of delivery for you to obtain possession of 
your shipment, when your mover transports under a collect-on-delivery 
basis.
    (12) If not provided for in the Order for Service, the Surface 
Transportation Board's required released rates valuation statement, and 
the charges, if any, for optional valuation coverage. The Board's 
required released rates may be increased annually by your mover based on 
the U.S. Department of Commerce's Cost of Living Adjustment.
    (13) Evidence of any insurance coverage sold to or procured for you 
from an independent insurer, including the amount of the premium for 
such insurance.
    (14) Each attachment to the bill of lading. Each attachment is an 
integral part of the bill of lading contract. If not provided to you 
elsewhere by the mover, the following three items must be added as 
attachments:
    (i) The binding or non-binding estimate.
    (ii) The order for service.
    (iii) The inventory.
    A copy of the bill of lading must accompany your shipment at all 
times while it is

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in the possession of your mover or its agent(s). When your mover loads 
the shipment on a vehicle for transportation, the bill of lading must be 
in the possession of the driver responsible for the shipment. Your mover 
must retain bills of lading for shipments it transported for at least 
one year from the date your mover created the bill of lading.

  Should I Reach an Agreement With My Mover About Pickup and Delivery 
                                 Times?

    You and your mover should reach an agreement for pickup and delivery 
times. It is your responsibility to determine on what date, or between 
what dates, you need to have the shipment picked up and on what date, or 
between what dates, you require delivery. It is your mover's 
responsibility to tell you if it can provide service on or between those 
dates, or, if not, on what other dates it can provide the service.
    In the process of reaching an agreement with your mover, you may 
find it necessary to alter your moving and travel plans if no mover can 
provide service on the specific dates you desire.
    Do not agree to have your shipment picked up or delivered ''as soon 
as possible.'' The dates or periods you and your mover agree upon should 
be definite.
    Once an agreement is reached, your mover must enter those dates upon 
the order for service and the bill of lading.
    Once your goods are loaded, your mover is contractually bound to 
provide the service described in the bill of lading. Your mover's only 
defense for not providing the service on the dates called for is the 
defense of force majeure. This is a legal term. It means that when 
circumstances change, were not foreseen, and are beyond the control of 
your mover, preventing your mover from performing the service agreed to 
in the bill of lading, your mover is not responsible for damages 
resulting from its nonperformance.
    This may occur when you do not inform your mover of the exact 
delivery requirements. For example, because of restrictions trucks must 
follow at your new location, the mover may not be able to take its truck 
down the street of your residence and may need to shuttle the shipment 
using another type of vehicle.

           Must My Mover Determine the Weight of My Shipment?

    Generally, yes. If your mover transports your household goods on a 
non-binding estimate, your mover must determine the actual weight of the 
shipment in order to calculate its lawful tariff charge. If your mover 
provided a binding estimate and has loaded your shipment without 
claiming you have added additional items or services, the weight of the 
shipment will not affect the charges you will pay.
    Your mover must determine the weight of your shipment before 
requesting you to pay for any charges dependent upon your shipment's 
weight.
    Most movers have a minimum weight charge for transporting a 
shipment. Generally, the minimum is the charge for transporting a 
shipment of at least 3,000 pounds (1,362 kilograms).
    If your shipment appears to weigh less than the mover's minimum 
weight, your mover must advise you on the order for service of the 
minimum cost before transporting your shipment. Should your mover fail 
to advise you of the minimum charges and your shipment is less than the 
minimum weight, your mover must base your final charges upon the actual 
weight, not upon the minimum weight.

         How Must My Mover Determine the Weight of My Shipment?

    Your mover must weigh your shipment upon a certified scale.
    The weight of your shipment must be obtained by using one of two 
methods:
    Origin Weighing--Your mover may weigh your shipment in the city or 
area where it loads your shipment. If it elects this option, the driver 
must weigh the truck before coming to your residence. This is called the 
tare weight. At the time of this first weighing, the truck may already 
be partially loaded with another shipment(s). This will not affect the 
weight of your shipment. The truck should also contain the pads, 
dollies, hand trucks, ramps, and other equipment normally used in the 
transportation of household goods shipments.
    After loading, the driver will weigh the truck again to obtain the 
loaded weight, called the gross weight. The net weight of your shipment 
is then obtained by subtracting the tare weight before loading from the 
gross weight.
    Gross Weight less the Tare Weight Before Loading = Net Weight.
    Destination Weighing (Also called Back Weighing)--The mover is also 
permitted to determine the weight of your shipment at the destination 
after it delivers your load. Weighing your shipment at destination 
instead of at origin will not affect the accuracy of the shipment 
weight. The most important difference is that your mover will not 
determine the exact charges on your shipment before it is unloaded.
    Destination weighing is done in reverse of origin weighing. After 
arriving in the city or area where you are moving, the driver will weigh 
the truck. Your shipment will still be on the truck. Your mover will 
determine the gross weight before coming to your new residence to 
unload. After unloading your shipment, the driver will again weigh the 
truck

[[Page 128]]

to obtain the tare weight. The net weight of your shipment will then be 
obtained by subtracting the tare weight after delivery from the gross 
weight.
    Gross Weight less the Tare Weight After Delivery = Net Weight.
    At the time of both weighings, your mover's truck must have 
installed or loaded all pads, dollies, hand trucks, ramps, and other 
equipment required in the transportation of your shipment. The driver 
and other persons must be off the vehicle at the time of both weighings. 
The fuel tanks on the vehicle must be full at the time of each weighing; 
or, if the fuel tanks are not full, your mover must not add fuel between 
the two weighings when the tare weighing is the first weighing 
performed.
    Your mover may detach the trailer of a tractor-trailer vehicle 
combination from the tractor and have the trailer weighed separately at 
each weighing, provided the length of the scale platform is adequate to 
accommodate and support the entire trailer.
    Your mover may use an alternative method to weigh your shipment if 
it weighs 3,000 pounds (1,362 kilograms) or less. The only alternative 
method allowed is weighing the shipment upon a platform or warehouse 
certified scale before loading your shipment for transportation or after 
unloading.
    Your mover must use the net weight of shipments transported in large 
containers, such as ocean or railroad containers. Your mover will 
calculate the difference between the tare weight of the container 
(including all pads, blocking and bracing used in the transportation of 
your shipment) and the gross weight of the container with your shipment 
loaded in the container.
    You have the right, and your mover must inform you of your right, to 
observe all weighings of your shipment. Your mover must tell you where 
and when each weighing will occur. Your mover must give you a reasonable 
opportunity to be present to observe the weighings.
    You may waive your right to observe any weighing or reweighing. This 
does not affect any of your other rights under Federal law.
    Your mover may request that you waive your right to have a shipment 
weighed upon a certified scale. Your mover may want to weigh the 
shipment upon a trailer's on-board, non-certified scale. You should 
demand your right to have a certified scale used. The use of a non-
certified scale may cause you to pay a higher final bill for your move, 
if the non-certified scale does not accurately weigh your shipment. 
Remember that certified scales are inspected and approved for accuracy 
by a government inspection or licensing agency. Non-certified scales are 
not inspected and approved for accuracy by a government inspection or 
licensing agency.
    Your mover must obtain a separate weight ticket for each weighing. 
The weigh master must sign each weight ticket. Each weight ticket must 
contain the following six items:
    (1) The complete name and location of the scale.
    (2) The date of each weighing.
    (3) Identification of the weight entries as being the tare, gross, 
or net weights.
    (4) The company or mover identification of the vehicle.
    (5) Your last name as it appears on the Bill of Lading.
    (6) Your mover's shipment registration or Bill of Lading number.
    Your mover must retain the original weight ticket or tickets 
relating to the determination of the weight of your shipment as part of 
its file on your shipment. When both weighings are performed on the same 
scale, one weight ticket may be used to record both weighings.
    Your mover must present all freight bills with true copies of all 
weight tickets. If your mover does not present its freight bill with all 
weight tickets, your mover is in violation of Federal law.
    Before the driver actually begins unloading your shipment weighed at 
origin and after your mover informs you of the billing weight and total 
charges, you have the right to demand a reweigh of your shipment. If you 
believe the weight is not accurate, you have the right to request your 
mover reweigh your shipment before unloading.
    You have the right, and your mover must inform you of your right, to 
observe all reweighings of your shipment. Your mover must tell you where 
and when each reweighing will occur. Your mover must give you a 
reasonable opportunity to be present to observe the reweighing. You may 
waive your right to observe any reweighing; however, you must waive that 
right in writing. You may send the written waiver via fax or e-mail, as 
well as by overnight courier or certified mail, return receipt 
requested. This does not affect any of your other rights under Federal 
law.
    Your mover is prohibited from charging you for the reweighing. If 
the weight of your shipment at the time of the reweigh is different from 
the weight determined at origin, your mover must recompute the charges 
based upon the reweigh weight.
    Before requesting a reweigh, you may find it to your advantage to 
estimate the weight of your shipment using the following three-step 
method:
    1. Count the number of items in your shipment. Usually there will be 
either 30 or 40 items listed on each page of the inventory. For example, 
if there are 30 items per page and your inventory consists of four 
complete pages and a fifth page with 15 items listed, the total number 
of items will be 135. If an

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automobile is listed on the inventory, do not include this item in the 
count of the total items.
    2. Subtract the weight of any automobile included in your shipment 
from the total weight of the shipment. If the automobile was not weighed 
separately, its weight can be found on its title or license receipt.
    3. Divide the number of items in your shipment into the weight. If 
the average weight resulting from this exercise ranges between 35 and 45 
pounds (16 and 20 kilograms) per article, it is unlikely a reweigh will 
prove beneficial to you. In fact, it could result in your paying higher 
charges.
    Experience has shown that the average shipment of household goods 
will weigh about 40 pounds (18 kilograms) per item. If a shipment 
contains a large number of heavy items, such as cartons of books, boxes 
of tools or heavier than average furniture, the average weight per item 
may be 45 pounds or more (20 kilograms or more).

What Must My Mover Do if I Want To Know the Actual Weight or Charges for 
                      My Shipment Before Delivery?

    If you request notification of the actual weight and charges of your 
shipment, your mover must comply with your request if it is moving your 
goods on a collect-on-delivery basis. This requirement is conditioned 
upon your supplying your mover with an address or telephone number where 
you will receive the communication. Your mover must make its 
notification by telephone; fax transmissions; e-mail; overnight courier; 
certified mail, return receipt requested; or in person.
    You must receive the mover's notification at least one full 24-hour 
day before its scheduled delivery, excluding Saturdays, Sundays, and 
Federal holidays.
    Your mover may disregard this 24-hour notification requirement on 
shipments subject to one of the following three things:
    (1) Back weigh (when your mover weighs your shipment at its 
destination).
    (2) Pickup and delivery encompassing two consecutive weekdays, if 
you agree.
    (3) Maximum payment amounts at time of delivery of 110 percent of 
the estimated charges, if you agree.

                Subpart F--Transportation of My Shipment

        Must My Mover Transport the Shipment in a Timely Manner?

    Yes, your mover must transport your household goods in a timely 
manner. This is also known as ''reasonable dispatch service.'' Your 
mover must provide reasonable dispatch service to you, except for 
transportation on the basis of guaranteed delivery dates.
    When your mover is unable to perform either the pickup or delivery 
of your shipment on the dates or during the periods of time specified in 
the order for service, your mover must notify you of the delay, at the 
mover's expense. As soon as the delay becomes apparent to your mover, it 
must give you notification it will be unable to provide the service 
specified in the terms of the order for service. Your mover may notify 
you of the delay in any of the following ways: By telephone; fax 
transmissions; e-mail; overnight courier; certified mail, return receipt 
requested; or in person.
    When your mover notifies you of a delay, it also must advise you of 
the dates or periods of time it may be able to pick up and/or deliver 
the shipment. Your mover must consider your needs in its advisement. 
Your mover must prepare a written record of the date, time, and manner 
of its notification.
    Your mover must prepare a written record of its amended date or 
period for delivery. Your mover must retain these records as a part of 
its file on your shipment. The retention period is one year from the 
date of notification. Your mover must furnish a copy of the notification 
to you either by first class mail or in person, if you request a copy of 
the notice.
    Your mover must tender your shipment for delivery on the agreed-upon 
delivery date or within the period specified on the bill of lading. Upon 
your request or concurrence, your mover may deliver your shipment on 
another day.
    The establishment of a delayed pickup or delivery date does not 
relieve your mover from liability for damages resulting from your 
mover's failure to provide service as agreed. However, when your mover 
notifies you of alternate delivery dates, it is your responsibility to 
be available to accept delivery on the dates specified. If you are not 
available and are not willing to accept delivery, your mover has the 
right to place your shipment in storage at your expense or hold the 
shipment on its truck and assess additional charges.
    If after the pickup of your shipment, you request your mover to 
change the delivery date, most movers will agree to do so provided your 
request will not result in unreasonable delay to its equipment or 
interfere with another customer's move. However, your mover is under no 
obligation to consent to amended delivery dates. Your mover has the 
right to place your shipment in storage at your expense if you are 
unwilling or unable to accept delivery on the date agreed to in the bill 
of lading.
    If your mover fails to pick up and deliver your shipment on the date 
entered on the bill of lading and you have expenses you otherwise would 
not have had, you may be able to recover those expenses from your mover. 
This is what is called an inconvenience or delay claim. Should your 
mover refuse to honor such a claim and you continue to believe you are 
entitled to be paid damages,

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you may take your mover to court under 49 U.S.C. 14706. The Federal 
Motor Carrier Safety Administration (FMCSA) has no authority to order 
your mover to pay such claims.
    While we hope your mover delivers your shipment in a timely manner, 
you should consider the possibility your shipment may be delayed, and 
find out what payment you can expect if a mover delays service through 
its own fault, before you agree with the mover to transport your 
shipment.

What Must My Mover Do if It Is Able To Deliver My Shipment More Than 24 
               Hours Before I Am Able To Accept Delivery?

    At your mover's discretion, it may place your shipment in storage. 
This will be under its own account and at its own expense in a warehouse 
located in proximity to the destination of your shipment. Your mover may 
do this if you fail to request or concur with an early delivery date, 
and your mover is able to deliver your shipment more than 24 hours 
before your specified date or the first day of your specified period.
    If your mover exercises this option, your mover must immediately 
notify you of the name and address of the warehouse where your mover 
places your shipment. Your mover must make and keep a record of its 
notification as a part of its shipment records. Your mover has full 
responsibility for the shipment under the terms and conditions of the 
bill of lading. Your mover is responsible for the charges for 
redelivery, handling, and storage until it makes final delivery. Your 
mover may limit its responsibility to the agreed-upon delivery date or 
the first day of the period of delivery as specified in the bill of 
lading.

  What Must My Mover Do for Me When I Store Household Goods in Transit?

    If you request your mover to hold your household goods in storage-
in-transit and the storage period is about to expire, your mover must 
notify you, in writing, about the four following items:
    (1) The date when storage-in-transit will convert to permanent 
storage.
    (2) The existence of a 9-month period after the date of conversion 
to permanent storage, during which you may file claims against your 
mover for loss or damage occurring to your goods while in transit or 
during the storage-in-transit period.
    (3) The date your mover's liability will end.
    (4) Your property will be subject to the rules, regulations, and 
charges of the warehouseman.
    Your mover must make this notification at least 10 days before the 
expiration date of one of the following two periods of time:
    (1) The specified period of time when your mover is to hold your 
goods in storage.
    (2) The maximum period of time provided in its tariff for storage-
in-transit.
    Your mover must notify you by facsimile transmission; overnight 
courier; e-mail; or certified mail, return receipt requested.
    If your mover holds your household goods in storage-in-transit for 
less than 10 days, your mover must notify you, one day before the 
storage-in-transit period expires, of the same information specified 
above.
    Your mover must maintain a record of all notifications to you as 
part of the records of your shipment. Under the applicable tariff 
provisions regarding storage-in-transit, your mover's failure or refusal 
to notify you will automatically extend your mover's liability until the 
end of the day following the date when your mover actually gives you 
notice.

                   Subpart G--Delivery of My Shipment

May My Mover Ask Me To Sign a Delivery Receipt Purporting To Release It 
                             From Liability?

    At the time of delivery, your mover will expect you to sign a 
receipt for your shipment. Normally, you will sign each page of your 
mover's copy of the inventory.
    Your mover's delivery receipt or shipping document must not contain 
any language purporting to release or discharge it or its agents from 
liability.
    Your mover may include a statement about your receipt of your 
property in apparent good condition, except as noted on the shipping 
documents.
    Do not sign the delivery receipt if it contains any language 
purporting to release or discharge your mover or its agents from 
liability. Strike out such language before signing, or refuse delivery 
if the driver or mover refuses to provide a proper delivery receipt.

What Is the Maximum Collect-on-Delivery Amount My Mover May Demand I Pay 
                        at the Time of Delivery?

    On a binding estimate, the maximum amount is the exact estimate of 
the charges, plus the charges for any additional services you requested 
after the bill of lading was executed (charges therefore not included in 
the estimate) and any charges for impracticable operations (not to 
exceed 15 percent of all other charges due at delivery). Your mover must 
specify on the estimate, order for service, and bill of lading the form 
of payment acceptable to it (for example, a certified check).
    On a non-binding estimate, the maximum amount is 110 percent of the 
approximate costs, plus the charges for any additional services you 
requested after the bill of lading was executed (charges therefore not 
included

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in the estimate) and any charges for impracticable operations (not to 
exceed 15 percent of all other charges due at delivery). Your mover must 
specify on the estimate, order for service, and bill of lading the form 
of payment acceptable to it (for example, cash).

If My Shipment Is Transported on More Than One Vehicle, What Charges May 
                      My Mover Collect at Delivery?

    Although all movers try to move each shipment on one truck, it 
becomes necessary at times to divide a shipment among two or more 
trucks. This frequently occurs when an automobile is included in the 
shipment and transported on a specially designed vehicle. When this 
occurs, your transportation charges are the same as if the entire 
shipment moved on one truck.
    If your shipment is divided for transportation on two or more 
trucks, the mover may require payment for each portion as it is 
delivered.
    Your mover may delay the collection of all the charges until the 
entire shipment is delivered, at its discretion, not yours. When you 
order your move, you should ask the mover about its policies in this 
regard.

If My Shipment Is Partially Lost or Destroyed, What Charges May My Mover 
                          Collect at Delivery?

    Movers customarily make every effort to avoid losing, damaging, or 
destroying any of your items while your shipment is in their possession 
for transportation. However, despite the precautions taken, articles are 
sometimes lost or destroyed during the move.
    In addition to any money you may recover from your mover to 
compensate for lost or destroyed articles, you also may recover the 
transportation charges represented by the portion of the shipment lost 
or destroyed. Your mover may apply this paragraph only to the 
transportation of household goods. Your mover may disregard this 
paragraph if loss or destruction was due to an act or omission by you. 
Your mover must require you to pay any specific valuation charge due.
    For example, if you pack a hazardous material (i.e., gasoline, 
aerosol cans, motor oil, etc.) and your shipment is partially lost or 
destroyed by fire in storage or in the mover's trailer, your mover may 
require you to pay for the full cost of transportation.
    If your shipment is partially lost or destroyed, your mover is 
permitted to collect at delivery only a prorated percentage based on the 
freight charges for the goods actually delivered, plus the charges for 
any additional services you requested after the bill of lading was 
executed and any charges for impracticable operations. Charges for 
impracticable operations collected at delivery must not exceed 15 
percent of the total charges your mover collects at delivery.
    Your mover is forbidden from collecting, or requiring you to pay, 
any freight charges (including any charges for accessorial or terminal 
services) when your household goods shipment is totally lost or 
destroyed in transit, unless the loss or destruction was due to an act 
or omission by you.

 How Must My Mover Calculate the Charges Applicable to the Shipment as 
                               Delivered?

    Your mover must multiply the percentage equal to the weight of the 
portion of the shipment delivered to the total weight of the shipment 
times the total charges applicable to the shipment tendered by you to 
obtain the total charges it must collect from you.
    If your mover's computed charges exceed the charges otherwise 
applicable to the shipment as delivered, the lesser of those charges 
must apply. This will apply only to the transportation of your household 
goods.
    Your mover must require you to pay any specific valuation charge 
due.
    Your mover may not refund the freight charges if the loss or 
destruction was due to an act or omission by you. For example, you fail 
to disclose to your mover that your shipment contains perishable live 
plants. Your mover may disregard its loss or destruction of your plants 
because you failed to inform your mover you were transporting live 
plants.
    Your mover must determine, at its own expense, the proportion of the 
shipment, based on actual or constructive weight, not lost or destroyed 
in transit.
    Your rights are in addition to, and not in lieu of, any other rights 
you may have with respect to your shipment of household goods your mover 
lost or destroyed, or partially lost or destroyed, in transit. This 
applies whether or not you have exercised your rights provided above.

                    Subpart H--Collection of Charges

               Does This Subpart Apply to Most Shipments?

    It applies to all shipments of household goods that involve a 
balance due freight or expense bill or are shipped on credit.

      How Must My Mover Present Its Freight or Expense Bill to Me?

    At the time of payment of transportation charges, your mover must 
give you a freight bill identifying the service provided and the charge 
for each service. It is customary for most movers to use a copy of the 
bill of lading as a freight bill; however, some movers use an entirely 
separate document for this purpose.

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    Except in those instances where a shipment is moving on a binding 
estimate, the freight bill must specifically identify each service 
performed, the rate or charge per service performed, and the total 
charges for each service. If this information is not on the freight 
bill, do not accept or pay the freight bill.
    Movers' tariffs customarily specify that freight charges must be 
paid in cash, by certified check, or by cashier's check. When this 
requirement exists, the mover will not accept personal checks. At the 
time you order your move, you should ask your mover about the form of 
payment your mover requires.
    Some movers permit payment of freight charges by use of a charge or 
credit card. However, do not assume your nationally recognized charge, 
credit, or debit card will be acceptable for payment. Ask your mover at 
the time you request an estimate. Your mover must specify the form of 
payment it will accept at delivery.
    If you do not pay the transportation charges at the time of 
delivery, your mover has the right, under the bill of lading, to refuse 
to deliver your goods. The mover may place them in storage, at your 
expense, until the charges are paid. However, the mover must deliver 
your goods upon payment of 100 percent of a binding estimate, plus the 
charges for any additional services you requested after the bill of 
lading was executed (charges therefore not included in the estimate) and 
any charges for impracticable operations (not to exceed 15 percent of 
all other charges due at delivery).
    If, before payment of the transportation charges, you discover an 
error in the charges, you should attempt to correct the error with the 
driver or the mover's local agent, or by contacting the mover's main 
office. If an error is discovered after payment, you should write the 
mover (the address will be on the freight bill) explaining the error, 
and request a refund.
    Movers customarily check all shipment files and freight bills after 
a move has been completed to make sure the charges were accurate. If an 
overcharge is found, you should be notified and a refund should be made. 
If an undercharge occurred, you may be billed for the additional charges 
due.
    On ``to be prepaid'' shipments, your mover must present its freight 
bill for all transportation charges within 15 days of the date your 
mover received the shipment. This period excludes Saturdays, Sundays, 
and Federal holidays.
    On ``collect'' shipments, your mover must present its freight bill 
for all transportation charges on the date of delivery, or, at its 
discretion, within 15 days, calculated from the date the shipment was 
delivered at your destination. This period excludes Saturdays, Sundays, 
and Federal holidays. (Bills for additional charges based on the weight 
of the shipment will be presented 30 days after delivery; charges for 
impracticable operations not paid at delivery are due within 30 days of 
the invoice.) Your mover's freight bills and accompanying written 
notices must state the following five items:
    (1) Penalties for late payment.
    (2) Credit time limits.
    (3) Service or finance charges.
    (4) Collection expense charges.
    (5) Discount terms.
    If your mover extends credit to you, freight bills or a separate 
written notice accompanying a freight bill or a group of freight bills 
presented at one time must state, ``You may be subject to tariff 
penalties for failure to timely pay freight charges,'' or a similar 
statement. Your mover must state on its freight bills or other notices 
when it expects payment and any applicable service charges, collection 
expense charges, and discount terms.
    When your mover lacks sufficient information to compute its tariff 
charges at the time of billing, your mover must present its freight bill 
for payment within 15 days following the day when sufficient information 
becomes available. This period excludes Saturdays, Sundays, and Federal 
holidays.
    Your mover must not extend additional credit to you if you fail to 
furnish sufficient information to your mover. Your mover must have 
sufficient information to render a freight bill within a reasonable time 
after shipment.
    When your mover presents freight bills by mail, it must deem the 
time of mailing to be the time of presentation of the bills. The term 
``freight bills,'' as used in this paragraph, includes both paper 
documents and billing by use of electronic media such as computer tapes, 
disks, or the Internet (e-mail).
    When you mail acceptable checks or drafts in payment of freight 
charges, your mover must deem the act of mailing the payment within the 
credit period to be the proper collection of the tariff charges within 
the credit period for the purposes of Federal law. In case of a dispute 
as to the date of mailing, your mover must accept the postmark as the 
date of mailing.

If I Forced My Mover To Relinquish a Collect-on-Delivery Shipment Before 
   the Payment of ALL Charges, How Must My Mover Collect the Balance?

    On ``collect-on-delivery'' shipments, your mover must present its 
freight bill for transportation charges within 15 days, calculated from 
the date the shipment was delivered at your destination. This period 
excludes Saturdays, Sundays, and Federal holidays. (Bills for additional 
charges based on the weight of the shipment will be presented 30 days 
after delivery; charges for impracticable operations not paid at 
delivery are due within 30 days of the invoice.)

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  What Actions May My Mover Take To Collect From Me the Charges in Its 
                              Freight Bill?

    Your mover must present a freight bill within 15 days (excluding 
Saturdays, Sundays, and Federal holidays) of the date of delivery of a 
shipment at your destination. (Bills for additional charges based on the 
weight of the shipment will be presented 30 days after delivery; charges 
for impracticable operations not paid at delivery are due within 30 days 
of the invoice.)
    Your mover must provide in its tariffs the following three things:
    (1) A provision indicating its credit period is a total of 30 
calendar days.
    (2) A provision indicating you will be assessed a service charge by 
your mover equal to one percent of the amount of the freight bill, 
subject to a $20 minimum charge, for the extension of the credit period. 
The mover will assess the service charge for each 30-day extension that 
the charges go unpaid.
    (3) A provision that your mover must deny credit to you if you fail 
to pay a duly presented freight bill within the 30-day period. Your 
mover may grant credit to you, at its discretion, when you satisfy your 
mover's condition that you will pay all future freight bills duly 
presented. Your mover must ensure all your payments of freight bills are 
strictly in accordance with Federal rules and regulations for the 
settlement of its rates and charges.

Do I Have a Right To File a Claim To Recover Money for Property My Mover 
                            Lost or Damaged?

    Should your move result in the loss of or damage to any of your 
property, you have the right to file a claim with your mover to recover 
money for such loss or damage.
    You should file a claim as soon as possible. If you fail to file a 
claim within 9 months, your mover may not be required to accept your 
claim. If you institute a court action and win, you may be entitled to 
attorney's fees if you submitted your claim to the carrier within 120 
days after delivery or the scheduled date of delivery (whichever is 
later), and (1) the mover did not advise you during the claim settlement 
process of the availability of arbitration as a means for resolving the 
dispute; (2) a decision was not rendered through arbitration within the 
time required by law; or (3) you are instituting a court action to 
enforce an arbitration decision with which the mover has not complied.
    While the Federal Government maintains regulations governing the 
processing of loss and damage claims (49 CFR part 370), it cannot 
resolve those claims. If you cannot settle a claim with the mover, you 
may file a civil action to recover your claim in court under 49 U.S.C. 
14706. You may obtain the name and address of the mover's agent for 
service of legal process in your State by contacting the Federal Motor 
Carrier Safety Administration. You may also obtain the name of a process 
agent via the Internet. Go to http.//www.fmcsa.dot.gov then click on 
Licensing and Insurance (L&I) section.
    In addition, your mover must participate in an arbitration program. 
As described earlier in this pamphlet, an arbitration program gives you 
the opportunity to settle, through a neutral arbitrator, certain types 
of unresolved loss or damage claims and disputes regarding charges that 
were billed to you by your mover after your shipment was delivered. You 
may find submitting your claim to arbitration under such a program to be 
a less expensive and more convenient way to seek recovery of your claim. 
Your mover is required to provide you with information about its 
arbitration program before you move. If your mover fails to do so, ask 
the mover for details of its program.

               Subpart I--Resolving Disputes With My Mover

            What May I Do To Resolve Disputes With My Mover?

The Federal Motor Carrier Safety Administration Does Not Help You Settle 
                      Your Dispute With Your Mover

    Generally, you must resolve your own loss and damage disputes with 
your mover. You enter a contractual arrangement with your mover. You are 
bound by each of the following three things:
    (1) The terms and conditions you negotiated before your move.
    (2) The terms and conditions you accepted when you signed the bill 
of lading.
    (3) The terms and conditions you accepted when you signed for 
delivery of your goods.
    You have the right to take your mover to court. We require your 
mover to offer you arbitration to settle your disputes with it.

[72 FR 36775, July 5, 2007]



PART 376_LEASE AND INTERCHANGE OF VEHICLES--Table of Contents




             Subpart A_General Applicability and Definitions

Sec.
376.1 Applicability.
376.2 Definitions.

                      Subpart B_Leasing Regulations

376.11 General leasing requirements.
376.12 Written lease requirements.

[[Page 134]]

            Subpart C_Exemptions for the Leasing Regulations

376.21 General exemptions.
376.22 Exemption for private carrier leasing and leasing between 
          authorized carriers.
376.26 Exemption for leases between authorized carriers and their 
          agents.

                    Subpart D_Interchange Regulations

376.31 Interchange of equipment.

                 Subpart E_Private Carriers and Shippers

376.42 Lease of equipment by regulated carriers.

    Authority: 49 U.S.C. 13301 and 14102; and 49 CFR 1.73.

    Source: 44 FR 4681, Jan. 23, 1979, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.

    Editorial Note: Nomenclature changes to part 376 appear at 66 FR 
49871, Oct. 1, 2001.



             Subpart A_General Applicability and Definitions



Sec. 376.1  Applicability.

    The regulations in this part apply to the following actions by motor 
carriers registered with the Secretary to transport property:
    (a) The leasing of equipment with which to perform transportation 
regulated by the Secretary.
    (b) The leasing of equipment to motor private carrier or shippers.
    (c) The interchange of equipment between motor common carriers in 
the performance of transportation regulated by the Secretary.

[44 FR 4681, Jan. 23, 1979. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15423, Apr. 1, 1997]



Sec. 376.2  Definitions.

    (a) Authorized carrier. A person or persons authorized to engage in 
the transportation of property as a motor carrier under the provisions 
of 49 U.S.C. 13901 and 13902.
    (b) Equipment. A motor vehicle, straight truck, tractor, 
semitrailer, full trailer, any combination of these and any other type 
of equipment used by authorized carriers in the transportation of 
property for hire.
    (c) Interchange. The receipt of equipment by one motor common 
carrier of property from another such carrier, at a point which both 
carriers are authorized to serve, with which to continue a through 
movement.
    (d) Owner. A person (1) to whom title to equipment has been issued, 
or (2) who, without title, has the right to exclusive use of equipment, 
or (3) who has lawful possession of equipment registered and licensed in 
any State in the name of that person.
    (e) Lease. A contract or arrangement in which the owner grants the 
use of equipment, with or without driver, for a specified period to an 
authorized carrier for use in the regulated transportation of property, 
in exchange for compensation.
    (f) Lessor. In a lease, the party granting the use of equipment, 
with or without driver, to another.
    (g) Lessee. In a lease, the party acquiring the use of equipment 
with or without driver, from another.
    (h) Sublease. A written contract in which the lessee grants the use 
of leased equipment, with or without driver, to another.
    (i) Addendum. A supplement to an existing lease which is not 
effective until signed by the lessor and lessee.
    (j) Private carrier. A person, other than a motor carrier, 
transporting property by motor vehicle in interstate or foreign commerce 
when (1) the person is the owner, lessee, or bailee of the property 
being transported; and (2) the property is being transported for sale, 
lease, rent, or bailment, or to further a commercial enterprise.
    (k) Shipper. A person who sends or receives property which is 
transported in interstate or foreign commerce.
    (l) Escrow fund. Money deposited by the lessor with either a third 
party or the lessee to guarantee performance, to repay advances, to 
cover repair expenses, to handle claims, to handle license and State 
permit costs, and for any other purposes mutually agreed upon by the 
lessor and lessee.
    (m) Detention. The holding by a consignor or consignee of a trailer, 
with or without power unit and driver, beyond

[[Page 135]]

the free time allocated for the shipment, under circumstances not 
attributable to the performance of the carrier.

[44 FR 4681, Jan. 23, 1979, as amended at 49 FR 47850, Dec. 7, 1984; 62 
FR 15424, Apr. 1, 1997]



                      Subpart B_Leasing Regulations



Sec. 376.11  General leasing requirements.

    Other than through the interchange of equipment as set forth in 
Sec. 376.31, and under the exemptions set forth in subpart C of these 
regulations, the authorized carrier may perform authorized 
transportation in equipment it does not own only under the following 
conditions:
    (a) Lease. There shall be a written lease granting the use of the 
equipment and meeting the requirements contained in Sec. 376.12.
    (b) Receipts for equipment. Receipts, specifically identifying the 
equipment to be leased and stating the date and time of day possession 
is transferred, shall be given as follows:
    (1) When possession of the equipment is taken by the authorized 
carrier, it shall give the owner of the equipment a receipt. The receipt 
identified in this section may be transmitted by mail, telegraph, or 
other similar means of communication.
    (2) When possession of the equipment by the authorized carrier ends, 
a receipt shall be given in accordance with the terms of the lease 
agreement if the lease agreement requires a receipt.
    (3) Authorized representatives of the carrier and the owner may take 
possession of leased equipment and give and receive the receipts 
required under this subsection.
    (c) Identification of equipment. The authorized carrier acquiring 
the use of equipment under this section shall identify the equipment as 
being in its service as follows:
    (1) During the period of the lease, the carrier shall identify the 
equipment in accordance with the FMCSA's requirements in 49 CFR part 390 
of this chapter (Identification of Vehicles).
    (2) Unless a copy of the lease is carried on the equipment, the 
authorized carrier shall keep a statement with the equipment during the 
period of the lease certifying that the equipment is being operated by 
it. The statement shall also specify the name of the owner, the date and 
length of the lease, any restrictions in the lease relative to the 
commodities to be transported, and the address at which the original 
lease is kept by the authorized carrier. This statement shall be 
prepared by the authorized carrier or its authorized representative.
    (d) Records of equipment. The authorized carrier using equipment 
leased under this section shall keep records of the equipment as 
follows:
    (1) The authorized carrier shall prepare and keep documents covering 
each trip for which the equipment is used in its service. These 
documents shall contain the name and address of the owner of the 
equipment, the point of origin, the time and date of departure, and the 
point of final destination. Also, the authorized carrier shall carry 
papers with the leased equipment during its operation containing this 
information and identifying the lading and clearly indicating that the 
transportation is under its responsibility. These papers shall be 
preserved by the authorized carrier as part of its transportation 
records. Leases which contain the information required by the provisions 
in this paragraph may be used and retained instead of such documents or 
papers. As to lease agreements negotiated under a master lease, this 
provision is complied with by having a copy of a master lease in the 
unit of equipment in question and where the balance f documentation 
called for by this paragraph is included in the freight documents 
prepared for the specific movement.
    (2) [Reserved]

[44 FR 4681, Jan. 23, 1979, as amended at 49 FR 47269, Dec. 3, 1984; 49 
FR 47850, Dec. 7, 1984; 50 FR 24649, June 12, 1985; 51 FR 37406, Oct. 
22, 1986; 62 FR 15424, Apr. 1, 1997]



Sec. 376.12  Written lease requirements.

    Except as provided in the exemptions set forth in subpart C of this 
part, the written lease required under Sec. 376.11(a) shall contain the 
following provisions. The required lease provisions shall be adhered to 
and performed by the authorized carrier.
    (a) Parties. The lease shall be made between the authorized carrier 
and the

[[Page 136]]

owner of the equipment. The lease shall be signed by these parties or by 
their authorized representatives.
    (b) Duration to be specific. The lease shall specify the time and 
date or the circumstances on which the lease begins and ends. These 
times or circumstances shall coincide with the times for the giving of 
receipts required by Sec. 376.11(b).
    (c) Exclusive possession and responsibilities. (1) The lease shall 
provide that the authorized carrier lessee shall have exclusive 
possession, control, and use of the equipment for the duration of the 
lease. The lease shall further provide that the authorized carrier 
lessee shall assume complete responsibility for the operation of the 
equipment for the duration of the lease.
    (2) Provision may be made in the lease for considering the 
authorized carrier lessee as the owner of the equipment for the purpose 
of subleasing it under these regulations to other authorized carriers 
during the lease.
    (3) When an authorized carrier of household goods leases equipment 
for the transportation of household goods, as defined by the Secretary, 
the parties may provide in the lease that the provisions required by 
paragraph (c)(1) of this section apply only during the time the 
equipment is operated by or for the authorized carrier lessee.
    (4) Nothing in the provisions required by paragraph (c)(1) of this 
section is intended to affect whether the lessor or driver provided by 
the lessor is an independent contractor or an employee of the authorized 
carrier lessee. An independent contractor relationship may exist when a 
carrier lessee complies with 49 U.S.C. 14102 and attendant 
administrative requirements.
    (d) Compensation to be specified. The amount to be paid by the 
authorized carrier for equipment and driver's services shall be clearly 
stated on the face of the lease or in an addendum which is attached to 
the lease. Such lease or addendum shall be delivered to the lessor prior 
to the commencement of any trip in the service of the authorized 
carrier. An authorized representative of the lessor may accept these 
documents. The amount to be paid may be expressed as a percentage of 
gross revenue, a flat rate per mile, a variable rate depending on the 
direction traveled or the type of commodity transported, or by any other 
method of compensation mutually agreed upon by the parties to the lease. 
The compensation stated on the lease or in the attached addendum may 
apply to equipment and driver's services either separately or as a 
combined amount.
    (e) Items specified in lease. The lease shall clearly specify which 
party is responsible for removing identification devices from the 
equipment upon the termination of the lease and when and how these 
devices, other than those painted directly on the equipment, will be 
returned to the carrier. The lease shall clearly specify the manner in 
which a receipt will be given to the authorized carrier by the equipment 
owner when the latter retakes possession of the equipment upon 
termination of the lease agreement, if a receipt is required at all by 
the lease. The lease shall clearly specify the responsibility of each 
party with respect to the cost of fuel, fuel taxes, empty mileage, 
permits of all types, tolls, ferries, detention and accessorial 
services, base plates and licenses, and any unused portions of such 
items. The lease shall clearly specify who is responsible for loading 
and unloading the property onto and from the motor vehicle, and the 
compensation, if any, to be paid for this service. Except when the 
violation results from the acts or omissions of the lessor, the 
authorized carrier lessee shall assume the risks and costs of fines for 
overweight and oversize trailers when the trailers are pre-loaded, 
sealed, or the load is containerized, or when the trailer or lading is 
otherwise outside of the lessor's control, and for improperly permitted 
overdimension and overweight loads and shall reimburse the lessor for 
any fines paid by the lessor. If the authorized carrier is authorized to 
receive a refund or a credit for base plates purchased by the lessor 
from, and issued in the name of, the authorized carrier, or if the base 
plates are authorized to be sold by the authorized carrier to another 
lessor the authorized carrier shall refund to the initial lessor on 
whose behalf the base plate was first obtained a prorated share of the 
amount received.

[[Page 137]]

    (f) Payment period. The lease shall specify that payment to the 
lessor shall be made within 15 days after submission of the necessary 
delivery documents and other paperwork concerning a trip in the service 
of the authorized carrier. The paperwork required before the lessor can 
receive payment is limited to log books required by the Department of 
Transportation and those documents necessary for the authorized carrier 
to secure payment from the shipper. In addition, the lease may provide 
that, upon termination of the lease agreement, as a condition precedent 
to payment, the lessor shall remove all identification devices of the 
authorized carrier and, except in the case of identification painted 
directly on equipment, return them to the carrier. If the identification 
device has been lost or stolen, a letter certifying its removal will 
satisfy this requirement. Until this requirement is complied with, the 
carrier may withhold final payment. The authorized carrier may require 
the submission of additional documents by the lessor but not as a 
prerequisite to payment. Payment to the lessor shall not be made 
contingent upon submission of a bill of lading to which no exceptions 
have been taken. The authorized carrier shall not set time limits for 
the submission by the lessor of required delivery documents and other 
paperwork.
    (g) Copies of freight bill or other form of freight documentation. 
When a lessor's revenue is based on a percentage of the gross revenue 
for a shipment, the lease must specify that the authorized carrier will 
give the lessor, before or at the time of settlement, a copy of the 
rated freight bill or a computer-generated document containing the same 
information, or, in the case of contract carriers, any other form of 
documentation actually used for a shipment containing the same 
information that would appear on a rated freight bill. When a computer-
generated document is provided, the lease will permit lessor to view, 
during normal business hours, a copy of any actual document underlying 
the computer-generated document. Regardless of the method of 
compensation, the lease must permit lessor to examine copies of the 
carrier's tariff or, in the case of contract carriers, other documents 
from which rates and charges are computed, provided that where rates and 
charges are computed from a contract of a contract carrier, only those 
portions of the contract containing the same information that would 
appear on a rated freight bill need be disclosed. The authorized carrier 
may delete the names of shippers and consignees shown on the freight 
bill or other form of documentation.
    (h) Charge-back items. The lease shall clearly specify all items 
that may be initially paid for by the authorized carrier, but ultimately 
deducted from the lessor's compensation at the time of payment or 
settlement, together with a recitation as to how the amount of each item 
is to be computed. The lessor shall be afforded copies of those 
documents which are necessary to determine the validity of the charge.
    (i) Products, equipment, or services from authorized carrier. The 
lease shall specify that the lessor is not required to purchase or rent 
any products, equipment, or services from the authorized carrier as a 
condition of entering into the lease arrangement. The lease shall 
specify the terms of any agreement in which the lessor is a party to an 
equipment purchase or rental contract which gives the authorized carrier 
the right to make deductions from the lessor's compensation for purchase 
or rental payments.
    (j) Insurance. (1) The lease shall clearly specify the legal 
obligation of the authorized carrier to maintain insurance coverage for 
the protection of the public pursuant to FMCSA regulations under 49 
U.S.C. 13906. The lease shall further specify who is responsible for 
providing any other insurance coverage for the operation of the leased 
equipment, such as bobtail insurance. If the authorized carrier will 
make a charge back to the lessor for any of this insurance, the lease 
shall specify the amount which will be charged-back to the lessor.
    (2) If the lessor purchases any insurance coverage for the operation 
of the leased equipment from or through the authorized carrier, the 
lease shall specify that the authorized carrier will provide the lessor 
with a copy of each policy upon the request of the lessor.

[[Page 138]]

Also, where the lessor purchases such insurance in this manner, the 
lease shall specify that the authorized carrier will provide the lessor 
with a certificate of insurance for each such policy. Each certificate 
of insurance shall include the name of the insurer, the policy number, 
the effective dates of the policy, the amounts and types of coverage, 
the cost to the lessor for each type of coverage, and the deductible 
amount for each type of coverage for which the lessor may be liable.
    (3) The lease shall clearly specify the conditions under which 
deductions for cargo or property damage may be made from the lessor's 
settlements. The lease shall further specify that the authorized carrier 
must provide the lessor with a written explanation and itemization of 
any deductions for cargo or property damage made from any compensation 
of money owed to the lessor. The written explanation and itemization 
must be delivered to the lessor before any deductions are made.
    (k) Escrow funds. If escrow funds are required, the lease shall 
specify:
    (1) The amount of any escrow fund or performance bond required to be 
paid by the lessor to the authorized carrier or to a third party.
    (2) The specific items to which the escrow fund can be applied.
    (3) That while the escrow fund is under the control of the 
authorized carrier, the authorized carrier shall provide an accounting 
to the lessor of any transactions involving such fund. The carrier shall 
perform this accounting in one of the following ways:
    (i) By clearly indicating in individual settlement sheets the amount 
and description of any deduction or addition made to the escrow fund; or
    (ii) By providing a separate accounting to the lessor of any 
transactions involving the escrow fund. This separate accounting shall 
be done on a monthly basis.
    (4) The right of the lessor to demand to have an accounting for 
transactions involving the escrow fund at any time.
    (5) That while the escrow fund is under the control of the carrier, 
the carrier shall pay interest on the escrow fund on at least a 
quarterly basis. For purposes of calculating the balance of the escrow 
fund on which interest must be paid, the carrier may deduct a sum equal 
to the average advance made to the individual lessor during the period 
of time for which interest is paid. The interest rate shall be 
established on the date the interest period begins and shall be at least 
equal to the average yield or equivalent coupon issue yield on 91-day, 
13-week Treasury bills as established in the weekly auction by the 
Department of Treasury.
    (6) The conditions the lessor must fulfill in order to have the 
escrow fund returned. At the time of the return of the escrow fund, the 
authorized carrier may deduct monies for those obligations incurred by 
the lessor which have been previously specified in the lease, and shall 
provide a final accounting to the lessor of all such final deductions 
made to the escrow fund. The lease shall further specify that in no 
event shall the escrow fund be returned later than 45 days from the date 
of termination.
    (l) Copies of the lease. An original and two copies of each lease 
shall be signed by the parties. The authorized carrier shall keep the 
original and shall place a copy of the lease on the equipment during the 
period of the lease unless a statement as provided for in Sec. 
376.11(c)(2) is carried on the equipment instead. The owner of the 
equipment shall keep the other copy of the lease.
    (m) This paragraph applies to owners who are not agents but whose 
equipment is used by an agent of an authorized carrier in providing 
transportation on behalf of that authorized carrier. In this situation, 
the authorized carrier is obligated to ensure that these owners receive 
all the rights and benefits due an owner under the leasing regulations, 
especially those set forth in paragraphs (d)-(k) of this section. This 
is true regardless of whether the lease for the equipment is directly 
between the authorized carrier and its agent rather than directly 
between the authorized carrier and each of these owners. The lease 
between an authorized carrier

[[Page 139]]

and its agent shall specify this obligation.

[44 FR 4681, Jan. 23, 1979, as amended at 45 FR 13092, Feb. 28, 1980; 47 
FR 28398, June 30, 1982; 47 FR 51140, Nov. 12, 1982; 47 FR 54083, Dec. 
1, 1982; 49 FR 47851, Dec. 7, 1984; 51 FR 37406, 37407, Oct. 22, 1986; 
52 FR 2412, Jan. 22, 1987; 57 FR 32905, July 24, 1992; 62 FR 15424, Apr. 
1, 1997]



            Subpart C_Exemptions for the Leasing Regulations



Sec. 376.21  General exemptions.

    Except for Sec. 376.11(c) which requires the identification of 
equipment, the leasing regulations in this part shall not apply to:
    (a) Equipment used in substituted motor-for-rail transportation of 
railroad freight moving between points that are railroad stations and on 
railroad billing.
    (b) Equipment used in transportation performed exclusively within 
any commercial zone as defined by the Secretary.
    (c) Equipment leased without drivers from a person who is 
principally engaged in such a business.
    (d) Any type of trailer not drawn by a power unit leased from the 
same lessor.

[44 FR 4681, Jan. 23, 1979. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15424, Apr. 1, 1997]



Sec. 376.22  Exemption for private carrier leasing and leasing between
authorized carriers.

    Regardless of the leasing regulations set forth in this part, an 
authorized carrier may lease equipment to or from another authorized 
carrier, or a private carrier may lease equipment to an authorized 
carrier under the following conditions:
    (a) The identification of equipment requirements in Sec. 376.11(c) 
must be complied with;
    (b) The lessor must own the equipment or hold it under a lease;
    (c) There must be a written agreement between the authorized 
carriers or between the private carrier and authorized carrier, as the 
case may be, concerning the equipment as follows:
    (1) It must be signed by the parties or their authorized 
representatives.
    (2) It must provide that control and responsibility for the 
operation of the equipment shall be that of the lessee from the time 
possession is taken by the lessee and the receipt required under Sec. 
376.11(b) is given to the lessor until:
    (i) Possession of the equipment is returned to the lessor and the 
receipt required under Sec. 376.11(b) is received by the authorized 
carrier; or
    (ii) In the event that the agreement is between authorized carriers, 
possession of the equipment is returned to the lessor or given to 
another authorized carrier in an interchange of equipment.
    (3) A copy of the agreement must be carried in the equipment while 
it is in the possession of the lessee.
    (4) Nothing in this section shall prohibit the use, by authorized 
carriers, private carriers, and all other entities conducting lease 
operations pursuant to this section, of a master lease if a copy of that 
master lease is carried in the equipment while it is in the possession 
of the lessee, and if the master lease complies with the provisions of 
this section and receipts are exchanged in accordance with Sec. 
376.11(b), and if records of the equipment are prepared and maintained 
in accordance with Sec. 376.11(d).
    (d) Authorized and private carriers under common ownership and 
control may lease equipment to each other under this section without 
complying with the requirements of paragraph (a) of this section 
pertaining to identification of equipment, and the requirements of 
paragraphs (c)(2) and (c)(4) of this section pertaining to equipment 
receipts. The leasing of equipment between such carriers will be subject 
to all other requirements of this section.

[49 FR 9570, Mar. 14, 1984, as amended at 49 FR 47269, Dec. 3, 1984; 49 
FR 47851, Dec. 7, 1984; 62 FR 15424, Apr. 1, 1997; 63 FR 40838, July 31, 
1998]



Sec. 376.26  Exemption for leases between authorized carriers and 
their agents.

    The leasing regulations set forth in Sec. 376.12(e) through (l) do 
not apply to

[[Page 140]]

leases between authorized carriers and their agents.

[47 FR 28398, June 30, 1982, as amended at 62 FR 15424, Apr. 1, 1997]



                    Subpart D_Interchange Regulations



Sec. 376.31  Interchange of equipment.

    Authorized common carriers may interchange equipment under the 
following conditions:
    (a) Interchange agreement. There shall be a written contract, lease, 
or other arrangement providing for the interchange and specifically 
describing the equipment to be interchanged. This written agreement 
shall set forth the specific points of interchange, how the equipment is 
to be used, and the compensation for such use. The interchange agreement 
shall be signed by the parties or by their authorized representatives.
    (b) Operating authority. The carriers participating in the 
interchange shall be registered with the Secretary to provide the 
transportation of the commodities at the point where the physical 
exchange occurs.
    (c) Through bills of lading. The traffic transported in interchange 
service must move on through bills of lading issued by the originating 
carrier. The rates charged and the revenues collected must be accounted 
for in the same manner as if there had been no interchange. Charges for 
the use of the interchanged equipment shall be kept separate from 
divisions of the joint rates or the proportions of such rates accruing 
to the carriers by the application of local or proportional rates.
    (d) Identification of equipment. The authorized common carrier 
receiving the equipment shall identify equipment operated by it in 
interchange service as follows:
    (1) The authorized common carrier shall identify power units in 
accordance with the FMCSA's requirements in 49 CFR part 390 of this 
chapter (Identification of Vehicles). Before giving up possession of the 
equipment, the carrier shall remove all identification showing it as the 
operating carrier.
    (2) Unless a copy of the interchange agreement is carried on the 
equipment, the authorized common carrier shall carry a statement with 
each vehicle during interchange service certifying that it is operating 
the equipment. The statement shall also identify the equipment by 
company or State registration number and shall show the specific point 
of interchange, the date and time it assumes responsibility for the 
equipment, and the use to be made of the equipment. This statement shall 
be signed by the parties to the interchange agreement or their 
authorized representatives. The requirements of this paragraph shall not 
apply where the equipment to be operated in interchange service consists 
only of trailers or semitrailers.
    (3) Authorized carriers under common ownership and control may 
interchange equipment with each other without complying with the 
requirements of paragraph (d)(1) of this section pertaining to removal 
of identification from equipment.
    (e) Connecting carriers considered as owner--An authorized carrier 
receiving equipment in connection with a through movement shall be 
considered to the owner of the equipment for the purpose of leasing the 
equipment to other authorized carriers in furtherance of the movement to 
destination or the return of the equipment after the movement is 
completed.

[44 FR 4681, Jan. 23, 1979. Redesignated at 61 FR 54707, Oct. 21, 1996, 
as amended at 62 FR 15424, Apr. 1, 1997; 63 FR 40838, July 31, 1998]



                 Subpart E_Private Carriers and Shippers



Sec. 376.42  Lease of equipment by regulated carriers.

    Authorized carriers may lease equipment and drivers from private 
carriers, for periods of less than 30 days, in the manner set forth in 
Sec. 376.22.

[49 FR 9570, Mar. 14, 1984, as amended at 51 FR 37034, Oct. 17, 1986; 62 
FR 15424, Apr. 1, 1997]



PART 377_PAYMENT OF TRANSPORTATION CHARGES--Table of Contents




                 Subpart A_Handling of C.O.D. Shipments

Sec.
377.101 Applicability.

[[Page 141]]

377.103 Tariff requirements.
377.105 Collection and remittance.

  Subpart B_Extension of Credit to Shippers by Motor Common Carriers, 
      Water Common Carriers, and Household Goods Freight Forwarders

377.201 Scope.
377.203 Extension of credit to shippers.
377.205 Presentation of freight bills.
377.207 Effect of mailing freight bills or payments.
377.209 Additional charges.
377.211 Computation of time.
377.213-377.215 [Reserved]
377.217 Interline settlement of revenues.

    Authority: 49 U.S.C. 13101, 13301, 13701, 13702, 13706, 13707, and 
14101; and 49 CFR 1.73.

    Editorial Note: Nomenclature changes to part 377 appear at 66 FR 
49871, Oct. 1, 2001.



                 Subpart A_Handling of C.O.D. Shipments

    Source: 32 FR 20050, Dec. 20, 1967, unless otherwise noted. 
Redesignated at 61 FR 54708, Oct. 21, 1996.



Sec. 377.101  Applicability.

    The rules and regulations in this part apply to the transportation 
by motor vehicle of c.o.d. shipments by all common carriers of property 
subject to 49 U.S.C. 13702, except such transportation which is 
auxiliary to or supplemental of transportation by railroad and performed 
on railroad bills of lading, and except such transportation which is 
performed for freight forwarders and on freight forwarder bills of 
lading.

[32 FR 20050, Dec. 20, 1967. Redesignated at 61 FR 54708, Oct. 21, 1996, 
as amended at 62 FR 15424, Apr. 1, 1997]



Sec. 377.103  Tariff requirements.

    No common carrier of property subject to the provisions of 49 U.S.C. 
13702, except as otherwise provided in Sec. 377.101, shall render any 
c.o.d. service unless such carrier has published, posted and filed 
tariffs which contain the rates, charges and rules governing such 
service, which rules shall conform to the regulations in this part.

[32 FR 20050, Dec. 20, 1967. Redesignated at 61 FR 54708, Oct. 21, 1996, 
as amended at 62 FR 15424, Apr. 1, 1997]



Sec. 377.105  Collection and remittance.

    Every common carrier of property subject to 49 U.S.C. 13702, except 
as otherwise provided in Sec. 377.101, which chooses to provide c.o.d. 
service may publish and maintain, or cause to be published and 
maintained for its account, a tariff or tariffs which set forth 
nondiscriminatory rules governing c.o.d. service and the collection and 
remittance of c.o.d. funds. Alternatively, any carrier that provides 
c.o.d. service, but does not wish to publish and maintain, or cause to 
be published and maintained, its own nondiscriminatory tariff, may adopt 
a rule requiring remittance of each c.o.d. collection directly to the 
consignor or other person designated by the consignor as payee within 
fifteen (15) days after delivery of the c.o.d. shipment to the 
consignee.

[52 FR 45966, Dec. 3, 1987, as amended at 62 FR 15424, Apr. 1, 1997]



  Subpart B_Extension of Credit to Shippers by Motor Common Carriers, 
      Water Common Carriers, and Household Goods Freight Forwarders

    Source: 50 FR 2290, Jan. 16, 1985, unless otherwise noted. 
Redesignated at 61 FR 54709, Oct. 21, 1996.



Sec. 377.201  Scope.

    (a) General. These regulations apply to the extension of credit in 
the transportation of property under Federal Motor Carrier Safety 
Administration regulation by motor carriers and household goods freight 
forwarders, except as otherwise provided.
    (b) Exceptions. These regulations do not apply to--
    (1) Contract carriage operations.
    (2) Transportation for--
    (i) The United States or any department, bureau, or agency thereof,
    (ii) Any State, or political subdivision thereof,
    (iii) The District of Columbia.
    (3) Property transportation incidental to passenger operations.

[50 FR 2290, Jan. 16, 1985, as amended at 51 FR 44297, Dec. 9, 1986; 62 
FR 15424, Apr. 1, 1997]

[[Page 142]]



Sec. 377.203  Extension of credit to shippers.

    (a) Authorization to extend credit. (1) A carrier that meets the 
requirements in paragraph (a)(2) of this section may--
    (i) Relinquish possession of freight in advance of the payment of 
the tariff charges, and
    (ii) Extend credit in the amount of such charges to those who 
undertake to pay them (such persons are called shippers in this part).
    (2) For such authorization, the carrier shall take reasonable 
actions to assure payment of the tariff charges within the credit 
periods specified--
    (i) In this part, or
    (ii) In tariff provisions published pursuant to the regulations in 
paragraph (d) of this section.
    (b) When the credit period begins. The credit period shall begin on 
the day following presentation of the freight bill.
    (c) Length of credit period. Unless a different credit period has 
been established by tariff publication pursuant to paragraph (d) of this 
section, the credit period is 15 days. It includes Saturdays, Sundays, 
and legal holidays.
    (d) Carriers may establish different credit periods in tariff rules. 
Carriers may publish tariff rules establishing credit periods different 
from those in paragraph (c) of this section. Such credit periods shall 
not be longer than 30 calendar days.
    (e) Service charges. (1) Service charges shall not apply when credit 
is extended and payments are made within the standard credit period. The 
term standard credit period, as used in the preceding sentence, means--
    (i) The credit period prescribed in paragraph (c) of this section, 
or
    (ii) A substitute credit period published in a tariff rule pursuant 
to the authorization in paragraph (d) of this section.
    (2) Carriers may, by tariff rule, extend credit for an additional 
time period, subject if they wish to a service charge for that 
additional time. The combined length of the carrier's standard credit 
period (as defined in paragraph (e)(1) of this section) and its 
additional credit period shall not exceed the 30-day maximum credit 
period prescribed in paragraph (d) of this section. When such a tariff 
rule is in effect, shippers may elect to postpone payment until the end 
of the extended credit period if, in consideration therefor, they 
include any published service charges when making their payment.
    (3) Carriers may, by tariff rule, establish service charges for 
payments made after the expiration of an authorized credit period. Such 
a rule shall--
    (i) Institute such charges on the day following the last day of an 
authorized credit period, and
    (ii) Notify shippers--
    (A) That its only purpose is to prevent a shipper who does not pay 
on time from having free use of funds due to the carrier,
    (B) That it does not sanction payment delays, and
    (C) That failure to pay within the authorized credit period will, 
despite this provision for such charges, continue to require the 
carrier, before again extending credit, to determine in good faith 
whether the shipper will comply with the credit regulations in the 
future.
    (4) Tariff rules that establish charges pursuant to paragraph (e) 
(2) or (3) of this section may establish minimum charges.
    (f) Discounts. Carriers may, by tariff rule, authorize discounts for 
early freight bill payments when credit is extended.
    (g)(1) Collection expense charges. Carriers may, by tariff rule, 
assess reasonable and certain liquidated damages for all costs incurred 
in the collection of overdue freight charges. Carriers may use one of 
two methods in their tariffs:
    (i) The first method is to assess liquidated damages as a separate 
additional charge to the unpaid freight bill. In doing so, the tariff 
rule shall disclose the exact amount of the charges by stating either a 
dollar or specified percentage amount (or a combination of both) of the 
unpaid freight bill. The tariff shall further specify the time period 
(which shall at least allow for the authorized credit period) within 
which the shipper must pay to avoid such liquidated damages.
    (ii) The second method is to require payment of the full, 
nondiscounted rate instead of the discounted rate otherwise applicable. 
The difference between the discount and the full rate

[[Page 143]]

constitutes a carrier's liquidated damages for its collection effort. 
Under this method the tariff shall identify the discount rates that are 
subject to the condition precedent and which require the shipper to make 
payment by a date certain. The date certain may not be set to occur by 
the carrier until at least after the expiration of the carrier's 
authorized credit period.
    (2) The damages, the timing of their applicability, and the 
conditions, if any, as provided by the tariff-rule methods allowed under 
paragraphs (g)(1) (i) and (ii) of this section also:
    (i) Shall be clearly described in the tariff rule;
    (ii) Shall be applied without unlawful prejudice and/or unjust 
discrimination between similarly situated shippers and/or consignees;
    (iii) Shall be applied only to the nonpayment of original, separate 
and independent freight bills and shall not apply to aggregate balance-
due claims sought for collection on past shipments by a bankruptcy 
trustee, or any other person or agent;
    (iv) Shall not apply to instances of clear clerical or ministerial 
error such as non-receipt of a carrier's freight bill, or shipper's 
payment check lost in the mail, or carrier mailing of the freight bill 
to the wrong address;
    (v) Shall not apply in any way to a charge for a transportation 
service if the carrier's bill of lading independently provides that the 
shipper is liable for fees incurred by the carrier in the collection of 
freight charges on that same transportation service;
    (vi) shall be applied only after the authorized credit period, and 
when the carrier has issued a revised freight bill or notice of 
imposition of collection expense charges for late payment within 90 days 
after expiration of the authorized credit period.
    (3) As an alternative to the tariff-rule methods allowed under 
paragraphs (g)(1) (i) and (ii) of this section, a carrier may, wholly 
outside of its tariff, assess collection charges though contract terms 
in a bill of lading. By using the carrier and its bill of lading, the 
shipper accepts the bill of lading terms.
    (h) Discrimination prohibited. Tariff rules published pursuant to 
paragraphs (d), (e), and (f) of this section shall not result in 
unreasonable discrimination among shippers.

[50 FR 2290, Jan 16, 1985, as amended at 53 FR 6991, Mar. 4, 1988; 54 FR 
30748, July 24, 1989]



Sec. 377.205  Presentation of freight bills.

    (a) ``To be prepaid'' shipments. (1) On ``to be prepaid'' shipments, 
the carrier shall present its freight bill for all transportation 
charges within the time period prescribed in paragraph (a)(2) of this 
section, except--
    (i) As noted in paragraph (d) of this section, or
    (ii) As otherwise excepted in this part.
    (2) The time period for a carrier to present its freight bill for 
all transportation charges shall be 7 days, measured from the date the 
carrier received the shipment. This time period does not include 
Saturdays, Sundays, or legal holidays.
    (b) ``Collect'' shipments. (1) On ``collect'' shipments, the carrier 
shall present its freight bill for all transportation charges within the 
time period prescribed in paragraph (b)(2) and of this section, except--
    (i) As noted in paragraph (d) of this section, or
    (ii) As otherwise excepted in this part.
    (2) The time period for a carrier to present its freight bill for 
all transportation charges shall be 7 days, measured from the date the 
shipment was delivered at its destination. This time period does not 
include Saturdays, Sundays, or legal holidays.
    (c) Bills or accompanying written notices shall state penalties for 
late payment, credit time limits and service charge and/or collection 
expense charge and discount terms. When credit is extended, freight 
bills or a separate written notice accompanying a freight bill or a 
group of freight bills presented at one time shall state that ``failure 
timely to pay freight charges may be subject to tariff penalties'' (or a 
statement of similar import). The bills or other notice shall also state 
the time by which payment must be made and any applicable service charge 
and/or collection expense charge and discount terms.
    (d) When the carrier lacks sufficient information to compute tariff 
charges. (1)

[[Page 144]]

When information sufficient to enable the carrier to compute the tariff 
charges is not then available to the carrier at its billing point, the 
carrier shall present its freight bill for payment within 7 days 
following the day upon which sufficient information becomes available at 
the billing point. This time period does not include Saturdays, Sundays, 
or legal holidays.
    (2) A carrier shall not extend further credit to any shipper which 
fails to furnish sufficient information to allow the carrier to render a 
freight bill within a reasonable time after the shipment is tendered to 
the origin carrier.
    (3) As used in this paragraph, the term ``shipper'' includes, but is 
not limited to, freight forwarders, and shippers' associations and 
shippers' agents.

[50 FR 2290, Jan 16, 1985, as amended at 54 FR 30748, July 24, 1989; 62 
FR 15424, Apr. 1, 1997]



Sec. 377.207  Effect of mailing freight bills or payments.

    (a) Presentation of freight bills by mail. When carriers present 
freight bills by mail, the time of mailing shall be deemed to be the 
time of presentation of the bills. The term freight bills, as used in 
this paragraph, includes both paper documents and billing by use of 
electronic media such as computer tapes or disks, when the mails are 
used to transmit them.
    (b) Payment by mail. Wnen shippers mail acceptable checks, drafts, 
or money orders in payment of freight charges, the act of mailing them 
within the credit period shall be deemed to be the collection of the 
tariff charges within the credit period for the purposes of the 
regulations in this part.
    (c) Disputes as to date of mailing. In case of dispute as to the 
date of mailing, the postmark shall be accepted as such date.



Sec. 377.209  Additional charges.

    When a carrier--
    (a) Has collected the amount of tariff charges represented in a 
freight bill presented by it as the total amount of such charges, and
    (b) Thereafter presents to the shipper another freight bill for 
additional charges--

the carrier may extend credit in the amount of such additional charges 
for a period of 30 calendar days from the date of the presentation of 
the freight bill for the additional charges.



Sec. 377.211  Computation of time.

    Time periods involving calendar days shall be calculated pursuant to 
49 CFR 386.32(a).

[50 FR 2290, Jan 16, 1985. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15424, Apr. 1, 1997]



Sec. Sec. 377.213-377.215  [Reserved]



Sec. 377.217  Interline settlement of revenues.

    Nothing in this part shall be interpreted as affecting the interline 
settlement of revenues from traffic which is transported over through 
routes composed of lines of common carriers subject to the Secretary's 
jurisdiction under 49 U.S.C. subtitle IV, part B.

[50 FR 2290, Jan 16, 1985. Redesignated at 61 FR 54709, Oct. 21, 1996, 
as amended at 62 FR 15424, Apr. 1, 1997]



PART 378_PROCEDURES GOVERNING THE PROCESSING, INVESTIGATION, AND 
DISPOSITION OF OVERCHARGE, DUPLICATE PAYMENT, OR OVERCOLLECTION 

CLAIMS--Table of Contents




Sec.
378.1 Applicability.
378.2 Definitions.
378.3 Filing and processing claims.
378.4 Documentation of claims.
378.5 Investigation of claims.
378.6 Claim records.
378.7 Acknowledgment of claims.
378.8 Disposition of claims.
378.9 Disposition of unidentified payments, overcharges, duplicate 
          payments, and overcollections not supported by claims.

    Authority: 49 U.S.C. 13321, 14101, 14704 and 14705; and 49 CFR 1.73.

    Source: 43 FR 41040, Sept. 14, 1978, unless otherwise noted. 
Redesignated at 61 FR 54707, Oct. 21, 1996.



Sec. 378.1  Applicability.

    The regulations set forth in this part govern the processing of 
claims for overcharge, duplicate payment, or overcollection for the 
transportation of

[[Page 145]]

property in interstate or foreign commerce by motor common carriers and 
household goods freight forwarders subject to 49 U.S.C. subtitle IV, 
part B.

[43 FR 41040, Sept. 14, 1978, as amended at 51 FR 44297, Dec. 9, 1986; 
62 FR 15424, Apr. 1, 1997]



Sec. 378.2  Definitions.

    (a) Carrier means a motor common carrier or household goods freight 
forwarder subject to 49 U.S.C. subtitle IV, part B.
    (b) Overcharge means an overcharge as defined in 49 U.S.C. 14704(b). 
It also includes duplicate payments as defined in paragraph (c) of this 
section and overcollections as defined in paragraph (d) of this section 
when a dispute exists between the parties concerning such charges.
    (c) Duplicate payment means two or more payments for transporting 
the same shipment. Where one or more payment is not in the exact amount 
of the applicable tariff rates and charges, refunds shall be made on the 
basis of the excess amount over the applicable tariff rates and charges.
    (d) Overcollection means the receipt by a household goods carrier of 
a payment in excess of the transportation and/or accessorial charges 
applicable to a particular shipment of household goods, as defined in 
part 375 of this chapter, under tariffs lawfully on file with the United 
States Department of Transportation's Surface Transportation Board.
    (e) Unidentified payment means a payment which a carrier has 
received but which the carrier is unable to match with its open accounts 
receivable or otherwise identify as being due for the performance of 
transportation services.
    (f) Claimant means any shipper or receiver, or its authorized agent, 
filing a request with a carrier for the refund of an overcharge, 
duplicate payment, or overcollection.

[43 FR 41040, Sept. 14, 1978, as amended at 44 FR 66832, Nov. 21, 1979; 
51 FR 34989, Oct. 1, 1986; 51 FR 44297, Dec. 9, 1986; 62 FR 15424, Apr. 
1, 1997]



Sec. 378.3  Filing and processing claims.

    (a) A claim for overcharge, duplicate payment, or overcollection 
shall not be paid unless filed in writing or electronically communicated 
(when agreed to by the carrier and shipper or receiver involved) with 
the carrier that collected the transportation charges. The collecting 
carrier shall be the carrier to process all such claims. When a claim is 
filed with another carrier that participated in the transportation, that 
carrier shall transmit the claim to the collecting carrier within 15 
days after receipt of the claim. If the collecting carrier is unable to 
dispose of the claim for any reason, the claim may be filed with or 
transferred to any participating carrier for final disposition.
    (b) A single claim may include more than one shipment provided the 
claim on each shipment involves:
    (1) The same tariff issue or authority or circumstances,
    (2) Single line service by the same carrier, or
    (3) Service by the same interline carriers.

[43 FR 41040, Sept 14, 1978, as amended at 47 FR 12804, Mar. 25, 1982]



Sec. 378.4  Documentation of claims.

    (a) Claims for overcharge, duplicate payment, or overcollection 
shall be accompanied by sufficient information to allow the carriers to 
conduct an investigation and pay or decline the claim within the time 
limitations set forth in Sec. 378.8. Claims shall include the name of 
the claimant, its file number, if any, and the amount of the refund 
sought to be recovered, if known.
    (b) Except when the original freight bill is not a paper document 
but is electronically transmitted, claims for overcharge shall be 
accompanied by the original freight bill. Additional information may 
include, but is not limited to, the following:
    (1) The rate, classification, or commodity description or weight 
claimed to have been applicable.
    (2) Complete tariff authority for the rate, classification, or 
commodity description claimed.
    (3) Freight bill payment information.
    (4) Other documents or data which is believed by claimant to 
substantiate the basis for its claim.
    (c) Claims for duplicate payment and overcollection shall be 
accompanied by the original freight bill(s) for which

[[Page 146]]

charges were paid (except when the original freight bill is not a paper 
document but is electronically transmitted) and by freight bill payment 
information.
    (d) Regardless of the provisions of paragraphs (a), (b), and (c) of 
this section, the failure to provide sufficient information and 
documentation to allow a carrier to conduct an investigation and pay or 
decline the claim within the allowable time limitation shall not 
constitute grounds for disallowance of the claim. Rather, the carrier 
shall comply with Sec. 378.5(c) to obtain the additional information 
required.
    (e) A carrier shall accept copies instead of the orginal documents 
required to be submitted in this section where the carrier is furnished 
with an agreement entered into by the claimant which indemnifies the 
carrier for subsequent duplicate claims which might be filed and 
supported by the original documents.

[43 FR 41040, Sept. 14, 1978, as amended at 44 FR 4679, Jan. 23, 1979; 
47 FR 12804, Mar. 25, 1982; 62 FR 15424, Apr. 1, 1997]



Sec. 378.5  Investigation of claims.

    (a) Upon receipt of a claim, whether written or otherwise, the 
processing carrier shall promptly initiate an investigation and 
establish a file, as required by Sec. 378.6.
    (b) If a carrier discovers an overcharge, duplicate payment, or 
overcollection which has not been the subject of a claim, it shall 
promptly initiate an investigation and comply with the provisions in 
Sec. 378.9.
    (c) In the event the carrier processing the claim requires 
information or documents in addition to that submitted with the claim, 
the carrier shall promptly notify the claimant and request the 
information required. This includes notifying the claimant that a 
written or electronically transmitted claim must be filed before the 
carrier becomes subject to the time limits for settling such a claim 
under Sec. 378.8.

[43 FR 41040, Sept. 14, 1978, as amended at 47 FR 12804, Mar. 25, 1982; 
62 FR 15424, 15425, Apr. 1, 1997]



Sec. 378.6  Claim records.

    At the time a claim is received the carrier shall create a separate 
file and assign it a successive claim file number and note that number 
on all documents filed in support of the claim and all records and 
correspondence with respect to the claim, including the written or 
electronic acknowledgment of receipt required under Sec. 378.7. If 
pertinent to the disposition of the claim, the carrier shall also note 
that number on the shipping order and delivery receipt, if any, covering 
the shipment involved.

[47 FR 12804, Mar. 25, 1982, as amended at 62 FR 15425, Apr. 1, 1997]



Sec. 378.7  Acknowledgment of claims.

    Upon receipt of a written or electronically transmitted claim, the 
carrier shall acknowledge its receipt in writing or electronically to 
the claimant within 30 days after the date of receipt except when the 
carrier shall have paid or declined in writing or electronically within 
that period. The carrier shall include the date of receipt in its 
written or electronic claim which shall be placed in the file for that 
claim.

[47 FR 12804, Mar. 25, 1982]



Sec. 378.8  Disposition of claims.

    The processing carrier shall pay, decline to pay, or settle each 
written or electronically communicated claim within 60 days after its 
receipt by that carrier, except where the claimant and the carrier agree 
in writing or electronically to a specific extension based upon 
extenuating circumstances. If the carrier declines to pay a claim or 
makes settlement in an amount different from that sought, the carrier 
shall notify the claimant in writing or electronically, of the reason(s) 
for its action, citing tariff authority or other pertinent information 
developed as a result of its investigation.

[47 FR 12804, Mar. 25, 1982]



Sec. 378.9  Disposition of unidentified payments, overcharges, 
duplicate payments, and overcollections not supported by claims.

    (a)(1) Carriers shall establish procedures for identifying and 
properly applying all unidentified payments. If a carrier does not have 
sufficient information with which properly to apply

[[Page 147]]

such a payment, the carrier shall notify the payor of the unidentified 
payment within 60 days of receipt of the payment and request information 
which will enable it to identify the payment. If the carrier does not 
receive the information requested within 90 days from the date of the 
notice, the carrier may treat the unidentified payment as a payment in 
fact of freight charges owing to it. Following the 90-day period, the 
regular claims procedure under this part shall be applicable.
    (2) Notice shall be in writing and clearly indicate that it is a 
final notice and not a bill. Notice shall include: The check number, 
amount, and date; the payor's name; and any additional basic information 
the carrier is able to provide. The final notice also must inform payor 
that: (i) Applicable regulations allow the carrier to conditionally 
retain the payment as revenue in the absence of a timely response by the 
payor; and (ii) following the 90-day period the regular claims procedure 
shall be applicable.
    (3) Upon a carrier's receipt of information from the payor, the 
carrier shall, within 14 days: (i) Make a complete refund of such funds 
to the payor; or (ii) notify the payor that the information supplied is 
not sufficient to identify the unapplied payment and request additional 
information; or (iii) notify the payor of the carrier's determination 
that such payment was applicable to particular freight charges lawfully 
due the carrier. Where no refund is made by the carrier, the carrier 
shall advise the payor of its right to file a formal claim for refund 
with the carrier in accordance with the regular claims procedure under 
this part.
    (b) When a carrier which participates in a transportation movement, 
but did not collect the transporation charges, finds that an overpayment 
has been made, that carrier shall immediately notify the collecting 
carrier. When the collecting carrier (when single or joint line haul) 
discovers or is notified by such a participating carrier that an 
overcharge, duplicate payment, or overcollection exists for any 
tranportation charge which has not been the subject of a claim, the 
carrier shall create a file as if a claim had been submitted and shall 
record in the file the date it discovered or was notified of the 
overpayment. The carrier that collected the charges shall then refund 
the amount of the overpayment to the person who paid the transportation 
charges or to the person that made duplicate payment within 30 days from 
the date of such discovery or notification.

[43 FR 41040, Sept. 14, 1978, as amended at 44 FR 66832, Nov. 21, 1979]



PART 379_PRESERVATION OF RECORDS--Table of Contents




Sec.
379.1 Applicability.
379.3 Records required to be retained.
379.5 Protection and storage of records.
379.7 Preservation of records.
379.9 Companies going out of business.
379.11 Waiver of requirements of the regulations in this part.
379.13 Disposition and retention of records.

Appendix A to Part 379--Schedule of Records and Periods of Retention

    Authority: 49 U.S.C. 13301, 14122 and 14123; and 49 CFR 1.73.

    Source: 62 FR 32044, June 12, 1997, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 379 appear at 66 FR 
49871, Oct. 1, 2001.



Sec. 379.1  Applicability.

    (a) The preservation of record rules contained in this part shall 
apply to the following:
    (1) Motor carriers and brokers;
    (2) Water carriers; and
    (3) Household goods freight forwarders.
    (b) This part applies also to the preservation of accounts, records 
and memoranda of traffic associations, weighing and inspection bureaus, 
and other joint activities maintained by or on behalf of companies 
listed in paragraph (a) of this section.



Sec. 379.3  Records required to be retained.

    Companies subject to this part shall retain records for the minimum 
retention periods provided in appendix A to this part. After the 
required retention periods, the records may be destroyed at the 
discretion of each company's management. It shall be the obligation

[[Page 148]]

of the subject company to maintain records that adequately support 
financial and operational data required by the Secretary. The company 
may request a ruling from the Secretary on the retention of any record. 
The provisions of this part shall not be construed as excusing 
compliance with the lawful requirements of any other governmental body 
prescribing longer retention periods for any category of records.



Sec. 379.5  Protection and storage of records.

    (a) The company shall protect records subject to this part from 
fires, floods, and other hazards, and safeguard the records from 
unnecessary exposure to deterioration from excessive humidity, dryness, 
or lack of ventilation.
    (b) The company shall notify the Secretary if prescribed records are 
substantially destroyed or damaged before the term of the prescribed 
retention periods.



Sec. 379.7  Preservation of records.

    (a) All records may be preserved by any technology that is immune to 
alteration, modification, or erasure of the underlying data and will 
enable production of an accurate and unaltered paper copy.
    (b) Records not originally preserved on hard copy shall be 
accompanied by a statement executed by a person having personal 
knowledge of the facts indicating the type of data included within the 
records. One comprehensive statement may be executed in lieu of 
individual statements for multiple records if the type of data included 
in the multiple records is common to all such records. The records shall 
be indexed and retained in such a manner as will render them readily 
accessible. The company shall have facilities available to locate, 
identify and produce legible paper copies of the records.
    (c) Any significant characteristic, feature or other attribute that 
a particular medium will not preserve shall be clearly indicated at the 
beginning of the applicable records as appropriate.
    (d) The printed side of forms, such as instructions, need not be 
preserved for each record as long as the printed matter is common to all 
such forms and an identified specimen of the form is maintained on the 
medium for reference.



Sec. 379.9  Companies going out of business.

    The records referred to in the regulations in this part may be 
destroyed after business is discontinued and the company is completely 
liquidated. The records may not be destroyed until dissolution is final 
and all pending transactions and claims are completed. When a company is 
merged with another company under jurisdiction of the Secretary, the 
successor company shall preserve records of the merged company in 
accordance with the regulations in this part.



Sec. 379.11  Waiver of requirements of the regulations in this part.

    A waiver from any provision of the regulations in this part may be 
made by the Secretary upon his/her own initiative or upon submission of 
a written request by the company. Each request for waiver shall 
demonstrate that unusual circumstances warrant a departure from 
prescribed retention periods, procedures, or techniques, or that 
compliance with such prescribed requirements would impose an 
unreasonable burden on the company.



Sec. 379.13  Disposition and retention of records.

    The schedule in appendix A to this part shows periods that 
designated records shall be preserved. The descriptions specified under 
the various general headings are for convenient reference and 
identification, and are intended to apply to the items named regardless 
of what the records are called in individual companies and regardless of 
the record media. The retention periods represent the prescribed number 
of years from the date of the document and not calendar years. Records 
not listed in appendix A to this part shall be retained as determined by 
the management of each company.

[[Page 149]]



    Sec. Appendix A to Part 379--Schedule of Records and Periods of 
                                Retention

------------------------------------------------------------------------
 Item and category of records               Retention period
------------------------------------------------------------------------
   A. Corporate and General
 
1. Incorporation and
 reorganization:
    (a) Charter or             Note A.
     certificate of
     incorporation and
     amendments.
    (b) Legal documents        Note A.
     related to mergers,
     consolidations,
     reorganization,
     receiverships and
     similar actions which
     affect the identity or
     organization of the
     company.
2. Minutes of Directors,       Note A.
 Executive Committees,
 Stockholders and other
 corporate meetings.
3. Titles, franchises and
 authorities:
    (a) Certificates of        Until expiration or cancellation.
     public convenience and
     necessity issued by
     regulating bodies.
    (b) Operating              Until expiration or cancellation.
     authorizations and
     exemptions to operate.
    (c) Copies of formal       Note A.
     orders of regulatory
     bodies served upon the
     company.
    (d) Deeds, charters, and   Until disposition of property.
     other title papers.
    (e) Patents and patent     Note A.
     records.
4. Annual reports or           3 years.
 statements to stockholders.
5. Contracts and agreements:
    (a) Service contracts,     Until expiration or termination plus 3
     such as for operational    years.
     management, accounting,
     financial or legal
     services, and agreements
     with agents.
    (b) Contracts and other    Until expiration or termination plus 3
     agreements relating to     years.
     the construction,
     acquisition or sale of
     real property and
     equipment except as
     otherwise provided in
     (a) above.
    (c) Contracts for the      Until expiration.
     purchase or sale of
     material and supplies
     except as provided in
     (a) above.
    (d) Shipping contracts     Until expiration.
     for transportation or
     caretakers of freight.
    (e) Contracts with         Until expiration.
     employees and employee
     bargaining groups.
    (f) Contracts, leases and  Until expiration or termination plus 1
     agreements, not            year.
     specifically provided
     for in this section.
6. Accountant's auditor's,
 and inspector's reports:
    (a) Certifications and     3 years.
     reports of examinations
     and audits conducted by
     public accountants.
    (b) Reports of             3 years.
     examinations and audits
     conducted by internal
     auditors, time
     inspectors, and others.
7. Other.....................  Note A.
 
         B. Treasury
 
1. Capital stock records:
    (a) Capital stock ledger.  Note A.
    (b) Capital stock          Note A.
     certificates, records of
     or stubs of.
    (c) Stock transfer         Note A.
     register.
2. Long-term debt records:
    (a) Bond indentures,       Until redemption plus 3 years.
     underwritings,
     mortgages, and other
     long-term credit
     agreements.
    (b) Registered bonds and   Until redemption plus 3 years.
     debenture ledgers.
    (c) Stubs or similar       Note A.
     records of bonds or
     other long-term debt
     issued.
3. Authorizations from         Note A.
 regulatory bodies for
 issuance of securities
 including applications,
 reports, and supporting
 papers.
4. Records of securities       Until the securities are sold, redeemed
 owned, in treasury, or held    or otherwise disposed of.
 by custodians, detailed
 ledgers and journals, or
 their equivalent.
5. Other.....................  Note A.
 
 C. Financial and Accounting
 
1. Ledgers:
    (a) General and            Until discontinuance of use plus 3 years.
     subsidiary ledgers with
     indexes.
    (b) Balance sheets and     3 years.
     trial balance sheets of
     general and subsidiary
     ledgers.
2. Journals:
    (a) General journals.....  Until discontinuance of use plus 3 years.
    (b) Subsidiary journals    3 years.
     and any supporting data,
     except as otherwise
     provided for, necessary
     to explain journal
     entries.
3. Cash books:
    (a) General cash books...  Until discontinuance of use plus 3 years.
    (b) Subsidiary cash books  3 years.
4. Vouchers:
    (a) Voucher registers,     3 years.
     indexes, or equivalent.
    (b) Paid and canceled      3 years.
     vouchers, expenditure
     authorizations, detailed
     distribution sheets and
     other supporting data
     including original bills
     and invoices, if not
     provided for elsewhere.
    (c) Paid drafts, paid      3 years.
     checks, and receipts for
     cash paid out.
5. Accounts receivable:
    (a) Record or register of  3 years after settlement.
     accounts receivable,
     indexes thereto, and
     summaries of
     distribution.

[[Page 150]]

 
    (b) Bills issued for       3 years after settlement.
     collection and
     supporting data.
    (c) Authorization for      1 year.
     writing off receivables.
    (d) Reports and            1 year.
     statements showing age
     and status of
     receivables.
6. Records of accounting       3 years after discontinuance.
 codes and instructions.
7. Other.....................  Note A.
 
  D. Property and Equipment
 
  Note.--All accounts, records, and memoranda necessary for making a
complete analysis of the cost or value of property shall be retained for
the periods shown. If any of the records elsewhere provided for in this
schedule are of this character, they shall be retained for the periods
shown below, regardless of any lesser retention period assigned.
 
1. Property records:
    (a) Records which          3 years after disposition of property.
     maintain complete
     information on cost or
     other value of all real
     and personal property or
     equipment.
    (b) Records of additions   3 years after disposition of property.
     and betterments made to
     property and equipment.
    (c) Records pertaining to  3 years after disposition of property.
     retirements and
     replacements of property
     and equipment.
    (d) Records pertaining to  3 years after disposition of property.
     depreciation.
    (e) Records of equipment   3 years after disposition of property.
     number changes.
    (f) Records of motor and   3 years after disposition of property.
     engine changes.
    (g) Records of equipment   Only current or latest records.
     lightweighed and
     stenciled.
2. Engineering records of      3 years after disposition of property.
 property changes actually
 made.
3. Other.....................  Note A.
 
   E. Personnel and Payroll
 
1. Personnel and payroll       1 year.
 records.
 
   F. Insurance and Claims
 
1. Insurance records:
    (a) Schedules of           Until expiration plus 1 year.
     insurance against fire,
     storms, and other
     hazards and records of
     premium payments.
    (b) Records of losses and  1 year after settlement.
     recoveries from
     insurance companies and
     supporting papers.
    (c) Insurance policies...  Until expiration of coverage plus 1 year.
2. Claims records:
    (a) Claim registers, card  1 year after settlement.
     or book indexes, and
     other records which
     record personal injury,
     fire and other claims
     against the company,
     together with all
     supporting data.
    (b) Claims registers,      1 year after settlement.
     card or book indexes,
     and other records which
     record overcharges,
     damages, and other
     claims filed by the
     company against others,
     together with all
     supporting data.
    (c) Records giving the     3 years.
     details of authorities
     issued to agents,
     carriers, and others for
     participation in freight
     claims.
    (d) Reports, statements    3 years.
     and other data
     pertaining to personal
     injuries or damage to
     property when not
     necessary to support
     claims or vouchers.
    (e) Reports, statements,   1 year.
     tracers, and other data
     pertaining to unclaimed,
     over, short, damaged,
     and refused freight,
     when not necessary to
     support claims or
     vouchers.
    (f) Authorities for        3 years.
     disposal of unclaimed,
     damaged, and refused
     freight.
3. Other.....................  Note A.
 
           G. Taxes
 
1. Taxes.....................  Note A.
 
   H. Purchases and Stores
 
1. Purchases and stores......  Note A.
 
    I. Shipping and Agency
          Documents
 
1. Bills of lading and
 releases:
    (a) Consignors' shipping   1 year.
     orders, consignors'
     shipping tickets, and
     copies of bills of
     lading, freight bills
     from other carriers and
     other similar documents
     furnished the carrier
     for movement of freight.
    (b) Shippers' order-to-    1 year.
     notify bills of lading
     taken up and canceled.
2. Freight waybills:
    (a) Local waybills.......  1 year.
    (b) Interline waybills     1 year.
     received from and made
     to other carriers.
    (c) Company freight        1 year.
     waybills.
    (d) Express waybills.....  1 year.
3. Freight bills and
 settlements:
    (a) Paid copy of freight
     bill retained to support
     receipt of freight
     charges:
        (1) Bus express        1 year.
         freight bills
         provided no claim
         has been filed.
        (2) All other freight  1 year.
         bills.
    (b) Paid copy of freight
     bill retained to support
     payment of freight
     charges to other
     carriers:
        (1) Bus express        1 year.
         freight bills
         provided no claim
         has been filed.
        (2) All other freight  1 year.
         bills.

[[Page 151]]

 
    (c) Records of unsettled   1 year after disposition.
     freight bills and
     supporting papers.
    (d) Records and reports    1 year.
     of correction notices.
4. Other freight records:
    (a) Records of freight     1 year.
     received, forwarded, and
     delivered.
    (b) Notice to consignees   1 year.
     of arrival of freight;
     tender of delivery.
5. Agency records (to include
 conductors, pursers,
 stewards, and others):
    (a) Cash books...........  1 year.
    (b) Remittance records,    1 year.
     bank deposit slips and
     supporting papers.
    (c) Balance sheets and     1 year.
     supporting papers.
    (d) Statements of          1 year.
     corrections in agents'
     accounts.
    (e) Other records and      1 year.
     reports pertaining to
     ticket sales, baggage
     handled, miscellaneous
     collections, refunds,
     adjustments, etc..
 
      J. Transportation
 
1. Records pertaining to
 transportation of household
 goods:
    (a) Estimate of charges..  1 year.
    (b) Order for service....  1 year.
    (c) Vehicle-load manifest  1 year.
    (d) Descriptive inventory  1 year.
2. Records and reports
 pertaining to operation of
 marine and floating
 equipment:
    (a) Ship log.............  3 years.
    (b) Ship articles........  3 years.
    (c) Passenger and room     3 years.
     list.
    (d) Floatmen's barge,      2 years.
     lighter, and escrow
     captain's reports,
     demurrage records,
     towing reports and
     checks sheets.
3. Dispatchers' sheets,        3 years.
 registers, and other records
 pertaining to movement of
 transportation equipment.
4. Import and export records   2 years.
 including bonded freight and
 steamship engagements.
5. Records, reports, orders    3 years.
 and tickets pertaining to
 weighting of freight.
6. Records of loading and      2 years.
 unloading of transportation
 equipment.
7. Records pertaining to the   2 years.
 diversion or reconsignment
 of freight, including
 requests, tracers, and
 correspondence.
8. Other.....................  Note A.
 
    K. Supporting Data for
    Reports and Statistics
 
1. Supporting data for
 reports filed with the
 Federal Motor Carrier Safety
 Administration, the Surface
 Transportation Board, the
 Department of
 Transportation's Bureau of
 Transportation Statistics
 and regulatory bodies:
    (a) Supporting data for    3 years.
     annual financial,
     operating and
     statistical reports.
    (b) Supporting data for    3 years.
     periodical reports of
     operating revenues,
     expenses, and income.
    (c) Supporting data for    3 years.
     reports detailing use of
     proceeds from issuance
     or sale of company
     securities.
    (d) Supporting data for    3 years after disposition of the
     valuation inventory        property.
     reports and records.
     This includes related
     notes, maps and
     sketches, underlying
     engineering, land, and
     accounting reports,
     pricing schedules,
     summary or collection
     sheets, yearly reports
     of changes and other
     miscellaneous data, all
     relating to the
     valuation of the
     company's property by
     the Federal Highway
     Administration, the
     Surface Transportation
     Board, the Department of
     Transportation's Bureau
     of Transportation
     Statistics or other
     regulatory body.
2. Supporting data for         3 years.
 periodical reports of
 accidents, inspections,
 tests, hours of service,
 repairs, etc..
3. Supporting data for         3 years.
 periodical statistical of
 operating results or
 performance by tonnage,
 mileage, passengers carried,
 piggyback traffic,
 commodities, costs, analyses
 of increases and decreases,
 or otherwise.
 
       M. Miscellaneous
 
1. Index of records..........  Until revised as record structure
                                changes.
2. Statement listing records   For the remainder of the period as
 prematurely destroyed or       prescribed for records destroyed.
 lost.
------------------------------------------------------------------------
Note A--Records referenced to this note shall be maintained as
  determined by the designated records supervisory official. Companies
  should be mindful of the record retention requirements of the Internal
  Revenue Service, Securities and Exchange Commission, State and local
  jurisdictions, and other regulatory agencies. Companies shall exercise
  reasonable care in choosing retention periods, and the choice of
  retention periods shall reflect past experiences, company needs,
  pending litigation, and regulatory requirements.


[[Page 152]]



PART 380_SPECIAL TRAINING REQUIREMENTS--Table of Contents




 Subpart A_Longer Combination Vehicle (LCV) Driver-Training and Driver-
                     Instructor Requirements_General

Sec.
380.101 Purpose and scope.
380.103 Applicability.
380.105 Definitions.
380.107 General requirements.
380.109 Driver testing.
380.111 Substitute for driver training.
380.113 Employer responsibilities.

                  Subpart B_LCV Driver-Training Program

380.201 General requirements.
380.203 LCV Doubles.
380.205 LCV Triples.

              Subpart C_LCV Driver-Instructor Requirements

380.301 General requirements.
380.303 Substitute for instructor requirements.
380.305 Employer responsibilities.

                 Subpart D_Driver-Training Certification

380.401 Certification document.

           Subpart E_Entry-Level Driver Training Requirements

380.501 Applicability.
380.502 Definitions.
380.503 Entry-level driver training requirements.
380.505 Proof of training.
380.507 Driver responsibilities.
380.509 Employer responsibilities.
380.511 Employer recordkeeping responsibilities.
380.513 Required information on the training certificate.

Appendix to Part 380--LCV Driver Training Programs, Required Knowledge 
          and Skills

    Authority: 49 U.S.C. 31133, 31136, 31307, and 31502; sec. 4007(a) 
and (b) of Pub. L. 102-240 (105 Stat. 2151-2152); and 49 CFR 1.73.

    Source: 69 FR 16732, Mar. 30, 2004, unless otherwise noted.



 Subpart A_Longer Combination Vehicle (LCV) Driver-Training and Driver-
                     Instructor Requirements_General



Sec. 380.101  Purpose and scope.

    (a) Purpose. The purpose of this part is to establish minimum 
requirements for operators of longer combination vehicles (LCVs) and LCV 
driver-instructors.
    (b) Scope. This part establishes:
    (1) Minimum training requirements for operators of LCVs;
    (2) Minimum qualification requirements for LCV driver-instructors; 
and
    (3) Procedures for determining compliance with this part by 
operators, instructors, training institutions, and employers.



Sec. 380.103  Applicability.

    The rules in this part apply to all operators of LCVs in interstate 
commerce, employers of such persons, and LCV driver-instructors.



Sec. 380.105  Definitions.

    (a) The definitions in part 383 of this subchapter apply to this 
part, except where otherwise specifically noted.
    (b) As used in this part:
    Classroom instructor means a qualified LCV driver-instructor who 
provides knowledge instruction that does not involve the actual 
operation of a longer combination vehicle or its components. Instruction 
may take place in a parking lot, garage, or any other facility suitable 
for instruction.
    Longer combination vehicle (LCV) means any combination of a truck-
tractor and two or more trailers or semi-trailers, which operate on the 
National System of Interstate and Defense Highways with a gross vehicle 
weight (GVW) greater than 36,288 kilograms (80,000 pounds).
    LCV Double means an LCV consisting of a truck-tractor in combination 
with two trailers and/or semi-trailers.
    LCV Triple means an LCV consisting of a truck-tractor in combination 
with three trailers and/or semi-trailers.
    Qualified LCV driver-instructor means an instructor meeting the 
requirements contained in subpart C of this part. There are two types of 
qualified

[[Page 153]]

LCV driver-instructors: (1) classroom instructor and (2) skills 
instructor.
    Skills instructor means a qualified LCV driver-instructor who 
provides behind-the-wheel instruction involving the actual operation of 
a longer combination vehicle or its components outside a classroom.
    Training institution means any technical or vocational school 
accredited by an accrediting institution recognized by the U.S. 
Department of Education. A motor carrier's training program for its 
drivers or an entity that exclusively offers services to a single motor 
carrier is not a training institution.



Sec. 380.107  General requirements.

    (a) Except as provided in Sec. 380.111, a driver who wishes to 
operate an LCV shall first take and successfully complete an LCV driver-
training program that provides the knowledge and skills necessary to 
operate an LCV. The specific types of knowledge and skills that a 
training program shall include are outlined in the appendix to this 
part.
    (b) Before a person receives training:
    (1) That person shall present evidence to the LCV driver-instructor 
showing that he/she meets the general requirements set forth in subpart 
B of this part for the specific type of LCV training to be taken.
    (2) The LCV driver-instructor shall verify that each trainee 
applicant meets the general requirements for the specific type of LCV 
training to be taken.
    (c) Upon successful completion of the training requirement, the 
driver-student shall be issued an LCV Driver Training Certificate by a 
certifying official of the training entity in accordance with the 
requirements specified in subpart D of this part.



Sec. 380.109  Driver testing.

    (a) Testing methods. The driver-student must pass knowledge and 
skills tests in accordance with the following requirements, to determine 
whether a driver-student has successfully completed an LCV driver-
training program as specified in subpart B of this part. The written 
knowledge test may be administered by any qualified driver-instructor. 
The skills tests, based on actual operation of an LCV, must be 
administered by a qualified LCV skills instructor.
    (1) All tests shall be constructed to determine if the driver-
student possesses the required knowledge and skills set forth in the 
appendix to this part for the specific type of LCV training program 
being taught.
    (2) Instructors shall develop their own tests for the specific type 
of LCV-training program being taught, but those tests must be at least 
as stringent as the requirements set forth in paragraph (b) of this 
section.
    (3) LCV driver-instructors shall establish specific methods for 
scoring the knowledge and skills tests.
    (4) Passing scores must meet the requirements of paragraph (b) of 
this section.
    (5) Knowledge and skills tests shall be based upon the information 
taught in the LCV training programs as set forth in the appendix to this 
part.
    (6) Each knowledge test shall address the training provided during 
both theoretical and behind-the-wheel instruction, and include at least 
one question from each of the units listed in the table to the appendix 
to this part, for the specific type of LCV training program being 
taught.
    (7) Each skills test shall include all the maneuvers and operations 
practiced during the Proficiency Development unit of instruction 
(behind-the-wheel instruction), as described in the appendix to this 
part, for the specific type of LCV training program being taught.
    (b) Proficiency determinations. The driver-student must meet the 
following conditions to be certified as an LCV driver:
    (1) Answer correctly at least 80 percent of the questions on each 
knowledge test; and
    (2) Demonstrate that he/she can successfully perform all of the 
skills addressed in paragraph (a)(7) of this section.
    (c) Automatic test failure. Failure to obey traffic laws or 
involvement in a preventable crash during the skills portion of the test 
will result in automatic

[[Page 154]]

failure. Automatic test failure determinations are made at the sole 
discretion of the qualified LCV driver-instructor.
    (d) Guidance for testing methods and proficiency determinations. 
Motor carriers should refer to the Examiner's Manual for Commercial 
Driver's License Tests for help in developing testing methods and making 
proficiency determinations. You may obtain a copy of this document by 
contacting the American Association of Motor Vehicle Administrators 
(AAMVA), 4300 Wilson Boulevard, Suite 400, Arlington, Virginia 22203.



Sec. 380.111  Substitute for driver training.

    (a) Grandfather clause. The LCV driver-training requirements 
specified in subpart B of this part do not apply to an individual who 
meets the conditions set forth in paragraphs (b), (c), and (d) of this 
section. A motor carrier must ensure that an individual claiming 
eligibility to operate an LCV on the basis of this section meets these 
conditions before allowing him/her to operate an LCV.
    (b) An individual must certify that, during the 2-year period 
immediately preceding the date of application for a Certificate of 
Grandfathering, he/she had:
    (1) A valid Class A CDL with a ``double/triple trailers'' 
endorsement;
    (2) No more than one driver's license;
    (3) No suspension, revocation, or cancellation of his/her CDL;
    (4) No convictions for a major offense while operating a CMV as 
defined in Sec. 383.51(b) of this subchapter;
    (5) No convictions for a railroad-highway grade crossing offense 
while operating a CMV as defined in Sec. 383.51(d) of this subchapter;
    (6) No convictions for violating an out-of-service order as defined 
in Sec. 383.51(e) of this subchapter;
    (7) No more than one conviction for a serious traffic violation, as 
defined in Sec. 383.5 of this subchapter, while operating a CMV; and
    (8) No convictions for a violation of State or local law relating to 
motor vehicle traffic control arising in connection with any traffic 
crash while operating a CMV.
    (c) An individual must certify and provide evidence that he/she:
    (1) Is regularly employed in a job requiring the operation of a CMV 
that requires a CDL with a double/triple trailers endorsement; and
    (2) Has operated, during the 2 years immediately preceding the date 
of application for a Certificate of Grandfathering, vehicles 
representative of the type of LCV that he/she seeks to continue 
operating.
    (d) A motor carrier must issue a Certificate of Grandfathering to a 
person who meets the requirements of this section and must maintain a 
copy of the certificate in the individual's Driver Qualification file.

[[Page 155]]

[GRAPHIC] [TIFF OMITTED] TR30MR04.000

    (e) An applicant may be grandfathered under this section only during 
the year following June 1, 2004.



Sec. 380.113  Employer responsibilities.

    (a) No motor carrier shall:
    (1) Allow, require, permit or authorize an individual to operate an 
LCV unless he/she meets the requirements in Sec. Sec. 380.203 or 
380.205 and has been issued the LCV driver-training certificate 
described in Sec. 380.401. This provision does not apply to individuals 
who are eligible for the substitute for driver training provision in 
Sec. 380.111.
    (2) Allow, require, permit, or authorize an individual to operate an 
LCV which the LCV driver-training certificate, CDL, and CDL 
endorsement(s) do not authorize the driver to operate. This provision 
applies to individuals employed by or under contract to the motor 
carrier.
    (b) A motor carrier that employs or has under contract LCV drivers 
shall provide evidence of the certifications required by Sec. 380.401 
or Sec. 380.111 of this part when requested by an authorized FMCSA, 
State, or local official in the course of a compliance review.



                  Subpart B_LCV Driver-Training Program



Sec. 380.201  General requirements.

    (a) The LCV Driver-Training Program that is described in the 
appendix to this part requires training using an LCV Double or LCV 
Triple and must include the following general categories of instruction:
    (1) Orientation;
    (2) Basic operation;
    (3) Safe operating practices;
    (4) Advanced operations; and
    (5) Nondriving activities.
    (b) The LCV Driver-Training Program must include the minimum topics 
of training set forth in the appendix to this part and behind-the-wheel 
instruction that is designed to provide an opportunity to develop the 
skills outlined under the Proficiency Development unit of the training 
program.

[[Page 156]]



Sec. 380.203  LCV Doubles.

    (a) To qualify for the training necessary to operate an LCV Double, 
a driver-student shall, during the 6 months immediately preceding 
application for training, have:
    (1) A valid Class A CDL with a double/triple trailer endorsement;
    (2) Driving experience in a Group A vehicle as described in Sec. 
383.91 of this subchapter. Evidence of driving experience shall be an 
employer's written statement that the driver has, for at least 6 months 
immediately preceding application, operated a Group A vehicle while 
under his/her employ;
    (3) No more than one driver's license;
    (4) No suspension, revocation, or cancellation of his/her CDL;
    (5) No convictions for a major offense, as defined in Sec. 
383.51(b) of this subchapter, while operating a CMV;
    (6) No convictions for a railroad-highway grade crossing offense, as 
defined in Sec. 383.51(d) of this subchapter, while operating a CMV;
    (7) No convictions for violating an out-of-service order as defined 
in Sec. 383.51(e) of this subchapter;
    (8) No more than one conviction for a serious traffic violation, as 
defined in Sec. 383.5 of this subchapter, while operating a CMV; and
    (9) No convictions for a violation of State or local law relating to 
motor vehicle traffic control arising in connection with any traffic 
crash while operating a CMV.
    (b) Driver-students meeting the preliminary requirements in 
paragraph (a) of this section shall successfully complete a training 
program that meets the minimum unit requirements for LCV Doubles as set 
forth in the appendix to this part.
    (c) Driver-students who successfully complete the Driver Training 
Program for LCV Doubles shall be issued a certificate, in accordance 
with subpart D of this part, indicating the driver is qualified to 
operate an LCV Double.



Sec. 380.205  LCV Triples.

    (a) To qualify for the training necessary to operate an LCV Triple, 
a driver-student shall, during the 6 months immediately preceding 
application for training, have:
    (1) A valid Class A CDL with a double/triple trailer endorsement;
    (2) Experience operating the vehicle listed under paragraph 
(a)(2)(i) or (a)(2)(ii) of this section. Evidence of driving experience 
shall be an employer's written statement that the driver has, during the 
6 months immediately preceding application, operated the applicable 
vehicle(s):
    (i) Group A truck-tractor/semi-trailer combination as described in 
Sec. 383.91 of this subchapter; or
    (ii) Group A truck-tractor/semi-trailer/trailer combination that 
operates at a gross vehicle weight of 80,000 pounds or less;
    (3) No more than one driver's license;
    (4) No suspension, revocation, or cancellation of his/her CDL;
    (5) No convictions for a major offense, as defined in Sec. 
383.51(b) of this subchapter, while operating a CMV;
    (6) No convictions for a railroad-highway grade crossing offense, as 
defined in Sec. 383.51(d) of this subchapter, while operating a CMV;
    (7) No convictions for violating an out-of-service order, as defined 
in Sec. 383.51(e) of this subchapter;
    (8) No more than one conviction for a serious traffic violation, as 
defined in Sec. 383.5 of this subchapter, while operating a CMV; and
    (9) No convictions for a violation of State or local law relating to 
motor vehicle traffic control arising in connection with any traffic 
crash, while operating a CMV.
    (b) Driver-students meeting the preliminary requirements in 
paragraph (a) of this section shall successfully complete a training 
program that meets the minimum unit requirements for LCV Triples as set 
forth in the appendix to this part.
    (c) Driver-students who successfully complete the Driver Training 
Program for LCV Triples shall be issued a certificate, in accordance 
with subpart D of this part, indicating the driver is qualified to 
operate an LCV Triple.



              Subpart C_LCV Driver-Instructor Requirements



Sec. 380.301  General requirements.

    There are two types of LCV driver-instructors: Classroom instructors 
and

[[Page 157]]

Skills instructors. Except as provided in Sec. 380.303, you must meet 
the conditions under paragraph (a) or paragraph (b) of this section to 
qualify as an LCV driver-instructor.
    (a) Classroom instructor. To qualify as an LCV Classroom instructor, 
a person shall:
    (1) Have audited the driver-training course that he/she intends to 
instruct.
    (2) If employed by a training institution, meet all State 
requirements for a vocational instructor.
    (b) Skills instructor. To qualify as an LCV skills instructor, a 
person shall:
    (1) Provide evidence of successful completion of the Driver-Training 
Program requirements, as set forth in subpart B of this part, when 
requested by employers and/or an authorized FMCSA, State, or local 
official in the course of a compliance review. The Driver-Training 
Program must be for the operation of CMVs representative of the subject 
matter that he/she will teach.
    (2) If employed by a training institution, meet all State 
requirements for a vocational instructor;
    (3) Possess a valid Class A CDL with all endorsements necessary to 
operate the CMVs applicable to the subject matter being taught (LCV 
Doubles and/or LCV Triples, including any specialized variation thereof, 
such as a tank vehicle, that requires an additional endorsement); and
    (4) Have at least 2 years' CMV driving experience in a vehicle 
representative of the type of driver training to be provided (LCV 
Doubles or LCV Triples).



Sec. 380.303  Substitute for instructor requirements.

    (a) Classroom instructor. The requirements specified under Sec. 
380.301(a) of this part for a qualified LCV driver-instructor are waived 
for a classroom instructor-candidate who has 2 years of recent 
satisfactory experience teaching the classroom portion of a program 
similar in content to that set forth in the appendix to this part.
    (b) Skills instructor. The requirements specified under Sec. 
380.301(b) of this part for a qualified LCV driver-instructor are waived 
for a skills instructor-candidate who:
    (1) Meets the conditions of Sec. 380.111(b);
    (2) Has CMV driving experience during the previous 2 years in a 
vehicle representative of the type of LCV that is the subject of the 
training course to be provided;
    (3) Has experience during the previous 2 years in teaching the 
operation of the type of LCV that is the subject of the training course 
to be provided; and
    (4) If employed by a training institution, meets all State 
requirements for a vocational instructor.



Sec. 380.305  Employer responsibilities.

    (a) No motor carrier shall: (1) Knowingly allow, require, permit or 
authorize a driver-instructor in its employ, or under contract to the 
motor carrier, to provide LCV driver training unless such person is a 
qualified LCV driver-instructor under the requirements of this subpart; 
or
    (2) Contract with a training institution to provide LCV driver 
training unless the institution:
    (i) Uses instructors who are qualified LCV driver-instructors under 
the requirements of this subpart;
    (ii) Is accredited by an accrediting institution recognized by the 
U.S. Department of Education;
    (iii) Is in compliance with all applicable State training school 
requirements; and
    (iv) Identifies drivers certified under Sec. 380.401 of this part, 
when requested by employers and/or an authorized FMCSA, State, or local 
official in the course of a compliance review.
    (b) A motor carrier that employs or has under contract qualified LCV 
driver-instructors shall provide evidence of the certifications required 
by Sec. 380.301 or Sec. 380.303 of this part, when requested by an 
authorized FMCSA, State, or local official in the course of a compliance 
review.



                 Subpart D_Driver-Training Certification



Sec. 380.401  Certification document.

    (a) A student who successfully completes LCV driver training shall 
be issued a Driver-Training Certificate

[[Page 158]]

that is substantially in accordance with the following form.
[GRAPHIC] [TIFF OMITTED] TR30MR04.001

    (b) An LCV driver must provide a copy of the Driver-Training 
Certificate to his/her employer to be filed in the Driver Qualification 
File.



           Subpart E_Entry-Level Driver Training Requirements

    Source: 69 FR 29404, May 21, 2004, unless otherwise noted.



Sec. 380.501  Applicability.

    All entry-level drivers who drive in interstate commerce and are 
subject to the CDL requirements of part 383 of this chapter must comply 
with the rules of this subpart, except drivers who are subject to the 
jurisdiction of the Federal Transit Administration or who are otherwise 
exempt under Sec. 390.3(f) of this subchapter.



Sec. 380.502  Definitions.

    (a) The definitions in part 383 of this chapter apply to this part, 
except where otherwise specifically noted.
    (b) As used in this subpart:
    Entry-level driver is a driver with less than one year of experience 
operating a CMV with a CDL in interstate commerce.
    Entry-level driver training is training the CDL driver receives in 
driver qualification requirements, hours of service of drivers, driver 
wellness, and whistle blower protection as appropriate to the entry-
level driver's current position in addition to passing the CDL test.

[[Page 159]]



Sec. 380.503  Entry-level driver training requirements.

    Entry-level driver training must include instruction addressing the 
following four areas:
    (a) Driver qualification requirements. The Federal rules on medical 
certification, medical examination procedures, general qualifications, 
responsibilities, and disqualifications based on various offenses, 
orders, and loss of driving privileges (part 391, subparts B and E of 
this subchapter).
    (b) Hours of service of drivers. The limitations on driving hours, 
the requirement to be off-duty for certain periods of time, record of 
duty status preparation, and exceptions (part 395 of this subchapter). 
Fatigue countermeasures as a means to avoid crashes.
    (c) Driver wellness. Basic health maintenance including diet and 
exercise. The importance of avoiding excessive use of alcohol.
    (d) Whistleblower protection. The right of an employee to question 
the safety practices of an employer without the employee's risk of 
losing a job or being subject to reprisals simply for stating a safety 
concern (29 CFR part 1978).



Sec. 380.505  Proof of training.

    An employer who uses an entry-level driver must ensure the driver 
has received a training certificate containing all the information 
contained in Sec. 380.513 from the training provider.



Sec. 380.507  Driver responsibilities.

    Each entry-level driver must receive training required by Sec. 
380.503.



Sec. 380.509  Employer responsibilities.

    (a) Each employer must ensure each entry-level driver who first 
began operating a CMV requiring a CDL in interstate commerce after July 
20, 2003, receives training required by Sec. 380.503.
    (b) Each employer must place a copy of the driver's training 
certificate in the driver's personnel or qualification file.
    (c) All records required by this subpart shall be maintained as 
required by Sec. 390.31 of this subchapter and shall be made available 
for inspection at the employer's principal place of business within two 
business days after a request has been made by an authorized 
representative of the Federal Motor Carrier Safety Administration.



Sec. 380.511  Employer recordkeeping responsibilities.

    The employer must keep the records specified in Sec. 380.505 for as 
long as the employer employs the driver and for one year thereafter.



Sec. 380.513  Required information on the training certificate.

    The training provider must provide a training certificate or diploma 
to the entry-level driver. If an employer is the training provider, the 
employer must provide a training certificate or diploma to the entry-
level driver. The certificate or diploma must contain the following 
seven items of information:
    (a) Date of certificate issuance.
    (b) Name of training provider.
    (c) Mailing address of training provider.
    (d) Name of driver.
    (e) A statement that the driver has completed training in driver 
qualification requirements, hours of service of drivers, driver 
wellness, and whistle blower protection requirements substantially in 
accordance with the following sentence:

    I certify ----------has completed training requirements set forth in 
the Federal Motor Carrier Safety Regulations for entry-level driver 
training in accordance with 49 CFR 380.503.

    (f) The printed name of the person attesting that the driver has 
received the required training.
    (g) The signature of the person attesting that the driver has 
received the required training.



   Sec. Appendix to Part 380--LCV Driver Training Programs, Required 
                          Knowledge and Skills

    The following table lists topics of instruction required for drivers 
of longer combination vehicles pursuant to 49 CFR part 380, subpart B. 
The training courses for operators of LCV Doubles and LCV Triples must 
be distinct and tailored to address their unique operating and handling 
characteristics. Each course must include the minimum topics of 
instruction, including behind-the-wheel training designed to provide an 
opportunity to develop the skills outlined under the Proficiency 
Development unit of the training

[[Page 160]]

program. Only a skills instructor may administer behind-the-wheel 
training involving the operation of an LCV or one of its components. A 
classroom instructor may administer only instruction that does not 
involve the operation of an LCV or one of its components.

          Table to the Appendix--Course Topics for LCV Drivers
------------------------------------------------------------------------
 
------------------------------------------------------------------------
                         Section 1: Orientation
------------------------------------------------------------------------
1.1.............................  LCVs in Trucking
1.2.............................  Regulatory Factors
1.3.............................  Driver Qualifications
1.4.............................  Vehicle Configuration Factors
------------------------------------------------------------------------
                       Section 2: Basic Operation
------------------------------------------------------------------------
2.1.............................  Coupling and Uncoupling
2.2.............................  Basic Control and Handling
2.3.............................  Basic Maneuvers
2.4.............................  Turning, Steering and Tracking
2.5.............................  Proficiency Development
------------------------------------------------------------------------
                   Section 3: Safe Operating Practices
------------------------------------------------------------------------
3.1.............................  Interacting with Traffic
3.2.............................  Speed and Space Management
3.3.............................  Night Operations
3.4.............................  Extreme Driving Conditions
3.5.............................  Security Issues
3.6.............................  Proficiency Development
------------------------------------------------------------------------
                     Section 4: Advanced Operations
------------------------------------------------------------------------
4.1.............................  Hazard Perception
4.2.............................  Hazardous Situations
------------------------------------------------------------------------
4.3.............................  Maintenance and Troubleshooting
------------------------------------------------------------------------
                    Section 5: Non-Driving Activities
------------------------------------------------------------------------
5.1.............................  Routes and Trip Planning
5.2.............................  Cargo and Weight Considerations
------------------------------------------------------------------------

                         Section 1--Orientation

    The units in this section must provide an orientation to the 
training curriculum and must cover the role LCVs play within the motor 
carrier industry, the factors that affect their operations, and the role 
that drivers play in the safe operation of LCVs.
    Unit 1.1--LCVs in Trucking. This unit must provide an introduction 
to the emergence of LCVs in trucking and must serve as an orientation to 
the course content. Emphasis must be placed upon the role the driver 
plays in transportation.
    Unit 1.2--Regulatory factors. This unit must provide instruction 
addressing the Federal, State, and local governmental bodies that 
propose, enact, and implement the laws, rules, and regulations that 
affect the trucking industry. Emphasis must be placed on those 
regulatory factors that affect LCVs, including 23 CFR 658.23 and 
Appendix C to part 658.
    Unit 1.3--Driver qualifications. This unit must provide classroom 
instruction addressing the Federal and State laws, rules, and 
regulations that define LCV driver qualifications. It also must include 
a discussion on medical examinations, drug and alcohol tests, 
certification, and basic health and wellness issues. Emphasis must be 
placed upon topics essential to physical and mental health maintenance, 
including (1) diet, (2) exercise, (3) avoidance of alcohol and drug 
abuse, and caution in the use of prescription and nonprescription drugs, 
(4) the adverse effects of driver fatigue, and (5) effective fatigue 
countermeasures. Driver-trainees who have successfully completed the 
Entry-level training segments at Sec. 380.503(a) and (c) are considered 
to have satisfied the requirements of Unit 1.3.
    Unit 1.4--Vehicle configuration factors. This unit must provide 
classroom instruction addressing the key vehicle components used in the 
configuration of longer combination vehicles. It also must familiarize 
the driver-trainee with various vehicle combinations, as well as provide 
instruction about unique characteristics and factors associated with LCV 
configurations.

                       Section 2--Basic Operation

    The units in this section must cover the interaction between the 
driver and the vehicle. They must teach driver-trainees how to couple 
and uncouple LCVs, ensure the vehicles are in proper operating 
condition, and control the motion of LCVs under various road and traffic 
conditions.
    During the driving exercises at off-highway locations required by 
this section, the driver-trainee must first familiarize himself/herself 
with basic operating characteristics of an LCV. Utilizing an LCV, 
students must be able to perform the skills learned in each unit to a 
level of proficiency required to permit safe transition to on-street 
driving.
    Unit 2.1--Coupling and uncoupling. This unit must provide 
instruction addressing the procedures for coupling and uncoupling LCVs. 
While vehicle coupling and uncoupling procedures are common to all 
truck-tractor/semi-trailer operations, some factors are peculiar to 
LCVs. Emphasis must be placed upon preplanning and safe operating 
procedures.
    Unit 2.2--Basic control and handling. This unit must provide an 
introduction to basic vehicular control and handling as it applies

[[Page 161]]

to LCVs. This must include instruction addressing brake performance, 
handling characteristics and factors affecting LCV stability while 
braking, turning, and cornering. Emphasis must be placed upon safe 
operating procedures.
    Unit 2.3--Basic maneuvers. This unit must provide instruction 
addressing the basic vehicular maneuvers that will be encountered by LCV 
drivers. This must include instruction relative to backing, lane 
positioning and path selection, merging situations, and parking LCVs. 
Emphasis must be placed upon safe operating procedures as they apply to 
brake performance and directional stability while accelerating, braking, 
merging, cornering, turning, and parking.
    Unit 2.4--Turning, steering, and tracking. This unit must provide 
instruction addressing turning situations, steering maneuvers, and the 
tracking of LCV trailers. This must include instruction related to 
trailer sway and off-tracking. Emphasis must be placed on maintaining 
directional stability.
    Unit 2.5--Proficiency development: basic operations. The purpose of 
this unit is to enable driver-students to gain the proficiency in basic 
operation needed to safely undertake on-street instruction in the Safe 
Operations Practices section of the curriculum.
    The activities of this unit must consist of driving exercises that 
provide practice for the development of basic control skills and mastery 
of basic maneuvers. Driver-students practice skills and maneuvers 
learned in the Basic Control and Handling; Basic Maneuvers; and Turning, 
Steering and Tracking units. A series of basic exercises is practiced at 
off-highway locations until students develop sufficient proficiency for 
transition to on-street driving.
    Once the driver-student's skills have been measured and found 
adequate, the driver-student must be allowed to move to on-the-street 
driving.
    Nearly all activity in this unit will take place on the driving 
range or on streets or roads that have low-density traffic conditions.

                   Section 3--Safe Operating Practices

    The units in this section must cover the interaction between student 
drivers, the vehicle, and the traffic environment. They must teach 
driver-students how to apply their basic operating skills in a way that 
ensures their safety and that of other road users under various road, 
weather, and traffic conditions.
    Unit 3.1--Interacting with traffic. This unit must provide 
instruction addressing the principles of visual search, communication, 
and sharing the road with other traffic. Emphasis must be placed upon 
visual search, mirror usage, signaling and/or positioning the vehicle to 
communicate, and understanding the special situations encountered by LCV 
drivers in various traffic situations.
    Unit 3.2--Speed and space management. This unit must provide 
instruction addressing the principles of speed and space management. 
Emphasis must be placed upon maintaining safe vehicular speed and 
appropriate space surrounding the vehicle under various traffic and road 
conditions. Particular attention must be placed upon understanding the 
special situations encountered by LCVs in various traffic situations.
    Unit 3.3--Night operations. This unit must provide instruction 
addressing the principles of Night Operations. Emphasis must be placed 
upon the factors affecting operation of LCVs at night. Night driving 
presents specific factors that require special attention on the part of 
the driver. Changes in vehicle safety inspection, vision, 
communications, speed management, and space management are needed to 
deal with the special problems night driving presents.
    Unit 3.4--Extreme driving conditions. This unit must provide 
instruction addressing the driving of LCVs under extreme driving 
conditions. Emphasis must be placed upon the factors affecting the 
operation of LCVs in cold, hot, and inclement weather and in the 
mountains and desert. Changes in basic driving habits are needed to deal 
with the specific problems presented by these extreme driving 
conditions.
    Unit 3.5--Security issues. This unit must include a discussion of 
security requirements imposed by the Department of Homeland Security, 
Transportation Security Administration; the U.S. Department of 
Transportation, Research and Special Programs Administration; and any 
other State or Federal agency with responsibility for highway or motor 
carrier security.
    Unit 3.6--Proficiency development. This unit must provide driver-
students an opportunity to refine, within the on-street traffic 
environment, their vehicle handling skills learned in the first three 
sections. Driver-student performance progress must be closely monitored 
to determine when the level of proficiency required for carrying out the 
basic traffic maneuvers of stopping, turning, merging, straight driving, 
curves, lane changing, passing, driving on hills, driving through 
traffic restrictions, and parking has been attained. The driver-student 
must also be assessed for regulatory compliance with all traffic laws.
    Nearly all activity in this unit will take place on public roadways 
in a full range of traffic environments applicable to this vehicle 
configuration. This must include urban and rural uncontrolled roadways, 
expressways or freeways, under light, moderate, and heavy traffic 
conditions. There must be a brief classroom session to familiarize 
driver-

[[Page 162]]

students with the type of on-street maneuvers they will perform and how 
their performance will be rated.
    The instructor must assess the level of skill development of the 
driver-student and must increase in difficulty, based upon the level of 
skill attained, the types of maneuvers, roadways and traffic conditions 
to which the driver-student is exposed.

                     Section 4--Advanced Operations

    The units in this section must introduce higher level skills that 
can be acquired only after the more fundamental skills and knowledge 
taught in sections two and three have been mastered. They must teach the 
perceptual skills necessary to recognize potential hazards, and must 
demonstrate the procedures needed to handle an LCV when faced with a 
hazard.
    The Maintenance and Trouble-shooting Unit must provide instruction 
that addresses how to keep the vehicle in safe and efficient operating 
condition. The purpose of this unit is to teach the correct way to 
perform simple maintenance tasks, and how to troubleshoot and report 
those vehicle discrepancies or deficiencies that must be repaired by a 
qualified mechanic.
    Unit 4.1--Hazard perception. This unit must provide instruction 
addressing the principles of recognizing hazards in sufficient time to 
reduce the severity of the hazard and neutralize a possible emergency 
situation. While hazards are present in all motor vehicle traffic 
operations, some are peculiar to LCV operations. Emphasis must be placed 
upon hazard recognition, visual search, and response to possible 
emergency-producing situations encountered by LCV drivers in various 
traffic situations.
    Unit 4.2--Hazardous situations. This unit must address dealing with 
specific procedures appropriate for LCV emergencies. These must include 
evasive steering, emergency braking, off-road recovery, brake failures, 
tire blowouts, rearward amplification, hydroplaning, skidding, 
jackknifing and the rollover phenomenon. The discussion must include a 
review of unsafe acts and the role they play in producing hazardous 
situations.
    Unit 4.3--Maintenance and trouble-shooting. This unit must introduce 
driver-students to the basic servicing and checking procedures for the 
various vehicle components and provide knowledge of conducting 
preventive maintenance functions, making simple emergency repairs, and 
diagnosing and reporting vehicle malfunctions.

                    Section 5--Non-Driving Activities

    The units in this section must cover activities that are not 
directly related to the vehicle itself but must be performed by an LCV 
driver. The units in this section must ensure these activities are 
performed in a manner that ensures the safety of the driver, vehicle, 
cargo, and other road users.
    Unit 5.1--Routes and trip planning. This unit must address the 
importance of and requirements for planning routes and trips. This must 
include classroom discussion of Federal and State requirements for a 
number of topics including permits, vehicle size and weight limitations, 
designated highways, local access, the reasonable access rule, staging 
areas, and access zones.
    Unit 5.2--Cargo and weight considerations. This unit must address 
the importance of proper cargo documentation, loading, securing and 
unloading cargo, weight distribution, load sequencing and trailer 
placement. Emphasis must be placed on the importance of axle weight 
distribution, as well as on trailer placement and its effect on vehicle 
handling.



PART 381_WAIVERS, EXEMPTIONS, AND PILOT PROGRAMS--Table of Contents




                            Subpart A_General

Sec.
381.100 What is the purpose of this part?
381.105 Who is required to comply with the rules in this part?
381.110 What definitions are applicable to this part?

               Subpart B_Procedures for Requesting Waivers

381.200 What is a waiver?
381.205 How do I determine when I may request a waiver?
381.210 How do I request a waiver?
381.215 What will the FMCSA do after the agency receives my request for 
          a waiver?
381.220 How long will it take the agency to respond to my request for a 
          waiver?
381.225 Who should I contact if I have questions about the information I 
          am required to submit to the FMCSA or about the status of my 
          request for a waiver?

            Subpart C_Procedures for Applying for Exemptions

381.300 What is an exemption?
381.305 How do I determine when I may apply for an exemption?
381.310 How do I apply for an exemption?
381.315 What will the FMCSA do after the agency receives my application 
          for an exemption?
381.320 How long will it take the agency to respond to my application 
          for an exemption?
381.325 Who should I contact if I have questions about the information I 
          am required to submit to the FMCSA or about the status of my 
          application for an exemption?

[[Page 163]]

381.330 What am I required to do if the FMCSA grants my application for 
          an exemption?

                 Subpart D_Initiation of Pilot Programs

381.400 What is a pilot program?
381.405 Who determines whether a pilot program should be initiated?
381.410 What may I do if I have an idea or suggestion for a pilot 
          program?
381.415 Who should I contact if I have questions about the information 
          to be included in my suggestion?
381.420 What will the FMCSA do after the agency receives my suggestion 
          for a pilot program?

         Subpart E_Administrative Procedures for Pilot Programs

381.500 What are the general requirements the agency must satisfy in 
          conducting a pilot program?
381.505 What are the minimum elements required for a pilot program?
381.510 May the FMCSA end a pilot program before its scheduled 
          completion date?
381.515 May the FMCSA remove approved participants from a pilot program?
381.520 What will the FMCSA do with the results from a pilot program?

                   Subpart F_Preemption of State Rules

381.600 Do waivers, exemptions, and pilot programs preempt State laws 
          and regulations?

    Authority: 49 U.S.C. 31136(e) and 31315; and 49 CFR 1.73.

    Source: 63 FR 67608, Dec. 8, 1998, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 381 appear at 66 FR 
49872, Oct. 1, 2001.



                            Subpart A_General



Sec. 381.100  What is the purpose of this part?

    This part prescribes the rules and procedures for requesting waivers 
and applying for exemptions from those provisions of the Federal Motor 
Carrier Safety Regulations (FMCSRs) which were issued on the authority 
of 49 U.S.C. 31136 or chapter 313, and the initiation and administration 
of pilot programs.



Sec. 381.105  Who is required to comply with the rules in this part?

    (a) You must comply with the rules in this part if you are going to 
request a waiver or apply for an exemption.
    (b) You should follow the instructions in subpart D of this part if 
you would like to recommend the agency initiate a pilot program.



Sec. 381.110  What definitions are applicable to this part?

    Commercial motor vehicle means any motor vehicle that meets the 
definition of ``commercial motor vehicle'' found at 49 CFR 382.107 
concerning controlled substances and alcohol use and testing, 49 CFR 
383.5 concerning commercial driver's license standards, or 49 CFR 390.5 
concerning parts 390 through 399 of the FMCSRs.
    Federal Motor Carrier Safety Administrator (the Administrator) means 
the chief executive of the Federal Motor Carrier Safety Administration, 
an agency within the Department of Transportation.
    FMCSRs means Federal Motor Carrier Safety Regulations (49 CFR parts 
382 and 383, Sec. Sec. 385.21 and 390.21, parts 391 through 393, 395, 
396, and 399).
    You means an individual or motor carrier or other entity that is, or 
will be, responsible for the operation of a CMV(s). The term includes a 
motor carrier's agents, officers and representatives as well as 
employees responsible for hiring, supervising, training, assigning, or 
dispatching of drivers and employees concerned with the installation, 
inspection, and maintenance of motor vehicle equipment and/or 
accessories. You also includes any interested party who would like to 
suggest or recommend that the FMCSA initiate a pilot program.



               Subpart B_Procedures for Requesting Waivers



Sec. 381.200  What is a waiver?

    (a) A waiver is temporary regulatory relief from one or more FMCSR 
given to a person subject to the regulations, or a person who intends to 
engage in an activity that would be subject to the regulations.

[[Page 164]]

    (b) A waiver provides the person with relief from the regulations 
for up to three months.
    (c) A waiver is intended for unique, non-emergency events and is 
subject to conditions imposed by the Administrator.
    (d) Waivers may only be granted from one or more of the requirements 
contained in the following parts and sections of the FMCSRs:
    (1) Part 382--Controlled Substances and Alcohol Use and Testing;
    (2) Part 383--Commercial Driver's License Standards; Requirements 
and Penalties;
    (3) Sec. 390.19 Motor Carrier Identification Report;
    (4) Sec. 390.21 Marking of commercial motor vehicles;
    (5) Part 391--Qualifications of Drivers;
    (6) Part 392--Driving of Commercial Motor Vehicles;
    (7) Part 393--Parts and Accessories Necessary for Safe Operation;
    (8) Part 395--Hours of Service of Drivers;
    (9) Part 396--Inspection, Repair, and Maintenance (except Sec. 
396.25); and
    (10) Part 399--Step, Handhold and Deck Requirements.



Sec. 381.205  How do I determine when I may request a waiver?

    (a) You may request a waiver if one or more FMCSR would prevent you 
from using or operating CMVs, or make it unreasonably difficult to do 
so, during a unique, non-emergency event that will take no more than 
three months to complete.
    (b) Before you decide to request a waiver, you should carefully 
review the regulation to determine whether there are any practical 
alternatives already available that would allow your use or operation of 
CMVs during the event. You should also determine whether you need a 
waiver from all of the requirements in one or more parts of the 
regulations, or whether a more limited waiver of certain sections within 
one or more of the parts of the regulations would provide an acceptable 
level of regulatory relief. For example, if you need relief from one of 
the recordkeeping requirements concerning driver qualifications, you 
should not request relief from all of the requirements of part 391.



Sec. 381.210  How do I request a waiver?

    (a) You must send a written request (for example, a typed or 
handwritten (printed) letter), which includes all of the information 
required by this section, to the Administrator, Federal Motor Carrier 
Safety Administration, 1200 New Jersey Ave., SE., Washington, DC 20590-
0001.
    (b) You must identify the person who would be covered by the waiver. 
The application for a waiver must include:
    (1) Your name, job title, mailing address, and daytime telephone 
number;
    (2) The name of the individual, motor carrier, or other entity that 
would be responsible for the use or operation of CMVs during the unique, 
non-emergency event;
    (3) Principal place of business for the motor carrier or other 
entity (street address, city, State, and zip code); and
    (4) The USDOT identification number for the motor carrier, if 
applicable.
    (c) You must provide a written statement that:
    (1) Describes the unique, non-emergency event for which the waiver 
would be used, including the time period during which the waiver is 
needed;
    (2) Identifies the regulation that you believe needs to be waived;
    (3) Provides an estimate of the total number of drivers and CMVs 
that would be operated under the terms and conditions of the waiver; and
    (4) Explains how you would ensure that you could achieve a level of 
safety that is equivalent to, or greater than, the level of safety that 
would be obtained by complying with the regulation.

[72 FR 67608, Dec. 8, 1998, as amended at 72 FR 55699, Oct. 1, 2007]



Sec. 381.215  What will the FMCSA do after the agency receives my 
request for a waiver?

    (a) The Federal Motor Carrier Safety Administration will review your 
request and make a recommendation to the Administrator. The final 
decision whether to grant or deny the application for a waiver will be 
made by the Administrator.

[[Page 165]]

    (b) After a decision is signed by the Administrator, you will be 
sent a copy of the document, which will include the terms and conditions 
for the waiver or the reason for denying the application for a waiver.



Sec. 381.220  How long will it take the agency to respond to my request
for a waiver?

    You should receive a response from the agency within 60 calendar 
days from the date the Administrator receives your request. However, 
depending on the complexity of the issues discussed in your application, 
and the availability of staff to review the material, a final decision 
may take up to 120 days.



Sec. 381.225  Who should I contact if I have questions about the 
information I am required to submit to the FMCSA or about the status

of my request for a waiver?

    You should contact the Federal Motor Carrier Safety Administration, 
Office of Bus and Truck Standards and Operations (MC-PS), 1200 New 
Jersey Ave., SE., Washington, DC 20590-0001.

[63 FR 67608, Dec. 8, 1998, as amended at 72 FR 55699, Oct. 1, 2007]



            Subpart C_Procedures for Applying for Exemptions



Sec. 381.300  What is an exemption?

    (a) An exemption is temporary regulatory relief from one or more 
FMCSR given to a person or class of persons subject to the regulations, 
or who intend to engage in an activity that would make them subject to 
the regulations.
    (b) An exemption provides the person or class of persons with relief 
from the regulations for up to two years, and may be renewed.
    (c) Exemptions may only be granted from one or more of the 
requirements contained in the following parts and sections of the 
FMCSRs:
    (1) Part 382--Controlled Substances and Alcohol Use and Testing;
    (2) Part 383--Commercial Driver's License Standards; Requirements 
and Penalties;
    (3) Part 391--Qualifications of Drivers;
    (4) Part 392--Driving of Commercial Motor Vehicles;
    (5) Part 393--Parts and Accessories Necessary for Safe Operation;
    (6) Part 395--Hours of Service of Drivers;
    (7) Part 396--Inspection, Repair, and Maintenance (except for Sec. 
396.25); and
    (8) Part 399--Step, Handhold and Deck Requirements.



Sec. 381.305  How do I determine when I may apply for an exemption?

    (a) You may apply for an exemption if one or more FMCSR prevents you 
from implementing more efficient or effective operations that would 
maintain a level of safety equivalent to, or greater than, the level 
achieved without the exemption.
    (b) Before you decide to apply for an exemption you should carefully 
review the regulation to determine whether there are any practical 
alternatives already available that would allow you to conduct your 
motor carrier operations. You should also determine whether you need an 
exemption from all of the requirements in one or more parts of the 
regulations, or whether a more limited exemption from certain sections 
within one or more parts of the regulations would provide an acceptable 
level of regulatory relief. For example, if you need regulatory relief 
from one of the recordkeeping requirements concerning driver 
qualifications, you should not request regulatory relief from all of the 
requirements of part 391.



Sec. 381.310  How do I apply for an exemption?

    (a) You must send a written request (for example, a typed or 
handwritten (printed) letter), which includes all of the information 
required by this section, to the Administrator, Federal Motor Carrier 
Safety Administration, 1200 New Jersey Ave., SE., Washington, DC 20590-
0001.
    (b) You must identify the person or class of persons who would be 
covered by the exemption. The application for an exemption must include:
    (1) Your name, job title, mailing address, and daytime telephone 
number;

[[Page 166]]

    (2) The name of the individual or motor carrier that would be 
responsible for the use or operation of CMVs;
    (3) Principal place of business for the motor carrier (street 
address, city, State, and zip code); and
    (4) The USDOT identification number for the motor carrier.
    (c) You must provide a written statement that:
    (1) Describes the reason the exemption is needed, including the time 
period during which it is needed;
    (2) Identifies the regulation from which you would like to be 
exempted;
    (3) Provides an estimate of the total number of drivers and CMVs 
that would be operated under the terms and conditions of the exemption;
    (4) Assesses the safety impacts the exemption may have;
    (5) Explains how you would ensure that you could achieve a level a 
safety that is equivalent to, or greater than, the level of safety that 
would be obtained by complying with the regulation; and
    (6) Describes the impacts (e.g., inability to test innovative safety 
management control systems, etc.) you could experience if the exemption 
is not granted by the FMCSA.
    (d) Your application must include a copy of all research reports, 
technical papers, and other publications and documents you reference.

[63 FR 67608, Dec. 8, 1998, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 381.315  What will the FMCSA do after the agency receives my
application for an exemption?

    (a) The Federal Motor Carrier Safety Administration will review your 
application and prepare, for the Administrator's signature, a Federal 
Register notice requesting public comment on your application for an 
exemption. The notice will give the public an opportunity to review your 
request and your safety assessment or analysis (required by Sec. 
381.310) and any other relevant information known to the agency.
    (b) After a review of the comments received in response to the 
Federal Register notice described in paragraph (a) of this section, the 
Federal Motor Carrier Safety Administration will make a 
recommendation(s) to the Administrator to either to grant or deny the 
exemption. Notice of the Administrator's decision will be published in 
the Federal Register.
    (c)(1) If the exemption is granted, the notice will identify the 
provisions of the FMCSRs from which you will be exempt, the effective 
period, and all terms and conditions of the exemption.
    (2) If the exemption is denied, the notice will explain the reason 
for the denial.
    (d) A copy of your application for an exemption and all comments 
received in response to the Federal Register notice will be included in 
a public docket and be available for review by interested parties.
    (1) Interested parties may view the information contained in the 
docket by visiting the Department of Transportation, Docket Management 
Facility, 1200 New Jersey Ave., SE., Washington, DC 20590-0001. All 
information in the exemption docket will be available for examination at 
this address from 10 a.m. to 5 p.m., e.t., Monday through Friday, except 
Federal holidays.
    (2) Internet users can access all information received by the 
Department of Transportation, Docket Management Facility by using the 
Federal Docket Management System using the uniform resources locator 
(URL): http://www.regulations.gov. It is available 24 hours each day, 
365 days each year. Please follow the instructions online for more 
information and help.

[63 FR 67608, Dec. 8, 1998, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 381.320  How long will it take the agency to respond to my 
application for an exemption?

    The agency will attempt to issue a final decision within 180 days of 
the date it receives your application. However, if you leave out 
important details or other information necessary for the FMCSA to 
prepare a meaningful request for public comments, the agency will 
attempt to issue a final decision within 180 days of the date it 
receives the additional information.

[[Page 167]]



Sec. 381.325  Who should I contact if I have questions about the 
information I am required to submit to the FMCSA or about the status 

of my application for an exemption?

    You should contact the Federal Motor Carrier Safety Administration, 
Office of Bus and Truck Standards and Operations (MC-PS), 1200 New 
Jersey Ave., SE., Washington, DC 20590-0001.

[63 FR 67608, Dec. 8, 1998, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 381.330  What am I required to do if the FMCSA grants my 
application for an exemption?

    (a) You must comply with all the terms and conditions of the 
exemption.
    (b) The FMCSA will immediately revoke your exemption if:
    (1) You fail to comply with the terms and conditions of the 
exemption;
    (2) The exemption has resulted in a lower level of safety than was 
maintained before the exemption was granted; or
    (3) Continuation of the exemption is determined by the FMCSA to be 
inconsistent with the goals and objectives of the FMCSRs.



                 Subpart D_Initiation of Pilot Programs



Sec. 381.400  What is a pilot program?

    (a) A pilot program is a study in which temporary regulatory relief 
from one or more FMCSR is given to a person or class of persons subject 
to the regulations, or a person or class of persons who intend to engage 
in an activity that would be subject to the regulations.
    (b) During a pilot program, the participants would be given an 
exemption from one or more sections or parts of the regulations for a 
period of up to three years.
    (c) A pilot program is intended for use in collecting specific data 
for evaluating alternatives to the regulations or innovative approaches 
to safety while ensuring that the safety performance goals of the 
regulations are satisfied.
    (d) The number of participants in the pilot program must be large 
enough to ensure statistically valid findings.
    (e) Pilot programs must include an oversight plan to ensure that 
participants comply with the terms and conditions of participation, and 
procedures to protect the health and safety of study participants and 
the general public.
    (f) Exemptions for pilot programs may be granted only from one or 
more of the requirements contained in the following parts and sections 
of the FMCSRs:
    (1) Part 382--Controlled Substances and Alcohol Use and Testing;
    (2) Part 383--Commercial Driver's License Standards; Requirements 
and Penalties;
    (3) Part 391--Qualifications of Drivers;
    (4) Part 392--Driving of Commercial Motor Vehicles;
    (5) Part 393--Parts and Accessories Necessary for Safe Operation;
    (6) Part 395--Hours of Service of Drivers;
    (7) Part 396--Inspection, Repair, and Maintenance (except for Sec. 
396.25); and
    (8) Part 399--Step, Handhold and Deck Requirements.



Sec. 381.405  Who determines whether a pilot program should be initiated?

    (a) Generally, pilot programs are initiated by the FMCSA when the 
agency determines that there may be an effective alternative to one or 
more of the requirements in the FMCSRs, but does not have sufficient 
research data to support the development of a notice of proposed 
rulemaking to change the regulation.
    (b) You may request the FMCSA to initiate a pilot program. However, 
the decision of whether to propose a pilot program will be made at the 
discretion of the FMCSA. The FMCSA is not required to publish a notice 
in the Federal Register requesting public comment on your ideas or 
suggestions for pilot programs.



Sec. 381.410  What may I do if I have an idea or suggestion for a 
pilot program?

    (a) You may send a written statement (for example, a typed or 
handwritten (printed) letter) to the Administrator, Federal Motor 
Carrier Safety

[[Page 168]]

Administration, 1200 New Jersey Ave., SE., Washington, DC 20590-0001.
    (b) You should identify the persons or class of persons who would be 
covered by the pilot program exemptions. Your letter should include:
    (1) Your name, job title, mailing address, and daytime telephone 
number;
    (2) The name of the individuals or motor carrier that would be 
responsible for the use or operation of CMVs covered by the pilot 
program, if there are motor carriers that have expressed an interest in 
participating in the program;
    (3) Principal place of business for the motor carrier (street 
address, city, State, and zip code); and
    (4) The USDOT identification number for the motor carrier.
    (c) You should provide a written statement that:
    (1) Presents your estimate of the potential benefits to the motor 
carrier industry, the FMCSA, and the general public if the pilot program 
is conducted, and describes how you developed your estimate;
    (2) Estimates of the amount of time that would be needed to conduct 
the pilot program (e.g., the time needed to complete the collection and 
analysis of data);
    (3) Identifies the regulation from which the participants would need 
to be exempted;
    (4) Recommends a reasonable number of participants necessary to 
yield statistically valid findings;
    (5) Provides ideas or suggestions for a monitoring plan to ensure 
that participants comply with the terms and conditions of participation;
    (6) Provides ideas or suggestions for a plan to protect the health 
and safety of study participants and the general public.
    (7) Assesses the safety impacts the pilot program exemption may 
have; and
    (8) Provides recommendations on how the safety measures in the pilot 
project would be designed to achieve a level a safety that is equivalent 
to, or greater than, the level of safety that would be obtained by 
complying with the regulation.
    (d) Your recommendation should include a copy of all research 
reports, technical papers, publications and other documents you 
reference.

[63 FR 67608, Dec. 8, 1998, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 381.415  Who should I contact if I have questions about the 
information to be included in my suggestion?

    You should contact the Federal Motor Carrier Safety Administration, 
Office of Bus and Truck Standards and Operations (MC-PS), 1200 New 
Jersey Ave., SE., Washington, DC 20590-0001.

[63 FR 67608, Dec. 8, 1998, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 381.420  What will the FMCSA do after the agency receives my 
suggestion for a pilot program?

    (a) The Federal Motor Carrier Safety Administration will review your 
suggestion for a pilot program and make a recommendation to the 
Administrator. The final decision whether to propose the development of 
a pilot program based upon your recommendation will be made by the 
Administrator.
    (b) You will be sent a copy of the Administrator's decision. If the 
pilot program is approved, the agency will follow the administrative 
procedures contained in subpart E of this part.



         Subpart E_Administrative Procedures for Pilot Programs



Sec. 381.500  What are the general requirements the agency must 
satisfy in conducting a pilot program?

    (a) The FMCSA may conduct pilot programs to evaluate alternatives to 
regulations, or innovative approaches, concerning motor carrier, CMV, 
and driver safety.
    (b) Pilot programs may include exemptions from the regulations 
listed in Sec. 381.400(f) of this part.
    (c) Pilot programs must, at a minimum, include all of the program 
elements listed in Sec. 381.505.
    (d) The FMCSA will publish in the Federal Register a detailed 
description of each pilot program, including the exemptions to be 
considered, and provide notice and an opportunity for public comment 
before the effective date of the pilot program.

[[Page 169]]



Sec. 381.505  What are the minimum elements required for a pilot 
program?

    (a) Safety measures. Before granting exemptions for a pilot program, 
the FMCSA will ensure that the safety measures in a pilot program are 
designed to achieve a level of safety that is equivalent to, or greater 
than, the level of safety that would be achieved by complying with the 
regulations.
    (b) Pilot program plan. Before initiating a pilot program, the FMCSA 
will ensure that there is a pilot program plan which includes the 
following elements:
    (1) A scheduled duration of three years or less;
    (2) A specific data collection and safety analysis plan that 
identifies a method of comparing the safety performance for motor 
carriers, CMVs, and drivers operating under the terms and conditions of 
the pilot program, with the safety performance of motor carriers, CMVs, 
and drivers that comply with the regulation;
    (3) A reasonable number of participants necessary to yield 
statistically valid findings;
    (4) A monitoring plan to ensure that participants comply with the 
terms and conditions of participation in the pilot program;
    (5) Adequate safeguards to protect the health and safety of study 
participants and the general public; and
    (6) A plan to inform the States and the public about the pilot 
program and to identify approved participants to enforcement personnel 
and the general public.



Sec. 381.510  May the FMCSA end a pilot program before its scheduled
completion date?

    The FMCSA will immediately terminate a pilot program if there is 
reason to believe the program is not achieving a level of safety that is 
at least equivalent to the level of safety that would be achieved by 
complying with the regulations.



Sec. 381.515  May the FMCSA remove approved participants from a pilot
program?

    The Administrator will immediately revoke participation in a pilot 
program of a motor carrier, CMV, or driver for failure to comply with 
the terms and conditions of the pilot program, or if continued 
participation is inconsistent with the goals and objectives of the 
safety regulations.



Sec. 381.520  What will the FMCSA do with the results from a pilot
program?

    At the conclusion of each pilot program, the FMCSA will report to 
Congress the findings and conclusions of the program and any 
recommendations it considers appropriate, including suggested amendments 
to laws and regulations that would enhance motor carrier, CMV, and 
driver safety and improve compliance with the FMCSRs.



                   Subpart F_Preemption of State Rules



Sec. 381.600  Do waivers, exemptions, and pilot programs preempt State
laws and regulations?

    Yes. During the time period that a waiver, exemption, or pilot 
program authorized by this part is in effect, no State shall enforce any 
law or regulation that conflicts with or is inconsistent with the 
waiver, exemption, or pilot program with respect to a person operating 
under the waiver or exemption or participating in the pilot program.



PART 382_CONTROLLED SUBSTANCES AND ALCOHOL USE AND TESTING--Table of
Contents




                            Subpart A_General

Sec.
382.101 Purpose
382.103 Applicability.
382.105 Testing procedures.
382.107 Definitions.
382.109 Preemption of State and local laws.
382.111 Other requirements imposed by employers.
382.113 Requirements for notice.
382.115 Starting date for testing programs.
382.117 Public interest exclusion.
382.119 Stand-down waiver provision.
382.121 Employee admission of alcohol and controlled substances use.

                         Subpart B_Prohibitions

382.201 Alcohol concentration.
382.205 On-duty use.
382.207 Pre-duty use.
382.209 Use following an accident.

[[Page 170]]

382.211 Refusal to submit to a required alcohol or controlled substances 
          test.
382.213 Controlled substances use.
382.215 Controlled substances testing.

                        Subpart C_Tests Required

382.301 Pre-employment testing.
382.303 Post-accident testing.
382.305 Random testing.
382.307 Reasonable suspicion testing.
382.309 Return-to-duty testing.
382.311 Follow-up testing.

       Subpart D_Handling of Test Results, Record Retention, and 
                             Confidentiality

382.401 Retention of records.
382.403 Reporting of results in a management information system.
382.405 Access to facilities and records.
382.407 Medical review officer notifications to the employer.
382.409 Medical review officer record retention for controlled 
          substances.
382.411 Employer notifications.
382.413 Inquiries for alcohol and controlled substances information from 
          previous employers.

  Subpart E_Consequences for Drivers Engaging in Substance Use-Related 
                                 Conduct

382.501 Removal from safety-sensitive function.
382.503 Required evaluation and testing.
382.505 Other alcohol-related conduct.
382.507 Penalties.

  Subpart F_Alcohol Misuse and Controlled Substances Use Information, 
                         Training, and Referral

382.601 Employer obligation to promulgate a policy on the misuse of 
          alcohol and use of controlled substances.
382.603 Training for supervisors.
382.605 Referral, evaluation, and treatment.

    Authority: 49 U.S.C. 31133, 31136, 31301 et seq., 31502; and 49 CFR 
1.73.

    Source: 66 FR 43103, Aug. 17, 2001, unless otherwise noted.



                            Subpart A_General



Sec. 382.101  Purpose.

    The purpose of this part is to establish programs designed to help 
prevent accidents and injuries resulting from the misuse of alcohol or 
use of controlled substances by drivers of commercial motor vehicles.



Sec. 382.103  Applicability.

    (a) This part applies to every person and to all employers of such 
persons who operate a commercial motor vehicle in commerce in any State, 
and is subject to:
    (1) The commercial driver's license requirements of part 383 of this 
subchapter;
    (2) The Licencia Federal de Conductor (Mexico) requirements; or
    (3) The commercial drivers license requirements of the Canadian 
National Safety Code.
    (b) An employer who employs himself/herself as a driver must comply 
with both the requirements in this part that apply to employers and the 
requirements in this part that apply to drivers. An employer who employs 
only himself/herself as a driver shall implement a random alcohol and 
controlled substances testing program of two or more covered employees 
in the random testing selection pool.
    (c) The exceptions contained in Sec. 390.3(f) of this subchapter do 
not apply to this part. The employers and drivers identified in Sec. 
390.3(f) of this subchapter must comply with the requirements of this 
part, unless otherwise specifically provided in paragraph (d) of this 
section.
    (d) Exceptions. This part shall not apply to employers and their 
drivers:
    (1) Required to comply with the alcohol and/or controlled substances 
testing requirements of part 655 of this title (Federal Transit 
Administration alcohol and controlled substances testing regulations); 
or
    (2) Who a State must waive from the requirements of part 383 of this 
subchapter. These individuals include active duty military personnel; 
members of the reserves; and members of the national guard on active 
duty, including personnel on full-time national guard duty, personnel on 
part-time national guard training and national guard military 
technicians (civilians who are required to wear military uniforms), and 
active duty U.S. Coast Guard personnel; or
    (3) Who a State has, at its discretion, exempted from the 
requirements of part 383 of this subchapter. These individuals may be:

[[Page 171]]

    (i) Operators of a farm vehicle which is:
    (A) Controlled and operated by a farmer;
    (B) Used to transport either agricultural products, farm machinery, 
farm supplies, or both to or from a farm;
    (C) Not used in the operations of a common or contract motor 
carrier; and
    (D) Used within 241 kilometers (150 miles) of the farmer's farm.
    (ii) Firefighters or other persons who operate commercial motor 
vehicles which are necessary for the preservation of life or property or 
the execution of emergency governmental functions, are equipped with 
audible and visual signals, and are not subject to normal traffic 
regulation.



Sec. 382.105  Testing procedures.

    Each employer shall ensure that all alcohol or controlled substances 
testing conducted under this part complies with the procedures set forth 
in part 40 of this title. The provisions of part 40 of this title that 
address alcohol or controlled substances testing are made applicable to 
employers by this part.



Sec. 382.107  Definitions.

    Words or phrases used in this part are defined in Sec. Sec. 386.2 
and 390.5 of this subchapter, and Sec. 40.3 of this title, except as 
provided in this section--
    Actual knowledge for the purpose of subpart B of this part, means 
actual knowledge by an employer that a driver has used alcohol or 
controlled substances based on the employer's direct observation of the 
employee, information provided by the driver's previous employer(s), a 
traffic citation for driving a CMV while under the influence of alcohol 
or controlled substances or an employee's admission of alcohol or 
controlled substance use, except as provided in Sec. 382.121. Direct 
observation as used in this definition means observation of alcohol or 
controlled substances use and does not include observation of employee 
behavior or physical characteristics sufficient to warrant reasonable 
suspicion testing under Sec. 382.307.
    Alcohol means the intoxicating agent in beverage alcohol, ethyl 
alcohol, or other low molecular weight alcohols including methyl and 
isopropyl alcohol.
    Alcohol concentration (or content) means the alcohol in a volume of 
breath expressed in terms of grams of alcohol per 210 liters of breath 
as indicated by an evidential breath test under this part.
    Alcohol use means the drinking or swallowing of any beverage, liquid 
mixture or preparation (including any medication), containing alcohol.
    Commerce means:
    (1) Any trade, traffic or transportation within the jurisdiction of 
the United States between a place in a State and a place outside of such 
State, including a place outside of the United States; and
    (2) Trade, traffic, and transportation in the United States which 
affects any trade, traffic, and transportation described in paragraph 
(1) of this definition.
    Commercial motor vehicle means a motor vehicle or combination of 
motor vehicles used in commerce to transport passengers or property if 
the vehicle--
    (1) Has a gross combination weight rating of 11,794 or more 
kilograms (26,001 or more pounds) inclusive of a towed unit with a gross 
vehicle weight rating of more than 4,536 kilograms (10,000 pounds); or
    (2) Has a gross vehicle weight rating of 11,794 or more kilograms 
(26,001 or more pounds); or
    (3) Is designed to transport 16 or more passengers, including the 
driver; or
    (4) Is of any size and is used in the transportation of materials 
found to be hazardous for the purposes of the Hazardous Materials 
Transportation Act (49 U.S.C. 5103(b)) and which require the motor 
vehicle to be placarded under the Hazardous Materials Regulations (49 
CFR part 172, subpart F).
    Confirmation (or confirmatory) drug test means a second analytical 
procedure performed on a urine specimen to identify and quantify the 
presence of a specific drug or drug metabolite.
    Confirmation (or confirmatory) validity test means a second test 
performed on a urine specimen to further support a validity test result.
    Confirmed drug test means a confirmation test result received by an 
MRO from a laboratory.

[[Page 172]]

    Consortium/Third party administrator (C/TPA) means a service agent 
that provides or coordinates one or more drug and/or alcohol testing 
services to DOT-regulated employers. C/TPAs typically provide or 
coordinate the provision of a number of such services and perform 
administrative tasks concerning the operation of the employers' drug and 
alcohol testing programs. This term includes, but is not limited to, 
groups of employers who join together to administer, as a single entity, 
the DOT drug and alcohol testing programs of its members (e.g., having a 
combined random testing pool). C/TPAs are not ``employers'' for purposes 
of this part.
    Controlled substances mean those substances identified in Sec. 
40.85 of this title.
    Designated employer representative (DER) is an individual identified 
by the employer as able to receive communications and test results from 
service agents and who is authorized to take immediate actions to remove 
employees from safety-sensitive duties and to make required decisions in 
the testing and evaluation processes. The individual must be an employee 
of the company. Service agents cannot serve as DERs.
    Disabling damage means damage which precludes departure of a motor 
vehicle from the scene of the accident in its usual manner in daylight 
after simple repairs.
    (1) Inclusions. Damage to motor vehicles that could have been 
driven, but would have been further damaged if so driven.
    (2) Exclusions. (i) Damage which can be remedied temporarily at the 
scene of the accident without special tools or parts.
    (ii) Tire disablement without other damage even if no spare tire is 
available.
    (iii) Headlight or taillight damage.
    (iv) Damage to turn signals, horn, or windshield wipers which make 
them inoperative.
    DOT Agency means an agency (or ``operating administration'') of the 
United States Department of Transportation administering regulations 
requiring alcohol and/or drug testing (14 CFR parts 61, 63, 65, 121, and 
135; 49 CFR parts 199, 219, 382, and 655), in accordance with part 40 of 
this title.
    Driver means any person who operates a commercial motor vehicle. 
This includes, but is not limited to: Full time, regularly employed 
drivers; casual, intermittent or occasional drivers; leased drivers and 
independent owner-operator contractors.
    Employer means a person or entity employing one or more employees 
(including an individual who is self-employed) that is subject to DOT 
agency regulations requiring compliance with this part. The term, as 
used in this part, means the entity responsible for overall 
implementation of DOT drug and alcohol program requirements, including 
individuals employed by the entity who take personnel actions resulting 
from violations of this part and any applicable DOT agency regulations. 
Service agents are not employers for the purposes of this part.
    Licensed medical practitioner means a person who is licensed, 
certified, and/or registered, in accordance with applicable Federal, 
State, local, or foreign laws and regulations, to prescribe controlled 
substances and other drugs.
    Performing (a safety-sensitive function) means a driver is 
considered to be performing a safety-sensitive function during any 
period in which he or she is actually performing, ready to perform, or 
immediately available to perform any safety-sensitive functions.
    Positive rate for random drug testing means the number of verified 
positive results for random drug tests conducted under this part plus 
the number of refusals of random drug tests required by this part, 
divided by the total number of random drug tests results (i.e., 
positives, negatives, and refusals) under this part.
    Refuse to submit (to an alcohol or controlled substances test) means 
that a driver:
    (1) Fail to appear for any test (except a pre-employment test) 
within a reasonable time, as determined by the employer, consistent with 
applicable DOT agency regulations, after being directed to do so by the 
employer. This includes the failure of an employee (including an owner-
operator) to appear for a test when called by a C/TPA (see Sec. 
40.61(a) of this title);

[[Page 173]]

    (2) Fail to remain at the testing site until the testing process is 
complete. Provided, that an employee who leaves the testing site before 
the testing process commences (see Sec. 40.63(c) of this title) a pre-
employment test is not deemed to have refused to test;
    (3) Fail to provide a urine specimen for any drug test required by 
this part or DOT agency regulations. Provided, that an employee who does 
not provide a urine specimen because he or she has left the testing site 
before the testing process commences (see Sec. 40.63(c) of this title) 
for a pre-employment test is not deemed to have refused to test;
    (4) In the case of a directly observed or monitored collection in a 
drug test, fails to permit the observation or monitoring of the driver's 
provision of a specimen (see Sec. Sec. 40.67(l) and 40.69(g) of this 
title);
    (5) Fail to provide a sufficient amount of urine when directed, and 
it has been determined, through a required medical evaluation, that 
there was no adequate medical explanation for the failure (see Sec. 
40.193(d)(2) of this title);
    (6) Fail or declines to take a second test the employer or collector 
has directed the driver to take;
    (7) Fail to undergo a medical examination or evaluation, as directed 
by the MRO as part of the verification process, or as directed by the 
DER under Sec. 40.193(d) of this title. In the case of a pre-employment 
drug test, the employee is deemed to have refused to test on this basis 
only if the pre-employment test is conducted following a contingent 
offer of employment;
    (8) Fail to cooperate with any part of the testing process (e.g., 
refuse to empty pockets when so directed by the collector, behave in a 
confrontational way that disrupts the collection process); or
    (9) Is reported by the MRO as having a verified adulterated or 
substituted test result.
    Safety-sensitive function means all time from the time a driver 
begins to work or is required to be in readiness to work until the time 
he/she is relieved from work and all responsibility for performing work. 
Safety-sensitive functions shall include:
    (1) All time at an employer or shipper plant, terminal, facility, or 
other property, or on any public property, waiting to be dispatched, 
unless the driver has been relieved from duty by the employer;
    (2) All time inspecting equipment as required by Sec. Sec. 392.7 
and 392.8 of this subchapter or otherwise inspecting, servicing, or 
conditioning any commercial motor vehicle at any time;
    (3) All time spent at the driving controls of a commercial motor 
vehicle in operation;
    (4) All time, other than driving time, in or upon any commercial 
motor vehicle except time spent resting in a sleeper berth (a berth 
conforming to the requirements of Sec. 393.76 of this subchapter);
    (5) All time loading or unloading a vehicle, supervising, or 
assisting in the loading or unloading, attending a vehicle being loaded 
or unloaded, remaining in readiness to operate the vehicle, or in giving 
or receiving receipts for shipments loaded or unloaded; and
    (6) All time repairing, obtaining assistance, or remaining in 
attendance upon a disabled vehicle.
    Screening test (or initial test) means:
    (1) In drug testing, a test to eliminate ``negative'' urine 
specimens from further analysis or to identify a specimen that requires 
additional testing for the presence of drugs.
    (2) In alcohol testing, an analytical procedure to determine whether 
an employee may have a prohibited concentration of alcohol in a breath 
or saliva specimen.
    Stand-down means the practice of temporarily removing an employee 
from the performance of safety-sensitive functions based only on a 
report from a laboratory to the MRO of a confirmed positive test for a 
drug or drug metabolite, an adulterated test, or a substituted test, 
before the MRO has completed verification of the test results.
    Violation rate for random alcohol testing means the number of 0.04 
and above random alcohol confirmation test results conducted under this 
part plus the number of refusals of random alcohol tests required by 
this part, divided by the total number of random alcohol

[[Page 174]]

screening tests (including refusals) conducted under this part.

[66 FR 43103, Aug. 17, 2001, as amended at 68 FR 75458, Dec. 31, 2003]



Sec. 382.109  Preemption of State and local laws.

    (a) Except as provided in paragraph (b) of this section, this part 
preempts any State or local law, rule, regulation, or order to the 
extent that:
    (1) Compliance with both the State or local requirement in this part 
is not possible; or
    (2) Compliance with the State or local requirement is an obstacle to 
the accomplishment and execution of any requirement in this part.
    (b) This part shall not be construed to preempt provisions of State 
criminal law that impose sanctions for reckless conduct leading to 
actual loss of life, injury, or damage to property, whether the 
provisions apply specifically to transportation employees, employers, or 
the general public.



Sec. 382.111  Other requirements imposed by employers.

    Except as expressly provided in this part, nothing in this part 
shall be construed to affect the authority of employers, or the rights 
of drivers, with respect to the use of alcohol, or the use of controlled 
substances, including authority and rights with respect to testing and 
rehabilitation.



Sec. 382.113  Requirement for notice.

    Before performing each alcohol or controlled substances test under 
this part, each employer shall notify a driver that the alcohol or 
controlled substances test is required by this part. No employer shall 
falsely represent that a test is administered under this part.



Sec. 382.115  Starting date for testing programs.

    (a) All domestic-domiciled employers must implement the requirements 
of this part on the date the employer begins commercial motor vehicle 
operations.
    (b) All foreign-domiciled employers must implement the requirements 
of this part on the date the employer begins commercial motor vehicle 
operations in the United States.



Sec. 382.117  Public interest exclusion.

    No employer shall use the services of a service agent who is subject 
to public interest exclusion in accordance with 49 CFR part 40, Subpart 
R.



Sec. 382.119  Stand-down waiver provision.

    (a) Employers are prohibited from standing employees down, except 
consistent with a waiver from the Federal Motor Carrier Safety 
Administration as required under this section.
    (b) An employer subject to this part who seeks a waiver from the 
prohibition against standing down an employee before the MRO has 
completed the verification process shall follow the procedures in 49 CFR 
40.21. The employer must send a written request, which includes all of 
the information required by that section to the Administrator, Federal 
Motor Carrier Safety Administration, 1200 New Jersey Ave., SE., 
Washington, DC 20590-0001.
    (c) The final decision whether to grant or deny the application for 
a waiver will be made by the Administrator or the Administrator's 
designee.
    (d) After a decision is signed by the Administrator or the 
Administrator's designee, the employer will be sent a copy of the 
decision, which will include the terms and conditions for the waiver or 
the reason for denying the application for a waiver.
    (e) Questions regarding waiver applications should be directed to 
the Federal Motor Carrier Safety Administration, Office of Enforcement 
and Compliance (MC-EC), 1200 New Jersey Ave., SE., Washington, DC 20590-
0001.

[66 FR 43103, Aug. 17, 2001, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 382.121  Employee admission of alcohol and controlled substances use.

    (a) Employees who admit to alcohol misuse or controlled substances 
use are not subject to the referral, evaluation and treatment 
requirements of this part and part 40 of this title, provided that:
    (1) The admission is in accordance with a written employer-
established voluntary self-identification program or policy that meets 
the requirements of paragraph (b) of this section;

[[Page 175]]

    (2) The driver does not self-identify in order to avoid testing 
under the requirements of this part;
    (3) The driver makes the admission of alcohol misuse or controlled 
substances use prior to performing a safety sensitive function (i.e., 
prior to reporting for duty); and
    (4) The driver does not perform a safety sensitive function until 
the employer is satisfied that the employee has been evaluated and has 
successfully completed education or treatment requirements in accordance 
with the self-identification program guidelines.
    (b) A qualified voluntary self-identification program or policy must 
contain the following elements:
    (1) It must prohibit the employer from taking adverse action against 
an employee making a voluntary admission of alcohol misuse or controlled 
substances use within the parameters of the program or policy and 
paragraph (a) of this section;
    (2) It must allow the employee sufficient opportunity to seek 
evaluation, education or treatment to establish control over the 
employee's drug or alcohol problem;
    (3) It must permit the employee to return to safety sensitive duties 
only upon successful completion of an educational or treatment program, 
as determined by a drug and alcohol abuse evaluation expert, i.e., 
employee assistance professional, substance abuse professional, or 
qualified drug and alcohol counselor;
    (4) It must ensure that:
    (i) Prior to the employee participating in a safety sensitive 
function, the employee shall undergo a return to duty test with a result 
indicating an alcohol concentration of less than 0.02; and/or
    (ii) Prior to the employee participating in a safety sensitive 
function, the employee shall undergo a return to duty controlled 
substance test with a verified negative test result for controlled 
substances use; and
    (5) It may incorporate employee monitoring and include non-DOT 
follow-up testing.



                         Subpart B_Prohibitions



Sec. 382.201  Alcohol concentration.

    No driver shall report for duty or remain on duty requiring the 
performance of safety-sensitive functions while having an alcohol 
concentration of 0.04 or greater. No employer having actual knowledge 
that a driver has an alcohol concentration of 0.04 or greater shall 
permit the driver to perform or continue to perform safety-sensitive 
functions.



Sec. 382.205  On-duty use.

    No driver shall use alcohol while performing safety-sensitive 
functions. No employer having actual knowledge that a driver is using 
alcohol while performing safety-sensitive functions shall permit the 
driver to perform or continue to perform safety-sensitive functions.



Sec. 382.207  Pre-duty use.

    No driver shall perform safety-sensitive functions within four hours 
after using alcohol. No employer having actual knowledge that a driver 
has used alcohol within four hours shall permit a driver to perform or 
continue to perform safety-sensitive functions.



Sec. 382.209  Use following an accident.

    No driver required to take a post-accident alcohol test under Sec. 
382.303 shall use alcohol for eight hours following the accident, or 
until he/she undergoes a post-accident alcohol test, whichever occurs 
first.



Sec. 382.211  Refusal to submit to a required alcohol or controlled 
substances test.

    No driver shall refuse to submit to a post-accident alcohol or 
controlled substances test required under Sec. 382.303, a random 
alcohol or controlled substances test required under Sec. 382.305, a 
reasonable suspicion alcohol or controlled substances test required 
under Sec. 382.307, or a follow-up alcohol or controlled substances 
test required under Sec. 382.311. No employer shall permit a driver who 
refuses to submit to such tests to perform or continue to perform 
safety-sensitive functions.

[[Page 176]]



Sec. 382.213  Controlled substances use.

    (a) No driver shall report for duty or remain on duty requiring the 
performance of safety-sensitive functions when the driver uses any 
controlled substance, except when the use is pursuant to the 
instructions of a licensed medical practitioner, as defined in Sec. 
382.107, who has advised the driver that the substance will not 
adversely affect the driver's ability to safely operate a commercial 
motor vehicle.
    (b) No employer having actual knowledge that a driver has used a 
controlled substance shall permit the driver to perform or continue to 
perform a safety-sensitive function.
    (c) An employer may require a driver to inform the employer of any 
therapeutic drug use.



Sec. 382.215  Controlled substances testing.

    No driver shall report for duty, remain on duty or perform a safety-
sensitive function, if the driver tests positive or has adulterated or 
substituted a test specimen for controlled substances. No employer 
having actual knowledge that a driver has tested positive or has 
adulterated or substituted a test specimen for controlled substances 
shall permit the driver to perform or continue to perform safety-
sensitive functions.



                        Subpart C_Tests Required



Sec. 382.301  Pre-employment testing.

    (a) Prior to the first time a driver performs safety-sensitive 
functions for an employer, the driver shall undergo testing for 
controlled substances as a condition prior to being used, unless the 
employer uses the exception in paragraph (b) of this section. No 
employer shall allow a driver, who the employer intends to hire or use, 
to perform safety-sensitive functions unless the employer has received a 
controlled substances test result from the MRO or C/TPA indicating a 
verified negative test result for that driver.
    (b) An employer is not required to administer a controlled 
substances test required by paragraph (a) of this section if:
    (1) The driver has participated in a controlled substances testing 
program that meets the requirements of this part within the previous 30 
days; and
    (2) While participating in that program, either:
    (i) Was tested for controlled substances within the past 6 months 
(from the date of application with the employer), or
    (ii) Participated in the random controlled substances testing 
program for the previous 12 months (from the date of application with 
the employer); and
    (3) The employer ensures that no prior employer of the driver of 
whom the employer has knowledge has records of a violation of this part 
or the controlled substances use rule of another DOT agency within the 
previous six months.
    (c)(1) An employer who exercises the exception in paragraph (b) of 
this section shall contact the controlled substances testing program(s) 
in which the driver participates or participated and shall obtain and 
retain from the testing program(s) the following information:
    (i) Name(s) and address(es) of the program(s).
    (ii) Verification that the driver participates or participated in 
the program(s).
    (iii) Verification that the program(s) conforms to part 40 of this 
title.
    (iv) Verification that the driver is qualified under the rules of 
this part, including that the driver has not refused to be tested for 
controlled substances.
    (v) The date the driver was last tested for controlled substances.
    (vi) The results of any tests taken within the previous six months 
and any other violations of subpart B of this part.
    (2) An employer who uses, but does not employ a driver more than 
once a year to operate commercial motor vehicles must obtain the 
information in paragraph (c)(1) of this section at least once every six 
months. The records prepared under this paragraph shall be maintained in 
accordance with Sec. 382.401. If the employer cannot verify that the 
driver is participating in a controlled substances testing program in 
accordance with this part and part 40 of this

[[Page 177]]

title, the employer shall conduct a pre-employment controlled substances 
test.
    (d) An employer may, but is not required to, conduct pre-employment 
alcohol testing under this part. If an employer chooses to conduct pre-
employment alcohol testing, it must comply with the following 
requirements:
    (1) It must conduct a pre-employment alcohol test before the first 
performance of safety-sensitive functions by every covered employee 
(whether a new employee or someone who has transferred to a position 
involving the performance of safety-sensitive functions).
    (2) It must treat all safety-sensitive employees performing safety-
sensitive functions the same for the purpose of pre-employment alcohol 
testing (i.e., it must not test some covered employees and not others).
    (3) It must conduct the pre-employment tests after making a 
contingent offer of employment or transfer, subject to the employee 
passing the pre-employment alcohol test.
    (4) It must conduct all pre-employment alcohol tests using the 
alcohol testing procedures of 49 CFR part 40 of this title.
    (5) It must not allow a covered employee to begin performing safety-
sensitive functions unless the result of the employee's test indicates 
an alcohol concentration of less than 0.04.



Sec. 382.303  Post-accident testing.

    (a) As soon as practicable following an occurrence involving a 
commercial motor vehicle operating on a public road in commerce, each 
employer shall test for alcohol for each of its surviving drivers:
    (1) Who was performing safety-sensitive functions with respect to 
the vehicle, if the accident involved the loss of human life; or
    (2) Who receives a citation within 8 hours of the occurrence under 
State or local law for a moving traffic violation arising from the 
accident, if the accident involved:
    (i) Bodily injury to any person who, as a result of the injury, 
immediately receives medical treatment away from the scene of the 
accident; or
    (ii) One or more motor vehicles incurring disabling damage as a 
result of the accident, requiring the motor vehicle to be transported 
away from the scene by a tow truck or other motor vehicle.
    (b) As soon as practicable following an occurrence involving a 
commercial motor vehicle operating on a public road in commerce, each 
employer shall test for controlled substances for each of its surviving 
drivers:
    (1) Who was performing safety-sensitive functions with respect to 
the vehicle, if the accident involved the loss of human life; or
    (2) Who receives a citation within thirty-two hours of the 
occurrence under State or local law for a moving traffic violation 
arising from the accident, if the accident involved:
    (i) Bodily injury to any person who, as a result of the injury, 
immediately receives medical treatment away from the scene of the 
accident; or
    (ii) One or more motor vehicles incurring disabling damage as a 
result of the accident, requiring the motor vehicle to be transported 
away from the scene by a tow truck or other motor vehicle.
    (c) The following table notes when a post-accident test is required 
to be conducted by paragraphs (a)(1), (a)(2), (b)(1), and (b)(2) of this 
section:

                                       Table for Sec.  382.303(a) and (b)
----------------------------------------------------------------------------------------------------------------
                                                                      Citation issued to        Test must be
                     Type of accident involved                          the CMV driver     performed by employer
----------------------------------------------------------------------------------------------------------------
i. Human fatality.................................................                   YES                    YES
                                                                                      NO                    YES
ii. Bodily injury with immediate medical treatment away from the                     YES                    YES
 scene............................................................                    NO                     NO
iii. Disabling damage to any motor vehicle requiring tow away.....                   YES                    YES
                                                                                      NO                     NO
----------------------------------------------------------------------------------------------------------------


[[Page 178]]

    (d)(1) Alcohol tests. If a test required by this section is not 
administered within two hours following the accident, the employer shall 
prepare and maintain on file a record stating the reasons the test was 
not promptly administered. If a test required by this section is not 
administered within eight hours following the accident, the employer 
shall cease attempts to administer an alcohol test and shall prepare and 
maintain the same record. Records shall be submitted to the FMCSA upon 
request.
    (2) Controlled substance tests. If a test required by this section 
is not administered within 32 hours following the accident, the employer 
shall cease attempts to administer a controlled substances test, and 
prepare and maintain on file a record stating the reasons the test was 
not promptly administered. Records shall be submitted to the FMCSA upon 
request.
    (e) A driver who is subject to post-accident testing shall remain 
readily available for such testing or may be deemed by the employer to 
have refused to submit to testing. Nothing in this section shall be 
construed to require the delay of necessary medical attention for 
injured people following an accident or to prohibit a driver from 
leaving the scene of an accident for the period necessary to obtain 
assistance in responding to the accident, or to obtain necessary 
emergency medical care.
    (f) An employer shall provide drivers with necessary post-accident 
information, procedures and instructions, prior to the driver operating 
a commercial motor vehicle, so that drivers will be able to comply with 
the requirements of this section.
    (g)(1) The results of a breath or blood test for the use of alcohol, 
conducted by Federal, State, or local officials having independent 
authority for the test, shall be considered to meet the requirements of 
this section, provided such tests conform to the applicable Federal, 
State or local alcohol testing requirements, and that the results of the 
tests are obtained by the employer.
    (2) The results of a urine test for the use of controlled 
substances, conducted by Federal, State, or local officials having 
independent authority for the test, shall be considered to meet the 
requirements of this section, provided such tests conform to the 
applicable Federal, State or local controlled substances testing 
requirements, and that the results of the tests are obtained by the 
employer.
    (h) Exception. This section does not apply to:
    (1) An occurrence involving only boarding or alighting from a 
stationary motor vehicle; or
    (2) An occurrence involving only the loading or unloading of cargo; 
or
    (3) An occurrence in the course of the operation of a passenger car 
or a multipurpose passenger vehicle (as defined in Sec. 571.3 of this 
title) by an employer unless the motor vehicle is transporting 
passengers for hire or hazardous materials of a type and quantity that 
require the motor vehicle to be marked or placarded in accordance with 
Sec. 177.823 of this title.



Sec. 382.305  Random testing.

    (a) Every employer shall comply with the requirements of this 
section. Every driver shall submit to random alcohol and controlled 
substance testing as required in this section.
    (b)(1) Except as provided in paragraphs (c) through (e) of this 
section, the minimum annual percentage rate for random alcohol testing 
shall be 10 percent of the average number of driver positions.
    (2) Except as provided in paragraphs (f) through (h) of this 
section, the minimum annual percentage rate for random controlled 
substances testing shall be 50 percent of the average number of driver 
positions.
    (c) The FMCSA Administrator's decision to increase or decrease the 
minimum annual percentage rate for alcohol testing is based on the 
reported violation rate for the entire industry. All information used 
for this determination is drawn from the alcohol management information 
system reports required by Sec. 382.403. In order to ensure reliability 
of the data, the FMCSA Administrator considers the quality and 
completeness of the reported data, may obtain additional information or 
reports from employers,

[[Page 179]]

and may make appropriate modifications in calculating the industry 
violation rate. In the event of a change in the annual percentage rate, 
the FMCSA Administrator will publish in the Federal Register the new 
minimum annual percentage rate for random alcohol testing of drivers. 
The new minimum annual percentage rate for random alcohol testing will 
be applicable starting January 1 of the calendar year following 
publication in the Federal Register.
    (d)(1) When the minimum annual percentage rate for random alcohol 
testing is 25 percent or more, the FMCSA Administrator may lower this 
rate to 10 percent of all driver positions if the FMCSA Administrator 
determines that the data received under the reporting requirements of 
Sec. 382.403 for two consecutive calendar years indicate that the 
violation rate is less than 0.5 percent.
    (2) When the minimum annual percentage rate for random alcohol 
testing is 50 percent, the FMCSA Administrator may lower this rate to 25 
percent of all driver positions if the FMCSA Administrator determines 
that the data received under the reporting requirements of Sec. 382.403 
for two consecutive calendar years indicate that the violation rate is 
less than 1.0 percent but equal to or greater than 0.5 percent.
    (e)(1) When the minimum annual percentage rate for random alcohol 
testing is 10 percent, and the data received under the reporting 
requirements of Sec. 382.403 for that calendar year indicate that the 
violation rate is equal to or greater than 0.5 percent, but less than 
1.0 percent, the FMCSA Administrator will increase the minimum annual 
percentage rate for random alcohol testing to 25 percent for all driver 
positions.
    (2) When the minimum annual percentage rate for random alcohol 
testing is 25 percent or less, and the data received under the reporting 
requirements of Sec. 382.403 for that calendar year indicate that the 
violation rate is equal to or greater than 1.0 percent, the FMCSA 
Administrator will increase the minimum annual percentage rate for 
random alcohol testing to 50 percent for all driver positions.
    (f) The FMCSA Administrator's decision to increase or decrease the 
minimum annual percentage rate for controlled substances testing is 
based on the reported positive rate for the entire industry. All 
information used for this determination is drawn from the controlled 
substances management information system reports required by Sec. 
382.403. In order to ensure reliability of the data, the FMCSA 
Administrator considers the quality and completeness of the reported 
data, may obtain additional information or reports from employers, and 
may make appropriate modifications in calculating the industry positive 
rate. In the event of a change in the annual percentage rate, the FMCSA 
Administrator will publish in the Federal Register the new minimum 
annual percentage rate for controlled substances testing of drivers. The 
new minimum annual percentage rate for random controlled substances 
testing will be applicable starting January 1 of the calendar year 
following publication in the Federal Register.
    (g) When the minimum annual percentage rate for random controlled 
substances testing is 50 percent, the FMCSA Administrator may lower this 
rate to 25 percent of all driver positions if the FMCSA Administrator 
determines that the data received under the reporting requirements of 
Sec. 382.403 for two consecutive calendar years indicate that the 
positive rate is less than 1.0 percent.
    (h) When the minimum annual percentage rate for random controlled 
substances testing is 25 percent, and the data received under the 
reporting requirements of Sec. 382.403 for any calendar year indicate 
that the reported positive rate is equal to or greater than 1.0 percent, 
the FMCSA Administrator will increase the minimum annual percentage rate 
for random controlled substances testing to 50 percent of all driver 
positions.
    (i)(1) The selection of drivers for random alcohol and controlled 
substances testing shall be made by a scientifically valid method, such 
as a random number table or a computer-based random number generator 
that is matched with drivers' Social Security numbers, payroll 
identification numbers, or other comparable identifying numbers.

[[Page 180]]

    (2) Each driver selected for random alcohol and controlled 
substances testing under the selection process used, shall have an equal 
chance of being tested each time selections are made.
    (3) Each driver selected for testing shall be tested during the 
selection period.
    (j)(1)To calculate the total number of covered drivers eligible for 
random testing throughout the year, as an employer, you must add the 
total number of covered drivers eligible for testing during each random 
testing period for the year and divide that total by the number of 
random testing periods. Covered employees, and only covered employees, 
are to be in an employer's random testing pool, and all covered drivers 
must be in the random pool. If you are an employer conducting random 
testing more often than once per month (e.g., daily, weekly, bi-weekly) 
you do not need to compute this total number of covered drivers rate 
more than on a once per month basis.
    (2) As an employer, you may use a service agent (e.g., a C/TPA) to 
perform random selections for you, and your covered drivers may be part 
of a larger random testing pool of covered employees. However, you must 
ensure that the service agent you use is testing at the appropriate 
percentage established for your industry and that only covered employees 
are in the random testing pool.
    (k)(1) Each employer shall ensure that random alcohol and controlled 
substances tests conducted under this part are unannounced.
    (2) Each employer shall ensure that the dates for administering 
random alcohol and controlled substances tests conducted under this part 
are spread reasonably throughout the calendar year.
    (l) Each employer shall require that each driver who is notified of 
selection for random alcohol and/or controlled substances testing 
proceeds to the test site immediately; provided, however, that if the 
driver is performing a safety-sensitive function, other than driving a 
commercial motor vehicle, at the time of notification, the employer 
shall instead ensure that the driver ceases to perform the safety-
sensitive function and proceeds to the testing site as soon as possible.
    (m) A driver shall only be tested for alcohol while the driver is 
performing safety-sensitive functions, just before the driver is to 
perform safety-sensitive functions, or just after the driver has ceased 
performing such functions.
    (n) If a given driver is subject to random alcohol or controlled 
substances testing under the random alcohol or controlled substances 
testing rules of more than one DOT agency for the same employer, the 
driver shall be subject to random alcohol and/or controlled substances 
testing at the annual percentage rate established for the calendar year 
by the DOT agency regulating more than 50 percent of the driver's 
function.
    (o) If an employer is required to conduct random alcohol or 
controlled substances testing under the alcohol or controlled substances 
testing rules of more than one DOT agency, the employer may--
    (1) Establish separate pools for random selection, with each pool 
containing the DOT-covered employees who are subject to testing at the 
same required minimum annual percentage rate; or
    (2) Randomly select such employees for testing at the highest 
minimum annual percentage rate established for the calendar year by any 
DOT agency to which the employer is subject.

[66 FR 43103, Aug. 17, 2001, as amended at 67 FR 61821, Oct. 2, 2002; 68 
FR 75459, Dec. 31, 2003]



Sec. 382.307  Reasonable suspicion testing.

    (a) An employer shall require a driver to submit to an alcohol test 
when the employer has reasonable suspicion to believe that the driver 
has violated the prohibitions of subpart B of this part concerning 
alcohol. The employer's determination that reasonable suspicion exists 
to require the driver to undergo an alcohol test must be based on 
specific, contemporaneous, articulable observations concerning the 
appearance, behavior, speech or body odors of the driver.
    (b) An employer shall require a driver to submit to a controlled 
substances test when the employer has reasonable suspicion to believe 
that the driver has

[[Page 181]]

violated the prohibitions of subpart B of this part concerning 
controlled substances. The employer's determination that reasonable 
suspicion exists to require the driver to undergo a controlled 
substances test must be based on specific, contemporaneous, articulable 
observations concerning the appearance, behavior, speech or body odors 
of the driver. The observations may include indications of the chronic 
and withdrawal effects of controlled substances.
    (c) The required observations for alcohol and/or controlled 
substances reasonable suspicion testing shall be made by a supervisor or 
company official who is trained in accordance with Sec. 382.603. The 
person who makes the determination that reasonable suspicion exists to 
conduct an alcohol test shall not conduct the alcohol test of the 
driver.
    (d) Alcohol testing is authorized by this section only if the 
observations required by paragraph (a) of this section are made during, 
just preceding, or just after the period of the work day that the driver 
is required to be in compliance with this part. A driver may be directed 
by the employer to only undergo reasonable suspicion testing while the 
driver is performing safety-sensitive functions, just before the driver 
is to perform safety-sensitive functions, or just after the driver has 
ceased performing such functions.
    (e)(1) If an alcohol test required by this section is not 
administered within two hours following the determination under 
paragraph (a) of this section, the employer shall prepare and maintain 
on file a record stating the reasons the alcohol test was not promptly 
administered. If an alcohol test required by this section is not 
administered within eight hours following the determination under 
paragraph (a) of this section, the employer shall cease attempts to 
administer an alcohol test and shall state in the record the reasons for 
not administering the test.
    (2) Notwithstanding the absence of a reasonable suspicion alcohol 
test under this section, no driver shall report for duty or remain on 
duty requiring the performance of safety-sensitive functions while the 
driver is under the influence of or impaired by alcohol, as shown by the 
behavioral, speech, and performance indicators of alcohol misuse, nor 
shall an employer permit the driver to perform or continue to perform 
safety-sensitive functions, until:
    (i) An alcohol test is administered and the driver's alcohol 
concentration measures less than 0.02; or
    (ii) Twenty four hours have elapsed following the determination 
under paragraph (a) of this section that there is reasonable suspicion 
to believe that the driver has violated the prohibitions in this part 
concerning the use of alcohol.
    (3) Except as provided in paragraph (e)(2) of this section, no 
employer shall take any action under this part against a driver based 
solely on the driver's behavior and appearance, with respect to alcohol 
use, in the absence of an alcohol test. This does not prohibit an 
employer with independent authority of this part from taking any action 
otherwise consistent with law.
    (f) A written record shall be made of the observations leading to an 
alcohol or controlled substances reasonable suspicion test, and signed 
by the supervisor or company official who made the observations, within 
24 hours of the observed behavior or before the results of the alcohol 
or controlled substances tests are released, whichever is earlier.



Sec. 382.309  Return-to-duty testing.

    The requirements for return-to-duty testing must be performed in 
accordance with 49 CFR part 40, Subpart O.



Sec. 382.311  Follow-up testing.

    The requirements for follow-up testing must be performed in 
accordance with 49 CFR part 40, Subpart O.



       Subpart D_Handling of Test Results, Records Retention, and 
                             Confidentiality



Sec. 382.401  Retention of records.

    (a) General requirement. Each employer shall maintain records of its 
alcohol misuse and controlled substances use prevention programs as 
provided in this section. The records shall be maintained in a secure 
location with controlled access.

[[Page 182]]

    (b) Period of retention. Each employer shall maintain the records in 
accordance with the following schedule:
    (1) Five years. The following records shall be maintained for a 
minimum of five years:
    (i) Records of driver alcohol test results indicating an alcohol 
concentration of 0.02 or greater,
    (ii) Records of driver verified positive controlled substances test 
results,
    (iii) Documentation of refusals to take required alcohol and/or 
controlled substances tests,
    (iv) Driver evaluation and referrals,
    (v) Calibration documentation,
    (vi) Records related to the administration of the alcohol and 
controlled substances testing programs, and
    (vii) A copy of each annual calendar year summary required by Sec. 
382.403.
    (2) Two years. Records related to the alcohol and controlled 
substances collection process (except calibration of evidential breath 
testing devices).
    (3) One year. Records of negative and canceled controlled substances 
test results (as defined in part 40 of this title) and alcohol test 
results with a concentration of less than 0.02 shall be maintained for a 
minimum of one year.
    (4) Indefinite period. Records related to the education and training 
of breath alcohol technicians, screening test technicians, supervisors, 
and drivers shall be maintained by the employer while the individual 
performs the functions which require the training and for two years 
after ceasing to perform those functions.
    (c) Types of records. The following specific types of records shall 
be maintained. ``Documents generated'' are documents that may have to be 
prepared under a requirement of this part. If the record is required to 
be prepared, it must be maintained.
    (1) Records related to the collection process:
    (i) Collection logbooks, if used;
    (ii) Documents relating to the random selection process;
    (iii) Calibration documentation for evidential breath testing 
devices;
    (iv) Documentation of breath alcohol technician training;
    (v) Documents generated in connection with decisions to administer 
reasonable suspicion alcohol or controlled substances tests;
    (vi) Documents generated in connection with decisions on post-
accident tests;
    (vii) Documents verifying existence of a medical explanation of the 
inability of a driver to provide adequate breath or to provide a urine 
specimen for testing; and
    (viii) A copy of each annual calendar year summary as required by 
Sec. 382.403.
    (2) Records related to a driver's test results:
    (i) The employer's copy of the alcohol test form, including the 
results of the test;
    (ii) The employer's copy of the controlled substances test chain of 
custody and control form;
    (iii) Documents sent by the MRO to the employer, including those 
required by part 40, subpart G, of this title;
    (iv) Documents related to the refusal of any driver to submit to an 
alcohol or controlled substances test required by this part;
    (v) Documents presented by a driver to dispute the result of an 
alcohol or controlled substances test administered under this part; and
    (vi) Documents generated in connection with verifications of prior 
employers' alcohol or controlled substances test results that the 
employer:
    (A) Must obtain in connection with the exception contained in Sec. 
382.301, and
    (B) Must obtain as required by Sec. 382.413.
    (3) Records related to other violations of this part.
    (4) Records related to evaluations:
    (i) Records pertaining to a determination by a substance abuse 
professional concerning a driver's need for assistance; and
    (ii) Records concerning a driver's compliance with recommendations 
of the substance abuse professional.
    (5) Records related to education and training:
    (i) Materials on alcohol misuse and controlled substance use 
awareness, including a copy of the employer's policy on alcohol misuse 
and controlled substance use;

[[Page 183]]

    (ii) Documentation of compliance with the requirements of Sec. 
382.601, including the driver's signed receipt of education materials;
    (iii) Documentation of training provided to supervisors for the 
purpose of qualifying the supervisors to make a determination concerning 
the need for alcohol and/or controlled substances testing based on 
reasonable suspicion;
    (iv) Documentation of training for breath alcohol technicians as 
required by Sec. 40.213(a) of this title; and
    (v) Certification that any training conducted under this part 
complies with the requirements for such training.
    (6) Administrative records related to alcohol and controlled 
substances testing:
    (i) Agreements with collection site facilities, laboratories, breath 
alcohol technicians, screening test technicians, medical review 
officers, consortia, and third party service providers;
    (ii) Names and positions of officials and their role in the 
employer's alcohol and controlled substances testing program(s);
    (iii) Semi-annual laboratory statistical summaries of urinalysis 
required by Sec. 40.111(a) of this title; and
    (iv) The employer's alcohol and controlled substances testing policy 
and procedures.
    (d) Location of records. All records required by this part shall be 
maintained as required by Sec. 390.31 of this subchapter and shall be 
made available for inspection at the employer's principal place of 
business within two business days after a request has been made by an 
authorized representative of the Federal Motor Carrier Safety 
Administration.
    (e) OMB control number. (1) The information collection requirements 
of this part have been reviewed by the Office of Management and Budget 
pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) 
and have been assigned OMB control number 2126-0012.
    (2) The information collection requirements of this part are found 
in the following sections: Sections 382.105, 382.113, 382.301, 382.303, 
382.305, 382.307, 382.401, 382.403, 382.405, 382.409, 382.411, 382.601, 
382.603.

[66 FR 43103, Aug. 17, 2001, as amended at 67 FR 61821, Oct. 2, 2002; 68 
FR 75459, Dec. 31, 2003]



Sec. 382.403  Reporting of results in a management information system.

    (a) An employer shall prepare and maintain a summary of the results 
of its alcohol and controlled substances testing programs performed 
under this part during the previous calendar year, when requested by the 
Secretary of Transportation, any DOT agency, or any State or local 
officials with regulatory authority over the employer or any of its 
drivers.
    (b) If an employer is notified, during the month of January, of a 
request by the Federal Motor Carrier Safety Administration to report the 
employer's annual calendar year summary information, the employer shall 
prepare and submit the report to the FMCSA by March 15 of that year. The 
employer shall ensure that the annual summary report is accurate and 
received by March 15 at the location that the FMCSA specifies in its 
request. The employer must use the Management Information System (MIS) 
form and instructions as required by 49 CFR part 40 (at Sec. 40.26 and 
appendix H to part 40). The employer may also use the electronic version 
of the MIS form provided by the DOT. The Administrator may designate 
means (e.g., electronic program transmitted via the Internet), other 
than hard-copy, for MIS form submission. For information on the 
electronic version of the form, see: http://www.fmcsa.dot.gov/
safetyprogs/drugs/engtesting.htm.
    (c) When the report is submitted to the FMCSA by mail or electronic 
transmission, the information requested shall be typed, except for the 
signature of the certifying official. Each employer shall ensure the 
accuracy and timeliness of each report submitted by the employer or a 
consortium.
    (d) If you have a covered employee who performs multi-DOT agency 
functions (e.g., an employee drives a commercial motor vehicle and 
performs pipeline maintenance duties for the same employer), count the 
employee

[[Page 184]]

only on the MIS report for the DOT agency under which he or she is 
randomly tested. Normally, this will be the DOT agency under which the 
employee performs more than 50% of his or her duties. Employers may have 
to explain the testing data for these employees in the event of a DOT 
agency inspection or audit.
    (e) A service agent (e.g., Consortia/Third party administrator as 
defined in 49 CFR 382.107) may prepare the MIS report on behalf of an 
employer. However, a company official (e.g., Designated employer 
representative) must certify the accuracy and completeness of the MIS 
report, no matter who prepares it.

[66 FR 43103, Aug. 17, 2001, as amended at 68 FR 75459, Dec. 31, 2003]



Sec. 382.405  Access to facilities and records.

    (a) Except as required by law or expressly authorized or required in 
this section, no employer shall release driver information that is 
contained in records required to be maintained under Sec. 382.401.
    (b) A driver is entitled, upon written request, to obtain copies of 
any records pertaining to the driver's use of alcohol or controlled 
substances, including any records pertaining to his or her alcohol or 
controlled substances tests. The employer shall promptly provide the 
records requested by the driver. Access to a driver's records shall not 
be contingent upon payment for records other than those specifically 
requested.
    (c) Each employer shall permit access to all facilities utilized in 
complying with the requirements of this part to the Secretary of 
Transportation, any DOT agency, or any State or local officials with 
regulatory authority over the employer or any of its drivers.
    (d) Each employer shall make available copies of all results for 
employer alcohol and/or controlled substances testing conducted under 
this part and any other information pertaining to the employer's alcohol 
misuse and/or controlled substances use prevention program, when 
requested by the Secretary of Transportation, any DOT agency, or any 
State or local officials with regulatory authority over the employer or 
any of its drivers.
    (e) When requested by the National Transportation Safety Board as 
part of an accident investigation, employers shall disclose information 
related to the employer's administration of a post-accident alcohol and/
or controlled substance test administered following the accident under 
investigation.
    (f) Records shall be made available to a subsequent employer upon 
receipt of a written request from a driver. Disclosure by the subsequent 
employer is permitted only as expressly authorized by the terms of the 
driver's request.
    (g) An employer may disclose information required to be maintained 
under this part pertaining to a driver to the decision maker in a 
lawsuit, grievance, or administrative proceeding initiated by or on 
behalf of the individual, and arising from a positive DOT drug or 
alcohol test or a refusal to test (including, but not limited to, 
adulterated or substituted test results) of this part (including, but 
not limited to, a worker's compensation, unemployment compensation, or 
other proceeding relating to a benefit sought by the driver). 
Additionally, an employer may disclose information in criminal or civil 
actions in accordance with Sec. 40.323(a)(2) of this title.
    (h) An employer shall release information regarding a driver's 
records as directed by the specific written consent of the driver 
authorizing release of the information to an identified person. Release 
of such information by the person receiving the information is permitted 
only in accordance with the terms of the employee's specific written 
consent as outlined in Sec. 40.321(b) of this title.



Sec. 382.407  Medical review officer notifications to the employer.

    Medical review officers shall report the results of controlled 
substances tests to employers in accordance with the requirements of 
part 40, Subpart G, of this title.



Sec. 382.409  Medical review officer record retention for controlled 
substances.

    (a) A medical review officer or third party administrator shall 
maintain all

[[Page 185]]

dated records and notifications, identified by individual, for a minimum 
of five years for verified positive controlled substances test results.
    (b) A medical review officer or third party administrator shall 
maintain all dated records and notifications, identified by individual, 
for a minimum of one year for negative and canceled controlled 
substances test results.
    (c) No person may obtain the individual controlled substances test 
results retained by a medical review officer or third party 
administrator, and no medical review officer or third party 
administrator shall release the individual controlled substances test 
results of any driver to any person, without first obtaining a specific, 
written authorization from the tested driver. Nothing in this paragraph 
(c) shall prohibit a medical review officer or third party administrator 
from releasing, to the employer or to officials of the Secretary of 
Transportation, any DOT agency, or any State or local officials with 
regulatory authority over the controlled substances testing program 
under this part, the information delineated in part 40, Subpart G, of 
this title.



Sec. 382.411  Employer notifications.

    (a) An employer shall notify a driver of the results of a pre-
employment controlled substances test conducted under this part, if the 
driver requests such results within 60 calendar days of being notified 
of the disposition of the employment application. An employer shall 
notify a driver of the results of random, reasonable suspicion and post-
accident tests for controlled substances conducted under this part if 
the test results are verified positive. The employer shall also inform 
the driver which controlled substance or substances were verified as 
positive.
    (b) The designated employer representative shall make reasonable 
efforts to contact and request each driver who submitted a specimen 
under the employer's program, regardless of the driver's employment 
status, to contact and discuss the results of the controlled substances 
test with a medical review officer who has been unable to contact the 
driver.
    (c) The designated employer representative shall immediately notify 
the medical review officer that the driver has been notified to contact 
the medical review officer within 72 hours.



Sec. 382.413  Inquiries for alcohol and controlled substances information
from previous employers.

    Employers shall request alcohol and controlled substances 
information from previous employers in accordance with the requirements 
of Sec. 40.25 of this title.



  Subpart E_Consequences for Drivers Engaging in Substance Use-Related 
                                 Conduct



Sec. 382.501  Removal from safety-sensitive function.

    (a) Except as provided in subpart F of this part, no driver shall 
perform safety-sensitive functions, including driving a commercial motor 
vehicle, if the driver has engaged in conduct prohibited by subpart B of 
this part or an alcohol or controlled substances rule of another DOT 
agency.
    (b) No employer shall permit any driver to perform safety-sensitive 
functions; including driving a commercial motor vehicle, if the employer 
has determined that the driver has violated this section.
    (c) For purposes of this subpart, commercial motor vehicle means a 
commercial motor vehicle in commerce as defined in Sec. 382.107, and a 
commercial motor vehicle in interstate commerce as defined in part 390 
of this subchapter.



Sec. 382.503  Required evaluation and testing.

    No driver who has engaged in conduct prohibited by subpart B of this 
part shall perform safety-sensitive functions, including driving a 
commercial motor vehicle, unless the driver has met the requirements of 
part 40, subpart O, of this title. No employer shall permit a driver who 
has engaged in conduct prohibited by subpart B of this part to perform 
safety-sensitive functions, including driving a commercial motor 
vehicle, unless the driver has met the requirements of part 40, subpart 
O, of this title.

[[Page 186]]



Sec. 382.505  Other alcohol-related conduct.

    (a) No driver tested under the provisions of subpart C of this part 
who is found to have an alcohol concentration of 0.02 or greater but 
less than 0.04 shall perform or continue to perform safety-sensitive 
functions for an employer, including driving a commercial motor vehicle, 
nor shall an employer permit the driver to perform or continue to 
perform safety-sensitive functions, until the start of the driver's next 
regularly scheduled duty period, but not less than 24 hours following 
administration of the test.
    (b) Except as provided in paragraph (a) of this section, no employer 
shall take any action under this part against a driver based solely on 
test results showing an alcohol concentration less than 0.04. This does 
not prohibit an employer with authority independent of this part from 
taking any action otherwise consistent with law.



Sec. 382.507  Penalties.

    Any employer or driver who violates the requirements of this part 
shall be subject to the civil and/or criminal penalty provisions of 49 
U.S.C. 521(b). In addition, any employer or driver who violates the 
requirements of 49 CFR part 40 shall be subject to the civil and/or 
criminal penalty provisions of 49 U.S.C. 521(b).



  Subpart F_Alcohol Misuse and Controlled Substances Use Information, 
                         Training, and Referral



Sec. 382.601  Employer obligation to promulgate a policy on the misuse
of alcohol and use of controlled substances.

    (a) General requirements. Each employer shall provide educational 
materials that explain the requirements of this part and the employer's 
policies and procedures with respect to meeting these requirements.
    (1) The employer shall ensure that a copy of these materials is 
distributed to each driver prior to the start of alcohol and controlled 
substances testing under this part and to each driver subsequently hired 
or transferred into a position requiring driving a commercial motor 
vehicle.
    (2) Each employer shall provide written notice to representatives of 
employee organizations of the availability of this information.
    (b) Required content. The materials to be made available to drivers 
shall include detailed discussion of at least the following:
    (1) The identity of the person designated by the employer to answer 
driver questions about the materials;
    (2) The categories of drivers who are subject to the provisions of 
this part;
    (3) Sufficient information about the safety-sensitive functions 
performed by those drivers to make clear what period of the work day the 
driver is required to be in compliance with this part;
    (4) Specific information concerning driver conduct that is 
prohibited by this part;
    (5) The circumstances under which a driver will be tested for 
alcohol and/or controlled substances under this part, including post-
accident testing under Sec. 382.303(d);
    (6) The procedures that will be used to test for the presence of 
alcohol and controlled substances, protect the driver and the integrity 
of the testing processes, safeguard the validity of the test results, 
and ensure that those results are attributed to the correct driver, 
including post-accident information, procedures and instructions 
required by Sec. 382.303(d);
    (7) The requirement that a driver submit to alcohol and controlled 
substances tests administered in accordance with this part;
    (8) An explanation of what constitutes a refusal to submit to an 
alcohol or controlled substances test and the attendant consequences;
    (9) The consequences for drivers found to have violated subpart B of 
this part, including the requirement that the driver be removed 
immediately from safety-sensitive functions, and the procedures under 
part 40, subpart O, of this title;
    (10) The consequences for drivers found to have an alcohol 
concentration of 0.02 or greater but less than 0.04;

[[Page 187]]

    (11) Information concerning the effects of alcohol and controlled 
substances use on an individual's health, work, and personal life; signs 
and symptoms of an alcohol or a controlled substances problem (the 
driver's or a co-worker's); and available methods of intervening when an 
alcohol or a controlled substances problem is suspected, including 
confrontation, referral to any employee assistance program and or 
referral to management.
    (c) Optional provision. The materials supplied to drivers may also 
include information on additional employer policies with respect to the 
use of alcohol or controlled substances, including any consequences for 
a driver found to have a specified alcohol or controlled substances 
level, that are based on the employer's authority independent of this 
part. Any such additional policies or consequences must be clearly and 
obviously described as being based on independent authority.
    (d) Certificate of receipt. Each employer shall ensure that each 
driver is required to sign a statement certifying that he or she has 
received a copy of these materials described in this section. Each 
employer shall maintain the original of the signed certificate and may 
provide a copy of the certificate to the driver.



Sec. 382.603  Training for supervisors.

    Each employer shall ensure that all persons designated to supervise 
drivers receive at least 60 minutes of training on alcohol misuse and 
receive at least an additional 60 minutes of training on controlled 
substances use. The training will be used by the supervisors to 
determine whether reasonable suspicion exists to require a driver to 
undergo testing under Sec. 382.307. The training shall include the 
physical, behavioral, speech, and performance indicators of probable 
alcohol misuse and use of controlled substances. Recurrent training for 
supervisory personnel is not required.



Sec. 382.605  Referral, evaluation, and treatment.

    The requirements for referral, evaluation, and treatment must be 
performed in accordance with 49 CFR part 40, Subpart O.



PART 383_COMMERCIAL DRIVER'S LICENSE STANDARDS; REQUIREMENTS AND 
PENALTIES--Table of Contents




                            Subpart A_General

Sec.
383.1 Purpose and scope.
383.3 Applicability.
383.5 Definitions.
383.7 Validity of CDL issued by decertified State.

                  Subpart B_Single License Requirement

383.21 Number of drivers' licenses.
383.23 Commercial driver's license.

    Subpart C_Notification Requirements and Employer Responsibilities

383.31 Notification of convictions for driver violations.
383.33 Notification of driver's license suspensions.
383.35 Notification of previous employment.
383.37 Employer responsibilities.

            Subpart D_Driver Disqualifications and Penalties

383.51 Disqualification of drivers.
383.52 Disqualification of drivers determined to constitute an imminent 
          hazard.
383.53 Penalties.

               Subpart E_Testing and Licensing Procedures

383.71 Driver application procedures.
383.72 Implied consent to alcohol testing.
383.73 State procedures.
383.75 Third party testing.
383.77 Substitute for driving skills tests.

                Subpart F_Vehicle Groups and Endorsements

383.91 Commercial motor vehicle groups.
383.93 Endorsements.
383.95 Restrictions.

                 Subpart G_Required Knowledge and Skills

383.110 General requirement.
383.111 Required knowledge.
383.113 Required skills.
383.115 Requirements for double/triple trailers endorsement.
383.117 Requirements for passenger endorsement.
383.119 Requirements for tank vehicle endorsement.
383.121 Requirements for hazardous materials endorsement.
383.123 Requirements for a school bus endorsement.

[[Page 188]]


Appendix to Subpart G--Required Knowledge and Skills--Sample Guidelines

                             Subpart H_Tests

383.131 Test procedures.
383.133 Testing methods.
383.135 Minimum passing scores.

    Subpart I_Requirement for Transportation Security Administration 
          approval of hazardous materials endorsement issuances

383.141 General.

             Subpart J_Commercial Driver's License Document

383.151 General.
383.153 Information on the document and application.
383.155 Tamperproofing requirements.

    Authority: 49 U.S.C. 521, 31136, 31301 et seq., and 31502; secs. 214 
and 215 of Pub. L. 106-159, 113 Stat. 1766, 1767; sec. 1012(b) of Pub. 
L. 107-56; 115 Stat. 397; sec. 4140 of Pub. L. 109-59, 119 Stat. 1144, 
1726; and 49 CFR 1.73.

    Source: 52 FR 20587, June 1, 1987, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 383 appear at 66 FR 
49872, Oct. 1, 2001.



                            Subpart A_General



Sec. 383.1  Purpose and scope.

    (a) The purpose of this part is to help reduce or prevent truck and 
bus accidents, fatalities, and injuries by requiring drivers to have a 
single commercial motor vehicle driver's license and by disqualifying 
drivers who operate commercial motor vehicles in an unsafe manner.
    (b) This part:
    (1) Prohibits a commercial motor vehicle driver from having more 
than one commercial motor vehicle driver's license;
    (2) Requires a driver to notify the driver's current employer and 
the driver's State of domicile of certain convictions;
    (3) Requires that a driver provide previous employment information 
when applying for employment as an operator of a commercial motor 
vehicle;
    (4) Prohibits an employer from allowing a person with a suspended 
license to operate a commercial motor vehicle;
    (5) Establishes periods of disqualification and penalties for those 
persons convicted of certain criminal and other offenses and serious 
traffic violations, or subject to any suspensions, revocations, or 
cancellations of certain driving privileges;
    (6) Establishes testing and licensing requirements for commercial 
motor vehicle operators;
    (7) Requires States to give knowledge and skills tests to all 
qualified applicants for commercial drivers' licenses which meet the 
Federal standard;
    (8) Sets forth commercial motor vehicle groups and endorsements;
    (9) Sets forth the knowledge and skills test requirements for the 
motor vehicle groups and endorsements;
    (10) Sets forth the Federal standards for procedures, methods, and 
minimum passing scores for States and others to use in testing and 
licensing commercial motor vehicle operators; and
    (11) Establishes requirements for the State issued commercial 
license documentation.

[52 FR 20587, June 1, 1987, as amended at 53 FR 27648, July 21, 1988; 54 
FR 40787, Oct. 3, 1989]



Sec. 383.3  Applicability.

    (a) The rules in this part apply to every person who operates a 
commercial motor vehicle (CMV) in interstate, foreign, or intrastate 
commerce, to all employers of such persons, and to all States.
    (b) The exceptions contained in Sec. 390.3(f) of this subchapter do 
not apply to this part. The employers and drivers identified in Sec. 
390.3(f) must comply with the requirements of this part, unless 
otherwise provided in this section.
    (c) Exception for certain military drivers. Each State must exempt 
from the requirements of this part individuals who operate CMVs for 
military purposes. This exception is applicable to active duty military 
personnel; members of the military reserves; member of the national 
guard on active duty, including personnel on full-time national guard 
duty, personnel on part-time national guard training, and national guard 
military technicians (civilians who are required to wear military 
uniforms); and active duty U.S. Coast Guard personnel. This exception is 
not applicable to U.S. Reserve technicians.

[[Page 189]]

    (d) Exception for farmers, firefighters, emergency response vehicle 
drivers, and drivers removing snow and ice. A State may, at its 
discretion, exempt individuals identified in paragraphs (d)(1), (d)(2), 
and (d)(3) of this section from the requirements of this part. The use 
of this waiver is limited to the driver's home State unless there is a 
reciprocity agreement with adjoining States.
    (1) Operators of a farm vehicle which is:
    (i) Controlled and operated by a farmer, including operation by 
employees or family members;
    (ii) Used to transport either agricultural products, farm machinery, 
farm supplies, or both to or from a farm;
    (iii) Not used in the operations of a common or contract motor 
carrier; and
    (iv) Used within 241 kilometers (150 miles) of the farmer's farm.
    (2) Firefighters and other persons who operate CMVs which are 
necessary to the preservation of life or property or the execution of 
emergency governmental functions, are equipped with audible and visual 
signals and are not subject to normal traffic regulation. These vehicles 
include fire trucks, hook and ladder trucks, foam or water transport 
trucks, police SWAT team vehicles, ambulances, or other vehicles that 
are used in response to emergencies.
    (3)(i) A driver, employed by an eligible unit of local government, 
operating a commercial motor vehicle within the boundaries of that unit 
for the purpose of removing snow or ice from a roadway by plowing, 
sanding, or salting, if
    (A) The properly licensed employee who ordinarily operates a 
commercial motor vehicle for these purposes is unable to operate the 
vehicle; or
    (B) The employing governmental entity determines that a snow or ice 
emergency exists that requires additional assistance.
    (ii) This exemption shall not preempt State laws and regulations 
concerning the safe operation of commercial motor vehicles.
    (e) Restricted commercial drivers license (CDL) for certain drivers 
in the State of Alaska. (1) The State of Alaska may, at its discretion, 
waive only the following requirements of this part and issue a CDL to 
each driver that meets the conditions set forth in paragraphs (e) (2) 
and (3) of this section:
    (i) The knowledge tests standards for testing procedures and methods 
of subpart H, but must continue to administer knowledge tests that 
fulfill the content requirements of subpart G for all applicants;
    (ii) All the skills test requirements; and
    (iii) The requirement under Sec. 383.153(a)(4) to have a photograph 
on the license document.
    (2) Drivers of CMVs in the State of Alaska must operate exclusively 
over roads that meet both of the following criteria to be eligible for 
the exception in paragraph (e)(1) of this section:
    (i) Such roads are not connected by land highway or vehicular way to 
the land-connected State highway system; and
    (ii) Such roads are not connected to any highway or vehicular way 
with an average daily traffic volume greater than 499.
    (3) Any CDL issued under the terms of this paragraph must carry two 
restrictions:
    (i) Holders may not operate CMVs over roads other than those 
specified in paragraph (e)(2) of this section; and
    (ii) The license is not valid for CMV operation outside the State of 
Alaska.
    (f) Restricted CDL for certain drivers in farm-related service 
industries. (1) A State may, at its discretion, waive the required 
knowledge and skills tests of subpart H of this part and issue 
restricted CDLs to employees of these designated farm-related service 
industries:
    (i) Agri-chemical businesses;
    (ii) Custom harvesters;
    (iii) Farm retail outlets and suppliers;
    (iv) Livestock feeders.
    (2) A restricted CDL issued pursuant to this paragraph shall meet 
all the requirements of this part, except subpart H of this part. A 
restricted CDL issued pursuant to this paragraph shall be accorded the 
same reciprocity as a CDL meeting all of the requirements of this part. 
The restrictions imposed upon the issuance of this restricted CDL shall 
not limit a person's use of the

[[Page 190]]

CDL in a non-CMV during either validated or non-validated periods, nor 
shall the CDL affect a State's power to administer its driver licensing 
program for operators of vehicles other than CMVs.
    (3) A State issuing a CDL under the terms of this paragraph must 
restrict issuance as follows:
    (i) Applicants must have a good driving record as defined in this 
paragraph. Drivers who have not held any motor vehicle operator's 
license for at least one year shall not be eligible for this CDL. 
Drivers who have between one and two years of driving experience must 
demonstrate a good driving record for their entire driving history. 
Drivers with more than two years of driving experience must have a good 
driving record for the two most recent years. For the purposes of this 
paragraph, the term good driving record means that an applicant:
    (A) Has not had more than one license (except in the instances 
specified in Sec. 383.21);
    (B) Has not had any license suspended, revoked, or canceled;
    (C) Has not had any conviction for any type of motor vehicle for the 
disqualifying offenses contained in Sec. 383.51(b);
    (D) Has not had any conviction for any type of motor vehicle for 
serious traffic violations; and
    (E) Has not had any conviction for a violation of State or local law 
relating to motor vehicle traffic control (other than a parking 
violation) arising in connection with any traffic accident, and has no 
record of an accident in which he/she was at fault.
    (ii) Restricted CDLs shall have the same renewal cycle as 
unrestricted CDLs, but shall be limited to the seasonal period or 
periods as defined by the State of licensure, provided that the total 
number of calendar days in any 12-month period for which the restricted 
CDL is valid does not exceed 180. If a State elects to provide for more 
than one seasonal period, the restricted CDL is valid for commercial 
motor vehicle operation only during the currently approved season, and 
must be revalidated for each successive season. Only one seasonal period 
of validity may appear on the license document at a time. The good 
driving record must be confirmed prior to any renewal or revalidation.
    (iii) Restricted CDL holders are limited to operating Group B and C 
vehicles, as described in subpart F of this part.
    (iv) Restricted CDLs shall not be issued with any endorsements on 
the license document. Only the limited tank vehicle and hazardous 
materials endorsement privileges that the restricted CDL automatically 
confers and are described in paragraph (f)(3)(v) of this section are 
permitted.
    (v) Restricted CDL holders may not drive vehicles carrying any 
placardable quantities of hazardous materials, except for diesel fuel in 
quantities of 3,785 liters (1,000 gallons) or less; liquid fertilizers 
(i.e., plant nutrients) in vehicles or implements of husbandry in total 
quantities of 11,355 liters (3,000 gallons) or less; and solid 
fertilizers (i.e., solid plant nutrients) that are not transported with 
any organic substance.
    (vi) Restricted CDL holders may not hold an unrestricted CDL at the 
same time.
    (vii) Restricted CDL holders may not operate a commercial motor 
vehicle beyond 241 kilometers (150 miles) from the place of business or 
the farm currently being served.
    (g) Restricted CDL for certain drivers in the pyrotechnic industry. 
(1) A State may, at its discretion, waive the required hazardous 
materials knowledge tests of subpart H of this part and issue restricted 
CDLs to part-time drivers operating commercial motor vehicles 
transporting less than 227 kilograms (500 pounds) of fireworks 
classified as DOT Class 1.3G explosives.
    (2) A State issuing a CDL under the terms of this paragraph must 
restrict issuance as follows:
    (i) The GVWR of the vehicle to be operated must be less than 4,537 
kilograms (10,001 pounds);
    (ii) If a State believes, at its discretion, that the training 
required by Sec. 172.704 of this title adequately prepares part-time 
drivers meeting the other requirements of this paragraph to deal with 
fireworks and the other potential dangers posed by fireworks 
transportation and use, the State may

[[Page 191]]

waive the hazardous materials knowledge tests of subpart H of this part. 
The State may impose any requirements it believes is necessary to ensure 
itself that a driver is properly trained pursuant to Sec. 172.704 of 
this title.
    (iii) A restricted CDL document issued pursuant to this paragraph 
shall have a statement clearly imprinted on the face of the document 
that is substantially similar as follows: ``For use as a CDL only during 
the period from June 30 through July 6 for purposes of transporting less 
than 227 kilograms (500 pounds) of fireworks classified as DOT Class 
1.3G explosives in a vehicle with a GVWR of less than 4,537 kilograms 
(10,001 pounds).
    (3) A restricted CDL issued pursuant to this paragraph shall meet 
all the requirements of this part, except those specifically identified. 
A restricted CDL issued pursuant to this paragraph shall be accorded the 
same reciprocity as a CDL meeting all of the requirements of this part. 
The restrictions imposed upon the issuance of this restricted CDL shall 
not limit a person's use of the CDL in a non-CMV during either validated 
or non-validated periods, nor shall the CDL affect a State's power to 
administer its driver licensing program for operators of vehicles other 
than CMVs.
    (4) Restricted CDLs shall have the same renewal cycle as 
unrestricted CDLs, but shall be limited to the seasonal period of June 
30 through July 6 of each year or a lesser period as defined by the 
State of licensure.
    (5) Persons who operate commercial motor vehicles during the period 
from July 7 through June 29 for purposes of transporting less than 227 
kilograms (500 pounds) of fireworks classified as DOT Class 1.3G 
explosives in a vehicle with a GVWR of less than 4,537 kilograms (10,001 
pounds) and who also operate such vehicles for the same purposes during 
the period June 30 through July 6 shall not be issued a restricted CDL 
pursuant to this paragraph.

[61 FR 9564, Mar. 8, 1996, as amended at 61 FR 14679, Apr. 3, 1996; 62 
FR 1296, Jan. 9, 1997; 67 FR 49755, July 31, 2002; 67 FR 61821, Oct. 2, 
2002]



Sec. 383.5  Definitions.

    As used in this part:
    Administrator means the Federal Motor Carrier Safety Administrator, 
the chief executive of the Federal Motor Carrier Safety Administration, 
an agency within the Department of Transportation.
    Alcohol or alcoholic beverage means: (a) Beer as defined in 26 
U.S.C. 5052(a), of the Internal Revenue Code of 1954, (b) wine of not 
less than one-half of one per centum of alcohol by volume, or (c) 
distilled spirits as defined in section 5002(a)(8), of such Code.
    Alcohol concentration (AC) means the concentration of alcohol in a 
person's blood or breath. When expressed as a percentage it means grams 
of alcohol per 100 milliliters of blood or grams of alcohol per 210 
liters of breath.
    Alien means any person not a citizen or national of the United 
States.
    CDL downgrade means either:
    (1) A State allows the driver to change his or her self-
certification to interstate, but operating exclusively in transportation 
or operation excepted from part 391, as provided in Sec. 390.3(f), 
391.2, 391.68 or 398.3 of this chapter;
    (2) A State allows the driver to change his or her self-
certification to intrastate only, if the driver qualifies under that 
State's physical qualification requirements for intrastate only;
    (3) A State allows the driver to change his or her certification to 
intrastate, but operating exclusively in transportation or operations 
excepted from all or part of the State driver qualification 
requirements, or
    (4) A State removes the CDL privilege from the driver license.
    CDLIS driver record means the electronic record of the individual 
CDL driver's status and history stored by the State-of-Record as part of 
the Commercial Driver's License Information System (CDLIS) established 
under 49 U.S.C. 31309.
    Commerce means (a) any trade, traffic or transportation within the 
jurisdiction of the United States between a place in a State and a place 
outside of such State, including a place outside of the United States 
and (b) trade, traffic, and transportation in the United States which 
affects any trade, traffic,

[[Page 192]]

and transportation described in paragraph (a) of this definition.
    Commercial driver's license (CDL) means a license issued by a State 
or other jurisdiction, in accordance with the standards contained in 49 
CFR part 383, to an individual which authorizes the individual to 
operate a class of a commercial motor vehicle.
    Commercial driver's license information system (CDLIS) means the 
CDLIS established by FMCSA pursuant to section 12007 of the Commercial 
Motor Vehicle Safety Act of 1986.
    Commercial motor vehicle (CMV) means a motor vehicle or combination 
of motor vehicles used in commerce to transport passengers or property 
if the motor vehicle--
    (a) Has a gross combination weight rating of 11,794 kilograms or 
more (26,001 pounds or more) inclusive of a towed unit(s) with a gross 
vehicle weight rating of more than 4,536 kilograms (10,000 pounds); or
    (b) Has a gross vehicle weight rating of 11,794 or more kilograms 
(26,001 pounds or more); or
    (c) Is designed to transport 16 or more passengers, including the 
driver; or
    (d) Is of any size and is used in the transportation of hazardous 
materials as defined in this section.
    Controlled substance has the meaning such term has under 21 U.S.C. 
802(6) and includes all substances listed on schedules I through V of 21 
CFR 1308 (Sec. Sec. 1308.11 through 1308.15), as they may be amended by 
the United States Department of Justice.
    Conviction means an unvacated adjudication of guilt, or a 
determination that a person has violated or failed to comply with the 
law in a court of original jurisdiction or by an authorized 
administrative tribunal, an unvacated forfeiture of bail or collateral 
deposited to secure the person's appearance in court, a plea of guilty 
or nolo contendere accepted by the court, the payment of a fine or court 
cost, or violation of a condition of release without bail, regardless of 
whether or not the penalty is rebated, suspended, or probated.''
    Disqualification means any of the following three actions:
    (a) The suspension, revocation, or cancellation of a CDL by the 
State or jurisdiction of issuance.
    (b) Any withdrawal of a person's privileges to drive a CMV by a 
State or other jurisdiction as the result of a violation of State or 
local law relating to motor vehicle traffic control (other than parking, 
vehicle weight or vehicle defect violations).
    (c) A determination by the FMCSA that a person is not qualified to 
operate a commercial motor vehicle under part 391 of this chapter.
    Driver applicant means an individual who applies to a State to 
obtain, transfer, upgrade, or renew a CDL.
    Driver's license means a license issued by a State or other 
jurisdiction, to an individual which authorizes the individual to 
operate a motor vehicle on the highways.
    Driving a commercial motor vehicle while under the influence of 
alcohol means committing any one or more of the following acts in a 
CMV--
    (a) Driving a CMV while the person's alcohol concentration is 0.04 
or more;
    (b) Driving under the influence of alcohol, as prescribed by State 
law; or
    (c) Refusal to undergo such testing as is required by any State or 
jurisdiction in the enforcement of Sec. 383.51(b) or Sec. 392.5(a)(2) 
of this subchapter.
    Eligible unit of local government means a city, town, borough, 
county, parish, district, or other public body created by or pursuant to 
State law which has a total population of 3,000 individuals or less.
    Employee means any operator of a commercial motor vehicle, including 
full time, regularly employed drivers; casual, intermittent or 
occasional drivers; leased drivers and independent, owner-operator 
contractors (while in the course of operating a commercial motor 
vehicle) who are either directly employed by or under lease to an 
employer.
    Employer means any person (including the United States, a State, 
District of Columbia or a political subdivision of a State) who owns or 
leases a commercial motor vehicle or assigns employees to operate such a 
vehicle.

[[Page 193]]

    Endorsement means an authorization to an individual's CDL required 
to permit the individual to operate certain types of commercial motor 
vehicles.
    Fatality means the death of a person as a result of a motor vehicle 
accident.
    Felony means an offense under State or Federal law that is 
punishable by death or imprisonment for a term exceeding 1 year.
    Foreign means outside the fifty United States and the District of 
Columbia.
    Gross combination weight rating (GCWR) means the value specified by 
the manufacturer as the loaded weight of a combination (articulated) 
vehicle. In the absence of a value specified by the manufacturer, GCWR 
will be determined by adding the GVWR of the power unit and the total 
weight of the towed unit and any load thereon.
    Gross vehicle weight rating (GVWR) means the value specified by the 
manufacturer as the loaded weight of a single vehicle.
    Hazardous materials means any material that has been designated as 
hazardous under 49 U.S.C. 5103 and is required to be placarded under 
subpart F of 49 CFR part 172 or any quantity of a material listed as a 
select agent or toxin in 42 CFR part 73.
    Imminent hazard means the existence of a condition that presents a 
substantial likelihood that death, serious illness, severe personal 
injury, or a substantial endangerment to health, property, or the 
environment may occur before the reasonably foreseeable completion date 
of a formal proceeding begun to lessen the risk of that death, illness, 
injury or endangerment.
    Motor vehicle means a vehicle, machine, tractor, trailer, or 
semitrailer propelled or drawn by mechanical power used on highways, 
except that such term does not include a vehicle, machine, tractor, 
trailer, semitrailer operated exclusively on a rail.
    Nonresident CDL means a CDL issued by a State under either of the 
following two conditions:
    (a) To an individual domiciled in a foreign country meeting the 
requirements of Sec. 383.23(b)(1).
    (b) To an individual domiciled in another State meeting the 
requirements of Sec. 383.23(b)(2).
    Non-CMV means a motor vehicle or combination of motor vehicles not 
defined by the term ``commercial motor vehicle (CMV)'' in this section.
    Out-of-service order means a declaration by an authorized 
enforcement officer of a Federal, State, Canadian, Mexican, or local 
jurisdiction that a driver, a commercial motor vehicle, or a motor 
carrier operation, is out-of-service pursuant to Sec. Sec. 386.72, 
392.5, 395.13, 396.9, or compatible laws, or the North American Uniform 
Out-of-Service Criteria.
    Representative vehicle means a motor vehicle which represents the 
type of motor vehicle that a driver applicant operates or expects to 
operate.
    School bus means a CMV used to transport pre-primary, primary, or 
secondary school students from home to school, from school to home, or 
to and from school-sponsored events. School bus does not include a bus 
used as a common carrier.
    Serious traffic violation means conviction of any of the following 
offenses when operating a CMV, except weight, defect and parking 
violations:
    (a) Excessive speeding, involving any single offense for any speed 
of 15 miles per hour or more above the posted speed limit;
    (b) Reckless driving, as defined by State or local law or 
regulation, including but not limited to offenses of driving a CMV in 
willful or wanton disregard for the safety of persons or property;
    (c) Improper or erratic traffic lane changes;
    (d) Following the vehicle ahead too closely;
    (e) A violation, arising in connection with a fatal accident, of 
State or local law relating to motor vehicle traffic control;
    (f) Driving a CMV without obtaining a CDL;
    (g) Driving a CMV without a CDL in the driver's possession. Any 
individual who provides proof to the enforcement authority that issued 
the citation, by the date the individual must appear in court or pay any 
fine for such a violation, that the individual held a valid CDL on the 
date the citation was issued, shall not be guilty of this offense; or

[[Page 194]]

    (h) Driving a CMV without the proper class of CDL and/or 
endorsements for the specific vehicle group being operated or for the 
passengers or type of cargo being transported.
    State means a State of the United States and the District of 
Columbia.
    State of domicile means that State where a person has his/her true, 
fixed, and permanent home and principal residence and to which he/she 
has the intention of returning whenever he/she is absent.
    Tank vehicle means any commercial motor vehicle that is designed to 
transport any liquid or gaseous materials within a tank that is either 
permanently or temporarily attached to the vehicle or the chassis. Such 
vehicles include, but are not limited to, cargo tanks and portable 
tanks, as defined in part 171 of this title. However, this definition 
does not include portable tanks having a rated capacity under 1,000 
gallons.
    United States the term United States means the 50 States and the 
District of Columbia.
    Vehicle means a motor vehicle unless otherwise specified.
    Vehicle group means a class or type of vehicle with certain 
operating characteristics.

[52 FR 20587, June 1, 1987, as amended at 53 FR 27648, July 21, 1988; 53 
FR 39050, Oct. 4, 1988; 54 FR 40787, Oct. 3, 1989; 59 FR 26028, May 18, 
1994; 61 FR 9566, Mar. 8, 1996; 61 FR 14679, Apr. 3, 1996; 62 FR 37151, 
July 11, 1997; 67 FR 49756, July 31, 2002; 68 FR 23849, May 5, 2003; 73 
FR 73123, Dec. 1, 2008]



Sec. 383.7  Validity of CDL issued by decertified State.

    A CDL issued by a State prior to the date the State is notified by 
the Administrator, in accordance with the provisions of Sec. 384.405 of 
this subchapter, that the State is prohibited from issuing CDLs, will 
remain valid until its stated expiration date.

[67 FR 49756, July 31, 2002]



                  Subpart B_Single License Requirement



Sec. 383.21  Number of drivers' licenses.

    No person who operates a commercial motor vehicle shall at any time 
have more than one driver's license.

[64 FR 48110, Sept. 2, 1999]



Sec. 383.23  Commercial driver's license.

    (a) General rule. (1) Effective April 1, 1992, no person shall 
operate a commercial motor vehicle unless such person has taken and 
passed written and driving tests which meet the Federal standards 
contained in subparts F, G, and H of this part for the commercial motor 
vehicle that person operates or expects to operate.
    (2) Except as provided in paragraph (b) of this section, no person 
may legally operate a CMV unless such person possesses a CDL which meets 
the standards contained in subpart J of this part, issued by his/her 
State or jurisdiction of domicile.
    (b) Exception. (1) If a CMV operator is not domiciled in a foreign 
jurisdiction which the Administrator has determined tests drivers and 
issues CDLs in accordance with, or under standards similar to, the 
standards contained in subparts F, G, and H of this part, the person may 
obtain a Nonresident CDL from a State which does comply with the testing 
and licensing standards contained in such subparts F, G, and H of this 
part. \1\
---------------------------------------------------------------------------

    \1\ Effective December 29, 1988, the Administrator determined that 
commercial drivers' licensees issued by Canadian Provinces and 
Territories in conformity with the Canadian National Safety Code are in 
accordance with the standards of this part. Effective November 21, 1991, 
the Administrator determined that the new Licencias Federales de 
Conductor issued by the United Mexican States are in accordance with the 
standards of this part. Therefore, under the single license provision of 
Sec. 383.21, a driver holding a commercial driver's license issued 
under the Canadian National Safety Code or a new Licencia Federal de 
Conductor issued by Mexico is prohibited from obtaining nonresident CDL, 
or any other type of driver's license, from a State or other 
jurisdiction in the United States.
---------------------------------------------------------------------------

    (2) If an individual is domiciled in a State while that State is 
prohibited

[[Page 195]]

from issuing CDLs in accordance with Sec. 384.405 of this subchapter, 
that individual is eligible to obtain a Nonresident CDL from any State 
that elects to issue a Nonresident CDL and which complies with the 
testing and licensing standards contained in subparts F, G, and H of 
this part.
    (c) Learner's permit. State learners' permits, issued for limited 
time periods according to State requirements, shall be considered valid 
commercial drivers' licenses for purposes of behind-the-wheel training 
on public roads or highways, if the following minimum conditions are 
met:
    (1) The learner's permit holder is at all times accompanied by the 
holder of a valid CDL;
    (2) He/she either holds a valid automobile driver's license, or has 
passed such vision, sign/symbol, and knowledge tests as the State 
issuing the learner's permit ordinarily administers to applicants for 
automotive drivers' licenses; and
    (3) He/she does not operate a commercial motor vehicle transporting 
hazardous materials as defined in Sec. 383.5.

[53 FR 27649, July 21, 1988, as amended at 54 FR 22285, May 23, 1989; 57 
FR 31457, July 16, 1992; 67 FR 49756, July 31, 2002; 68 FR 23849, May 5, 
2003]



    Subpart C_Notification Requirements and Employer Responsibilities



Sec. 383.31  Notification of convictions for driver violations.

    (a) Each person who operates a commercial motor vehicle, who has a 
commercial driver's license issued by a State or jurisdiction, and who 
is convicted of violating, in any type of motor vehicle, a State or 
local law relating to motor vehicle traffic control (other than a 
parking violation) in a State or jurisdiction other than the one which 
issued his/her license, shall notify an official designated by the State 
or jurisdiction which issued such license, of such conviction. The 
notification must be made within 30 days after the date that the person 
has been convicted.
    (b) Each person who operates a commercial motor vehicle, who has a 
commercial driver's license issued by a State or jurisdiction, and who 
is convicted of violating, in any type of motor vehicle, a State or 
local law relating to motor vehicle traffic control (other than a 
parking violation), shall notify his/her current employer of such 
conviction. The notification must be made within 30 days after the date 
that the person has been convicted. If the driver is not currently 
employed, he/she must notify the State or jurisdiction which issued the 
license according to Sec. 383.31(a).
    (c) Notification. The notification to the State official and 
employer must be made in writing and contain the following information:
    (1) Driver's full name;
    (2) Driver's license number;
    (3) Date of conviction;
    (4) The specific criminal or other offense(s), serious traffic 
violation(s), and other violation(s) of State or local law relating to 
motor vehicle traffic control, for which the person was convicted and 
any suspension, revocation, or cancellation of certain driving 
privileges which resulted from such conviction(s);
    (5) Indication whether the violation was in a commercial motor 
vehicle;
    (6) Location of offense; and
    (7) Driver's signature.

[52 FR 20587, June 1, 1987, as amended at 54 FR 40787, Oct. 3, 1989]



Sec. 383.33  Notification of driver's license suspensions.

    Each employee who has a driver's license suspended, revoked, or 
canceled by a State or jurisdiction, who loses the right to operate a 
commercial motor vehicle in a State or jurisdiction for any period, or 
who is disqualified from operating a commercial motor vehicle for any 
period, shall notify his/her current employer of such suspension, 
revocation, cancellation, lost privilege, or disqualification. The 
notification must be made before the end of the business day following 
the day the employee received notice of the suspension, revocation, 
cancellation, lost privilege, or disqualification.

[54 FR 40788, Oct. 3, 1989]

[[Page 196]]



Sec. 383.35  Notification of previous employment.

    (a) Any person applying for employment as an operator of a 
commercial motor vehicle shall provide at the time of application for 
employment, the information specified in paragraph (c) of this section.
    (b) All employers shall request the information specified in 
paragraph (c) of this section from all persons applying for employment 
as a commercial motor vehicle operator. The request shall be made at the 
time of application for employment.
    (c) The following employment history information for the 10 years 
preceding the date the application is submitted shall be presented to 
the prospective employer by the applicant:
    (1) A list of the names and addresses of the applicant's previous 
employers for which the applicant was an operator of a commercial motor 
vehicle;
    (2) The dates the applicant was employed by these employers; and
    (3) The reason for leaving such employment.
    (d) The applicant shall certify that all information furnished is 
true and complete.
    (e) An employer may require an applicant to provide additional 
information.
    (f) Before an application is submitted, the employer shall inform 
the applicant that the information he/she provides in accordance with 
paragraph (c) of this section may be used, and the applicant's previous 
employers may be contacted for the purpose of investigating the 
applicant's work history.



Sec. 383.37  Employer responsibilities.

    No employer may knowingly allow, require, permit, or authorize a 
driver to operate a CMV in the United States:
    (a) During any period in which the driver has a CMV driver's license 
suspended, revoked, or canceled by a State, has lost the right to 
operate a CMV in a State, or has been disqualified from operating a CMV;
    (b) During any period in which the driver has more than one CMV 
driver's license;
    (c) During any period in which the driver, or the CMV he or she is 
driving, or the motor carrier operation, is subject to an out-of-service 
order; or
    (d) In violation of a Federal, State, or local law or regulation 
pertaining to railroad-highway grade crossings.

[64 FR 48110, Sept. 2, 1999]



            Subpart D_Driver Disqualifications and Penalties



Sec. 383.51  Disqualification of drivers.

    (a) General. (1) A driver or holder of a CDL who is disqualified 
must not drive a CMV.
    (2) An employer must not knowingly allow, require, permit, or 
authorize a driver who is disqualified to drive a CMV.
    (3) A driver is subject to disqualification sanctions designated in 
paragraphs (b) and (c) of this section, if the holder of a CDL drives a 
CMV or non-CMV and is convicted of the violations.
    (4) Determining first and subsequent violations. For purposes of 
determining first and subsequent violations of the offenses specified in 
this subpart, each conviction for any offense listed in Tables 1 through 
4 to this section resulting from a separate incident, whether committed 
in a CMV or non-CMV, must be counted.
    (5) Reinstatement after lifetime disqualification. A State may 
reinstate any driver disqualified for life for offenses described in 
paragraphs (b)(1) through (b)(8) of this section (Table 1 to Sec. 
383.51) after 10 years if that person has voluntarily entered and 
successfully completed an appropriate rehabilitation program approved by 
the State. Any person who has been reinstated in accordance with this 
provision and who is subsequently convicted of a disqualifying offense 
described in paragraphs (b)(1) through (b)(8) of this section (Table 1 
to Sec. 383.51) must not be reinstated.
    (b) Disqualification for major offenses. Table 1 to Sec. 383.51 
contains a list of the offenses and periods for which a driver must be 
disqualified, depending upon the type of vehicle the driver is operating 
at the time of the violation, as follows:

[[Page 197]]



                                                                Table 1 to Sec.  383.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          For a first
                                                                                     conviction or refusal
                                                                                       to be tested while        For a second
                                                                                        operating a CMV     conviction or refusal       For a second
                                     For a first conviction                               transporting        to be tested in a    conviction or refusal
                                        or refusal to be     For a first conviction   hazardous materials    separate incident of    to be tested in a
                                     tested while operating     or refusal to be         required to be       any combination of    separate incident of
                                         a CMV, a person     tested while operating   placarded under the      offenses in this      any combination of
    If a driver operates a motor     required to have a CDL     a non-CMV, a CDL      Hazardous Materials   Table while operating     offenses in this
    vehicle and is convicted of:      and a CDL holder must      holder must be       Regulations (49 CFR      a CMV, a person     Table while operating
                                      be disqualified from      disqualified from    part 172, subpart F),    required to have a      a non-CMV, a CDL
                                      operating a CMV for .   operating a CMV for .   a person required to   CDL and a CDL holder      holder must be
                                               . .                     . .             have a CDL and CDL    must be disqualified    disqualified from
                                                                                         holder must be      from operating a CMV  operating a CMV for .
                                                                                       disqualified from          for . . .                 . .
                                                                                     operating a CMV for .
                                                                                              . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Being under the influence of     1 year................  1 year................  3 years..............  Life.................  Life.
 alcohol as prescribed by State law
 * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(2) Being under the influence of a   1 year................  1 year................  3 years..............  Life.................  Life.
 controlled substance * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(3) Having an alcohol concentration  1 year................  Not applicable........  3 years..............  Life.................  Not applicable.
 of 0.04 or greater while operating
 a CMV * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(4) Refusing to take an alcohol      1 year................  1 year................  3 years..............  Life.................  Life.
 test as required by a State or
 jurisdiction under its implied
 consent laws or regulations as
 defined in Sec.  383.72 of this
 part * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(5) Leaving the scene of an          1 year................  1 year................  3 years..............  Life.................  Life.
 accident * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(6) Using the vehicle to commit a    1 year................  1 year................  3 years..............  Life.................  Life.
 felony, other than a felony
 described in paragraph (b)(9) of
 this table * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(7) Driving a CMV when, as a result  1 year................  Not applicable........  3 years..............  Life.................  Not applicable.
 of prior violations committed
 operating a CMV, the driver's CDL
 is revoked, suspended, or
 canceled, or the driver is
 disqualified from operating a CMV.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(8) Causing a fatality through the   1 year................  Not applicable........  3 years..............  Life.................  Not applicable.
 negligent operation of a CMV,
 including but not limited to the
 crimes of motor vehicle
 manslaughter, homicide by motor
 vehicle and negligent homicide.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(9) Using the vehicle in the         Life-not eligible for   Life-not eligible for   Life-not eligible for  Life-not eligible for  Life-not eligible for
 commission of a felony involving     10-year reinstatement.  10-year reinstatement.  10-year                10-year                10-year
 manufacturing, distributing, or                                                      reinstatement.         reinstatement.         reinstatement
 dispensing a controlled substance
 * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (c) Disqualification for serious traffic violations. Table 2 to 
Sec. 383.51 contains a list of the offenses and the periods for which a 
driver must be disqualified, depending upon the type of vehicle the 
driver is operating at the time of the violation, as follows:

[[Page 198]]



                                            Table 2 to Sec.  383.51
----------------------------------------------------------------------------------------------------------------
                                                                                                For a third or
                                                         For a second                             subsequent
                                                       conviction of any                       conviction of any
                                                        combination of                          combination of
                                                       offenses in this     For a third or     offenses in this
                                     For a second         Table in a          subsequent          Table in a
                                   conviction of any   separate incident   conviction of any   separate incident
                                    combination of      within a 3-year     combination of      within a 3-year
                                   offenses in this      period while      offenses in this      period while
                                      Table in a       operating a non-       Table in a       operating a non-
                                   separate incident   CMV, a CDL holder   separate incident   CMV, a CDL holder
 If the driver operates a motor     within a 3-year         must be         within a 3-year         must be
  vehicle and is convicted of:       period while      disqualified from     period while      disqualified from
                                  operating a CMV, a   operating a CMV,   operating a CMV, a   operating a CMV,
                                  person required to   if the conviction  person required to   if the conviction
                                   have a CDL and a     results in the     have a CDL and a     results in the
                                  CDL holder must be      revocation,     CDL holder must be      revocation,
                                   disqualified from   cancellation, or    disqualified from   cancellation, or
                                    operating a CMV    suspension of the    operating a CMV    suspension of the
                                       for . . .         CDL holder's          for . . .         CDL holder's
                                                      license or non-CMV                      license or non-CMV
                                                            driving                                 driving
                                                       privileges, for .                       privileges, for .
                                                              . .                                     . .
----------------------------------------------------------------------------------------------------------------
(1) Speeding excessively,         60 days...........  60 days...........  120 days..........  120 days.
 involving any speed of 24.1
 kmph (15 mph) or more above the
 posted speed limit.
(2) driving recklessly, as        60 days...........  60 days...........  120 days..........  120 days.
 defined by State or local law
 or regulation, including but,
 not limited to, offenses of
 driving a motor vehicle in
 willful or wanton disregard for
 the safety of persons or
 property.
(3) making improper or erratic    60 days...........  60 days...........  120 days..........  120 days.
 traffic lane changes.
(4) following the vehicle ahead   60 days...........  60 days...........  120 days..........  120 days.
 too closely.
(5) Violating State or local law  60 days...........  60 days...........  120 days..........  120 days.
 relating to motor vehicle
 traffic control (other than a
 parking violation) arising in
 connection with a fatal
 accident.
(6) driving a CMV without         60 days...........  Not applicable....  120 days..........  Not applicable.
 obtaining a CDL.
(7) driving a CMV without a CDL   60 days...........  Not applicable....  120 days..........  Not applicable.
 in the driver's possession \1\.
(8) driving a CMV without the     60 days...........  Not applicable....  120 days..........  Not applicable.
 proper class of CDL and/or
 endorsements for the specific
 vehicle group being operated or
 for the passengers or type of
 cargo being transported.
----------------------------------------------------------------------------------------------------------------
\1\Any individual who provides proof to the enforcement authority that issued the citation, by the date the
  individual must appear in court or pay any fine for such a violation, that the individual held a valid CDL on
  the date the citation was issued, shall not be guilty of this offense.

    (d) Disqualification for railroad-highway grade crossing offenses. 
Table 3 to Sec. 383.51 contains a list of the offenses and the periods 
for which a driver must be disqualified, when the driver is operating a 
CMV at the time of the violation, as follows:

[[Page 199]]



                                            Table 3 to Sec.  383.51
----------------------------------------------------------------------------------------------------------------
                                                                                       For a third or subsequent
                                                           For a second conviction of      conviction of any
                                                               any combination of       combination of offenses
If the driver is convicted of   For a first conviction a    offenses in this Table in      in this Table in a
 operating a CMV in violation   person required to have a  a separate incident within   separate incident within
 of a Federal, State or local   CDL and a CDL holder must   a 3-year period, a person  a 3-year period, a person
      law because . . .           be disqualified from     required to have a CDL and    required to have a CDL
                                operating a CMV for . . .     a CDL holder must be      and a CDL holder must be
                                                                disqualified from          disqualified from
                                                            operating a CMV for . . .  operating a CMV for . . .
----------------------------------------------------------------------------------------------------------------
(1) The driver is not          No less than 60 days......  No less than 120 days.....  No less than 1 year.
 required to always stop, but
 fails to slow down and check
 that tracks are clear of an
 approaching train * * *.
----------------------------------------------------------------------------------------------------------------
(2) The driver is not          No less than 60 days......  No less than 120 days.....  No less than 1 year.
 required to always stop, but
 fails to stop before
 reaching the crossing, if
 the tracks are not clear * *
 *.
----------------------------------------------------------------------------------------------------------------
(3) The driver is always       No less than 60 days......  No less than 120 days.....  No less than 1 year.
 required to stop, but fails
 to stop before driving onto
 the crossing * * *.
----------------------------------------------------------------------------------------------------------------
(4) The driver fails to have   No less than 60 days......  No less than 120 days.....  No less than 1 year.
 sufficient space to drive
 completely through the
 crossing without stopping *
 * *.
----------------------------------------------------------------------------------------------------------------
(5) The driver fails to obey   No less than 60 days......  No less than 120 days.....  No less than 1 year.
 a traffic control device or
 the directions of an
 enforcement official at the
 crossing * * *.
----------------------------------------------------------------------------------------------------------------
(6) The driver fails to        No less than 60 days......  No less than 120 days.....  No less than 1 year.
 negotiate a crossing because
 of insufficient
 undercarriage clearance * *
 *.
----------------------------------------------------------------------------------------------------------------

    (e) Disqualification for violating out-of-service orders. Table 4 to 
Sec. 383.51 contains a list of the offenses and periods for which a 
driver must be disqualified when the driver is operating a CMV at the 
time of the violation, as follows:

                                            TABLE 4 TO Sec.  383.51
----------------------------------------------------------------------------------------------------------------
                                                                For a second conviction       For a third or
                                                                 in a separate incident   subsequent conviction
                                        For a first conviction  within a 10-year period   in a separate incident
                                        while operating a CMV,   while operating a CMV,  within a 10-year period
                                         a person required to     a person required to    while operating a CMV,
  If a driver operates a CMV and is      have a CDL and a CDL     have a CDL and a CDL     a person required to
          convicted of . . .                holder must be           holder must be        have a CDL and a CDL
                                          disqualified from        disqualified from          holder must be
                                       operating a CMV for . .  operating a CMV for . .     disqualified from
                                                  .                        .              operating a CMV  for .
                                                                                                   . .
----------------------------------------------------------------------------------------------------------------
(1) Violating a driver or vehicle out- No less than 180 days    No less than 2 years or  No less than 3 years or
 of-service order while transporting    or more than 1 year.     more than 5 years.       more than 5 years.
 nonhazardous materials.
(2) Violating a driver or vehicle out- No less than 180 days    No less than 3 years or  No less than 3 years or
 of-service order while transporting    or more than 2 years.    more than 5 years.       more than 5 years.
 hazardous materials required to be
 placarded under part 172, subpart F
 of this title, or while operating a
 vehicle designed to transport 16 or
 more passengers, including the
 driver.
----------------------------------------------------------------------------------------------------------------


[67 FR 49756, July 31, 2002, as amended at 68 FR 4396, Jan. 29, 2003; 72 
FR 36787, July 5, 2007]

[[Page 200]]



Sec. 383.52  Disqualification of drivers determined to constitute an
imminent hazard.

    (a) The Assistant Administrator or his/her designee must disqualify 
from operating a CMV any driver whose driving is determined to 
constitute an imminent hazard, as defined in Sec. 383.5.
    (b) The period of the disqualification may not exceed 30 days unless 
the FMCSA complies with the provisions of paragraph (c) of this section.
    (c) The Assistant Administrator or his/her delegate may provide the 
driver an opportunity for a hearing after issuing a disqualification for 
a period of 30 days or less. The Assistant Administrator or his/her 
delegate must provide the driver notice of a proposed disqualification 
period of more than 30 days and an opportunity for a hearing to present 
a defense to the proposed disqualification. A disqualification imposed 
under this paragraph may not exceed one year in duration. The driver, or 
a representative on his/her behalf, may file an appeal of the 
disqualification issued by the Assistant Administrator's delegate with 
the Assistant Administrator, Adjudications Counsel (MC-CC), Federal 
Motor Carrier Safety Administration, 1200 New Jersey Ave., SE., 
Washington, DC 20590-0001.
    (d) Any disqualification imposed in accordance with the provisions 
of this section must be transmitted by the FMCSA to the jurisdiction 
where the driver is licensed and must become a part of the driver's 
record maintained by that jurisdiction.
    (e) A driver who is simultaneously disqualified under this section 
and under other provisions of this subpart, or under State law or 
regulation, shall serve those disqualification periods concurrently.

[67 FR 49759, July 31, 2002, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 383.53  Penalties.

    (a) General rule. Any person who violates the rules set forth in 
subparts B and C of this part may be subject to civil or criminal 
penalties as provided for in 49 U.S.C. 521(b).
    (b) Special penalties pertaining to violation of out-of-service 
orders--(1) Driver violations. A driver who is convicted of violating an 
out-of-service order shall be subject to a civil penalty of not less 
than $2,500 for a first conviction and not less than $5,000 for a second 
or subsequent conviction, in addition to disqualification under Sec. 
383.51(e).
    (2) Employer violations. An employer who is convicted of a violation 
of Sec. 383.37(c) shall be subject to a civil penalty of not less than 
$2,750 nor more than $25,000.
    (c) Special penalties pertaining to railroad-highway grade crossing 
violations. An employer who is convicted of a violation of Sec. 
383.37(d) must be subject to a civil penalty of not more than $10,000.

[59 FR 26028, May 18, 1994, as amended at 64 FR 48111, Sept. 2, 1999; 67 
FR 49759, July 31, 2002; 72 FR 36788, July 5, 2007]



               Subpart E_Testing and Licensing Procedures

    Source: 53 FR 27649, July 21, 1988, unless otherwise noted.



Sec. 383.71  Driver application procedures.

    (a) Initial Commercial Driver's License. Prior to obtaining a CDL, a 
person must meet the following requirements:
    (1)(i) Initial Commercial Driver's License applications submitted 
prior to January 30, 2012. Any person applying for a CDL prior to 
January 30, 2012 must meet the requirements set forth in paragraphs 
(a)(2) through (a)(9) of this section, and make the following applicable 
certification in paragraph (a)(1)(i)(A) or (B) of this section:
    (A) A person who operates or expects to operate in interstate or 
foreign commerce, or is otherwise subject to 49 CFR part 391, must 
certify that he/she meets the qualification requirements contained in 
part 391 of this title; or
    (B) A person who operates or expects to operate entirely in 
intrastate commerce and is not subject to part 391, is subject to State 
driver qualification requirements and must certify that he/she is not 
subject to part 391.
    (ii) Initial Commercial Driver's License applications submitted on 
or after January 30, 2012. Any person applying for a CDL on or after 
January 30, 2012 must meet the requirements set forth in paragraphs 
(a)(2) through (a)(9), and (h) of this section, and make one of the 
following applicable certifications in

[[Page 201]]

paragraph (a)(ii)(A) or (B) of this section:
    (A) Non-excepted interstate. A person must certify that he or she 
operates or expects to operate in interstate commerce, is both subject 
to and meets the qualification requirements under 49 CFR part 391, and 
is required to obtain a medical examiner's certificate by Sec. 391.45 
of this chapter;
    (B) Excepted interstate. A person must certify that he or she 
operates or expects to operate in interstate commerce, but engages 
exclusively in transportation or operations excepted under 49 CFR 
390.3(f), 391.2, 391.68 or 398.3 from all or parts of the qualification 
requirements of 49 CFR part 391, and is therefore not required to obtain 
a medical examiner's certificate by 49 CFR 391.45 of this chapter;
    (C) Non-excepted intrastate. A person must certify that he or she 
operates only in intrastate commerce and therefore is subject to State 
driver qualification requirements; or
    (D) Excepted intrastate. A person must certify that he or she 
operates in intrastate commerce, but engages exclusively in 
transportation or operations excepted from all or parts of the State 
driver qualification requirements.
    (b) License transfer. When applying to transfer a CDL from one State 
of domicile to a new State domicile, an applicant shall apply for a CDL 
from the new State of domicile within no more than 30 days after 
establishing his/her new domicile. The applicant shall:
    (1) Provide to the new State of domicile the certifications 
contained in Sec. 383.71(a) (1) and (6):
    (2) Provide to the new State of domicile updated information as 
specified in subpart J of this part;
    (3) If the applicant wishes to retain a hazardous materials 
endorsement, he/she must comply with the requirements for such 
endorsement specified in Sec. 383.71(a)(9) and State requirements as 
specified in Sec. 383.73(b)(4);
    (4) Surrender the CDL from the old State of domicile to the new 
State of domicile; and
    (5) Provide the names of all States where the applicant has 
previously been licensed to drive any type of motor vehicle during the 
previous 10 years.
    (c) License renewal. When applying for a renewal of a CDL, all 
applicants shall:
    (1) Provide certification contained in Sec. 383.71(a)(1);
    (2) Provide update information as specified in subpart J of this 
part; and
    (3) If a person wishes to retain a hazardous materials endorsement, 
he/she must comply with the requirements specified in Sec. 383.71(a)(9) 
and pass the test specified in Sec. 383.121 for such endorsement.
    (4) Provide the names of all States where the applicant has 
previously been licensed to drive any type of motor vehicle during the 
previous 10 years.
    (d) License upgrades. When applying to operate a commercial motor 
vehicle in a different group or endorsement from the group or 
endorsement in which the applicant already has a CDL, all persons shall:
    (1) Provide the necessary certifications as specified in Sec. 
383.71(a)(1) and (a)(4);
    (2) Pass all tests specified in Sec. 383.71(a)(2) and (a)(3) for 
the new vehicle group and/or different endorsements; and
    (3) To obtain a hazardous materials endorsement, comply with the 
requirements for such endorsement specified in Sec. 383.71(a)(9).
    (e) Nonresident CDL. When an applicant is domiciled in a foreign 
jurisdiction, as defined in Sec. 383.5, where the commercial motor 
vehicle operator testing and licensing standards do not meet the 
standards contained in subparts G and H of this part, as determined by 
the Administrator, such applicant shall obtain a Nonresident CDL from a 
State which meets such standards. Such applicant shall:
    (1) Complete the requirements to obtain a CDL contained in Sec. 
383.71(a); and
    (2) After receipt of the CDL, and for as long as it is valid, notify 
the State which issued the CDL of any adverse action taken by any 
jurisdiction or governmental agency, foreign or domestic, against his/
her driving privileges. Such adverse actions would include but not be 
limited to license suspension or revocation, or disqualification from 
operating a commercial

[[Page 202]]

motor vehicle for the convictions described in Sec. 383.51. 
Notifications shall be made within the time periods specified in Sec. 
383.33.
    (f) If a State uses the alternative method described in Sec. 
383.73(i) to achieve the objectives of the certifications in Sec. 
383.71(a), then the driver applicant shall satisfy such alternative 
methods as are applicable to him/her with respect to initial licensing, 
license transfer, license renewal, and license upgrades.
    (g) Existing CDL holder's self-certification. Every person who holds 
a CDL must provide to the State on or after January 30, 2012, but not 
later than January 30, 2014 the certification contained in Sec. 
383.71(a)(1)(ii).
    (h) Medical certification documentation required by the State. An 
applicant or CDL holder who certifies to non-excepted, interstate 
driving operations according to Sec. 383.71(a)(1)(ii)(A) must comply 
with applicable requirements in paragraphs (h)(1) through (3) of this 
section:
    (1) New CDL applicants. After January 30, 2012, a new CDL applicant 
who certifies that he or she will operate CMVs in non-excepted, 
interstate commerce must provide the State with an original or copy (as 
required by the State) of a medical examiner's certificate prepared by a 
medical examiner, as defined in Sec. 390.5 of this chapter, and the 
State will post a certification status of ``certified'' on the 
Commercial Driver's License Information System (CDLIS) driver record for 
the driver;
    (2) Existing CDL holders. By January 30, 2014, provide the State 
with an original or copy (as required by the State) of a current medical 
examiner's certificate prepared by a medical examiner, as defined in 49 
CFR 390.5, and the State will post a certification status of 
``certified'' on CDLIS driver record for the driver. If the non-
excepted, interstate CDL holder fails to provide the State with a 
current medical examiner's certificate, the State will post a 
certification status of ``not-certified'' in the CDLIS driver record for 
the driver, and initiate a CDL downgrade following State procedures in 
accordance with section 383.73(j)(4); and
    (3) Maintaining the medical certification status of ``certified.'' 
In order to maintain a medical certification status of ``certified,'' 
after January 30, 2012, a CDL holder who certifies that he or she will 
operate CMVs in non-excepted, interstate commerce must provide the State 
with an original or copy (as required by the State) of each subsequently 
issued medical examiner's certificate.

[53 FR 27649, July 21, 1988, as amended at 67 FR 49759, July 31, 2002; 
68 FR 23849, May 5, 2003; 73 FR 73123, Dec. 1, 2008]



Sec. 383.72  Implied consent to alcohol testing.

    Any person who holds a CDL is considered to have consented to such 
testing as is required by any State or jurisdiction in the enforcement 
of Sec. Sec. 383.51(b)(2)(i) and 392.5(a)(2) of this chapter. Consent 
is implied by driving a commercial motor vehicle.

[66 FR 49872, Oct. 1, 2001]



Sec. 383.73  State procedures.

    (a) Initial licensure. Prior to issuing a CDL to a person, a State 
shall:
    (1) Require the driver applicant to certify, pass tests, and provide 
information as described in Sec. Sec. 383.71(a) (1) through (6);
    (2) Check that the vehicle in which the applicant takes his/her test 
is representative of the vehicle group the applicant has certified that 
he/she operates or expects to operate;
    (3) Initiate and complete a check of the applicant's driving record 
to ensure that the person is not subject to any disqualification under 
Sec. 383.51, or any license suspension, revocation, or cancellation 
under State law, and that the person does not have a driver's license 
from more than one State or jurisdiction. The record check must include, 
but is not limited to, the following:
    (i) A check of the applicant's driving record as maintained by his/
her current State of licensure, if any;
    (ii) A check with the CDLIS to determine whether the driver 
applicant already has been issued a CDL, whether the applicant's license 
has been suspended, revoked, or canceled, or if the applicant has been 
disqualified from operating a commercial motor vehicle;

[[Page 203]]

    (iii) A check with the National Driver Register (NDR) to determine 
whether the driver applicant has:
    (A) Been disqualified from operating a motor vehicle (other than a 
commercial motor vehicle);
    (B) Had a license (other than CDL) suspended, revoked, or canceled 
for cause in the 3-year period ending on the date of application; or
    (C) Been convicted of any offenses contained in section 205(a)(3) of 
the National Driver Register Act of 1982 (23 U.S.C. 401 note); and
    (iv) A request for the applicant's complete driving record from all 
States where the applicant was previously licensed over the last 10 
years to drive any type of motor vehicle. Exception: A State is only 
required to make the driving record check specified in this paragraph 
(a)(3) for drivers renewing a CDL for the first time after September 30, 
2002, provided a notation is made on the driver's record confirming that 
the driver record check required by this paragraph (a)(3) has been made 
and noting the date it was done; and
    (v) Beginning January 30, 2012, a check that the medical 
certification status of a driver that self-certified according to Sec. 
383.71(a)(1)(ii)(A) (non-excepted interstate) is ``certified;''
    (4) Require the driver applicant to surrender his/her driver's 
license issued by another State, if he/she has moved from another State.
    (5) Beginning January 30, 2012, for drivers who certified their type 
of driving according to Sec. 383.71(a)(1)(ii)(A) (non-excepted 
interstate) and, if the CDL driver submits a current medical examiner's 
certificate, provide the driver with a receipt, which is a date-stamped 
original or copy of the medical examiner's certificate, and post all 
required information from the medical examiner's certificate to the 
CDLIS driver record in accordance with paragraph (j) of this section.
    (6) For persons applying for a hazardous materials endorsement, 
require compliance with the standards for such endorsement specified in 
Sec. 383.71(a)(9).
    (b) License transfers. Prior to issuing a CDL to a person who has a 
CDL from another State, a State shall:
    (1) Require the driver applicant to make the certifications 
contained in Sec. 383.71(a);
    (2) Complete a check of the driver applicant's record as contained 
in Sec. 383.73(a)(3);
    (3) Request and receive updates of information specified in subpart 
J of this part;
    (4) If such applicant wishes to retain a hazardous materials 
endorsement, require compliance with standards for such endorsement 
specified in Sec. 383.71(a)(9) and ensure that the driver has, within 
the 2 years preceding the transfer, either:
    (i) Passed the test for such endorsement specified in Sec. 383.121; 
or
    (ii) Successfully completed a hazardous materials test or training 
that is given by a third party and that is deemed by the State to 
substantially cover the same knowledge base as that described in Sec. 
383.121;
    (5) Obtain the CDL issued by the applicant's previous State of 
domicile; and
    (6)(i) Beginning January 30, 2012, verify from the CDLIS driver 
record that that the medical certification status of driver is 
``certified'' for those who certified according to Sec. 
383.71(a)(1)(ii)(A).
    (ii) Exception. A driver who certified according to Sec. 
383.71(a)(1)(ii)(A) that he or she plans to operate in non-excepted 
interstate commerce may present a current medical examiner's certificate 
issued prior to January 30, 2012. The medical examiner's certificate 
provided by the driver must be posted to the CDLIS driver record in 
accordance with paragraph (j) of this section.
    (c) License renewals. Prior to renewing any CDL a State shall:
    (1) Require the driver applicant to make the certifications 
contained in Sec. 383.71(a);
    (2) Complete a check of the driver applicant's record as contained 
in Sec. 383.73(a)(3);
    (3) Request and receive updates of information specified in subpart 
J of this part;
    (4) If such applicant wishes to retain a hazardous materials 
endorsement, require the driver to pass the test specified in Sec. 
383.121 and comply with the

[[Page 204]]

standards specified in Sec. 383.71(a)(9) for such endorsement; and
    (5)(i) Beginning January 30, 2012, verify from the CDLIS driver 
record that the medical certification status is ``certified'' for 
drivers who self-certified according to Sec. 383.71(a)(1)(ii)(A).
    (ii) Exception. A driver who certified according to Sec. 
383.71(a)(1)(ii)(A) may present a current medical examiner's certificate 
issued prior to January 30, 2012. The medical examiner's certificate 
provided by the driver must be posted to the CDLIS driver record in 
accordance with paragraph (j) of this section.
    (d) License upgrades. Prior to issuing an upgrade of a CDL, a State 
shall:
    (1) Require such driver applicant to provide certifications, pass 
tests, and meet applicable hazardous materials standards specified in 
Sec. 383.71(d);
    (2) Complete a check of the driver applicant's record as described 
in Sec. 383.73(a)(3); and
    (3)(i) Beginning January 30, 2012, verify from the CDLIS driver 
record that the medical certification status is ``certified'' for 
drivers who self-certified according to Sec. 383.71(a)(1)(ii)(A).
    (ii) Exception. A driver who certified according to Sec. 
383.71(a)(1)(ii)(A) may present a current medical examiner's certificate 
issued prior to January 30, 2012. The medical examiner's certificate 
provided by the driver must be posted to the CDLIS driver record in 
accordance with paragraph (j) of this section.
    (e) Nonresident CDL. A State may issue a Nonresident CDL to a person 
domiciled in a foreign country if the Administrator has determined that 
the commercial motor vehicle testing and licensing standards in the 
foreign jurisdiction of domicile do not meet the standards contained in 
this part. State procedures for the issuance of a nonresident CDL, for 
any modifications thereto, and for notifications to the CDLIS shall at a 
minimum be identical to those pertaining to any other CDL, with the 
following exceptions:
    (1) If the applicant is requesting a transfer of his/her Nonresident 
CDL, the State shall obtain the Nonresident CDL currently held by the 
applicant and issued by another State;
    (2) The State shall add the word ``Nonresident'' to the face of the 
CDL, in accordance with Sec. 383.153(b); and
    (3) The State shall have established, prior to issuing any 
Nonresident CDL, the practical capability of disqualifying the holder of 
any Nonresident CDL, by withdrawing, suspending, canceling, and revoking 
his/her Nonresident CDL as if the Nonresident CDL were a CDL issued to a 
resident of the State.
    (f) License issuance. After the State has completed the procedures 
described in Sec. 383.73 (a), (b), (c), (d) or (e), it may issue a CDL 
to the driver applicant. The State shall notify the operator of the 
CDLIS of such issuance, transfer, renewal, or upgrade within the 10-day 
period beginning on the date of license issuance.
    (g) Penalties for false information. If a State determines, in its 
check of an applicant's license status and record prior to issuing a 
CDL, or at any time after the CDL is issued, that the applicant has 
falsified information contained in subpart J of this part or any of the 
certifications required in Sec. 383.71(a), the State shall at a minimum 
suspend, cancel, or revoke the person's CDL or his/her pending 
application, or disqualify the person from operating a commercial motor 
vehicle for a period of at least 60 consecutive days.
    (h) Reciprocity. A State shall allow any person who has a valid CDL 
which is not suspended, revoked, or canceled, and who is not 
disqualified from operating a commercial motor vehicle, to operate a 
commercial motor vehicle in the State.
    (i) Alternative procedures. A State may implement alternative 
procedures to the certification requirements of Sec. 383.71(a) (1), 
(4), and (6), provided those procedures ensure that the driver meets the 
requirements of those paragraphs.
    (j) Medical recordkeeping--(1) Status of CDL Holder. Beginning 
January 30, 2012, for each operator of a commercial motor vehicle 
required to have a commercial driver's license, the current licensing 
State must:
    (i) Post the driver's self-certification of type of driving under 
Sec. 383.71(a)(1)(ii),

[[Page 205]]

    (ii) Retain the original or a copy of the medical certificate of any 
driver required to provide documentation of physical qualification for 3 
years beyond the date the certificate was issued, and
    (iii) Post the information from the medical examiner's certificate 
within 10 business days to the CDLIS driver record, including:
    (A) Medical examiner's name;
    (B) Medical examiner's telephone number;
    (C) Date of medical examiner's certificate issuance;
    (D) Medical examiner's license or certificate number and the State 
that issued it;
    (E) Medical examiner's National Registry identification number (if 
the National Registry of Medical Examiners, mandated by 49 U.S.C. 
31149(d), requires one);
    (F) The indicator of medical certification status, i.e., 
``certified'' or ``not-certified'';
    (G) Expiration date of the medical examiner's certificate;
    (H) Existence of any medical variance on the medical certificate, 
such as an exemption, Skill Performance Evaluation (SPE) certification, 
or grandfather provisions;
    (I) Any restrictions (e.g., corrective lenses, hearing aid, required 
to have possession of an exemption letter or SPE certificate while on-
duty, etc.); and
    (J) Date the medical examiner's certificate information was posted 
to the CDLIS driver record.
    (2) Status update. Beginning January 30, 2012, the State must, 
within 10 calendar days of the driver's medical certification status 
expiring or a medical variance expiring or being rescinded, update the 
medical certification status of that driver as ``not-certified.''
    (3) Variance update. Beginning January 30, 2012, within 10 calendar 
days of receiving information from FMCSA regarding issuance or renewal 
of a medical variance for a driver, the State must update the CDLIS 
driver record to include the medical variance information provided by 
FMCSA.
    (4) Downgrade. (i) Beginning January 30, 2012, if a driver's medical 
certification or medical variance expires, or FMCSA notifies the State 
that a medical variance was removed or rescinded, the State must:
    (A) Notify the CDL holder of his or her CDL ``not-certified'' 
medical certification status and that the CDL privilege will be removed 
from the driver license unless the driver submits a current medical 
certificate and/or medical variance, or changes his or her self-
certification to driving only in excepted or intrastate commerce (if 
permitted by the State);
    (B) Initiate established State procedures for downgrading the 
license. The CDL downgrade must be completed and recorded within 60 days 
of the driver's medical certification status becoming ``not-certified'' 
to operate a CMV.
    (ii) Beginning January 30, 2014, if a driver fails to provide the 
State with the certification contained in Sec. 383.71(a)(1)(ii), or a 
current medical examiner's certificate if the driver self-certifies 
according to 383.71(a)(1)(ii)(A) that he or she is operating in non-
excepted interstate commerce as required by Sec. 383.71(h), the State 
must mark that CDLIS driver record as ``not-certified'' and initiate a 
CDL downgrade following State procedures in accordance with paragraph 
(j)(4)(i)(B) of this section.
    (5) FMCSA Medical Programs is designated as the keeper of the list 
of State contacts for receiving medical variance information from FMCSA. 
Beginning January 30, 2012, States are responsible for insuring their 
medical variance contact information is always up-to-date with FMCSA's 
Medical Programs.

[53 FR 27649, July 21, 1988, as amended at 54 FR 40788, Oct. 3, 1989; 67 
FR 49760, July 31, 2002; 68 FR 23850, May 5, 2003; 73 FR 73124, Dec. 1, 
2008]



Sec. 383.75  Third party testing.

    (a) Third party tests. A State may authorize a person (including 
another State, an employer, a private driver training facility or other 
private institution, or a department, agency or instrumentality of a 
local government) to administer the skills tests as specified in 
subparts G and H of this part, if the following conditions are met:

[[Page 206]]

    (1) The tests given by the third party are the same as those which 
would otherwise be given by the State; and
    (2) The third party as an agreement with the State containing, at a 
minimum, provisions that:
    (i) Allow the FMCSA, or its representative, and the State to conduct 
random examinations, inspections and audits without prior notice;
    (ii) Require the State to conduct on-site inspections at least 
annually;
    (iii) Require that all third party examiners meet the same 
qualification and training standards as State examiners, to the extent 
necessary to conduct skills tests in compliance with subparts G and H;
    (iv) Require that, at least on an annual basis, State employees take 
the tests actually administered by the third party as if the State 
employee were a test applicant, or that States test a sample of drivers 
who were examined by the third party to compare pass/fail results; and
    (v) Reserve unto the State the right to take prompt and appropriate 
remedial action against the third-party testers in the event that the 
third-party fails to comply with State or Federal standards for the CDL 
testing program, or with any other terms of the third-party contract.
    (b) Proof of testing by a third party. A driver applicant who takes 
and passes driving tests administered by an authorized third party shall 
provide evidence to the State licensing agency that he/she has 
successfully passed the driving tests administered by the third party.



Sec. 383.77  Substitute for driving skills tests.

    At the discretion of a State, the driving skill test as specified in 
Sec. 383.113 may be waived for a CMV operator who is currently licensed 
at the time of his/her application for a CDL, and substituted with 
either an applicant's driving record and previous passage of an 
acceptable skills test, or an applicant's driving record in combination 
with certain driving experience. The State shall impose conditions and 
limitations to restrict the applicants from whom a State may accept 
alternative requirements for the skills test described in Sec. 383.113. 
Such conditions must require at least the following:
    (a) An applicant must certify that, during the two-year period 
immediately prior to applying for a CDL, he/she:
    (1) Has not had more than one license (except in the instances 
specified in Sec. 383.21(b));
    (2) Has not had any license suspended, revoked, or canceled;
    (3) Has not had any convictions for any type of motor vehicle for 
the disqualifying offenses contained in Sec. 383.51(b);
    (4) Has not had more than one conviction for any type of motor 
vehicle for serious traffic violations; and
    (5) Has not had any conviction for a violation of State or local law 
relating to motor vehicle traffic control (other than a parking 
violation) arising in connection with any traffic accident, and has no 
record of an accident in which he/she was at fault; and
    (b) An applicant must provide evidence and certify that:
    (1) He/she is regularly employed in a job requiring operation of a 
CMV, and that either:
    (2) He/she has previously taken and passed a skills test given by a 
State with a classified licensing and testing system, and that the test 
was behind-the-wheel in a representative vehicle for that applicant's 
driver's license classification; or
    (3) He/she has operated, for at least 2 years immediately preceding 
application for a CDL, a vehicle representative of the commercial motor 
vehicle the driver applicant operates or expects to operate.

[53 FR 27649, July 21, 1988, as amended at 55 FR 25606, June 22, 1990; 
67 FR 49760, July 31, 2002]



                Subpart F_Vehicle Groups and Endorsements

    Source: 53 FR 27651, July 21, 1988, unless otherwise noted.



Sec. 383.91  Commercial motor vehicle groups.

    (a) Vehicle group descriptions. Each driver applicant must possess 
and be tested on his/her knowledge and skills, described in subpart G of 
this part, for

[[Page 207]]

the commercial motor vehicle group(s) for which he/she desires a CDL. 
The commercial motor vehicle groups are as follows:
    (1) Combination vehicle (Group A)--Any combination of vehicles with 
a gross combination weight rating (GCWR) of 11,794 kilograms or more 
(26,001 pounds or more) provided the GVWR of the vehicle(s) being towed 
is in excess of 4,536 kilograms (10,000 pounds).
    (2) Heavy Straight Vehicle (Group B)--Any single vehicle with a GVWR 
of 11,794 kilograms or more (26,001 pounds or more), or any such vehicle 
towing a vehicle not in excess of 4,536 kilograms (10,000 pounds) GVWR.
    (3) Small Vehicle (Group C)--Any single vehicle, or combination of 
vehicles, that meets neither the definition of Group A nor that of Group 
B as contained in this section, but that either is designed to transport 
16 or more passengers including the driver, or is used in the 
transportation of materials found to be hazardous for the purposes of 
the Hazardous Materials Transportation Act and which require the motor 
vehicle to be placarded under the Hazardous Materials Regulations (49 
CFR part 172, subpart F).
    (b) Representative vehicle. For purposes of taking the driving test 
in accordance with Sec. 383.113, a representative vehicle for a given 
vehicle group contained in Sec. 383.91(a), is any commercial motor 
vehicle which meets the definition of that vehicle group.
    (c) Relation between vehicle groups. Each driver applicant who 
desires to operate in a different commercial motor vehicle group from 
the one which his/her CDL authorizes shall be required to retake and 
pass all related tests, except the following:
    (1) A driver who has passed the knowledge and skills tests for a 
combination vehicle (Group A) may operate a heavy straight vehicle 
(Group B) or a small vehicle (Group C), provided that he/she possesses 
the requisite endorsement(s); and
    (2) A driver who has passed the knowledge and skills tests for a 
heavy straight vehicle (Group B) may operate any small vehicle (Group 
C), provided that he/she possesses the requisite endorsement(s).
    (d) Vehicle group illustration. Figure 1 illustrates typical 
vehicles within each of the vehicle groups defined in this section.

[[Page 208]]

[GRAPHIC] [TIFF OMITTED] TC01AP91.039


[53 FR 27651, July 21, 1988, as amended at 54 FR 47989, Nov. 20, 1989; 
61 FR 9566, Mar. 8, 1996]

[[Page 209]]



Sec. 383.93  Endorsements.

    (a) General. In addition to taking and passing the knowledge and 
skills tests described in subpart G of this part, all persons who 
operate or expect to operate the type(s) of motor vehicles described in 
paragraph (b) of this section shall take and pass specialized tests to 
obtain each endorsement. The State shall issue CDL endorsements only to 
drivers who successfully complete the tests.
    (b) Endorsement descriptions. An operator must obtain State-issued 
endorsements to his/her CDL to operate commercial motor vehicles which 
are:
    (1) Double/triple trailers;
    (2) Passenger vehicles;
    (3) Tank vehicles;
    (4) Used to transport hazardous materials as defined in Sec. 383.5, 
or
    (5) School buses.
    (c) Endorsement testing requirements. The following tests are 
required for the endorsements contained in paragraph (b) of this 
section:
    (1) Double/Triple Trailers--a knowledge test;
    (2) Passenger--a knowledge and a skills test;
    (3) Tank vehicle--a knowledge test;
    (4) Hazardous Materials--a knowledge test; and
    (5) School bus--a knowledge and a skills test.

[53 FR 27651, July 21, 1988, as amended at 67 FR 49760, July 31, 2002; 
68 FR 23850, May 5, 2003]



Sec. 383.95  Restrictions.

    (a) Air brake restrictions. (1) If an applicant either fails the air 
brake component of the knowledge test, or performs the skills test in a 
vehicle not equipped with air brakes, the State must indicate on the 
CDL, if issued, that the person is restricted from operating a CMV 
equipped with air brakes.
    (2) For the purposes of the skills test and the restriction, air 
brakes shall include any braking system operating fully or partially on 
the air brake principle.
    (b) Medical variance restrictions. If the State is notified 
according to Sec. 383.73(j)(3) that the driver has been issued a 
medical variance, the State must indicate the existence of such a 
medical variance on the CDLIS driver record and the CDL document, if 
issued, using the restriction code ``V'' indicating there is information 
about a medical variance on the CDLIS driver record. NOTE: In accordance 
with the agreement between Canada and the United States (see footnote to 
Sec. 391.41), drivers with a medical variance restriction code on their 
commercial driver license are restricted from operating a CMV in the 
other country.

[73 FR 73125, Dec. 1, 2008]



                 Subpart G_Required Knowledge and Skills

    Source: 53 FR 27654, July 21, 1988, unless otherwise noted.



Sec. 383.110  General requirement.

    All drivers of commercial motor vehicles shall have knowledge and 
skills necessary to operate a commercial motor vehicle safely as 
contained in this subpart. A sample of the specific types of items which 
a State may wish to include in the knowledge and skills tests that it 
administers to CDL applicants is included in the appendix to this 
subpart G.



Sec. 383.111  Required knowledge.

    All commercial motor vehicle operators must have knowledge of the 
following general areas:
    (a) Safe operations regulations. Driver-related elements of the 
regulations contained in 49 CFR parts 382, 391, 392, 393, 395, 396, and 
397, such as: Motor vehicle inspection, repair, and maintenance 
requirements; procedures for safe vehicle operations; the effects of 
fatigue, poor vision, hearing, and general health upon safe commercial 
motor vehicle operation; the types of motor vehicles and cargoes subject 
to the requirements; and the effects of alcohol and drug use upon safe 
commercial motor vehicle operations.
    (b) Commercial motor vehicle safety control systems. Proper use of 
the motor vehicle's safety system, including lights, horns, side and 
rear-view mirrors, proper mirror adjustments, fire extinguishers, 
symptoms of improper operation revealed through instruments, motor 
vehicle operation characteristics, and diagnosing malfunctions.

[[Page 210]]

Commercial motor vehicle drivers shall have knowledge on the correct 
procedures needed to use these safety systems in an emergency situation, 
e.g., skids and loss of brakes.
    (c) Safe vehicle control--(1) Control systems The purpose and 
function of the controls and instruments commonly found on commercial 
motor vehicles.
    (2) Basic control. The proper procedures for performing various 
basic maneuvers.
    (3) Shifting. The basic shifting rules and terms, as well as shift 
patterns and procedures for common transmissions.
    (4) Backing. The procedures and rules for various backing maneuvers.
    (5) Visual search. The importance of proper visual search, and 
proper visual search methods.
    (6) Communication. The principles and procedures for proper 
communications and the hazards of failure to signal properly.
    (7) Speed management. The importance of understanding the effects of 
speed.
    (8) Space management. The procedures and techniques for controlling 
the space around the vehicle.
    (9) Night operation. Preparations and procedures for night driving.
    (10) Extreme driving conditions. The basic information on operating 
in extreme driving conditions and the hazards that are encountered in 
extreme conditions.
    (11) Hazard perceptions. The basic information on hazard perception 
and clues for recognition of hazards.
    (12) Emergency maneuvers. The basic information concerning when and 
how to make emergency maneuvers.
    (13) Skid control and recovery. The information on the causes and 
major types of skids, as well as the procedures for recovering from 
skids.
    (d) Relationship of cargo to vehicle control. The principles and 
procedures for the proper handling of cargo.
    (e) Vehicle inspections: The objectives and proper procedures for 
performing vehicle safety inspections, as follows:
    (1) The importance of periodic inspection and repair to vehicle 
safety.
    (2) The effect of undiscovered malfunctions upon safety.
    (3) What safety-related parts to look for when inspecting vehicles.
    (4) Pre-trip/enroute/post-trip inspection procedures.
    (5) Reporting findings.
    (f) Hazardous materials knowledge, such as: What constitutes 
hazardous material requiring an endorsement to transport; classes of 
hazardous materials; labeling/placarding requirements; and the need for 
specialized training as a prerequisite to receiving the endorsement and 
transporting hazardous cargoes.
    (g) Air brake knowledge as follows:
    (1) Air brake system nomenclature;
    (2) The dangers of contaminated air supply;
    (3) Implications of severed or disconnected air lines between the 
power unit and the trailer(s);
    (4) Implications of low air pressure readings;
    (5) Procedures to conduct safe and accurate pre-trip inspections.
    (6) Procedures for conducting enroute and post-trip inspections of 
air actuated brake systems, including ability to detect defects which 
may cause the system to fail.
    (h) Operators for the combination vehicle group shall also have 
knowledge of:
    (1) Coupling and uncoupling--The procedures for proper coupling and 
uncoupling a tractor to semi-trailer.
    (2) Vehicle inspection--The objectives and proper procedures that 
are unique for performing vehicle safety inspections on combination 
vehicles.

[53 FR 27654, July 21, 1988, as amended at 62 FR 37151, July 11, 1997]



Sec. 383.113  Required skills.

    (a) Basic vehicle control skills. All applicants for a CDL must 
possess and demonstrate basic motor vehicle control skills for each 
vehicle group which the driver operates or expects to operate. These 
skills should include the ability to start, to stop, and to move the 
vehicle forward and backward in a safe manner.
    (b) Safe driving skills. All applicants for a CDL must possess and 
demonstrate the safe driving skills for their vehicle group. These 
skills should include proper visual search methods, appropriate use of 
signals, speed control for weather and traffic conditions,

[[Page 211]]

and ability to position the motor vehicle correctly when changing lanes 
or turning.
    (c) Air brake skills. Except as provided in Sec. 393.95, all 
applicants shall demonstrate the following skills with respect to 
inspection and operation of air brakes:
    (1) Pre-trip inspection skills. Applicants shall demonstrate the 
skills necessary to conduct a pre-trip inspection which includes the 
ability to:
    (i) Locate and verbally identify air brake operating controls and 
monitoring devices;
    (ii) Determine the motor vehicle's brake system condition for proper 
adjustments and that air system connections between motor vehicles have 
been properly made and secured;
    (iii) Inspect the low pressure warning device(s) to ensure that they 
will activate in emergency situations;
    (iv) Ascertain, with the engine running, that the system maintains 
an adequate supply of compressed air;
    (v) Determine that required minimum air pressure build up time is 
within acceptable limits and that required alarms and emergency devices 
automatically deactivate at the proper pressure level; and
    (vi) Operationally check the brake system for proper performance.
    (2) Driving skills. Applicants shall successfully complete the 
skills tests contained in Sec. 383.113 in a representative vehicle 
equipped with air brakes.
    (d) Test area. Skills tests shall be conducted in on-street 
conditions or under a combination of on-street and off-street 
conditions.
    (e) Simulation technology. A State may utilize simulators to perform 
skills testing, but under no circumstances as a substitute for the 
required testing in on-street conditions.



Sec. 383.115  Requirements for double/triple trailers endorsement.

    In order to obtain a Double/Triple Trailers endorsement each 
applicant must have knowledge covering:
    (a) Procedures for assembly and hookup of the units;
    (b) Proper placement of heaviest trailer;
    (c) Handling and stability characteristics including off-tracking, 
response to steering, sensory feedback, braking, oscillatory sway, 
rollover in steady turns, yaw stability in steady turns; and
    (d) Potential problems in traffic operations, including problems the 
motor vehicle creates for other motorists due to slower speeds on steep 
grades, longer passing times, possibility for blocking entry of other 
motor vehicles on freeways, splash and spray impacts, aerodynamic 
buffeting, view blockages, and lateral placement.



Sec. 383.117  Requirements for passenger endorsement.

    An applicant for the passenger endorsement must satisfy both of the 
following additional knowledge and skills test requirements.
    (a) Knowledge test. All applicants for the passenger endorsement 
must have knowledge covering at least the following topics:
    (1) Proper procedures for loading/unloading passengers;
    (2) Proper use of emergency exits, including push-out windows;
    (3) Proper responses to such emergency situations as fires and 
unruly passengers;
    (4) Proper procedures at railroad crossings and drawbridges; and
    (5) Proper braking procedures.
    (b) Skills test. To obtain a passenger endorsement applicable to a 
specific vehicle group, an applicant must take his/her skills test in a 
passenger vehicle satisfying the requirements of that group as defined 
in Sec. 383.91.



Sec. 383.119  Requirements for tank vehicle endorsement.

    In order to obtain a Tank Vehicle Endorsement, each applicant must 
have knowledge covering the following:
    (a) Causes, prevention, and effects of cargo surge on motor vehicle 
handling;
    (b) Proper braking procedures for the motor vehicle when it is 
empty, full and partially full;
    (c) Differences in handling of baffled/compartmental tank interiors 
versus non-baffled motor vehicles;
    (d) Differences in tank vehicle type and construction;
    (e) Differences in cargo surge for liquids of varying product 
densities;

[[Page 212]]

    (f) Effects of road grade and curvature on motor vehicle handling 
with filled, half-filled and empty tanks;
    (g) Proper use of emergency systems; and
    (h) For drivers of DOT specification tank vehicles, retest and 
marking requirements.



Sec. 383.121  Requirements for hazardous materials endorsement.

    In order to obtain a Hazardous Material Endorsement each applicant 
must have such knowledge as is required of a driver of a hazardous 
materials laden vehicle, from information contained in 49 CFR parts 171, 
172, 173, 177, 178, and 397 on the following:
    (a) Hazardous materials regulations including:
    (1) Hazardous materials table;
    (2) Shipping paper requirements;
    (3) Marking;
    (4) Labeling;
    (5) Placarding requirements;
    (6) Hazardous materials packaging;
    (7) Hazardous materials definitions and preparation;
    (8) Other regulated material (e.g., ORM-D);
    (9) Reporting hazardous materials accidents; and
    (10) Tunnels and railroad crossings.
    (b) Hazardous materials handling including:
    (1) Forbidden Materials and Packages;
    (2) Loading and Unloading Materials;
    (3) Cargo Segregation;
    (4) Passenger Carrying Buses and Hazardous Materials;
    (5) Attendance of Motor Vehicles;
    (6) Parking;
    (7) Routes;
    (8) Cargo Tanks; and
    (9) ``Safe Havens.''
    (c) Operation of emergency equipment including:
    (1) Use of equipment to protect the public;
    (2) Special precautions for equipment to be used in fires;
    (3) Special precautions for use of emergency equipment when loading 
or unloading a hazardous materials laden motor vehicle; and
    (4) Use of emergency equipment for tank vehicles.
    (d) Emergency response procedures including:
    (1) Special care and precautions for different types of accidents;
    (2) Special precautions for driving near a fire and carrying 
hazardous materials, and smoking and carrying hazardous materials;
    (3) Emergency procedures; and
    (4) Existence of special requirements for transporting Class A and B 
explosives.



Sec. 383.123  Requirements for a school bus endorsement.

    (a) An applicant for a school bus endorsement must satisfy the 
following three requirements:
    (1) Qualify for passenger vehicle endorsement. Pass the knowledge 
and skills test for obtaining a passenger vehicle endorsement.
    (2) Knowledge test. Must have knowledge covering at least the 
following three topics:
    (i) Loading and unloading children, including the safe operation of 
stop signal devices, external mirror systems, flashing lights and other 
warning and passenger safety devices required for school buses by State 
or Federal law or regulation.
    (ii) Emergency exits and procedures for safely evacuating passengers 
in an emergency.
    (iii) State and Federal laws and regulations related to safely 
traversing highway rail grade crossings.
    (3) Skills test. Must take a driving skills test in a school bus of 
the same vehicle group (see Sec. 383.91(a)) as the school bus applicant 
will drive.
    (4) Exception. Knowledge and skills tests administered before 
September 30, 2002 and approved by FMCSA as meeting the requirements of 
this section, meet the requirements of paragraphs (a)(2) and (a)(3) of 
this section.
    (b) Substitute for driving skills test. (1) At the discretion of a 
State, the driving skills test required in paragraph (a)(3) of this 
section may be waived for an applicant who is currently licensed, has 
experience driving a school bus, has a good driving record, and meets 
the conditions set forth in paragraph (b)(2) of this section.
    (2) An applicant must certify and the State must verify that, during 
the two-

[[Page 213]]

year period immediately prior to applying for the school bus 
endorsement, the applicant:
    (i) Held a valid CDL with a passenger vehicle endorsement to operate 
a school bus representative of the group he or she will be driving;
    (ii) Has not had his or her driver's license or CDL suspended, 
revoked or canceled or been disqualified from operating a CMV;
    (iii) Has not been convicted of any of the disqualifying offenses in 
Sec. 383.51(b) while operating a CMV or of any offense in a non-CMV 
that would be disqualifying under Sec. 383.51(b) if committed in a CMV;
    (iv) Has not had more than one conviction of any of the serious 
traffic violations defined in Sec. 383.5, while operating any type 
motor vehicle;
    (v) Has not had any conviction for a violation of State or local law 
relating to motor vehicle traffic control (other than a parking 
violation) arising in connection with any traffic accident;
    (vi) Has not been convicted of any motor vehicle traffic violation 
that resulted in an accident; and
    (vii) Has been regularly employed as a school bus driver, has 
operated a school bus representative of the group the applicant seeks to 
drive, and provides evidence of such employment.
    (3) After September 30, 2006, the provisions in paragraph (b) of 
this section do not apply.

[67 FR 49760, July 31, 2002, as amended at 70 FR 56593, Sept. 28, 2005]



 Sec. Appendix to Subpart G of Part 383--Required Knowledge and Skills--
                            Sample Guidelines

    The following is a sample of the specific types of items which a 
State may wish to include in the knowledge and skills tests that it 
administers to CDL applicants. This appendix closely follows the 
framework of Sec. Sec. 383.111 and 383.113. It is intended to provide 
more specific guidance and suggestion to States. Additional detail in 
this appendix is not binding and States may depart from it at their 
discretion provided their CDL program tests for the general areas of 
knowledge and skill specified in Sec. Sec. 383.111 and 383.113.

                 Examples of specific knowledge elements

    (a) Safe operations regulations. Driver-related elements of the 
following regulations:
    (1) Motor vehicle inspection, repair, and maintenance requirements 
as contained in parts 393 and 396 of this title;
    (2) Procedures for safe vehicle operations as contained in part 392 
of this title;
    (3) The effects of fatigue, poor vision, hearing, and general health 
upon safe commercial motor vehicle operation as contained in parts 391, 
392, and 395 of this title;
    (4) The types of motor vehicles and cargoes subject to the 
requirements contained in part 397 of this title; and
    (5) The effects of alcohol and drug use upon safe commercial motor 
vehicle operations as contained in parts 391 and 395 of this title.
    (b) Commercial motor vehicle safety control systems. Proper use of 
the motor vehicle's safety system, including lights, horns, side and 
rear-view mirrors, proper mirror adjustments, fire extinguishers, 
symptoms of improper operation revealed through instruments, motor 
vehicle operation characteristics, and diagnosing malfunctions. 
Commercial motor vehicle drivers shall have knowledge on the correct 
procedures needed to use these safety systems in an emergency situation, 
e.g., skids and loss of brakes.
    (c) Safe vehicle control--(1) Control systems. The purpose and 
function of the controls and instruments commonly found on commercial 
motor vehicles.
    (2) Basic control. The proper procedures for performing various 
basic maneuvers, including:
    (i) Starting, warming up, and shutting down the engine;
    (ii) Putting the vehicle in motion and stopping;
    (iii) Backing in a straight line; and
    (iv) Turning the vehicle, e.g., basic rules, off-tracking, right/
left turns and right curves.
    (3) Shifting. The basic shifting rules and terms, as well as shift 
patterns and procedures for common transmissions, including:
    (i) Key elements of shifting, e.g., controls, when to shift and 
double clutching;
    (ii) Shift patterns and procedures; and
    (iii) Consequences of improper shifting.
    (4) Backing. The procedures and rules for various backing maneuvers, 
including:
    (i) Backing principles and rules; and
    (ii) Basic backing maneuvers, e.g., straight-line backing, and 
backing on a curved path.
    (5) Visual search. The importance of proper visual search, and 
proper visual search methods, including:
    (i) Seeing ahead and to the sides;
    (ii) Use of mirrors; and
    (iii) Seeing to the rear.
    (6) Communication. The principles and procedures for proper 
communications and the hazards of failure to signal properly, including:
    (i) Signaling intent, e.g., signaling when changing speed or 
direction in traffic;

[[Page 214]]

    (ii) Communicating presence, e.g., using horn or lights to signal 
presence; and
    (iii) Misuse of communications.
    (7) Speed management. The importance of understanding the effects of 
speed, including:
    (i) Speed and stopping distance;
    (ii) Speed and surface conditions;
    (iii) Speed and the shape of the road;
    (iv) Speed and visibility; and
    (v) Speed and traffic flow.
    (8) Space management. The procedures and techniques for controlling 
the space around the vehicle, including:
    (i) The importance of space management;
    (ii) Space cushions, e.g., controlling space ahead/to the rear;
    (iii) Space to the sides; and
    (iv) Space for traffic gaps.
    (9) Night operation. Preparations and procedures for night driving, 
including:
    (i) Night driving factors, e.g., driver factors, (vision, glare, 
fatigue, inexperience), roadway factors, (low illumination, variation in 
illumination, familiarity with roads, other road users, especially 
drivers exhibiting erratic or improper driving), vehicle factors 
(headlights, auxiliary lights, turn signals, windshields and mirrors); 
and
    (ii) Night driving procedures, e.g., preparing to drive at night and 
driving at night.
    (10) Extreme driving conditions. The basic information on operating 
in extreme driving conditions and the hazards that are encountered in 
extreme conditions, including:
    (i) Adverse weather;
    (ii) Hot weather; and
    (iii) Mountain driving.
    (11) Hazard perceptions. The basic information on hazard perception 
and clues for recognition of hazards, including:
    (i) Importance of hazards recognition;
    (ii) Road characteristics; and
    (iii) Road user activities.
    (12) Emergency maneuvers. The basic information concerning when and 
how to make emergency maneuvers, including:
    (i) Evasive steering;
    (ii) Emergency stop;
    (iii) Off-road recovery;
    (iv) Brake failure; and
    (v) Blowouts.
    (13) Skid control and recovery. The information on the causes and 
major types of skids, as well as the procedures for recovering from 
skids.
    (d) Relationship of cargo to vehicle control. The principles and 
procedures for the proper handling of cargo, including:
    (1) The importance of proper cargo handling, e.g., consequences of 
improperly secured cargo, drivers' responsibilities, Federal/State and 
local regulations.
    (2) Principles of weight distribution.
    (3) Principles and methods of cargo securement.
    (e) Vehicle inspections: The objectives and proper procedures for 
performing vehicle safety inspections, as follows:
    (1) The importance of periodic inspection and repair to vehicle 
safety and to prevention of enroute breakdowns.
    (2) The effect of undiscovered malfunctions upon safety.
    (3) What safety-related parts to look for when inspecting vehicles, 
e.g., fluid leaks, interference with visibility, bad tires, wheel and 
rim defects, braking system defects, steering system defects, suspension 
system defects, exhaust system defects, coupling system defects, and 
cargo problems.
    (4) Pre-trip/enroute/post-trip inspection procedures.
    (5) Reporting findings.
    (f) Hazardous materials knowledge, as follows:
    (1) What constitutes hazardous material requiring an endorsement to 
transport; and
    (2) Classes of hazardous materials, labeling/placarding 
requirements, and the need for specialized training as a prerequisite to 
receiving the endorsement and transporting hazardous cargoes.
    (g) Air brake knowledge as follows:
    (1) General air brake system nomenclature;
    (2) The dangers of contaminated air (dirt, moisture and oil) supply;
    (3) Implications of severed or disconnected air lines between the 
power unit and the trailer(s);
    (4) Implications of low air pressure readings;
    (5) Procedures to conduct safe and accurate pre-trip inspections, 
including knowledge about:
    (i) Automatic fail-safe devices;
    (ii) System monitoring devices; and
    (iii) Low pressure warning alarms.
    (6) Procedures for conducting enroute and post-trip inspections of 
air actuated brake systems, including ability to detect defects which 
may cause the system to fail, including:
    (i) Tests which indicate the amount of air loss from the braking 
system within a specified period, with and without the engine running; 
and
    (ii) Tests which indicate the pressure levels at which the low air 
pressure warning devices and the tractor protection valve should 
activate.
    (h) Operators for the combination vehicle group shall also have 
knowledge of:
    (1) Coupling and uncoupling. The procedures for proper coupling and 
uncoupling a tractor to semi-trailer.
    (2) Vehicle inspection--The objectives and proper procedures that 
are unique for performing vehicle safety inspections on combination 
vehicles.

[[Page 215]]

                  Examples of Specific Skills Elements

    These examples relate to paragraphs (a) and (b) of Sec. 383.113 
only.
    (a) Basic vehicle control skills. All applicants for a CDL must 
possess and demonstrate the following basic motor vehicle control skills 
for each vehicle group which the driver operates or expects to operate. 
These skills shall include:
    (1) Ability to start, warm-up, and shut down the engine;
    (2) Ability to put the motor vehicle in motion and accelerate 
smoothly, forward and backward;
    (3) Ability to bring the motor vehicle to a smooth stop;
    (4) Ability to back the motor vehicle in a straight line, and check 
path and clearance while backing;
    (5) Ability to position the motor vehicle to negotiate and then make 
left and right turns;
    (6) Ability to shift as required and select appropriate gear for 
speed and highway conditions;
    (7) Ability to back along a curved path; and
    (8) Ability to observe the road and the behavior of other motor 
vehicles, particularly before changing speed and direction.
    (b) Safe driving skills. All applicants for a CDL must possess and 
demonstrate the following safe driving skills for any vehicle group. 
These skills shall include:
    (1) Ability to use proper visual search methods.
    (2) Ability to signal appropriately when changing speed or direction 
in traffic.
    (3) Ability to adjust speed to the configuration and condition of 
the roadway, weather and visibility conditions, traffic conditions, and 
motor vehicle, cargo and driver conditions;
    (4) Ability to choose a safe gap for changing lanes, passing other 
vehicles, as well as for crossing or entering traffic;
    (5) Ability to position the motor vehicle correctly before and 
during a turn to prevent other vehicles from passing on the wrong side 
as well as to prevent problems caused by off-tracking;
    (6) Ability to maintain a safe following distance depending on the 
condition of the road, on visibility, and on vehicle weight; and
    (7) Ability to adjust operation of the motor vehicle to prevailing 
weather conditions including speed selection, braking, direction changes 
and following distance to maintain control.



                             Subpart H_Tests

    Source: 53 FR 27657, July 21, 1988, unless otherwise noted.



Sec. 383.131  Test procedures.

    (a) Driver information manuals. Information on how to obtain a CDL 
and endorsements shall be included in manuals and made available by 
States to CDL applicants. All information provided to the applicant 
shall include the following:
    (1) Information on the requirements described in Sec. 383.71, the 
implied consent to alcohol testing described in Sec. 383.72, the 
procedures and penalties, contained in Sec. 383.51(b) to which a CDL 
holder is exposed for refusal to comply with such alcohol testing, State 
procedures described in Sec. 383.73, and other appropriate driver 
information contained in subpart E of this part;
    (2) Information on vehicle groups and endorsements as specified in 
subpart F of this part;
    (3) The substance of the knowledge and skills which drivers shall 
have as outlined in subpart G of this part for the different vehicle 
groups and endorsements;
    (4) Details of testing procedures, including the purpose of the 
tests, how to respond, any time limits for taking the test, and any 
other special procedures determined by the State of issuance; and
    (5) Directions for taking the tests.
    (b) Examiner procedures. A State shall provide to test examiners 
details on testing and any other State-imposed requirements in the 
examiner's manual, and shall ensure that examiners are qualified to 
administer tests on the basis of training and/or other experience. 
States shall provide standardized scoring sheets for the skills tests, 
as well as standardized driving instructions for the applicants. Such 
examiners' manuals shall contain the following:
    (1) Information on driver application procedures contained in Sec. 
383.71, State procedures described in Sec. 383.73, and other 
appropriate driver information contained in subpart E of this part;
    (2) Details on information which must be given to the applicant;
    (3) Details on how to conduct the tests;
    (4) Scoring procedures and minimum passing scores;
    (5) Information for selecting driving test routes;

[[Page 216]]

    (6) List of the skills to be tested;
    (7) Instructions on where and how the skills will be tested;
    (8) How performance of the skills will be scored; and
    (9) Causes for automatic failure of skills tests.

[53 FR 27657, July 21, 1988, as amended at 53 FR 39051, Oct. 4, 1988]



Sec. 383.133  Testing methods.

    (a) All tests shall be constructed in such a way as to determine if 
the applicant possesses the required knowledge and skills contained in 
subpart G of this part for the type of motor vehicle or endorsement the 
applicant wishes to obtain.
    (b) States shall develop their own specifications for the tests for 
each vehicle group and endorsement which must be at least as stringent 
as the Federal standards.
    (c) States shall determine specific methods for scoring the 
knowledge and skills tests.
    (d) Passing scores must meet those standards contained in Sec. 
383.135.
    (e) Knowledge and skills tests shall be based solely on the 
information contained in the driver manuals referred to in Sec. 
383.131(a).
    (f) Each knowledge test shall be valid and reliable so as to assure 
that driver applicants possess the knowledge required under Sec. 
383.111.
    (g) Each basic knowledge test, i.e., the test covering the areas 
referred to in Sec. 383.111 for the applicable vehicle group, shall 
contain at least 30 items, exclusive of the number of items testing air 
brake knowledge. Each endorsement knowledge test, and the air brake 
component of the basic knowledge test as described in Sec. 383.111(g), 
shall contain a number of questions that is sufficient to test the 
driver applicant's knowledge of the required subject matter with 
validity and reliability.
    (h) The skills tests shall have administrative procedures, designed 
to achieve interexaminer reliability, that are sufficient to ensure 
fairness of pass/fail rates.



Sec. 383.135  Minimum passing scores.

    (a) The driver applicant must correctly answer at least 80 percent 
of the questions on each knowledge test in order to achieve a passing 
score on such knowledge test.
    (b) To achieve a passing score on the skills test, the driver 
applicant must demonstrate that he/she can successfully perform all of 
the skills listed in Sec. 383.113.
    (c) If the driver applicant does not obey traffic laws, or causes an 
accident during the test, he/she shall automatically fail the test.
    (d) The scoring of the basic knowledge and skills tests shall be 
adjusted as follows to allow for the air brake restriction (Sec. 
383.95):
    (1) If the applicant scores less than 80 percent on the air brake 
component of the basic knowledge test as described in Sec. 383.111(g), 
the driver will have failed the air brake component and, if the driver 
is issued a CDL, an air brake restriction shall be indicated on the 
license; and
    (2) If the applicant performs the skills test in a vehicle not 
equipped with air brakes, the driver will have omitted the air brake 
component as described in Sec. 383.113(c) and, if the driver is issued 
a CDL, the air brake restriction shall be indicated on the license.



    Subpart I_Requirement for Transportation Security Administration 
          approval of hazardous materials endorsement issuances



Sec. 383.141  General.

    (a) Applicability date. Beginning on the date(s) listed in 49 CFR 
1572.13(b), this section applies to State agencies responsible for 
issuing hazardous materials endorsements for a CDL, and applicants for 
such endorsements.
    (b) Prohibition. A State may not issue, renew, upgrade, or transfer 
a hazardous materials endorsement for a CDL to any individual 
authorizing that individual to operate a commercial motor vehicle 
transporting a hazardous material in commerce unless the Transportation 
Security Administration has determined that the individual does not pose 
a security risk warranting denial of the endorsement.
    (c) Individual notification. At least 60 days prior to the 
expiration date of the

[[Page 217]]

CDL or hazardous materials endorsement, a State must notify the holder 
of a hazardous materials endorsement that the individual must pass a 
Transportation Security Administration security threat assessment 
process as part of any application for renewal of the hazardous 
materials endorsement. The notice must advise a driver that, in order to 
expedite the security screening process, he or she should file a renewal 
application as soon as possible, but not later than 30 days before the 
date of expiration of the endorsement. An individual who does not 
successfully complete the Transportation Security Administration 
security threat assessment process referenced in paragraph (b) of this 
section may not be issued a hazardous materials endorsement.
    (d) Hazardous materials endorsement renewal cycle. Each State must 
require that hazardous materials endorsements be renewed every 5 years 
or less so that individuals are subject to a Transportation Security 
Administration security screening requirement referenced in paragraph 
(b) of this section at least every 5 years.

[68 FR 24850, May 5, 2003, as amended at 68 FR 63033, Nov. 7, 2003; 69 
FR 51393, Aug. 19, 2004; 70 FR 22271, Apr. 29, 2005]



             Subpart J_Commercial Driver's License Document

    Source: 53 FR 27657, July 21, 1988, unless otherwise noted.



Sec. 383.151  General.

    The CDL shall be a document that is easy to recognize as a CDL. At a 
minimum, the document shall contain information specified in Sec. 
383.153.



Sec. 383.153  Information on the document and application.

    (a) All CDLs shall contain the following information:
    (1) The prominent statement that the license is a ``Commercial 
Driver's License'' or ``CDL,'' except as specified in Sec. 383.153(b).
    (2) The full name, signature, and mailing address of the person to 
whom such license is issued;
    (3) Physical and other information to identify and describe such 
person including date of birth (month, day, and year), sex, and height;
    (4) Color photograph of the driver;
    (5) The driver's State license number;
    (6) The name of the State which issued the license;
    (7) The date of issuance and the date of expiration of the license;
    (8) The group or groups of commercial motor vehicle(s) that the 
driver is authorized to operate, indicated as follows:
    (i) A for Combination Vehicle;
    (ii) B for Heavy Straight Vehicle; and
    (iii) C for Small Vehicle.
    (9) The endorsement(s) for which the driver has qualified, if any, 
indicated as follows:
    (i) T for double/triple trailers;
    (ii) P for passenger;
    (iii) N for tank vehicle;
    (iv) H for hazardous materials;
    (v) X for a combination of tank vehicle and hazardous materials 
endorsements;
    (vi) S for school bus; and
    (vii) At the discretion of the State, additional codes for 
additional groupings of endorsements, as long as each such discretionary 
code is fully explained on the front or back of the CDL document.
    (b) If the CDL is a Nonresident CDL, it shall contain the prominent 
statement that the license is a ``Nonresident Commercial Driver's 
License'' or ``Nonresident CDL.'' The word ``Nonresident'' must be 
conspicuously and unmistakably displayed, but may be noncontiguous with 
the words ``Commercial Driver's License'' or ``CDL.''
    (c) If the State has issued the applicant an air brake restriction 
as specified in Sec. 383.95, that restriction must be indicated on the 
license.
    (d) Except in the case of a Nonresident CDL:
    (1) A driver applicant must provide his/her Social Security Number 
on the application of a CDL; and
    (2) The State must provide the Social Security Number to the CDLIS.

[53 FR 27657, July 21, 1988, as amended at 67 FR 49760, July 31, 2002]

[[Page 218]]



Sec. 383.155  Tamperproofing requirements.

    States shall make the CDL tamperproof to the maximum extent 
practicable. At a minimum, a State shall use the same tamperproof method 
used for noncommercial drivers' licenses.



PART 384_STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM--
Table of Contents




                            Subpart A_General

Sec.
384.101 Purpose and scope.
384.103 Applicability.
384.105 Definitions.
384.107 Matter incorporated by reference.

    Subpart B_Minimum Standards for Substantial Compliance by States

384.201 Testing program.
384.202 Test standards.
384.203 Driving while under the influence.
384.204 CDL issuance and information.
384.205 CDLIS information.
384.206 State record checks.
384.207 Notification of licensing.
384.208 Notification of disqualification.
384.209 Notification of traffic violations.
384.210 Limitation on licensing.
384.211 Return of old licenses.
384.212 Domicile requirement.
384.213 Penalties for driving without a proper CDL.
384.214 Reciprocity.
384.215 First offenses.
384.216 Second offenses.
384.217 Drug offenses.
384.218 Second serious traffic violation.
384.219 Third serious traffic violation.
384.220 National Driver Register information.
384.221 Out-of-service regulations (intoxicating beverage).
384.222 Violation of out-of-service orders.
384.223 Railroad-highway grade crossing violation.
384.224 Noncommercial motor vehicle violations.
384.225 CDLIS driver recordkeeping.
384.226 Prohibition on masking convictions.
384.227-384.230 [Reserved]
384.231 Satisfaction of State disqualification requirement.
384.232 Required timing of record checks.
384.233 Background records checks.
384.234 Driver medical certification recordkeeping.

          Subpart C_Procedures for Determining State Compliance

384.301 Substantial compliance--general requirement.
384.303 [Reserved]
384.305 State certifications for Federal fiscal years after FY 1994.
384.307 FMCSA program reviews of State compliance.
384.309 Results of compliance determination.

              Subpart D_Consequences of State Noncompliance

384.401 Withholding of funds based on noncompliance.
384.403 Period of availability; effect of compliance and noncompliance.
384.405 Decertification of State CDL program.
384.407 Emergency CDL grants.

    Authority: 49 U.S.C. 31136, 31301 et seq., and 31502; secs. 103 and 
215 of Pub. L. 106-159, 113 Stat. 1753, 1767; and 49 CFR 1.73.

    Source: 59 FR 26039, May 18, 1994, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 384 appear at 66 FR 
49872, Oct. 1, 2001.



                            Subpart A_General



Sec. 384.101  Purpose and scope.

    (a) Purpose. The purpose of this part is to ensure that the States 
comply with the provisions of section 12009(a) of the Commercial Motor 
Vehicle Safety Act of 1986 (49 U.S.C. 31311(a)).
    (b) Scope. This part:
    (1) Includes the minimum standards for the actions States must take 
to be in substantial compliance with each of the 22 requirements of 49 
U.S.C. 31311(a);
    (2) Establishes procedures for determinations to be made of such 
compliance by States; and
    (3) Specifies the consequences of State noncompliance.

[62 FR 37152, July 11, 1997]



Sec. 384.103  Applicability.

    The rules in this part apply to all States.



Sec. 384.105  Definitions.

    (a) The definitions in part 383 of this title apply to this part, 
except where otherwise specifically noted.

[[Page 219]]

    (b) As used in this part:
    CDLIS motor vehicle record (CDLIS MVR) means a report generated from 
the CDLIS driver record meeting the requirements for access to CDLIS 
information and provided by States to users authorized in Sec. 
384.225(e)(3) and (4), subject to the provisions of the Driver Privacy 
Protection Act, 18 U.S.C. 2721-2725.
    Issue and issuance mean initial licensure, license transfers, 
license renewals, license upgrades, and nonresident commercial driver's 
licenses (CDLs), as described in Sec. 383.73 of this title.
    Licensing entity means the agency of State government that is 
authorized to issue drivers' licenses.
    Year of noncompliance means any Federal fiscal year during which--
    (1) A State fails to submit timely certification as prescribed in 
subpart C of this part; or
    (2) The State does not meet one or more of the standards of subpart 
B of this part, based on a final determination by the FMCSA under Sec. 
384.307(c) of this part.

[59 FR 26039, May 18, 1994, as amended at 73 FR 73125, Dec. 1, 2008]



Sec. 384.107  Matter incorporated by reference.

    (a) Incorporation by reference. This part includes references to 
certain matter or materials. The text of the materials is not included 
in the regulations contained in this part. The materials are hereby made 
a part of the regulations in this part. The Director of the Office of 
the Federal Register has approved the materials incorporated by 
reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. For 
materials subject to change, only the specific version approved by the 
Director of the Office of the Federal Register and specified in the 
regulation are incorporated. Material is incorporated as it exists on 
the date of the approval and a notice of any change in these materials 
will be published in the Federal Register.
    (b) Materials incorporated. The AAMVA, Inc.'s ``Commercial Driver 
License Information System (CDLIS) State Procedures Manual,'' Version 
4.1.0, September 2007 (``CDLIS State Procedures Manual''), IBR approved 
for Sec. Sec. 384.225(f) and 384.231(d).
    (c) Addresses. (1) All of the materials incorporated by reference 
are available for inspection at:
    (i) The Department of Transportation Library, 1200 New Jersey Ave., 
SE., Washington, DC 20590-0001; telephone is (202) 366-0746. These 
documents are also available for inspection and copying as provided in 
49 CFR part 7.
    (ii) The National Archives and Records Administration (NARA). For 
information on the availability of this material at NARA, call 202-741-
6030, or go to: http://www.archives.gov/federal--register/code--of--
federal--regulations/ibr--locations.html.
    (2) Information and copies of all of the materials incorporated by 
reference may be obtained by writing to: American Association of Motor 
Vehicle Administrators, Inc., 4301 Wilson Blvd, Suite 400, Arlington, VA 
22203; Web site is http://www.aamva.org.

[67 FR 49761, July 31, 2002, as amended at 72 FR 55700, Oct. 1, 2007; 73 
FR 73125, Dec. 1, 2008]



    Subpart B_Minimum Standards for Substantial Compliance by States



Sec. 384.201  Testing program.

    The State shall adopt and administer a program for testing and 
ensuring the fitness of persons to operate commercial motor vehicles 
(CMVs) in accordance with the minimum Federal standards contained in 
part 383 of this title.



Sec. 384.202  Test standards.

    No State shall authorize a person to operate a CMV unless such 
person passes a knowledge and driving skills test for the operation of a 
CMV in accordance with part 383 of this title.



Sec. 384.203  Driving while under the influence.

    (a) The State must have in effect and enforce through licensing 
sanctions the disqualifications prescribed in Sec. 383.51(b) of this 
subchapter for driving a CMV with a 0.04 alcohol concentration.

[[Page 220]]

    (b) Nothing in this section shall be construed to require a State to 
apply its criminal or other sanctions for driving under the influence to 
a person found to have operated a CMV with an alcohol concentration of 
0.04, except licensing sanctions including suspension, revocation, or 
cancellation.
    (c) A State that enacts and enforces through licensing sanctions the 
disqualifications prescribed in Sec. 383.51(b) of this subchapter for 
driving a CMV with a 0.04 alcohol concentration and gives full faith and 
credit to the disqualification of CMV drivers by other States shall be 
deemed in substantial compliance with section 12009(a)(3) of the 
Commercial Motor Vehicle Safety Act of 1986 (49 U.S.C. 31311(a)(3)).

[67 FR 49761, July 31, 2002]



Sec. 384.204  CDL issuance and information.

    (a) General rule. The State shall authorize a person to operate a 
CMV only by issuance of a CDL, unless a waiver under the provisions of 
Sec. 383.7 applies, which contains, at a minimum, the information 
specified in part 383, subpart J, of this title.
    (b) Exceptions--(1) Training. The State may authorize a person, who 
does not hold a CDL valid in the type of vehicle in which training 
occurs, to undergo behind-the-wheel training in a CMV only by means of a 
learner's permit issued and used in accordance with Sec. 383.23(c) of 
this title.
    (2) Confiscation of CDL pending enforcement. A State may allow a CDL 
holder whose CDL is held in trust by that State or any other State in 
the course of enforcement of the motor vehicle traffic code, but who has 
not been convicted of a disqualifying offense under Sec. 383.51 based 
on such enforcement, to drive a CMV while holding a dated receipt for 
such CDL.



Sec. 384.205  CDLIS information.

    Before issuing a CDL to any person, the State shall, within the 
period of time specified in Sec. 384.232, perform the check of the 
Commercial Driver's License Information System (CDLIS) in accordance 
with Sec. 383.73(a)(3)(ii) of this title, and, based on that 
information, shall issue the license, or, in the case of adverse 
information, promptly implement the disqualifications, licensing 
limitations, denials, and/or penalties that are called for in any 
applicable section(s) of this subpart.



Sec. 384.206  State record checks.

    (a) Required checks--(1) Issuing State's records. Before issuing, 
renewing, upgrading, or transferring a CDL to any person, the driver's 
State of record must, within the period of time specified in Sec. 
384.232, check its own records as follows:
    (i) The driver record of the person in accordance with Sec. 
383.73(a)(3)(i) of this chapter; and
    (ii) For a driver who certifies that his or her type of driving is 
not-excepted, interstate commerce according to Sec. 383.71(a)(1)(ii)(A) 
of this chapter, the medical certification status information on the 
person's CDLIS driver record.
    (2) Other States' records. Before the initial or transfer issuance 
of a CDL to a person, and before renewing a CDL held by any person, the 
issuing State must:
    (i) Require the applicant to provide the names of all States where 
the applicant has previously been licensed to operate any type of motor 
vehicle.
    (ii) Within the time period specified in Sec. 384.232, request the 
complete driver record from all States where the applicant was licensed 
within the previous 10 years to operate any type of motor vehicle.
    (iii) States receiving a request for the driver record of a person 
currently or previously licensed by the State must provide the 
information within 30 days.
    (b) Required action. Based on the findings of the State record 
checks prescribed in this section, the State of record must do one of 
the following as appropriate:
    (1) Issue, renew, upgrade or transfer the applicant's CDL;
    (2) In the event a State obtains adverse information regarding the 
applicant, promptly implement the disqualifications, licensing 
limitations, denials, or penalties that are called for in any applicable 
sections of this subpart; or

[[Page 221]]

    (3) In the event there is no information regarding the driver's 
self-certification for driving type that is required by Sec. 
383.71(a)(1)(ii), or for a driver who is required by Sec. 383.71(h) to 
be ``certified;'' if the medical certification status of the individual 
is ``not-certified,'' the State must deny the CDL action requested by 
the applicant and initiate a downgrade of the CDL, if required by Sec. 
383.73(j)(4) of this chapter.

[59 FR 26039, May 18, 1994, as amended at 67 FR 49761, July 31, 2002; 73 
FR 73125, Dec. 1, 2008]



Sec. 384.207  Notification of licensing.

    Within the period defined in Sec. 383.73(f) of this title, the 
State shall:
    (a) Notify the operator of the CDLIS of each CDL issuance;
    (b) Notify the operator of the CDLIS of any changes in driver 
identification information; and
    (c) In the case of transfer issuances, implement the Change State of 
Record transaction, as specified by the operator of the CDLIS, in 
conjunction with the previous State of record and the operator of the 
CDLIS.



Sec. 384.208  Notification of disqualification.

    (a) No later than 10 days after disqualifying a CDL holder licensed 
by another State, or revoking, suspending, or canceling an out-of-State 
CDL holder's privilege to operate a commercial motor vehicle for at 
least 60 days, the State must notify the State that issued the license 
of the disqualification, revocation, suspension, or cancellation.
    (b) The notification must include both the disqualification and the 
violation that resulted in the disqualification, revocation, suspension, 
or cancellation. The notification and the information it provides must 
be recorded on the CDLIS driver record.

[67 FR 49761, July 31, 2002, as amended at 73 FR 73125, Dec. 1, 2008]



Sec. 384.209  Notification of traffic violations.

    (a) Required notification with respect to CDL holders. Whenever a 
person who holds a CDL from another State is convicted of a violation of 
any State or local law relating to motor vehicle traffic control (other 
than a parking violation), in any type of vehicle, the licensing entity 
of the State in which the conviction occurs must notify the licensing 
entity in the State where the driver is licensed of this conviction 
within the time period established in paragraph (c) of this section.
    (b) Required notification with respect to non-CDL holders. Whenever 
a person who does not hold a CDL, but who is licensed to drive by 
another State, is convicted of a violation in a CMV of any State or 
local law relating to motor vehicle traffic control (other than a 
parking violation), the licensing entity of the State in which the 
conviction occurs must notify the licensing entity in the State where 
the driver is licensed of this conviction within the time period 
established in paragraph (c) of this section.
    (c) Time period for notification of traffic violations. (1) 
Beginning on September 30, 2005, the notification must be made within 30 
days of the conviction.
    (2) Beginning on September 30, 2008, the notification must be made 
within 10 days of the conviction.

[67 FR 49761, July 31, 2002]



Sec. 384.210  Limitation on licensing.

    A State must not knowingly issue a CDL or a commercial special 
license or permit (including a provisional or temporary license) 
permitting a person to drive a CMV during a period in which:
    (a) A person is disqualified from operating a CMV, as 
disqualification is defined by Sec. 383.5 of this subchapter, or under 
the provisions of Sec. 383.73(g) or Sec. 384.231(b)(2) of this 
subchapter;
    (b) The CDL holder's noncommercial driving privilege has been 
revoked, suspended, or canceled; or
    (c) Any type of driver's license held by such person is suspended, 
revoked, or canceled by the State where the driver is licensed for any 
State or local law related to motor vehicle traffic control (other than 
parking violations).

[67 FR 49761, July 31, 2002]



Sec. 384.211  Return of old licenses.

    The State shall not issue a CDL to a person who possesses a driver's 
license issued by another State or jurisdiction

[[Page 222]]

unless such person first surrenders the driver's license issued by such 
other State or jurisdiction in accordance with Sec. Sec. 383.71(a)(7) 
and (b)(4) of this title.



Sec. 384.212  Domicile requirement.

    (a) The State shall issue CDLs only to those persons for whom such 
State is the State of domicile as defined in Sec. 383.5 of this title; 
except that the State may issue a nonresident CDL under the conditions 
specified in Sec. Sec. 383.23(b), 383.71(e), and 383.73(e) of this 
title.
    (b) The State shall require any person holding a CDL issued by 
another State to apply for a transfer CDL from the State within 30 days 
after establishing domicile in the State, as specified in Sec. 
383.71(b) of this title.



Sec. 384.213  State penalties for drivers of CMVs.

    The State must impose on drivers of CMVs appropriate civil and 
criminal penalties that are consistent with the penalties prescribed 
under part 383, subpart D, of this subchapter.

[67 FR 49761, July 31, 2002]



Sec. 384.214  Reciprocity.

    The State shall allow any person to operate a CMV in the State who 
is not disqualified from operating a CMV and who holds a CDL which is--
    (a) Issued to him or her by any other State or jurisdiction in 
accordance with part 383 of this title;
    (b) Not suspended, revoked, or canceled; and
    (c) Valid, under the terms of part 383, subpart F, of this title, 
for the type of vehicle being driven.



Sec. 384.215  First offenses.

    (a) General rule. The State must disqualify from operating a CMV 
each person who is convicted, as defined in Sec. 383.5 of this 
subchapter, in any State or jurisdiction, of a disqualifying offense 
specified in items (1) through (8) of Table 1 to Sec. 383.51 of this 
subchapter, for no less than one year.
    (b) Special rule for hazardous materials offenses. If the offense 
under paragraph (a) of this section occurred while the driver was 
operating a vehicle transporting hazardous materials required to be 
placarded under the Hazardous Materials Transportation Act (implementing 
regulations at 49 CFR 177.823), the State shall disqualify the person 
for no less than three years.

[59 FR 26039, May 18, 1994, as amended at 67 FR 49762, July 31, 2002]



Sec. 384.216  Second offenses.

    (a) General rule. The State must disqualify for life from operating 
a CMV each person who is convicted, as defined in Sec. 383.5 of this 
subchapter, in any State or jurisdiction, of a subsequent offense as 
described in Table 1 to Sec. 383.51 of this subchapter.
    (b) Special rule for certain lifetime disqualifications. A driver 
disqualified for life under Table 1 to Sec. 383.51 may be reinstated 
after 10 years by the driver's State of residence if the requirements of 
Sec. 383.51(a)(5) have been met.

[67 FR 49762, July 31, 2002]



Sec. 384.217  Drug offenses.

    The State must disqualify from operating a CMV for life each person 
who is convicted, as defined in Sec. 383.5 of this subchapter, in any 
State or jurisdiction of a first offense, of using a CMV in the 
commission of a felony described in item (9) of Table 1 to Sec. 383.51 
of this subchapter. The State shall not apply the special rule in Sec. 
384.216(b) to lifetime disqualifications imposed for controlled 
substance felonies as detailed in item (9) of Table 1 to Sec. 383.51 of 
this subchapter.

[67 FR 49762, July 31, 2002]



Sec. 384.218  Second serious traffic violation.

    The State must disqualify from operating a CMV for a period of not 
less than 60 days each person who, in a three-year period, is convicted, 
as defined in Sec. 383.5 of this subchapter, in any State(s) or 
jurisdiction(s), of two serious traffic violations as specified in Table 
2 to Sec. 383.51.

[67 FR 49762, July 31, 2002]



Sec. 384.219  Third serious traffic violation.

    The State must disqualify from operating a CMV for a period of not 
less

[[Page 223]]

than 120 days each person who, in a three-year period, is convicted, as 
defined in Sec. 383.5 of this subchapter, in any State(s) or 
jurisdiction(s), of three serious traffic violations as specified in 
Table 2 to Sec. 383.51. This disqualification period must be in 
addition to any other previous period of disqualification.

[67 FR 49762, July 31, 2002]



Sec. 384.220  National Driver Register information.

    Before issuing a CDL to any person, the State shall, within the 
period of time specified in Sec. 384.232, perform the check of the 
National Driver Register in accordance with Sec. 383.73(a)(3)(iii) of 
this title, and, based on that information, promptly implement the 
disqualifications, licensing limitations, and/or penalties that are 
called for in any applicable section(s) of this subpart.



Sec. 384.221  Out-of-service regulations (intoxicating beverage).

    The State shall adopt, and enforce on operators of CMVs as defined 
in Sec. Sec. 383.5 and 390.5 of this title, the provisions of Sec. 
392.5 (a) and (c) of this title in accordance with the Motor Carrier 
Safety Assistance Program as contained in 49 CFR part 350 and applicable 
policy and guidelines.



Sec. 384.222  Violation of out-of-service orders.

    The State must have and enforce laws and/or regulations applicable 
to drivers of CMVs and their employers, as defined in Sec. 383.5 of 
this subchapter, which meet the minimum requirements of Sec. Sec. 
383.37(c), Table 4 to 383.51, and 383.53(b) of this subchapter.

[67 FR 49762, July 31, 2002]



Sec. 384.223  Railroad-highway grade crossing violation.

    The State must have and enforce laws and/or regulations applicable 
to CMV drivers and their employers, as defined in Sec. 383.5 of this 
subchapter, which meet the minimum requirements of Sec. Sec. 383.37(d), 
Table 3 to 383.51, and 383.53(c) of this subchapter.

[67 FR 49762, July 31, 2002]



Sec. 384.224  Noncommercial motor vehicle violations.

    The State must have and enforce laws and/or regulations applicable 
to drivers of non-CMVs, as defined in Sec. 383.5 of this subchapter, 
which meet the minimum requirements of Tables 1 and 2 to Sec. 383.51 of 
this subchapter.

[67 FR 49762, July 31, 2002]



Sec. 384.225  CDLIS driver recordkeeping.

    The State must:
    (a) CDL holder. Post and maintain as part of the CDLIS driver 
record:
    (1) All convictions, disqualifications and other licensing actions 
for violations of any State or local law relating to motor vehicle 
traffic control (other than a parking violation) committed in any type 
of vehicle.
    (2) Medical certification status information.
    (i) Driver self-certification for the type of driving operations 
provided in accordance with Sec. 383.71(a)(1)(ii) of this chapter, and
    (ii) Information from medical certification recordkeeping in 
accordance with Sec. 383.73(j) of this chapter.
    (b) A person required to have a CDL. Record and maintain as part of 
the CDLIS driver record all convictions, disqualifications and other 
licensing actions for violations of any State or local law relating to 
motor vehicle traffic control (other than a parking violation) committed 
while the driver was operating a CMV.
    (c) Make CDLIS driver record information required by this section 
available to the users designated in paragraph (e) of this section, or 
to their authorized agent, within 10 days of:
    (1) Receiving the conviction or disqualification information from 
another State; or
    (2) The date of the conviction, if it occurred in the same State.
    (d) Retain on the CDLIS driver record record all convictions, 
disqualifications and other licensing actions for violations for at 
least 3 years or longer as required under Sec. 384.231(d).
    (e) Only the following users or their authorized agents may receive 
the designated information:
    (1) States--All information on all CDLIS driver records.

[[Page 224]]

    (2) Secretary of Transportation--All information on all CDLIS driver 
records.
    (3) Driver--All information on that driver's CDLIS driver record 
obtained on the CDLIS Motor Vehicle Record from the State according to 
its procedures.
    (4) Motor Carrier or Prospective Motor Carrier--After notification 
to a driver, all information on that driver's, or prospective driver's, 
CDLIS driver record obtained on the CDLIS Motor Vehicle Record from the 
State according to its procedures.
    (f) The content of the report provided a user authorized by 
paragraph (e) of this section from the CDLIS driver record, or from a 
copy of this record maintained for use by the National Law Enforcement 
Telecommunications System, must be comparable to the report that would 
be generated by a CDLIS State-to-State request for a CDLIS driver 
history, as defined in the ``CDLIS State Procedures Manual'' 
(incorporated by reference, see Sec. 384.107(b)), and must include the 
medical certification status information of the driver in paragraph 
(a)(2) of this section. This does not preclude authorized users from 
requesting a CDLIS driver status.

[67 FR 49762, July 31, 2002, as amended at 73 FR 73125, Dec. 1, 2008]



Sec. 384.226  Prohibition on masking convictions.

    The State must not mask, defer imposition of judgment, or allow an 
individual to enter into a diversion program that would prevent a CDL 
driver's conviction for any violation, in any type of motor vehicle, of 
a State or local traffic control law (except a parking violation) from 
appearing on the CDLIS driver record, whether the driver was convicted 
for an offense committed in the State where the driver is licensed or 
another State.

[67 FR 49762, July 31, 2002, as amended at 73 FR 73126, Dec. 1, 2008]



Sec. Sec. 384.227-384.230  [Reserved]



Sec. 384.231  Satisfaction of State disqualification requirement.

    (a) Applicability. The provisions of Sec. Sec. 384.203, 384.206(b), 
384.210, 384.213, 384.215 through 384.219, 384.221 through 384.224, and 
384.231 of this part apply to the State of licensure of the person 
affected by the provision. The provisions of Sec. 384.210 of this part 
also apply to any State to which a person makes application for a 
transfer CDL.
    (b) Required action--(1) CDL holders. A State must satisfy the 
requirement of this part that the State disqualify a person who holds a 
CDL by, at a minimum, suspending, revoking, or canceling the person's 
CDL for the applicable period of disqualification.
    (2) A person required to have a CDL. A State must satisfy the 
requirement of this subpart that the State disqualify a person required 
to have a CDL who is convicted of an offense or offenses necessitating 
disqualification under Sec. 383.51 of this subchapter. At a minimum, 
the State must implement the limitation on licensing provisions of Sec. 
384.210 and the timing and recordkeeping requirements of paragraphs (c) 
and (d) of this section so as to prevent such a person from legally 
obtaining a CDL from any State during the applicable disqualification 
period(s) specified in this subpart.
    (c) Required timing. The State must disqualify a driver as 
expeditiously as possible.
    (d) Recordkeeping requirements. The State must conform to the 
requirements of the CDLIS State Procedures Manual (incorporated by 
reference in Sec. 384.107(b).) These requirements include the 
maintenance of such driver records and driver identification data on the 
CDLIS as the FMCSA finds are necessary to the implementation and 
enforcement of the disqualifications called for in Sec. Sec. 384.215 
through 384.219, and 384.221 through 384.224 of this part.

[67 FR 49762, July 31, 2002, as amended at 73 FR 73126, Dec. 1, 2008]



Sec. 384.232  Required timing of record checks.

    The State shall perform the record checks prescribed in Sec. Sec. 
384.205, 384.206, and 384.220, no earlier than 10 days prior to issuance 
for licenses issued before October 1, 1995. For licenses issued after 
September 30, 1995, the State shall perform the record checks no earlier 
than 24 hours prior to issuance if the license is issued to a driver who

[[Page 225]]

does not currently possess a valid CDL from the same State and no 
earlier than 10 days prior to issuance for all other drivers.



Sec. 384.233  Background records checks.

    (a) The State shall comply with Transportation Security 
Administration requirements concerning background records checks for 
drivers seeking to obtain, renew, transfer or upgrade a hazardous 
materials endorsement in 49 CFR Part 1572, to the extent those 
provisions impose requirements on the State.
    (b) The State shall comply with each requirement of 49 CFR 383.141.

[68 FR 23850, May 5, 2003]



Sec. 384.234  Driver medical certification recordkeeping.

    The State must meet the medical certification recordkeeping 
requirements of Sec. Sec. 383.73(a)(5) and (j) of this chapter.

[73 FR 73126, Dec. 1, 2008]



          Subpart C_Procedures for Determining State Compliance



Sec. 384.301  Substantial compliance-general requirements.

    (a) To be in substantial compliance with 49 U.S.C. 31311(a), a State 
must meet each and every standard of subpart B of this part by means of 
the demonstrable combined effect of its statutes, regulations, 
administrative procedures and practices, organizational structures, 
internal control mechanisms, resource assignments (facilities, 
equipment, and personnel), and enforcement practices.
    (b)(1) A State must come into substantial compliance with the 
requirements of subpart B of this part in effect as of September 30, 
2002 as soon as practical, but, unless otherwise specifically provided 
in this part, not later than September 30, 2005.
    (2) Exception. A State must come into substantial compliance with 49 
CFR 383.123 not later than September 30, 2006.
    (c) A State must come into substantial compliance with the 
requirements of subpart B of this part in effect as of September 4, 2007 
as soon as practical but, unless otherwise specifically provided in this 
part, not later than September 4, 2010.
    (d) A State must come into substantial compliance with the 
requirements of subpart B of this part in effect as of January 30, 2009, 
as soon as practical, but not later than January 30, 2012.

[67 FR 49763, July 31, 2002, as amended at 70 FR 56593, Sept. 28, 2005; 
72 FR 36788, July 5, 2007; 73 FR 73126, Dec. 1, 2008]



Sec. 384.303  [Reserved]



Sec. 384.305  State certifications for Federal fiscal years after
FY 1994.

    (a) Certification requirement. Prior to January 1 of each Federal 
fiscal year after FY 1994, each State shall review its compliance with 
this part and certify to the Federal Motor Carrier Safety Administrator 
as prescribed in paragraph (b) of this section. The certification shall 
be submitted as a signed original and four copies to the State Director 
or Officer-in-Charge, Federal Motor Carrier Safety Administration, 
located in that State.
    (b) Certification content. The certification shall consist of a 
statement signed by the Governor of the State, or by an official 
designated by the Governor, and reading as follows: ``I (name of 
certifying official), (position title), of the State (Commonwealth) of 
------, do hereby certify that the State (Commonwealth) has continuously 
been in substantial compliance with all requirements of 49 U.S.C. 
31311(a), as defined in 49 CFR 384.301, since [the first day of the 
current Federal fiscal year], and contemplates no changes in statutes, 
regulations, or administrative procedures, or in the enforcement 
thereof, which would affect such substantial compliance through [the 
last date of the current Federal fiscal year].''

(Approved by the Office of Management and Budget under control number 
2125-0542)

[59 FR 26039, May 18, 1994, as amended at 62 FR 37152, July 11, 1997]



Sec. 384.307  FMCSA program reviews of State compliance.

    (a) FMCSA Program Reviews. Each State's CDL program will be subject 
to review to determine whether or not the State meets the general 
requirement

[[Page 226]]

for substantial compliance in Sec. 384.301. The State must cooperate 
with the review and provide any information requested by the FMCSA.
    (b) Preliminary FMCSA determination and State response. If, after 
review, a preliminary determination is made either that the State has 
not submitted the required annual self-certification or that the State 
does not meet one or more of the minimum standards for substantial 
compliance under subpart B of this part, the State will be informed 
accordingly.
    (c) Reply. The State will have up to 30 calendar days to respond to 
the preliminary determination. The State's reply must explain what 
corrective action it either has implemented or intends to implement to 
correct the deficiencies cited in the notice or, alternatively, why the 
FMCSA preliminary determination is incorrect. The State must provide 
documentation of corrective action as required by the agency. Corrective 
action must be adequate to correct the deficiencies noted in the program 
review and be implemented on a schedule mutually agreed upon by the 
agency and the State. Upon request by the State, an informal conference 
will be provided during this time.
    (d) Final FMCSA determination. If, after reviewing a timely response 
by the State to the preliminary determination, a final determination is 
made that the State is not in compliance with the affected standard, the 
State will be notified of the final determination. In making its final 
determination, the FMCSA will take into consideration the corrective 
action either implemented or planned to be implemented in accordance 
with the mutually agreed upon schedule.
    (e) State's right to judicial review. Any State aggrieved by an 
adverse decision under this section may seek judicial review under 5 
U.S.C. Chapter 7.

[67 FR 49763, July 31, 2002]



Sec. 384.309  Results of compliance determination.

    (a) A State shall be determined not substantially in compliance with 
49 U.S.C. 31311(a) for any fiscal year in which it:
    (1) Fails to submit the certification as prescribed in this subpart; 
or
    (2) Does not meet one or more of the standards of subpart B of this 
part, as established in a final determination by the FMCSA under Sec. 
384.307(c).
    (b) A State shall be in substantial compliance with 49 U.S.C. 
31311(a) for any fiscal year in which neither of the eventualities in 
paragraph (a) of this section occurs.

[62 FR 37152, July 11, 1997]



              Subpart D_Consequences of State Noncompliance



Sec. 384.401  Withholding of funds based on noncompliance.

    (a) Following the first year of noncompliance. An amount up to 5 
percent of the Federal-aid highway funds required to be apportioned to 
any State under each of sections 104(b)(1), (b)(3), and (b)(4) of title 
23 U.S.C. shall be withheld from a State on the first day of the fiscal 
year following such State's first year of noncompliance under this part.
    (b) Following second and subsequent year(s) of noncompliance. An 
amount up to 10 percent of the Federal-aid highway funds required to be 
apportioned to any State under each of sections 104(b)(1), (b)(3), and 
(b)(4) of title 23 U.S.C. shall be withheld from a State on the first 
day of the fiscal year following such State's second or subsequent 
year(s) of noncompliance under this part.

[72 FR 36788, July 5, 2007]



Sec. 384.403  Availability of funds withheld for noncompliance.

    (a) Federal-aid highway funds withheld from a State under Sec. 
384.401(a)(1) or (b)(1) shall not thereafter be available for 
apportionment to the State.
    (b) MCSAP funds withheld from a State under Sec. 384.401(a)(2) or 
(b)(2) remain available until June 30 of the fiscal year in which they 
were withheld. If before June 30 the State submits a document signed by 
the Governor or his or her delegate certifying, and the FMCSA 
determines, that the State is now in substantial compliance with the 
standards of subpart B of this part, the withheld funds shall be 
restored to the State. After June 30, unrestored funds

[[Page 227]]

shall lapse and be allocated in accordance with Sec. 350.313 of this 
subchapter to all States currently in substantial compliance with 
subpart B of this part.

[67 FR 49763, July 31, 2002]



Sec. 384.405  Decertification of State CDL program.

    (a) Prohibition on CDL licensing activities. The Administrator may 
prohibit a State found to be in substantial noncompliance from 
performing any of the following four licensing transactions:
    (1) Issuance of initial CDLs.
    (2) Renewal of CDLs.
    (3) Transfer of out-of-State CDLs to the State.
    (4) Upgrade of CDLs.
    (b) Conditions considered in making decertification determination. 
The Administrator will consider, but is not limited to, the following 
five conditions in determining whether the CDL program of a State in 
substantial noncompliance should be decertified:
    (1) The State computer system does not check the Commercial Driver's 
License Information System (CDLIS) and/or National Driver Register (NDR) 
as required by Sec. 383.73 of this subchapter when processing CDL 
applicants, drivers transferring a CDL issued by another State, CDL 
renewals and/or upgrades.
    (2) The State does not disqualify drivers convicted of disqualifying 
offenses in commercial motor vehicles.
    (3) The State does not transmit convictions for out of State drivers 
to the State where the driver is licensed.
    (4) The State does not properly administer knowledge and/or skills 
tests to CDL applicants or drivers.
    (5) The State fails to submit a corrective action plan for a 
substantial compliance deficiency or fails to implement a corrective 
action plan within the agreed upon time frame.
    (c) Standard for considering deficiencies. The deficiencies 
described in paragraph (b) of this section must affect a substantial 
number of either CDL applicants or drivers.
    (d) Decertification: preliminary determination. If the Administrator 
finds that a State is in substantial noncompliance with subpart B of 
this part, as indicated by the factors specified in Sec. 384.405(b), 
among other things, the FMCSA will inform the State that it has made a 
preliminary determination of noncompliance and that the State's CDL 
program may therefore be decertified. Any response from the State, 
including factual or legal arguments or a plan to correct the 
noncompliance, must be submitted within 30 calendar days after receipt 
of the preliminary determination.
    (e) Decertification: final determination. If, after considering all 
material submitted by the State in response to the FMCSA preliminary 
determination, the Administrator decides that substantial noncompliance 
exists which warrants decertification of the CDL program, he or she will 
issue a decertification order prohibiting the State from issuing CDLs 
until such time as the Administrator determines that the condition(s) 
causing the decertification has (have) been corrected.
    (f) Recertification of a State. The Governor of the decertified 
State or his or her designated representative must submit a 
certification and documentation that the condition causing the 
decertification has been corrected. If the FMCSA determines that the 
condition causing the decertification has been satisfactorily corrected, 
the Administrator will issue a recertification order, including any 
conditions that must be met in order to begin issuing CDLs in the State.
    (g) State's right to judicial review. Any State aggrieved by an 
adverse decision under this section may seek judicial review under 5 
U.S.C. Chapter 7.
    (h) Validity of previously issued CDLs. A CDL issued by a State 
prior to the date the State is prohibited from issuing CDLs in 
accordance with provisions of paragraph (a) of this section, will remain 
valid until its stated expiration date.

[67 FR 49763, July 31, 2002]



Sec. 384.407  Emergency CDL grants.

    The FMCSA may provide grants of up to $1,000,000 per State from 
funds made available under 49 U.S.C. 31107(a), to assist States whose 
CDL programs may fail to meet the compliance requirements of subpart B 
of this part, but which are determined by the FMCSA to

[[Page 228]]

be making a good faith effort to comply with these requirements.

[67 FR 49764, July 31, 2002]



PART 385_SAFETY FITNESS PROCEDURES--Table of Contents




                            Subpart A_General

Sec.
385.1 Purpose and scope.
385.3 Definitions and acronyms.
385.4 Matter incorporated by reference.
385.5 Safety fitness standard.
385.7 Factors to be considered in determining a safety rating.
385.9 Determination of a safety rating.
385.11 Notification of safety fitness determination.
385.13 Unsatisfactory rated motor carriers; prohibition on 
          transportation; ineligibility for Federal contracts.
385.14 Motor carriers, brokers, and freight forwarders delinquent in 
          paying civil penalties: prohibition on transportation.
385.15 Administrative review.
385.17 Change to safety rating based upon corrective actions.
385.19 Safety fitness information.

    Subpart B_Safety Monitoring System for Mexico-Domiciled Carriers

385.101 Definitons.
385.103 Safety monitoring system.
385.105 Expedited action.
385.107 The safety audit.
385.109 The compliance review.
385.111 Suspension and revocation of Mexico-domiciled carrier 
          registration.
385.113 Administrative review.
385.115 Reapplying for provisional registration.
385.117 Duration of safety monitoring system.
385.119 Applicability of safety fitness and enforcement procedures.

 Subpart C_Certification of Safety Auditors, Safety Investigators, and 
                            Safety Inspectors

385.201 Who is qualified to perform a review of a motor carrier or an 
          intermodal equipment provider?
385.203 What are the requirements to obtain and maintain certification?
385.205 How can a person who has lost his or her certification be re-
          certified?

             Subpart D_New Entrant Safety Assurance Program

385.301 What is a motor carrier required to do before beginning 
          interstate operations?
385.303 How does a motor carrier register with the FMCSA?
385.305 What happens after the FMCSA receives a request for new entrant 
          registration?
305.306 What are the consequences of furnishing misleading information 
          or making a false statement in connection with the 
          registration process?
385.307 What happens after a motor carrier begins operations as a new 
          entrant?
305.308 What may cause an expedited action?
385.309 What is the purpose of the safety audit?
385.311 What will the safety audit consist of?
385.313 Who will conduct the safety audit?
385.315 Where will the safety audit be conducted?
385.317 Will a safety audit result in a safety fitness determination by 
          the FMCSA?
385.319 What happens after the completion of the safety audit?
385.321 What failures of safety management practices disclosed by the 
          safety audit will result in a notice to a new entrant that its 
          US DOT new entrant registration will be revoked?
385.323 May FMCSA extend the period under Sec. 385.319(c) for a new 
          entrant to take corrective action to remedy its safety 
          management practices?
385.325 What happens after a new entrant has been notified under 
          385.319(c) to take corrective action to remedy its safety 
          management practices?
385.327 May a new entrant request an administrative review of a 
          determination of a failed safety audit?
385.329 May a new entrant that has had its USDOT new entrant 
          registration revoked and its operations placed out of service 
          reapply?
385.331 What happens if a new entrant operates a CMV after having been 
          issued an order placing its interstate operations out of 
          service?
385.333 What happens at the end of the 18-month safety monitoring 
          period?
385.335 If the FMCSA conducts a compliance review on a new entrant, will 
          the new entrant also be subject to a safety audit?
385.337 What happens if a new entrant refuses to permit a safety audit 
          to be performed on its operations?

              Subpart E_Hazardous Materials Safety Permits

385.401 What is the purpose and scope of this subpart?
385.402 What definitions are used in this subpart?
385.403 Who must hold a safety permit?
385.405 How does a motor carrier apply for a safety permit?

[[Page 229]]

385.407 What conditions must a motor carrier satisfy for FMCSA to issue 
          a safety permit?
385.409 When may a temporary safety permit be issued to a motor carrier?
385.411 Must a motor carrier obtain a safety permit if it has a State 
          permit?
385.413 What happens if a motor carrier receives a proposed safety 
          rating that is less than Satisfactory?
385.415 What operational requirements apply to the transportation of a 
          hazardous material for which a permit is required?
385.417 Is a motor carrier's safety permit number available to others?
385.419 How long is a safety permit effective?
385.421 Under what circumstances will a safety permit be subject to 
          revocation or suspension by FMCSA?
385.423 Does a motor carrier have a right to an administrative review of 
          a denial, suspension, or revocation of a safety permit?

                Subpart F_Intermodal Equipment Providers

385.501 Roadability review.
385.503 Results of roadability review.

Subpart G [Reserved]

  Subpart H_Special Rules for New Entrant Non-North America-Domiciled 
                                Carriers

385.601 Scope of rules.
385.603 Application.
385.605 New entrant registration driver's license and drug and alcohol 
          testing requirements.
385.607 FMCSA action on the application.
385.609 Requirement to notify FMCSA of change in applicant information.

Appendix to Subpart H of Part 385--Explanation of Pre-Authorization 
          Safety Audit Evaluation Criteria for Non-North America-
          Domiciled Motor Carriers

   Subpart I_Safety Monitoring System for Non-North America-Domiciled 
                                Carriers

385.701 Definitions.
385.703 Safety monitoring system.
385.705 Expedited action.
385.707 The compliance review.
385.709 Suspension and revocation of non-North America-domiciled carrier 
          registration.
385.711 Administrative review.
385.713 Reapplying for new entrant registration.
385.715 Duration of safety monitoring system.
385.717 Applicability of safety fitness and enforcement procedures.

Appendix A to Part 385--Explanation of Safety Audit Evaluation Criteria
Appendix B to Part 385--Explanation of Safety Rating Process

    Authority: 49 U.S.C. 113, 504, 521(b), 5105(e), 5109, 5113, 13901-
13905, 31136, 31144, 31148, 31151, and 31502; Sec. 350 of Pub. L. 107-
87; and 49 CFR 1.73.

    Source: 53 FR 50968, Dec. 19, 1988, unless otherwise noted.

    Editorial Note: Nomenclature changes to part 385 appear at 66 FR 
49872, Oct. 1, 2001.



                            Subpart A_General



Sec. 385.1  Purpose and scope.

    (a) This part establishes the FMCSA's procedures to determine the 
safety fitness of motor carriers, to assign safety ratings, to direct 
motor carriers to take remedial action when required, and to prohibit 
motor carriers receiving a safety rating of ``unsatisfactory'' from 
operating a CMV.
    (b) This part establishes the safety assurance program for a new 
entrant motor carrier initially seeking to register with FMCSA to 
conduct interstate operations. It also describes the consequences that 
will occur if the new entrant fails to maintain adequate basic safety 
management controls.
    (c) This part establishes the safety permit program for a motor 
carrier to transport the types and quantities of hazardous materials 
listed in Sec. 385.403.
    (d) The provisions of this part apply to all motor carriers subject 
to the requirements of this subchapter, except non-business private 
motor carriers of passengers.
    (e) Subpart F of this part establishes procedures to perform a 
roadability review of intermodal equipment providers to determine their 
compliance with the applicable Federal Motor Carrier Safety Regulations 
(FMCSRs).

[65 FR 50934, Aug. 22, 2000, as amended at 67 FR 31982, May 13, 2002; 69 
FR 39366, June 30, 2004; 73 FR 76818, Dec. 17, 2008]



Sec. 385.3  Definitions and acronyms.

    Applicable safety regulations or requirements means 49 CFR chapter 
III, subchapter B--Federal Motor Carrier Safety Regulations or, if the 
carrier is an intrastate motor carrier subject to the

[[Page 230]]

hazardous materials safety permit requirements in subpart E of this 
part, the equivalent State standards; and 49 CFR chapter I, subchapter 
C--Hazardous Materials Regulations.
    CMV means a commercial motor vehicle as defined in Sec. 390.5 of 
this subchapter.
    Commercial motor vehicle shall have the same meaning as described in 
Sec. 390.5 of this subchapter, except that this definition will also 
apply to intrastate motor vehicles subject to the hazardous materials 
safety permit requirements of subpart E of this part.
    FMCSA means the Federal Motor Carrier Safety Administration.
    FMCSRs mean Federal Motor Carrier Safety Regulations (49 CFR parts 
350-399).
    HMRs means the Hazardous Materials Regulations (49 CFR parts 100-
178).
    Motor carrier operations in commerce means commercial motor vehicle 
transportation operations either--
    (1) In interstate commerce, or
    (2) Affecting interstate commerce.
    New entrant is a motor carrier not domiciled in Mexico that applies 
for a United States Department of Transportation (DOT) identification 
number in order to initiate operations in interstate commerce.
    New entrant registration is the registration (US DOT number) granted 
a new entrant before it can begin interstate operations in an 18-month 
monitoring period. A safety audit must be performed on a new entrant's 
operations within 18 months after receipt of its US DOT number and it 
must be found to have adequate basic safety management controls to 
continue operating in interstate commerce at the end of the 18-month 
period.
    Preventable accident on the part of a motor carrier means an 
accident (1) that involved a commercial motor vehicle, and (2) that 
could have been averted but for an act, or failure to act, by the motor 
carrier or the driver.
    Reviews. For the purposes of this part:
    (1) Compliance review means an on-site examination of motor carrier 
operations, such as drivers' hours of service, maintenance and 
inspection, driver qualification, commercial drivers license 
requirements, financial responsibility, accidents, hazardous materials, 
and other safety and transportation records to determine whether a motor 
carrier meets the safety fitness standard. A compliance review may be 
conducted in response to a request to change a safety rating, to 
investigate potential violations of safety regulations by motor 
carriers, or to investigate complaints or other evidence of safety 
violations. The compliance review may result in the initiation of an 
enforcement action.
    (2) Safety Audit means an examination of a motor carrier's 
operations to provide educational and technical assistance on safety and 
the operational requirements of the FMCSRs and applicable HMRs and to 
gather critical safety data needed to make an assessment of the 
carrier's safety performance and basic safety management controls. 
Safety audits do not result in safety ratings.
    (3) Safety management controls means the systems, policies programs, 
practices, and procedures used by a motor carrier to ensure compliance 
with applicable safety and hazardous materials regulations which ensure 
the safe movement of products and passengers through the transportation 
system, and to reduce the risk of highway accidents and hazardous 
materials incidents resulting in fatalities, injuries, and property 
damage.
    (4) Roadability review means an on-site examination of the 
intermodal equipment provider's compliance with the applicable FMCSRs.
    RSPA means the Research and Special Programs Administration.
    Safety ratings: (1) Satisfactory safety rating means that a motor 
carrier has in place and functioning adequate safety management controls 
to meet the safety fitness standard prescribed in Sec. 385.5. Safety 
management controls are adequate if they are appropriate for the size 
and type of operation of the particular motor carrier.
    (2) Conditional safety rating means a motor carrier does not have 
adequate safety management controls in place to ensure compliance with 
the safety fitness standard that could result in occurrences listed in 
Sec. 385.5 (a) through (k).

[[Page 231]]

    (3) Unsatisfactory safety rating means a motor carrier does not have 
adequate safety management controls in place to ensure compliance with 
the safety fitness standard which has resulted in occurrences listed in 
Sec. 385.5 (a) through (k).
    (4) Unrated carrier means that a safety rating has not been assigned 
to the motor carrier by the FMCSA.

[53 FR 50968, Dec. 19, 1988, as amended at 56 FR 40805, Aug. 16, 1991; 
62 FR 60042, Nov. 6, 1997; 67 FR 12779, Mar. 19, 2002; 67 FR 31983, May 
13, 2002; 69 FR 39367, June 30, 2004; 72 FR 36788, July 5, 2007; 73 FR 
76818, Dec. 17, 2008]



Sec. 385.4  Matter incorporated by reference.

    (a) Incorporation by reference. Part 385 includes references to 
certain matter or materials, as listed in paragraph (b) of this section. 
The text of the materials is not included in the regulations contained 
in part 385. The materials are hereby made a part of the regulations in 
part 385. The Director of the Federal Register has approved the 
materials incorporated by reference in accordance with 5 U.S.C. 552(a) 
and 1 CFR part 51. For materials subject to change, only the specific 
version in the regulation is incorporated. Material is incorporated as 
it exists on the date of the approval and a notice of any changes in 
these materials will be published in the Federal Register.
    (b) Matter or materials referenced in part 385. The matter or 
materials in this paragraph are incorporated by reference in the 
corresponding sections noted.
    (1) ``North American Standard Out-of-Service Criteria and Level VI 
Inspection Procedures and Out-of-Service Criteria for Commercial Highway 
Vehicles Transporting Transuranics and Highway Route Controlled 
Quantities of Radioactive Materials as defined in 49 CFR Part 173.403,'' 
January 1, 2004. Information and copies may be obtained from the 
Commercial Vehicle Safety Alliance, 1101 17th Street, NW., Suite 803, 
Washington, DC 20036. Phone number (202) 775-1623.
    (2) All of the materials incorporated by reference are available for 
inspection at: Federal Motor Carrier Safety Administration, Office of 
Enforcement and Compliance (MC-EC), 1200 New Jersey Ave., SE., 
Washington, DC 20590-0001; and the National Archives and Records 
Administration (NARA). For information on the availability of this 
material at NARA, call (202) 741-6030, or go to: http://
www.archives.gov/federal--register/code--of--federal--regulations/ibr--
locations.html.

[69 FR 39367, June 30, 2004, as amended at 72 FR 55700, Oct. 1, 2007]



Sec. 385.5  Safety fitness standard.

    The Satisfactory safety rating is based on the degree of compliance 
with the safety fitness standard for motor carriers. For intrastate 
motor carriers subject to the hazardous materials safety permit 
requirements of subpart E of this part, the motor carrier must meet the 
equivalent State requirements. To meet the safety fitness standard, the 
motor carrier must demonstrate it has adequate safety management 
controls in place, which function effectively to ensure acceptable 
compliance with applicable safety requirements to reduce the risk 
associated with:
    (a) Commercial driver's license standard violations (part 383),
    (b) Inadequate levels of financial responsibility (part 387),
    (c) The use of unqualified drivers (part 391),
    (d) Improper use and driving of motor vehicles (part 392),
    (e) Unsafe vehicles operating on the highways (part 393),
    (f) Failure to maintain accident registers and copies of accident 
reports (part 390),
    (g) The use of fatigued drivers (part 395),
    (h) Inadequate inspection, repair, and maintenance of vehicles (part 
396),
    (i) Transportation of hazardous materials, driving and parking rule 
violations (part 397),
    (j) Violation of hazardous materials regulations (parts 170 through 
177), and
    (k) Motor vehicle accidents and hazardous materials incidents.

[53 FR 50968, Dec. 19, 1988, as amended at 58 FR 33776, June 21, 1993; 
69 FR 39367, June 30, 2004]

[[Page 232]]



Sec. 385.7  Factors to be considered in determining a safety rating.

    The factors to be considered in determining the safety fitness and 
assigning a safety rating include information from safety reviews, 
compliance reviews and any other data. The factors may include all or 
some of the following:
    (a) Adequacy of safety management controls. The adequacy of controls 
may be questioned if their degree of formalization, automation, etc., is 
found to be substantially below the norm for similar carriers. 
Violations, accidents or incidents substantially above the norm for 
similar carriers will be strong evidence that management controls are 
either inadequate or not functioning properly.
    (b) Frequency and severity of regulatory violations.
    (c) Frequency and severity of driver/vehicle regulatory violations 
identified during roadside inspections of motor carrier operations in 
commerce and, if the motor carrier operates in the United States, of 
operations in Canada and Mexico.
    (d) Number and frequency of out-of-service driver/vehicle violations 
of motor carrier operations in commerce and, if the motor carrier 
operates in the United States, of operations in Canada and Mexico.
    (e) Increase or decrease in similar types of regulatory violations 
discovered during safety or compliance reviews.
    (f) For motor carrier operations in commerce and (if the motor 
carrier operates in the United States) in Canada and Mexico: Frequency 
of accidents; hazardous materials incidents; accident rate per million 
miles; indicators of preventable accidents; and whether such accidents, 
hazardous materials incidents, and preventable accident indicators have 
increased or declined over time.
    (g) Number and severity of violations of CMV and motor carrier 
safety rules, regulations, standards, and orders that are both issued by 
a State, Canada, or Mexico and compatible with Federal rules, 
regulations, standards, and orders.

[53 FR 50968, Dec. 19, 1988, as amended at 58 FR 33776, June 21, 1993; 
72 FR 36788, July 5, 2007]



Sec. 385.9  Determination of a safety rating.

    (a) Following a compliance review of a motor carrier operation, the 
FMCSA, using the factors prescribed in Sec. 385.7 as computed under the 
Safety Fitness Rating Methodology set forth in appendix B of this part, 
shall determine whether the present operations of the motor carrier are 
consistent with the safety fitness standard set forth in Sec. 385.5, 
and assign a safety rating accordingly.
    (b) Unless otherwise specifically provided in this part, a safety 
rating will be issued to a motor carrier within 30 days following the 
completion of a compliance review.

[62 FR 60042, Nov. 6, 1997]



Sec. 385.11  Notification of safety fitness determination.

    (a) The FMCSA will provide a motor carrier written notice of any 
safety rating resulting from a compliance review as soon as practicable, 
but not later than 30 days after the review. The notice will take the 
form of a letter issued from the FMCSA's headquarters office and will 
include a list of FMCSR and HMR compliance deficiencies which the motor 
carrier must correct.
    (b) If the safety rating is ``satisfactory'' or improves a previous 
``unsatisfactory'' safety rating, it is final and becomes effective on 
the date of the notice.
    (c) In all other cases, a notice of a proposed safety rating will be 
issued. It becomes the final safety rating after the following time 
periods:
    (1) For motor carriers transporting hazardous materials in 
quantities requiring placarding or transporting passengers by CMV--45 
days after the date of the notice.
    (2) For all other motor carriers operating CMVs--60 days after the 
date of the notice.
    (d) A proposed safety rating of ``unsatisfactory'' is a notice to 
the motor carrier that the FMCSA has made a preliminary determination 
that the

[[Page 233]]

motor carrier is ``unfit'' to continue operating in interstate commerce, 
and that the prohibitions in Sec. 385.13 will be imposed after 45 or 60 
days if necessary safety improvements are not made.
    (e) A motor carrier may request the FMCSA to perform an 
administrative review of a proposed or final safety rating. The process 
and the time limits are described in Sec. 385.15.
    (f) A motor carrier may request a change to a proposed or final 
safety rating based upon its corrective actions. The process and the 
time limits are described in Sec. 385.17.

[65 FR 50934, Aug. 22, 2000]



Sec. 385.13  Unsatisfactory rated motor carriers; prohibition on 
transportation; ineligibility for Federal contracts.

    (a) Generally, a motor carrier rated ``unsatisfactory'' is 
prohibited from operating a CMV. Information on motor carriers, 
including their most current safety rating, is available from the FMCSA 
on the Internet at http://www.safersys.org, or by telephone at (800) 
832-5660.
    (1) Motor carriers transporting hazardous materials in quantities 
requiring placarding, and motor carriers transporting passengers in a 
CMV, are prohibited from operating a CMV in motor carrier operations in 
commerce beginning on the 46th day after the date of the FMCSA notice of 
proposed ``unsatisfactory'' rating.
    (2) All other motor carriers rated as a result of reviews completed 
on or after November 20, 2000, are prohibited from operating a CMV in 
motor carrier operations in commerce beginning on the 61st day after the 
date of the FMCSA notice of proposed ``unsatisfactory'' rating. If FMCSA 
determines that the motor carrier is making a good-faith effort to 
improve its safety fitness, FMCSA may allow the motor carrier to operate 
for up to 60 additional days.
    (b) A Federal agency must not use a motor carrier that holds an 
``unsatisfactory'' rating to transport passengers in a CMV or to 
transport hazardous materials in quantities requiring placarding.
    (c) A Federal agency must not use a motor carrier for other CMV 
transportation if that carrier holds an ``unsatisfactory'' rating which 
became effective on or after January 22, 2001.
    (d) Penalties. (1) If a proposed ``unsatisfactory'' safety rating 
becomes final, FMCSA will issue an order placing out of service the 
motor carrier's operations in commerce. The out-of-service order shall 
apply both to the motor carrier's operations in interstate commerce and 
to its operations affecting interstate commerce.
    (2) If a motor carrier's intrastate operations are declared out of 
service by a State, FMCSA must issue an order placing out of service the 
carrier's operations in interstate commerce. The following conditions 
apply:
    (i) The State that issued the intrastate out-of-service order 
participates in the Motor Carrier Safety Assistance Program and uses the 
FMCSA safety rating methodology provided in this part; and
    (ii) The motor carrier has its principal place of business in the 
State that issued the out-of-service order.
    (iii) The order prohibiting the motor carrier from operating a CMV 
in interstate commerce shall remain in effect until the State determines 
that the carrier is fit.
    (3) Any motor carrier that operates CMVs in violation of this 
section is subject to the penalty provisions of 49 U.S.C. 521(b) and 
Appendix B to part 386 of the FMCSRs.

[65 FR 50934, Aug. 22, 2000, as amended at 72 FR 36788, July 5, 2007; 72 
FR 55700, Oct. 1, 2007]



Sec. 385.14  Motor carriers, brokers, and freight forwarders delinquent
in paying civil penalties: prohibition on transportation.

    (a) A CMV owner or operator that has failed to pay civil penalties 
imposed by the FMCSA, or has failed to abide by a payment plan, may be 
prohibited from operating CMVs in interstate commerce under 49 CFR 
386.83.
    (b) A broker, freight forwarder, or for-hire motor carrier that has 
failed to pay civil penalties imposed by the FMCSA, or has failed to 
abide by a payment plan, may be prohibited from operating in interstate 
commerce, and

[[Page 234]]

its registration may be suspended under the provisions of 49 CFR 386.84.

[65 FR 78427, Dec. 15, 2000]



Sec. 385.15  Administrative review.

    (a) A motor carrier may request the FMCSA to conduct an 
administrative review if it believes the FMCSA has committed an error in 
assigning its proposed safety rating in accordance with Sec. 385.15(c) 
or its final safety rating in accordance with Sec. 385.11(b).
    (b) The motor carrier's request must explain the error it believes 
the FMCSA committed in issuing the safety rating. The motor carrier must 
include a list of all factual and procedural issues in dispute, and any 
information or documents that support its argument.
    (c) The motor carrier must submit its request in writing to the 
Chief Safety Officer, Federal Motor Carrier Safety Administration, 1200 
New Jersey Ave., SE., Washington, DC 20590-0001.
    (1) If a motor carrier has received a notice of a proposed 
``unsatisfactory'' safety rating, it should submit its request within 15 
days from the date of the notice. This time frame will allow the FMCSA 
to issue a written decision before the prohibitions outlined in Sec. 
385.13 (a)(1) and (2) take effect. Failure to petition within this 15-
day period may prevent the FMCSA from issuing a final decision before 
such prohibitions take effect.
    (2) A motor carrier must make a request for an administrative review 
within 90 days of the date of the proposed safety rating issued under 
Sec. 385.11 (c) or a final safety rating issued under Sec. 385.11 (b), 
or within 90 days after denial of a request for a change in rating under 
Sec. 385.17(i).
    (d) The FMCSA may ask the motor carrier to submit additional data 
and attend a conference to discuss the safety rating. If the motor 
carrier does not provide the information requested, or does not attend 
the conference, the FMCSA may dismiss its request for review.
    (e) The FMCSA will notify the motor carrier in writing of its 
decision following the administrative review. The FMCSA will complete 
its review:
    (1) Within 30 days after receiving a request from a hazardous 
materials or passenger motor carrier that has received a proposed or 
final ``unsatisfactory'' safety rating.
    (2) Within 45 days after receiving a request from any other motor 
carrier that has received a proposed or final ``unsatisfactory'' safety 
rating.
    (f) The decision constitutes final agency action.
    (g) Any motor carrier may request a rating change under the 
provisions of Sec. 385.17.

[65 FR 50935, Aug. 22, 2000, as amended at 72 FR 55701, Oct. 1, 2007]



Sec. 385.17  Change to safety rating based upon corrective actions.

    (a) A motor carrier that has taken action to correct the 
deficiencies that resulted in a proposed or final rating of 
``conditional'' or ``unsatisfactory'' may request a rating change at any 
time.
    (b) A motor carrier must make this request in writing to the FMCSA 
Service Center for the geographic area where the carrier maintains its 
principal place of business. The addresses and geographical boundaries 
of the Service Centers are listed in Sec. 390.27 of this chapter.
    (c) The motor carrier must base its request upon evidence that it 
has taken corrective actions and that its operations currently meet the 
safety standard and factors specified in Sec. Sec. 385.5 and 385.7. The 
request must include a written description of corrective actions taken, 
and other documentation the carrier wishes the FMCSA to consider.
    (d) The FMCSA will make a final determination on the request for 
change based upon the documentation the motor carrier submits, and any 
additional relevant information.
    (e) The FMCSA will perform reviews of requests made by motor 
carriers with a proposed or final ``unsatisfactory'' safety rating in 
the following time periods after the motor carrier's request:
    (1) Within 30 days for motor carriers transporting passengers in 
CMVs or placardable quantities of hazardous materials.
    (2) Within 45 days for all other motor carriers.
    (f) The filing of a request for change to a proposed or final safety 
rating

[[Page 235]]

under this section does not stay the 45-day period specified in Sec. 
385.13(a)(1) for motor carriers transporting passengers or hazardous 
materials. If the motor carrier has submitted evidence that corrective 
actions have been taken pursuant to this section and the FMCSA cannot 
make a final determination within the 45-day period, the period before 
the proposed safety rating becomes final may be extended for up to 10 
days at the discretion of the FMCSA.
    (g) FMCSA may allow a motor carrier (except a motor carrier 
transporting passengers or a motor carrier transporting hazardous 
materials in quantities requiring placarding) with a proposed rating of 
``unsatisfactory'' to continue its motor carrier operations in commerce 
for up to 60 days beyond the 60 days specified in the proposed rating, 
if FMCSA determines that the motor carrier is making a good faith effort 
to improve its safety status. This additional period would begin on the 
61st day after the date of the notice of proposed ``unsatisfactory'' 
rating.
    (h) If the FMCSA determines that the motor carrier has taken the 
corrective actions required and that its operations currently meet the 
safety standard and factors specified in Sec. Sec. 385.5 and 385.7, the 
agency will notify the motor carrier in writing of its upgraded safety 
rating.
    (i) If the FMCSA determines that the motor carrier has not taken all 
the corrective actions required, or that its operations still fail to 
meet the safety standard and factors specified in Sec. Sec. 385.5 and 
385.7, the agency will notify the motor carrier in writing.
    (j) Any motor carrier whose request for change is denied in 
accordance with paragraph (i) of this section may request administrative 
review under the procedures of Sec. 385.15. The motor carrier must make 
the request within 90 days of the denial of the request for a rating 
change. If the proposed rating has become final, it shall remain in 
effect during the period of any administrative review.

[65 FR 50935, Aug. 22, 2000, as amended at 72 FR 36788, July 5, 2007]



Sec. 385.19  Safety fitness information.

    (a) Final ratings will be made available to other Federal and State 
agencies in writing, telephonically or by remote computer access.
    (b) The final safety rating assigned to a motor carrier will be made 
available to the public upon request. Any person requesting the assigned 
rating of a motor carrier shall provide the FMCSA with the motor 
carrier's name, principal office address, and, if known, the USDOT 
number or the ICCMC docket number, if any.
    (c) Requests should be addressed to the Federal Motor Carrier Safety 
Administration, Office of Information Technology (MC-RI), 1200 New 
Jersey Ave., SE., Washington, DC 20590-0001. The information can also be 
found at the SAFER website: http://www.safersys.org.
    (d) Oral requests by telephone to (800) 832-5660 will be given an 
oral response.

[62 FR 60043, Nov. 6, 1997, as amended at 66 FR 49872, Oct. 1, 2001; 72 
FR 55701, Oct. 1, 2007]



    Subpart B_Safety Monitoring System for Mexico-Domiciled Carriers

    Source: 67 FR 12771, Mar. 19, 2002, unless otherwise noted.



Sec. 385.101  Definitions

    Compliance review means a compliance review as defined in Sec. 
385.3 of this part.
    Provisional certificate of registration means the registration under 
Sec. 368.6 of this subchapter that the FMCSA grants to a Mexico-
domiciled motor carrier to provide interstate transportation of property 
within the United States solely within the municipalities along the 
United States-Mexico border and the commercial zones of such 
municipalities. It is provisional because it will be revoked if the 
registrant does not demonstrate that it is exercising basic safety 
management controls during the safety monitoring period established in 
this subpart.
    Provisional operating authority means the registration under Sec. 
365.507 of this subchapter that the FMCSA grants to a Mexico-domiciled 
motor carrier to provide interstate transportation within

[[Page 236]]

the United States beyond the municipalities along the United States-
Mexico border and the commercial zones of such municipalities. It is 
provisional because it will be revoked if the registrant is not assigned 
a Satisfactory safety rating following a compliance review conducted 
during the safety monitoring period established in this subpart.
    Safety audit means an examination of a motor carrier's operations to 
provide educational and technical assistance on safety and the 
operational requirements of the FMCSRs and applicable HMRs and to gather 
critical safety data needed to make an assessment of the carrier's 
safety performance and basic safety management controls. Safety audits 
do not result in safety ratings.



Sec. 385.103  Safety monitoring system.

    (a) General. Each Mexico-domiciled carrier operating in the United 
States will be subject to an oversight program to monitor its compliance 
with applicable Federal Motor Carrier Safety Regulations (FMCSRs), 
Federal Motor Vehicle Safety Standards (FMVSSs), and Hazardous Materials 
Regulations (HMRs).
    (b) Roadside monitoring. Each Mexico-domiciled carrier that receives 
provisional operating authority or a provisional Certificate of 
Registration will be subject to intensified monitoring through frequent 
roadside inspections.
    (c) CVSA decal. Each Mexico-domiciled carrier granted provisional 
operating authority under part 365 of this subchapter must have on every 
commercial motor vehicle it operates in the United States a current 
decal attesting to a satisfactory inspection by a Commercial Vehicle 
Safety Alliance (CVSA) inspector.
    (d) Safety audit. The FMCSA will conduct a safety audit on a Mexico-
domiciled carrier within 18 months after the FMCSA issues the carrier a 
provisional Certificate of Registration under part 368 of this 
subchapter.
    (e) Compliance review. The FMCSA will conduct a compliance review on 
a Mexico-domiciled carrier within 18 months after the FMCSA issues the 
carrier provisional operating authority under part 365 of this 
subchapter.



Sec. 385.105  Expedited action.

    (a) A Mexico-domiciled motor carrier committing any of the following 
violations identified through roadside inspections, or by any other 
means, may be subjected to an expedited safety audit or compliance 
review, or may be required to submit a written response demonstrating 
corrective action:
    (1) Using drivers not possessing, or operating without, a valid 
Licencia Federal de Conductor. An invalid Licencia Federal de Conductor 
includes one that is falsified, revoked, expired, or missing a required 
endorsement.
    (2) Operating vehicles that have been placed out of service for 
violations of the Commercial Vehicle Safety Alliance (CVSA) North 
American Standard Out-of-Service Criteria, without making the required 
repairs.
    (3) Involvement in, due to carrier act or omission, a hazardous 
materials incident within the United States involving:
    (i) A highway route controlled quantity of a Class 7 (radioactive) 
material as defined in Sec. 173.403 of this title;
    (ii) Any quantity of a Class 1, Division 1.1, 1.2, or 1.3 explosive 
as defined in Sec. 173.50 of this title; or
    (iii) Any quantity of a poison inhalation hazard Zone A or B 
material as defined in Sec. Sec. 173.115, 173.132, or 173.133 of this 
title.
    (4) Involvement in, due to carrier act or omission, two or more 
hazardous material incidents occurring within the United States and 
involving any hazardous material not listed in paragraph (a)(3) of this 
section and defined in chapter I of this title.
    (5) Using a driver who tests positive for controlled substances or 
alcohol or who refuses to submit to required controlled substances or 
alcohol tests.
    (6) Operating within the United States a motor vehicle that is not 
insured as required by part 387 of this chapter.
    (7) Having a driver or vehicle out-of-service rate of 50 percent or 
more based upon at least three inspections occurring within a 
consecutive 90-day period.
    (b) Failure to respond to an agency demand for a written response 
demonstrating corrective action within 30 days will result in the 
suspension of

[[Page 237]]

the carrier's provisional operating authority or provisional Certificate 
of Registration until the required showing of corrective action is 
submitted to the FMCSA.
    (c) A satisfactory response to a written demand for corrective 
action does not excuse a carrier from the requirement that it undergo a 
safety audit or compliance review, as appropriate, during the 
provisional registration period.



Sec. 385.107  The safety audit.

    (a) The criteria used in a safety audit to determine whether a 
Mexico-domiciled carrier exercises the necessary basic safety management 
controls are specified in Appendix A to this part.
    (b) If the FMCSA determines, based on the safety audit, that the 
Mexico-domiciled carrier has adequate basic safety management controls, 
the FMCSA will provide the carrier written notice of this finding as 
soon as practicable, but not later than 45 days after the completion of 
the safety audit. The carrier's Certificate of Registration will remain 
provisional and the carrier's on-highway performance will continue to be 
closely monitored for the remainder of the 18-month provisional 
registration period.
    (c) If the FMCSA determines, based on the safety audit, that the 
Mexico-domiciled carrier's basic safety management controls are 
inadequate, it will initiate a suspension and revocation proceeding in 
accordance with Sec. 385.111 of this subpart.
    (d) The safety audit is also used to assess the basic safety 
management controls of Mexico-domiciled applicants for provisional 
operating authority to operate beyond United States municipalities and 
commercial zones on the United States-Mexico border under Sec. 365.507 
of this subchapter.



Sec. 385.109  The compliance review.

    (a) The criteria used in a compliance review to determine whether a 
Mexico-domiciled carrier granted provisional operating authority under 
Sec. 365.507 of this subchapter exercises the necessary basic safety 
management controls are specified in Appendix B to this part.
    (b) Satisfactory rating. If the FMCSA assigns a Mexico-domiciled 
carrier a Satisfactory rating following a compliance review conducted 
under this subpart, the FMCSA will provide the carrier written notice as 
soon as practicable, but not later than 45 days after the completion of 
the compliance review. The carrier's operating authority will remain in 
provisional status and its on-highway performance will continue to be 
closely monitored for the remainder of the 18-month provisional 
registration period.
    (c) Conditional rating. If the FMCSA assigns a Mexico-domiciled 
carrier a Conditional rating following a compliance review conducted 
under this subpart, it will initiate a revocation proceeding in 
accordance with Sec. 385.111 of this subpart. The carrier's provisional 
operating authority will not be suspended prior to the conclusion of the 
revocation proceeding.
    (d) Unsatisfactory rating. If the FMCSA assigns a Mexico-domiciled 
carrier an Unsatisfactory rating following a compliance review conducted 
under this subpart, it will initiate a suspension and revocation 
proceeding in accordance with Sec. 385.111 of this subpart.



Sec. 385.111  Suspension and revocation of Mexico-domiciled carrier 
registration.

    (a) If a carrier is assigned an ``Unsatisfactory'' safety rating 
following a compliance review conducted under this subpart, or a safety 
audit conducted under this subpart determines that a carrier does not 
exercise the basic safety management controls necessary to ensure safe 
operations, the FMCSA will provide the carrier written notice, as soon 
as practicable, that its registration will be suspended effective 15 
days from the service date of the notice unless the carrier 
demonstrates, within 10 days of the service date of the notice, that the 
compliance review or safety audit contains material error.
    (b) For purposes of this section, material error is a mistake or 
series of mistakes that resulted in an erroneous safety rating or an 
erroneous determination that the carrier does not exercise the necessary 
basic safety management controls.
    (c) If the carrier demonstrates that the compliance review or safety 
audit

[[Page 238]]

contained material error, its registration will not be suspended. If the 
carrier fails to show a material error in the safety audit, the FMCSA 
will issue an Order:
    (1) Suspending the carrier's provisional operating authority or 
provisional Certificate of Registration and requiring it to immediately 
cease all further operations in the United States; and
    (2) Notifying the carrier that its provisional operating authority 
or provisional Certificate of Registration will be revoked unless it 
presents evidence of necessary corrective action within 30 days from the 
service date of the Order.
    (d) If a carrier is assigned a ``Conditional'' rating following a 
compliance review conducted under this subpart, the provisions of 
subparagraphs (a) through (c) of this section will apply, except that 
its provisional registration will not be suspended under paragraph 
(c)(1) of this section.
    (e) If a carrier subject to this subpart fails to provide the 
necessary documents for a safety audit or compliance review upon 
reasonable request, or fails to submit evidence of the necessary 
corrective action as required by Sec. 385.105 of this subpart, the 
FMCSA will provide the carrier with written notice, as soon as 
practicable, that its registration will be suspended 15 days from the 
service date of the notice unless it provides all necessary documents or 
information. This suspension will remain in effect until the necessary 
documents or information are produced and:
    (1) A safety audit determines that the carrier exercises basic 
safety management controls necessary for safe operations;
    (2) The carrier is rated Satisfactory or Conditional after a 
compliance review; or
    (3) The FMCSA determines, following review of the carrier's response 
to a demand for corrective action under Sec. 385.105, that the carrier 
has taken the necessary corrective action.
    (f) If a carrier commits any of the violations specified in Sec. 
385.105(a) of this subpart after the removal of a suspension issued 
under this section, the suspension will be automatically reinstated. The 
FMCSA will issue an Order requiring the carrier to cease further 
operations in the United States and demonstrate, within 15 days from the 
service date of the Order, that it did not commit the alleged 
violation(s). If the carrier fails to demonstrate that it did not commit 
the violation(s), the FMCSA will issue an Order revoking its provisional 
operating authority or provisional Certificate of Registration.
    (g) If the FMCSA receives credible evidence that a carrier has 
operated in violation of a suspension order issued under this section, 
it will issue an Order requiring the carrier to show cause, within 10 
days of the service date of the Order, why its provisional operating 
authority or provisional Certificate of Registration should not be 
revoked. If the carrier fails to make the necessary showing, the FMCSA 
will revoke its registration.
    (h) If a Mexico-domiciled motor carrier operates a commercial motor 
vehicle in violation of a suspension or out-of-service order, it is 
subject to the penalty provisions in 49 U.S.C. 521(b)(2)(A), not to 
exceed $10,000 for each offense.
    (i) Notwithstanding any provision of this subpart, a carrier subject 
to this subpart is also subject to the suspension and revocation 
provisions of 49 U.S.C. 13905 for repeated violations of DOT regulations 
governing its motor carrier operations.



Sec. 385.113  Administrative review.

    (a) A Mexico-domiciled motor carrier may request the FMCSA to 
conduct an administrative review if it believes the FMCSA has committed 
an error in assigning a safety rating or suspending or revoking the 
carrier's provisional operating authority or provisional Certificate of 
Registration under this subpart.
    (b) The carrier must submit its request in writing, in English, to 
the Associate Administrator for Enforcement and Program Delivery (MC-E), 
Federal Motor Carrier Safety Administration, 1200 New Jersey Ave., SE., 
Washington, DC 20590-0001.
    (c) The carrier's request must explain the error it believes the 
FMCSA committed in assigning the safety rating or suspending or revoking 
the carrier's

[[Page 239]]

provisional operating authority or provisional Certificate of 
Registration and include any information or documents that support its 
argument.
    (d) The FMCSA will complete its administrative review no later than 
10 days after the carrier submits its request for review. The Associate 
Administrator's decision will constitute the final agency action.

[67 FR 12771, Mar. 19, 2002, as amended at 72 FR 55701, Oct. 1, 2007]



Sec. 385.115  Reapplying for provisional registration.

    (a) A Mexico-domiciled motor carrier whose provisional operating 
authority or provisional Certificate of Registration has been revoked 
may reapply under part 365 or 368 of this subchapter, as appropriate, no 
sooner than 30 days after the date of revocation.
    (b) The Mexico-domiciled motor carrier will be required to initiate 
the application process from the beginning. The carrier will be required 
to demonstrate how it has corrected the deficiencies that resulted in 
revocation of its registration and how it will ensure that it will have 
adequate basic safety management controls. It will also have to undergo 
a pre-authorization safety audit if it applies for provisional operating 
authority under part 365 of this subchapter.



Sec. 385.117  Duration of safety monitoring system.

    (a) Each Mexico-domiciled carrier subject to this subpart will 
remain in the safety monitoring system for at least 18 months from the 
date FMCSA issues its provisional Certificate of Registration or 
provisional operating authority, except as provided in paragraphs (c) 
and (d) of this section.
    (b) If, at the end of this 18-month period, the carrier's most 
recent safety audit or safety rating was Satisfactory and no additional 
enforcement or safety improvement actions are pending under this 
subpart, the Mexico-domiciled carrier's provisional operating authority 
or provisional Certificate of Registration will become permanent.
    (c) If, at the end of this 18-month period, the FMCSA has not been 
able to conduct a safety audit or compliance review, the carrier will 
remain in the safety monitoring system until a safety audit or 
compliance review is conducted. If the results of the safety audit or 
compliance review are satisfactory, the carrier's provisional operating 
authority or provisional Certificate of Registration will become 
permanent.
    (d) If, at the end of this 18-month period, the carrier's 
provisional operating authority or provisional Certificate of 
Registration is suspended under Sec. 385.111(a) of this subpart, the 
carrier will remain in the safety monitoring system until the FMCSA 
either:
    (1) Determines that the carrier has taken corrective action; or
    (2) Completes measures to revoke the carrier's provisional operating 
authority or provisional Certificate of Registration under Sec. 
385.111(c) of this subpart.



Sec. 385.119  Applicability of safety fitness and enforcement procedures.

    At all times during which a Mexico-domiciled motor carrier is 
subject to the safety monitoring system in this subpart, it is also 
subject to the general safety fitness procedures established in subpart 
A of this part and to compliance and enforcement procedures applicable 
to all carriers regulated by the FMCSA.



 Subpart C_Certification of Safety Auditors, Safety Investigators, and 
                            Safety Inspectors

    Source: 67 FR 12779, Mar. 19, 2002, unless otherwise noted.



Sec. 385.201  Who is qualified to perform a review of a motor carrier
or an intermodal equipment provider?

    (a) An FMCSA employee, or a State or local government employee 
funded through the Motor Carrier Safety Assistance Program (MCSAP), who 
was qualified to perform a compliance review before June 17, 2002, may 
perform a compliance review, safety audit, roadability review, or 
roadside inspection if he or she complies with Sec. 385.203(b).
    (b) A person who was not qualified to perform a compliance review 
before June 17, 2002, may perform a compliance review, safety audit, 
roadability

[[Page 240]]

review, or roadside inspection after complying with the requirements of 
Sec. 385.203(a).

[73 FR 76818, Dec. 17, 2008]



Sec. 385.203  What are the requirements to obtain and maintain 
certification?

    (a) After June 17, 2002, a person who is not qualified under Sec. 
385.201(a) may not perform a compliance review, safety audit, 
roadability review, or roadside inspection unless he or she has been 
certified by FMCSA or a State or local agency applying the FMCSA 
standards after successfully completing classroom training and 
examinations on the FMCSRs and HMRs as described in detail on the FMCSA 
website (www.fmcsa.dot.gov). These employees must also comply with the 
maintenance of certification/qualification requirements of paragraph (b) 
of this section.
    (b) Maintenance of certification/qualification. A person may not 
perform a compliance review, safety audit, roadability review, or 
roadside inspection unless he or she meets the quality-control and 
periodic re-training requirements adopted by the FMCSA to ensure the 
maintenance of high standards and familiarity with amendments to the 
FMCSRs and HMRs. These maintenance of certification/qualification 
requirements are described in detail on the FMCSA website 
(www.fmcsa.dot.gov).
    (c) The requirements of paragraphs (a) and (b) of this section for 
training, performance and maintenance of certification/qualification, 
which are described on the FMCSA website (www.fmcsa.dot.gov), are also 
available in hard copy from the Federal Motor Carrier Safety 
Administration, Professional Development and Training Division (MC-MHT), 
4600 N. Fairfax Drive, Suite 700, Arlington, Virginia 22203.

[67 FR 12779, Mar. 19, 2002, as amended at 72 FR 55701, Oct. 1, 2007; 73 
FR 76819, Dec. 17, 2008]



Sec. 385.205  How can a person who has lost his or her certification 
be re-certified?

    He or she must successfully complete the requirements of Sec. 
385.203(a) and (b).



             Subpart D_New Entrant Safety Assurance Program

    Source: 67 FR 31983, May 13, 2002, unless otherwise noted.



Sec. 385.301  What is a motor carrier required to do before beginning
interstate operations?

    (a) Before a motor carrier of property or passengers begins 
interstate operations, it must register with the FMCSA and receive a 
USDOT number. In addition, for-hire motor carriers must obtain operating 
authority from FMCSA following the registration procedures described in 
49 CFR part 365, unless providing transportation exempt from 49 CFR part 
365 registration requirements.
    (b) This subpart applies to motor carriers domiciled in the United 
States and Canada.
    (c) A Mexico-domiciled motor carrier of property or passengers must 
register with the FMCSA by following the registration procedures 
described in 49 CFR part 365 or 368, as appropriate. The regulations in 
this subpart do not apply to Mexico-domiciled carriers.



Sec. 385.303  How does a motor carrier register with the FMCSA?

    A motor carrier may contact the FMCSA by internet 
(www.fmcsa.dot.gov); or Washington, DC headquarters by mail at, Federal 
Motor Carrier Safety Administration, 1200 New Jersey Ave., SE., 
Washington, DC 20590-0001; fax (703) 280-4003; or telephone 1-800-832-
5660, and request the application materials for a new entrant motor 
carrier.

[67 FR 31983, May 13, 2002, as amended at 72 FR 55701, Oct. 1, 2007]



Sec. 385.305  What happens after the FMCSA receives a request for new
entrant registration?

    (a) The requester for new entrant registration will be directed to 
the FMCSA Internet website (www.fmcsa.dot.gov) to secure and/or complete 
the application package online.
    (b) The application package will contain the following:

[[Page 241]]

    (1) Educational and technical assistance material regarding the 
requirements of the FMCSRs and HMRs, if applicable.
    (2) The Form MCS-150, The Motor Carrier Identification Report.
    (3) Application forms to obtain operating authority under 49 CFR 
365, as appropriate.
    (c) Upon completion of the application forms, the new entrant will 
be issued a USDOT number.
    (d) For-hire motor carriers, unless providing transportation exempt 
from 49 CFR part 365 registration requirements, must also comply with 
the procedures established in 49 CFR part 365 to obtain operating 
authority before operating in interstate commerce.

[67 FR 31983, May 13, 2002, as amended at 73 FR 76488, Dec. 16, 2008]



Sec. 385.306  What are the consequences of furnishing misleading 
information or making a false statement in connection with the 

registration process?

    A carrier that furnishes false or misleading information, or 
conceals material information in connection with the registration 
process, is subject to the following actions:
    (a) Revocation of registration.
    (b) Assessment of the civil and/or criminal penalties prescribed in 
49 U.S.C. 521 and 49 U.S.C. chapter 149.

[73 FR 76488, Dec. 16, 2008]



Sec. 385.307  What happens after a motor carrier begins operations as
a new entrant?

    After a new entrant satisfies all applicable pre-operational 
requirements, it will be subject to the new entrant safety monitoring 
procedures for a period of 18 months. During this 18-month period:
    (a) The new entrant's roadside safety performance will be closely 
monitored to ensure the new entrant has basic safety management controls 
that are operating effectively.
    (b) A safety audit will be conducted on the new entrant, once it has 
been in operation for enough time to have sufficient records to allow 
the agency to evaluate the adequacy of its basic safety management 
controls. This period will generally be at least 3 months.
    (c) All records and documents required for the safety audit shall be 
made available for inspection upon request by an individual certified 
under FMCSA regulations to perform safety audits.

[67 FR 31983, May 13, 2002, as amended at 73 FR 76488, Dec. 16, 2008]



Sec. 385.308  What may cause an expedited action?

    (a) A new entrant that commits any of the following actions, 
identified through roadside inspections or by any other means, may be 
subjected to an expedited safety audit or a compliance review or may be 
required to submit a written response demonstrating corrective action:
    (1) Using a driver not possessing a valid commercial driver's 
license to operate a commercial vehicle as defined under Sec. 383.5 of 
this chapter. An invalid commercial driver's license includes one that 
is falsified, revoked, expired, or missing a required endorsement.
    (2) Operating a vehicle placed out of service for violations of the 
Federal Motor Carrier Safety Regulations or compatible State laws and 
regulations without taking necessary corrective action.
    (3) Being involved in, through action or omission, a hazardous 
materials reportable incident, as described under 49 CFR 171.15 or 
171.16, involving--
    (i) A highway route controlled quantity of certain radioactive 
materials (Class 7).
    (ii) Any quantity of certain explosives (Class 1, Division 1.1, 1.2, 
or 1.3).
    (iii) Any quantity of certain poison inhalation hazard materials 
(Zone A or B).
    (4) Being involved in, through action or omission, two or more 
hazardous materials reportable incidents as described under 49 CFR 
171.15 or 171.16, involving hazardous materials other than those listed 
above.
    (5) Using a driver who tests positive for controlled substances or 
alcohol or who refuses to submit to required controlled substances or 
alcohol tests.
    (6) Operating a commercial motor vehicle without the levels of 
financial responsibility required under part 387 of this subchapter.

[[Page 242]]

    (7) Having a driver or vehicle out-of-service rate of 50 percent or 
more based upon at least three inspections occurring within a 
consecutive 90-day period.
    (b) If a new entrant that commits any of the actions listed in 
paragraph (a) of this section:
    (1) Has not had a safety audit or compliance review, FMCSA will 
schedule the new entrant for a safety audit as soon as practicable.
    (2) Has had a safety audit or compliance review, FMCSA will send the 
new entrant a notice advising it to submit evidence of corrective action 
within 30 days of the service date of the notice.
    (c) FMCSA may schedule a compliance review of a new entrant that 
commits any of the actions listed in paragraph (a) of this section at 
any time if it determines the violation warrants a thorough review of 
the new entrant's operation.
    (d) Failure to respond within 30 days of the notice to an Agency 
demand for a written response demonstrating corrective action will 
result in the revocation of the new entrant's registration.

[73 FR 76488, Dec. 16, 2008]



Sec. 385.309  What is the purpose of the safety audit?

    The purpose of a safety audit is to:
    (a) Provide educational and technical assistance to the new entrant; 
and
    (b) Gather safety data needed to make an assessment of the new 
entrant's safety performance and adequacy of its basic safety management 
controls.



Sec. 385.311  What will the safety audit consist of?

    The safety audit will consist of a review of the new entrant's 
safety management systems and a sample of required records to assess 
compliance with the FMCSRs, applicable HMRs and related record-keeping 
requirements as specified in appendix A of this part. The areas for 
review include, but are not limited to, the following:
    (a) Driver qualification;
    (b) Driver duty status;
    (c) Vehicle maintenance;
    (d) Accident register; and
    (e) Controlled substances and alcohol use and testing requirements.



Sec. 385.313  Who will conduct the safety audit?

    An individual certified under the FMCSA regulations to perform 
safety audits will conduct the safety audit.



Sec. 385.315  Where will the safety audit be conducted?

    The safety audit will generally be conducted at the new entrant's 
business premises.



Sec. 385.317  Will a safety audit result in a safety fitness 
determination by the FMCSA?

    A safety audit will not result in a safety fitness determination. 
Safety fitness determinations follow completion of a compliance review.



Sec. 385.319  What happens after completion of the safety audit?

    (a) Upon completion of the safety audit, the auditor will review the 
findings with the new entrant.
    (b) Pass. If FMCSA determines the safety audit discloses the new 
entrant has adequate basic safety management controls, the Agency will 
provide the new entrant written notice as soon as practicable, but not 
later than 45 days after completion of the safety audit, that it has 
adequate basic safety management controls. The new entrant's safety 
performance will continue to be closely monitored for the remainder of 
the 18-month period of new entrant registration.
    (c) Fail. If FMCSA determines the safety audit discloses the new 
entrant's basic safety management controls are inadequate, the Agency 
will provide the new entrant written notice, as soon as practicable, but 
not later than 45 days after the completion of the safety audit, that 
its USDOT new entrant registration will be revoked and its operations 
placed out-of-service unless it takes the actions specified in the 
notice to remedy its safety management practices.
    (1) 60-day corrective action requirement. All new entrants, except 
those specified in paragraph (c)(2) of this section, must take the 
specified actions to remedy inadequate safety management practices 
within 60 days of the date of the notice.

[[Page 243]]

    (2) 45-day corrective action requirement. The new entrants listed 
below must take the specified actions to remedy inadequate safety 
management practices within 45 days of the date of the notice:
    (i) A new entrant that transports passengers in a CMV designed or 
used to transport between 9 and 15 passengers (including the driver) for 
direct compensation.
    (ii) A new entrant that transports passengers in a CMV designed or 
used to transport more than 15 passengers (including the driver).
    (iii) A new entrant that transports hazardous materials in a CMV as 
defined in paragraph (4) of the definition of a ``Commercial Motor 
Vehicle'' in Sec. 390.5 of this subchapter.

[73 FR 76489, Dec. 16, 2008]



Sec. 385.321  What failures of safety management practices disclosed 
by the safety audit will result in a notice to a new entrant that its

USDOT new entrant registration will be revoked?

    (a) General. The failures of safety management practices consist of 
a lack of basic safety management controls as described in Appendix A of 
this part or failure to comply with one or more of the regulations set 
forth in paragraph (b) of this section and will result in a notice to a 
new entrant that its USDOT new entrant registration will be revoked.
    (b) Automatic failure of the audit. A new entrant will automatically 
fail a safety audit if found in violation of any one of the following 16 
regulations:

    Table to Sec.  385.321--Violations That Will Result in Automatic
                 Failure of the New Entrant Safety Audit
------------------------------------------------------------------------
                                             Guidelines for determining
                 Violation                    automatic  failure of the
                                                    safety audit
------------------------------------------------------------------------
1. Sec.  382.115(a)/Sec.  382.115(b)--    Single occurrence.
 Failing to implement an alcohol and/or
 controlled substances testing program
 (domestic and foreign motor carriers,
 respectively).
2. Sec.  382.201--Using a driver known to  Single occurrence.
 have an alcohol content of 0.04 or
 greater to perform a safety-sensitive
 function.
3. Sec.  382.211--Using a driver who has   Single occurrence.
 refused to submit to an alcohol or
 controlled substances test required under
 part 382.
4. Sec.  382.215--Using a driver known to  Single occurrence.
 have tested positive for a controlled
 substance.
5. Sec.  382.305--Failing to implement a   Single occurrence.
 random controlled substances and/or
 alcohol testing program.
6. Sec.  383.3(a)/Sec.  383.23(a)--       Single occurrence.
 Knowingly using a driver who does not
 possess a valid CDL.
7. Sec.  383.37(a)--Knowingly allowing,    Single occurrence.
 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.
8. Sec.  383.51(a)--Knowingly allowing,    Single occurrence. This
 requiring, permitting, or authorizing a     violation refers to a
 driver to drive who is disqualified to      driver operating a CMV as
 drive a commercial motor vehicle.           defined under Sec.  383.5.
9. Sec.  387.7(a)--Operating a motor       Single occurrence.
 vehicle without having in effect the
 required minimum levels of financial
 responsibility coverage.
10. Sec.  387.31(a)--Operating a           Single occurrence.
 passenger carrying vehicle without having
 in effect the required minimum levels of
 financial responsibility.
11. Sec.  391.15(a)--Knowingly using a     Single occurrence.
 disqualified driver.
12. Sec.  391.11(b)(4)--Knowingly using a  Single occurrence. This
 physically unqualified driver.              violation refers to a
                                             driver operating a CMV as
                                             defined under Sec.  390.5.
13. Sec.  395.8(a)--Failing to require a   Requires a violation
 driver to make a record of duty status.     threshold (51% or more of
                                             examined records) to
                                             trigger automatic failure.
14. Sec.  396.9(c)(2)--Requiring or        Single occurrence.
 permitting the operation of a commercial
 motor vehicle declared ``out-of-service''
 before repairs are made.
15. Sec.  396.11(c)--Failing to correct    Single occurrence.
 out-of-service defects listed by driver
 in a driver vehicle inspection report
 before the vehicle is operated again.
16. Sec.  396.17(a)--Using a commercial    Requires a violation
 motor vehicle not periodically inspected.   threshold (51% or more of
                                             examined records) to
                                             trigger automatic failure.
------------------------------------------------------------------------


[[Page 244]]


[73 FR 76489, Dec. 16, 2008]



Sec. 385.323  May FMCSA extend the period under Sec. 385.319(c) for a new
entrant to take corrective action to remedy its safety management 

practices?

    (a) FMCSA may extend the 60-day period in Sec. 385.319(c)(1) for up 
to an additional 60 days provided FMCSA determines the new entrant is 
making a good faith effort to remedy its safety management practices.
    (b) FMCSA may extend the 45-day period in Sec. 385.319(c)(2) for up 
to an additional 10 days if the new entrant has submitted evidence that 
corrective actions have been taken pursuant to Sec. 385.319(c) and the 
Agency needs additional time to determine the adequacy of the corrective 
action.

[73 FR 76490, Dec. 16, 2008]



Sec. 385.325  What happens after a new entrant has been notified under
Sec. 385.319(c) to take corrective action to remedy its safety 

management practices?

    (a) If the new entrant provides evidence of corrective action 
acceptable to the FMCSA within the time period provided in Sec. 
385.319(c), including any extension of that period authorized under 
Sec. 385.323, the FMCSA will provide written notification to the new 
entrant that its DOT new entrant registration will not be revoked and it 
may continue operations.
    (b) If a new entrant, after being notified that it is required to 
take corrective action to improve its safety management practices, fails 
to submit a written response demonstrating corrective action acceptable 
to FMCSA within the time specified in Sec. 385.319, and any extension 
of that period authorized under Sec. 385.323, FMCSA will revoke its new 
entrant registration and issue an out-of-service order effective on:
    (1) Day 61 from the notice date for new entrants subject to Sec. 
385.319(c)(1).
    (2) Day 46 from the notice date for new entrants subject to Sec. 
385.319(c)(2).
    (3) If an extension has been granted under Sec. 385.323, the day 
following the expiration of the extension date.
    (c) The new entrant may not operate in interstate commerce on or 
after the effective date of the out-of-service order.

[67 FR 31983, May 13, 2002, as amended at 73 FR 76490, Dec. 16, 2008]



Sec. 385.327  May a new entrant request an administrative review of a 
determination of a failed safety audit?

    (a) If a new entrant receives a notice under Sec. 385.319(c) that 
its new entrant registration will be revoked, it may request FMCSA to 
conduct an administrative review if it believes FMCSA has committed an 
error in determining that its basic safety management controls are 
inadequate. The request must:
    (1) Be made to the Field Administrator of the appropriate FMCSA 
Service Center.
    (2) Explain the error the new entrant believes FMCSA committed in 
its determination.
    (3) Include a list of all factual and procedural issues in dispute 
and any information or documents that support the new entrant's 
argument.
    (b) FMCSA may request that the new entrant submit additional data 
and attend a conference to discuss the issues(s) in dispute. If the new 
entrant does not attend the conference or does not submit the requested 
data, FMCSA may dismiss the new entrant's request for review.
    (c) A new entrant must submit a request for an administrative review 
within one of the following time periods:
    (1) If it does not submit evidence of corrective action under Sec. 
385.319(c), within 90 days after the date it is notified that its basic 
safety management controls are inadequate.
    (2) If it submits evidence of corrective action under Sec. 
385.319(c), within 90 days after the date it is notified that its 
corrective action is insufficient and its basic safety management 
controls remain inadequate.
    (d) If a new entrant wants to assure that FMCSA will be able to 
issue a final written decision before the prohibitions outlined in Sec. 
385.325(c) take effect, the new entrant must submit its request no later 
than 15 days from the date of the notice that its basic safety 
management controls are inadequate. Failure to submit the request within

[[Page 245]]

this 15-day period may result in revocation of new entrant registration 
and issuance of an out-of-service order before completion of 
administrative review.
    (e) FMCSA will complete its review and notify the new entrant in 
writing of its decision within:
    (1) 45 days after receiving a request for review from a new entrant 
that is subject to Sec. 385.319(c)(1).
    (2) 30 days after receiving a request for review from a new entrant 
that is subject to Sec. 385.319(c)(2).
    (f) The Field Administrator's decision constitutes the final Agency 
action.
    (g) Notwithstanding this subpart, a new entrant is subject to the 
suspension and revocation provisions of 49 U.S.C. 13905 for violations 
of DOT regulations governing motor carrier operations.

[73 FR 76490, Dec. 16, 2008]



Sec. 385.329  May a new entrant that has had its USDOT new entrant 
registration revoked and its operations placed out of service 

reapply?

    (a) A new entrant whose USDOT new entrant registration has been 
revoked, and whose operations have been placed out of service by FMCSA, 
may reapply for new entrant registration no sooner than 30 days after 
the date of revocation.
    (b) If the USDOT new entrant registration was revoked because of a 
failed safety audit, the new entrant must do all of the following:
    (1) Submit an updated MCS-150.
    (2) Submit evidence that it has corrected the deficiencies that 
resulted in revocation of its registration and will otherwise ensure 
that it will have basic safety management controls in effect.
    (3) Begin the 18-month new entrant monitoring cycle again as of the 
date the re-filed application is approved.
    (c) If the USDOT new entrant registration was revoked because FMCSA 
found that the new entrant had failed to submit to a safety audit, it 
must do all of the following:
    (1) Submit an updated MCS-150.
    (2) Begin the 18-month new entrant monitoring cycle again as of the 
date the re-filed application is approved.
    (3) Submit to a safety audit.
    (d) If the new entrant is a for-hire carrier subject to the 
registration provisions under 49 U.S.C. 13901 and also has had its 
operating authority revoked, it must re-apply for operating authority as 
set forth in part 365 of this chapter.

[73 FR 76490, Dec. 16, 2008]



Sec. 385.331  What happens if a new entrant operates a CMV after having
been issued an order placing its interstate operations out of service?

    A new entrant that operates a CMV in violation of an out-of-service 
order is subject to the penalty provisions in 49 U.S.C. 521(b)(2)(A) for 
each offense as adjusted for inflation by 49 CFR part 386, appendix B.

[73 FR 76491, Dec. 16, 2008]



Sec. 385.333  What happens at the end of the 18-month safety monitoring
period?

    (a) If a safety audit has been performed within the 18-month period, 
and the new entrant is not currently subject to an order placing its 
operations out-of-service under Sec. 385.325(b) or under a notice 
ordering it to take specified actions to remedy its safety management 
controls under Sec. 385.319(c), the FMCSA will remove the new entrant 
designation and notify the new entrant in writing that its registration 
has become permanent. Thereafter, the FMCSA will evaluate the motor 
carrier on the same basis as any other carrier.
    (b) If a new entrant is determined to be ``unfit'' after a 
compliance review its new entrant registration will be revoked. (See 
Sec. 385.13)
    (c) A new entrant that has reached the conclusion of the 18-month 
period but is under an order to correct its safety management practices 
under Sec. 385.319(c) will have its new entrant registration removed 
following FMCSA's determination that the specified actions have been 
taken to remedy its safety management practices. The motor carrier will 
be notified in writing that its new entrant designation is removed and 
that its registration has become permanent. Thereafter, the FMCSA will 
evaluate the motor carrier on the same basis as any other carrier.
    (d) If a safety audit or compliance review has not been performed by 
the end

[[Page 246]]

of the 18-month monitoring period through no fault of the motor carrier, 
the carrier will be permitted to continue operating as a new entrant 
until a safety audit or compliance review is performed and a final 
determination is made regarding the adequacy of its safety management 
controls. Based on the results of the safety audit or compliance review, 
the FMCSA will either:
    (1) Remove the new entrant designation and notify the new entrant in 
writing that its registration has become permanent; or
    (2) Revoke the new entrant registration in accordance with Sec. 
385.319(c).



Sec. 385.335  If the FMCSA conducts a compliance review on a new 
entrant, will the new entrant also be subject to a safety audit?

    If the FMCSA conducts a compliance review on a new entrant that has 
not previously been subject to a safety audit and issues a safety 
fitness determination, the new entrant will not have to undergo a safety 
audit under this subpart. However, the new entrant will continue to be 
subject to the 18-month safety-monitoring period prior to removal of the 
new entrant designation.



Sec. 385.337  What happens if a new entrant refuses to permit a safety
audit to be performed on its operations?

    (a) If a new entrant refuses to permit a safety audit to be 
performed on its operations, FMCSA will provide the carrier with written 
notice that its registration will be revoked and its operations placed 
out of service unless the new entrant agrees in writing, within 10 days 
from the service date of the notice, to permit the safety audit to be 
performed. The refusal to permit a safety audit to be performed may 
subject the new entrant to the penalty provisions of 49 U.S.C. 
521(b)(2)(A), as adjusted for inflation by 49 CFR part 386, appendix B.
    (b) If the new entrant does not agree to undergo a safety audit as 
specified in paragraph (a) of this section, its registration will be 
revoked and its interstate operations placed out of service effective on 
the 11th day from the service date of the notice issued under paragraph 
(a) of this section.

[67 FR 31983, May 13, 2002, as amended at 73 FR 76491, Dec. 16, 2008]



              Subpart E_Hazardous Materials Safety Permits

    Source: 69 FR 39367, June 30, 2004, unless otherwise noted.



Sec. 385.401  What is the purpose and scope of this subpart?

    (a) This subpart contains the requirements for obtaining and 
maintaining a safety permit to transport certain hazardous materials. No 
one may transport the materials listed in Sec. 385.403 without a safety 
permit required by this subpart.
    (b) This subpart includes:
    (1) Definitions of terms used in this subpart;
    (2) The list of hazardous materials that require a safety permit if 
transported in commerce;
    (3) The requirements and procedures a carrier must follow in order 
to be issued a safety permit and maintain a safety permit;
    (4) The procedures for a motor carrier to follow to initiate an 
administrative review of a denial, suspension, or revocation of a safety 
permit.



Sec. 385.402  What definitions are used in this subpart?

    (a) The definitions in parts 390 and 385 of this chapter apply to 
this subpart, except where otherwise specifically noted.
    (b) As used in this part,
    Hazardous material has the same meaning as under Sec. 171.8 of this 
title: A substance or material that the Secretary of Transportation has 
determined is capable of posing an unreasonable risk to health, safety, 
and property when transported in commerce, and has designated as 
hazardous under Sec. 5103 of Federal hazardous materials transportation 
law (49 U.S.C. 5103). The term includes hazardous substances, hazardous 
wastes, marine pollutants, elevated temperature materials, materials 
designated as hazardous in the Hazardous Materials Table (see Sec. 
172.101 of this title), and

[[Page 247]]

materials that meet the defining criteria for hazard classes and 
divisions in part 173 of this title.
    Hazmat employee has the same meaning as under Sec. 171.8 of this 
title: A person who is employed by a hazmat employer as defined under 
Sec. 171.8 of this title, and who in the course of employment directly 
affects hazardous materials transportation safety. This term includes an 
owner-operator of a motor vehicle that transports hazardous materials in 
commerce. This term includes an individual who, during the course of 
employment:
    (1) Loads, unloads, or handles hazardous materials;
    (2) Manufactures, tests, reconditions, repairs, modifies, marks, or 
otherwise represents containers, drums, or packaging as qualified for 
use in the transportation of hazardous materials;
    (3) Prepares hazardous materials for transportation;
    (4) Is responsible for the safe transportation of hazardous 
materials; or
    (5) Operates a vehicle used to transport hazardous materials.
    Liquefied natural gas (LNG) means a Division 2.1 liquefied natural 
gas material that is transported in a liquid state with a methane 
content of 85 percent or more.
    Safety permit means a document issued by FMCSA that contains a 
permit number and confers authority to transport in commerce the 
hazardous materials listed in Sec. 385.403.
    Shipment means the offering or loading of hazardous materials at one 
loading facility using one transport vehicle, or the transport of that 
transport vehicle.



Sec. 385.403  Who must hold a safety permit?

    After the date following January 1, 2005, that a motor carrier is 
required to file a Motor Carrier Identification Report Form (MCS-150) 
according to the schedule set forth in Sec. 390.19(a) of this chapter, 
the motor carrier may not transport in interstate or intrastate commerce 
any of the following hazardous materials, in the quantity indicated for 
each, unless the motor carrier holds a safety permit:
    (a) A highway route-controlled quantity of a Class 7 (radioactive) 
material, as defined in Sec. 173.403 of this title;
    (b) More than 25 kg (55 pounds) of a Division 1.1, 1.2, or 1.3 
(explosive) material or an amount of a Division 1.5 (explosive) material 
requiring placarding under part 172 of this title;
    (c) More than one liter (1.08 quarts) per package of a ``material 
poisonous by inhalation,'' as defined in Sec. 171.8 of this title, that 
meets the criteria for ``hazard zone A,'' as specified in Sec. 
173.116(a) or Sec. 173.133(a) of this title;
    (d) A ``material poisonous by inhalation,'' as defined in Sec. 
171.8 of this title, that meets the criteria for ``hazard zone B,'' as 
specified in Sec. 173.116(a) or Sec. 173.133(a) of this title in a 
bulk packaging (capacity greater than 450 L [119 gallons]);
    (e) A ``material poisonous by inhalation,'' as defined in Sec. 
171.8 of this title, that meets the criteria for ``hazard zone C,'' or 
``hazard zone D,'' as specified in Sec. 173.116(a) of this title, in a 
packaging having a capacity equal to or greater than 13,248 L (3,500) 
gallons; or
    (f) A shipment of compressed or refrigerated liquefied methane or 
liquefied natural gas, or other liquefied gas with a methane content of 
at least 85 percent, in a bulk packaging having a capacity equal to or 
greater than 13,248 L (3,500 gallons).



Sec. 385.405  How does a motor carrier apply for a safety permit?

    (a) Application form(s). (1) To apply for new safety permit or 
renewal of the safety permit, a motor carrier must complete and submit 
Form MCS-150B, Combined Motor Carrier Identification Report and HM 
Permit Application.
    (2) The Form MCS-150B will also satisfy the requirements for 
obtaining and renewing a USDOT Number; there is no need to complete Form 
MCS-150, Motor Carrier Identification Report.
    (b) Where to get forms and instructions. The forms listed in 
paragraph (a) of this section, and instructions for completing the 
forms, may be obtained on the Internet at http://www.fmcsa.dot.gov, or 
by contacting

[[Page 248]]

FMCSA at Federal Motor Carrier Safety Administration, Office of 
Information Technology (MC-RI), 1200 New Jersey Ave., SE., Washington, 
DC 20590-0001, Telephone: 1-800-832-5660.
    (c) Signature and certification. An official of the motor carrier 
must sign and certify that the information is correct on each form the 
motor carrier submits.
    (d) Updating information on Form MCS-150B. A motor carrier holding a 
safety permit must report to FMCSA any change in the information on its 
Form MCS-150B within 30 days of the change. The motor carrier must use 
Form MCS-150B to report the new information (contact information in 
paragraph (b) of this section).

[69 FR 39367, June 30, 2004, as amended at 72 FR 55701, Oct. 1, 2007; 73 
FR 76491, Dec. 16. 2008]



Sec. 385.407  What conditions must a motor carrier satisfy for FMCSA to
issue a safety permit?

    (a) Motor carrier safety performance. (1) The motor carrier must 
have a ``Satisfactory'' safety rating assigned by either FMCSA, pursuant 
to the Safety Fitness Procedures of this part, or the State in which the 
motor carrier has its principal place of business, if the State has 
adopted and implemented safety fitness procedures that are equivalent to 
the procedures in subpart A of this part; and,
    (2) FMCSA will not issue a safety permit to a motor carrier that:
    (i) Does not certify that it has a satisfactory security program as 
required in Sec. 385.407(b);
    (ii) Has a crash rate in the top 30 percent of the national average 
as indicated in the FMCSA Motor Carrier Management Information System 
(MCMIS); or
    (iii) Has a driver, vehicle, hazardous materials, or total out-of-
service rate in the top 30 percent of the national average as indicated 
in the MCMIS.
    (b) Satisfactory security program. The motor carrier must certify 
that it has a satisfactory security program, including:
    (1) A security plan meeting the requirements of part 172, subpart I 
of this title, and addressing how the carrier will ensure the security 
of the written route plan required by this part;
    (2) A communications plan that allows for contact between the 
commercial motor vehicle operator and the motor carrier to meet the 
periodic contact requirements in Sec. 385.415(c)(1); and
    (3) Successful completion by all hazmat employees of the security 
training required in Sec. 172.704(a)(4) and (a)(5) of this title.
    (c) Registration with the Research and Special Programs 
Administration (RSPA). The motor carrier must be registered with RSPA in 
accordance with part 107, subpart G of this title.



Sec. 385.409  When may a temporary safety permit be issued to a motor 
carrier?

    (a) Temporary safety permit. If a motor carrier does not meet the 
criteria in Sec. 385.407(a), FMCSA may issue it a temporary safety 
permit. To obtain a temporary safety permit a motor carrier must certify 
on Form MCS-150B that it is operating in full compliance with the HMRs; 
with the FMCSRs, and/or comparable State regulations, whichever is 
applicable; and with the minimum financial responsibility requirements 
in part 387 of this chapter or in State regulations, whichever is 
applicable.
    (b) FMCSA will not issue a temporary safety permit to a motor 
carrier that:
    (1) Does not certify that it has a satisfactory security program as 
required in Sec. 385.407(b);
    (2) Has a crash rate in the top 30 percent of the national average 
as indicated in the FMCSA's MCMIS; or
    (3) Has a driver, vehicle, hazardous materials, or total out-of-
service rate in the top 30 percent of the national average as indicated 
in the MCMIS.
    (c) A temporary safety permit shall be valid for 180 days after the 
date of issuance or until the motor carrier is assigned a new safety 
rating, whichever occurs first.
    (1) A motor carrier that receives a Satisfactory safety rating will 
be issued a safety permit (see Sec. 385.421).
    (2) A motor carrier that receives a less than Satisfactory safety 
rating is ineligible for a safety permit and will

[[Page 249]]

be subject to revocation of its temporary safety permit.
    (d) If a motor carrier has not received a safety rating within the 
180-day time period, FMCSA will extend the effective date of the 
temporary safety permit for an additional 60 days, provided the motor 
carrier demonstrates that it is continuing to operate in full compliance 
with the FMCSRs and HMRs.



Sec. 385.411  Must a motor carrier obtain a safety permit if it has a
State permit?

    Yes. However, if FMCSA is able to verify that a motor carrier has a 
safety permit issued by a State under a program that FMCSA has 
determined to be equivalent to the provisions of this subpart, FMCSA 
will immediately issue a safety permit to the motor carrier upon receipt 
of an application in accordance with Sec. 385.405, without further 
inspection or investigation.



Sec. 385.413  What happens if a motor carrier receives a proposed 
safety rating that is less than Satisfactory?

    (a) If a motor carrier does not already have a safety permit, it 
will not be issued a safety permit (including a temporary safety permit) 
unless and until a Satisfactory safety rating is issued to the motor 
carrier.
    (b) If a motor carrier holds a safety permit (including a temporary 
safety permit), the safety permit will be subject to revocation or 
suspension (see Sec. 385.421).



Sec. 385.415  What operational requirements apply to the transportation
of a hazardous material for which a permit is required?

    (a) Information that must be carried in the vehicle. During 
transportation, the following must be maintained in each commercial 
motor vehicle that transports a hazardous material listed in Sec. 
385.403 and must be made available to an authorized official of a 
Federal, State, or local government agency upon request.
    (1) A copy of the safety permit or another document showing the 
permit number, provided that document clearly indicates the number is 
the FMCSA Safety Permit number;
    (2) A written route plan that meets the requirements of Sec. 
397.101 of this chapter for highway route-controlled Class 7 
(radioactive) materials or Sec. 397.67 of this chapter for Division 
1.1, 1.2, and 1.3 (explosive) materials; and
    (3) The telephone number, including area code or country code, of an 
employee of the motor carrier or representative of the motor carrier who 
is familiar with the routing of the permitted material. The motor 
carrier employee or representative must be able to verify that the 
shipment is within the general area for the expected route for the 
permitted material. The telephone number, when called, must be answered 
directly by the motor carrier or its representative at all times while 
the permitted material is in transportation including storage incidental 
to transportation. Answering machines are not sufficient to meet this 
requirement.
    (b)(1) Inspection of vehicle transporting Class 7 (radioactive) 
materials. Before a motor carrier may transport a highway route 
controlled quantity of a Class 7 (radioactive) material, the motor 
carrier must have a pre-trip inspection performed on each motor vehicle 
to be used to transport a highway route controlled quantity of a Class 7 
(radioactive) material, in accordance with the requirements of the 
``North American Standard Out-of-Service Criteria and Level VI 
Inspection Procedures and Out-of-Service Criteria for Commercial Highway 
Vehicles Transporting Transuranics and Highway Route Controlled 
Quantities of Radioactive Materials as defined in 49 CFR Part 173.403,'' 
January 1, 2004, which is incorporated by reference. The Director of the 
Federal Register has approved the materials incorporated by reference in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Information and 
copies may be obtained from the Commercial Vehicle Safety Alliance, 1101 
17th Street, NW, Suite 803, Washington, DC 20036. Phone number (202) 
775-1623.
    (2) All materials incorporated by reference are available for 
inspection at the Federal Motor Carrier Safety Administration, Office of 
Enforcement and Compliance (MC-EC), 1200 New Jersey Ave., SE., 
Washington, DC 20590-0001; and the National Archives and Records 
Administration (NARA). For

[[Page 250]]

information on the availability of this material at NARA, call (202) 
741-6030, or go to: http://www.archives.gov/federal--register/code--of--
federal--regulations/ibr--locations.html.
    (c) Additional requirements. A motor carrier transporting hazardous 
materials requiring a permit under this part must also meet the 
following requirements:
    (1) The operator of a motor vehicle used to transport a hazardous 
material listed in Sec. 385.403 must follow the communications plan 
required in Sec. 385.407(b)(2) to make contact with the carrier at the 
beginning and end of each duty tour, and at the pickup and delivery of 
each permitted load. Contact may be by telephone, radio or via an 
electronic tracking or monitoring system. The motor carrier or driver 
must maintain a record of communications for 6 months after the initial 
acceptance of a shipment of hazardous material for which a safety permit 
is required. The record of communications must contain the name of the 
driver, identification of the vehicle, permitted material(s) being 
transported, and the date, location, and time of each contact required 
under this section.
    (2) The motor carrier should contact the Transportation Security 
Administration's Transportation Security Coordination Center (703-563-
3236 or 703-563-3237) at any time the motor carrier suspects its 
shipment of a hazardous material listed in Sec. 385.403 is lost, stolen 
or otherwise unaccounted for.

[69 FR 39367, June 30, 2004, as amended at 72 FR 55701, Oct. 1, 2007]



Sec. 385.417  Is a motor carrier's safety permit number available to
others?

    Upon request, a motor carrier must provide the number of its safety 
permit to a person who offers a hazardous material listed in Sec. 
385.403 for transportation in commerce. A motor carrier's permit number 
will also be available to the public on the FMCSA Safety and Fitness 
Electronic Records System at http://www.safersys.org.



Sec. 385.419  How long is a safety permit effective?

    Unless suspended or revoked, a safety permit (other than a temporary 
safety permit) is effective for two years, except that:
    (a) A safety permit will be subject to revocation if a motor carrier 
fails to submit a renewal application (Form MCS-150B) in accordance with 
the schedule set forth for filing Form MCS-150 in Sec. 390.19(a) of 
this chapter; and
    (b) An existing safety permit will remain in effect pending FMCSA's 
processing of an application for renewal if a motor carrier submits the 
required application (Form MS-150B) in accordance with the schedule set 
forth in Sec. 390.19(a)(2) and (a)(3) of this chapter.



Sec. 385.421  Under what circumstances will a safety permit be subject 
to revocation or suspension by FMCSA?

    (a) Grounds. A safety permit will be subject to revocation or 
suspension by FMCSA for the following reasons:
    (1) A motor carrier fails to submit a renewal application (Form MCS-
150B) in accordance with the schedule set forth in Sec. 390.19(a)(2) 
and (a)(3) of this chapter;
    (2) A motor carrier provides any false or misleading information on 
its application (Form MCS-150B) or as part of updated information it is 
providing on Form MCS-150B (see Sec. 385.405(d)).
    (3) A motor carrier is issued a final safety rating that is less 
than Satisfactory;
    (4) A motor carrier fails to maintain a satisfactory security plan 
as set forth in Sec. 385.407(b);
    (5) A motor carrier fails to comply with applicable requirements in 
the FMCSRs, the HMRs, or compatible State requirements governing the 
transportation of hazardous materials, in a manner showing that the 
motor carrier is not fit to transport the hazardous materials listed in 
Sec. 385.403;
    (6) A motor carrier fails to comply with an out-of-service order;
    (7) A motor carrier fails to comply with any other order issued 
under the FMCSRs, the HMRs, or compatible State requirements governing 
the transportation of hazardous materials, in a manner showing that the 
motor

[[Page 251]]

carrier is not fit to transport the hazardous materials listed in Sec. 
385.403;
    (8) A motor carrier fails to maintain the minimum financial 
responsibility required by Sec. 387.9 of this chapter or an applicable 
State requirement;
    (9) A motor carrier fails to maintain current hazardous materials 
registration with the Research and Special Programs Administration; or
    (10) A motor carrier loses its operating rights or has its 
registration suspended in accordance with Sec. 386.83 or Sec. 386.84 
of this chapter for failure to pay a civil penalty or abide by a payment 
plan.
    (b) Determining whether a safety permit is revoked or suspended. A 
motor carrier's safety permit will be suspended the first time any of 
the conditions specified in paragraph (a) of this section are found to 
apply to the motor carrier. A motor carrier's safety permit will be 
revoked if any of the conditions specified in paragraph (a) of this 
section are found to apply to the motor carrier and the carrier's safety 
permit has been suspended in the p