How to Survive a DOT Audit Bob Finnie – Carbonic Systems, Inc.

1. How to Survive a DOT AuditBob Finnie – Carbonic Systems, Inc.

2. Part 385, Safety Fitness Procedures • Safety Compliance Review, aka DOT Audit • 3 main points • Safe qualified drivers • Safe qualified vehicles • Safe accident record How is your company rated? • http://safer.fmcsa.dot.gov/CompanySnapshot.aspx • https://ai.fmcsa.dot.gov/SMS/

3. Part 385, Safety Fitness Procedures Some factors considered • Safety management controls • Violations • Roadside inspections • Accidents and incidents • Out-of-service orders • Drivers • Vehicles • Hazardous Materials

4. Part 385, Safety Fitness Procedures • Cooperate but do not volunteer • Paper chase • Designated person • Officer will look for: • Driver Qualification Files • Accidents records • Drug and alcohol testing • Training • Maintenance • Hours of service • Inspections

5. Part 385, Safety Fitness Procedures Things that will definitely help during the review • Being ready • Being organized • When they find issues – your overall willingness to comply (Don’t get emotional!) • Where do you get help? • DOT audit checklist • DQ file checklist • On-site consultant review (audit)

6. Fines and Penalties Spend a little up front… and send nothing to DOT!

7. Hazmat Penalties • Have you ever wondered what a DOT audit might cost you in penalties? • Appendix A to Subpart D of Part 107 – Guidelines for Civil Penalties

8. Part 386, Penalties (Appendix A & B) • Carrier • Recordkeeping violations • Failure to keep records, $550 per day up to $5,500 • Falsification to hide a violation, $5,500 • Non-recordkeeping violations, up to $11,000 for each • Violations of HMR regulations, $275-$32,500 each • Cylinder requalification violations, $275-$32,500 each • Failing to keep proper insurance, $16,000 • Driver • Recordkeeping, up to $550 - $5,500 • Violating an out-of-service order, $2,100- $3,750 • (Employer violates out-of-service order, $3,750-$16,000)

9. DOT Audit Where do we start? You need a road map…

10. Filing System • Suggested filing system for DOT compliance • Hanging files with manila files inside some of them • Tabbed and with retention periods • Will make a DOT audit go much faster and your life a lot easier

11. MCS-150 • You must update your MCS-150 every 2 years • Easiest to do online at: • https://li-public.fmcsa.dot.gov/LIVIEW/PKG_REGISTRATION.prc_optionYou will need a PIN and you get request it from the above website • MCS-150

14. MCS-90 • DOT proof of insurance form • 387.9 (Carriers of property) • Ask yourself this question. If you have… • Cargo tanks with more than 3500 gals of water capacity • Then you must show $5 million • Everything else requires $1 million

15. Hazmat Registration 107.601-.620 • $275 for small business and $2,600 for large business • Large business = 100 or more employees • https://hazmatonline.phmsa.dot.gov/services/haz_reg_1.aspx • Everyone offering or transporting HM requiring placards must have registered since the 2000-2001 reporting year

18. Unified Carrier Registration • If you have commercial motor vehicles in interstate commerce, then you must register. • The FAQs, instructions, and forms are found here: • http://www.ucr.in.gov/ • Only counts powered vehicles crossing state lines

19. General Information • Incorporated Name • Headquarters Address • Phone Number • Fax • US DOT ID # • Federal Tax ID # • State Sales Tax # • Date of Incorporation • Corporate Officers • Insurance Company (Name, Address, Phone, Fax, Agent Name) • Fiscal Year Ends • Gross Revenue of most current fiscal year • SIC Code • D&B # • Total truck mileage for last four quarters for all trucks owned and leased

20. Lists • List of your CDL drivers • Driver name, license exp. date, med card exp. date, hazmat training due date • List of your Commercial Motor Vehicles (trucks and trailers) • Annual DOT Inspection due date • Neither of these are required, but they are very helpful and make you look organized if you have a lot of drivers or vehicles • You must have a system to show that you are aware of when a driver’s license and med card will expire.

22. DRIVER COMPLIANCE MONITOR REPORT

23. VEHICLE COMPLIANCE MONITOR REPORT

24. DOT Accidents • DOT Accident definition • Fatality • Someone was treated immediately away from the scene • A vehicle was towed • Set up a manila folder for each accident • Post-Accident Drug & Alcohol testing

25. Accident Register • Accident Form • Accident Register • Retention is 3 years • Insurance Company Loss Runs for the past 3 years

27. Company Policy regarding Alcohol & Controlled Substances • You must give each CDL driver information covering the 11 required items in 382.601 (b) • You must get a receipt for the materials given to the driver • JJ Keller 825-H is an easy way to do this

28. Summaries of Alcohol & Controlled Substance Testing • You must have the past 5 year’s worth of annual testing summaries. • This is used to prove • That you are enrolled and doing the testing • That it is being done at the proper rate • 50% for drugs and 10% for alcohol

29. Driver Supervisor D&A Training • Driver Supervisor Drug and Alcohol Awareness Training • 382.603 • Used for Reasonable Suspicion Testing • 1 hour of Drug • 1 hour of Alcohol

30. Drug/Alcohol Test Database • New rule would create database for positive drug and alcohol test results for CDL drivers (and refusals to submit to tests) • Would require carriers to report positive tests and refusals into the database • Prospective employers could query the database (with written permission from driver) re applicant’s testing record • No action yet

31. Documentation of Brake Adjuster • If none of your employees adjust brakes, skip this file (NOTE: DOT Auditors have still asked for these certifications) • If you do have employees adjusting brakes, then you must have certifications on file that they have been trained on your specific types of brakes

32. Documentation of Annual Inspector • If none of your employees do the annual DOT inspections on your vehicles, then skip this file (NOTE: DOT Auditors have still asked for these certifications) • If you do have employees doing the annual DOT inspections, then you must have certifications on file that they have been trained and approved by your state

33. Schedule of Commercial Vehicle Maintenance • The carrier is required by 396.3 to "...systematically inspect, repair, and maintain, or cause to be systematically inspected, repaired, and maintained, all vehicles subject to its control." • The time period between systematic vehicle inspections are to be determined by the motor carrier. The intervals could be established on a mileage or time basis. While the time intervals are at the discretion of the motor carrier, the program must be reasonable and systematic.

34. Vehicle Maintenance Files • Commercial Motor Vehicle (CMV) maintenance records: • vehicle identifying information, • Company number (if so marked), make, serial number, year, and tire size (396.3 (b)(1)) • Copies of all maintenance and repairs (1 year retention) (most people keep for the life of the vehicle) • Periodic Inspection of CMV (original copy kept 14 months from report date)

36. Post Trip Inspection Reports • Retention period is 3 months • Suggest setting up 4 folders: • Post Trip 1 • Post Trip 2 • Post Trip 3 • Post Trip 4 • When you get the 4th folder filled, you toss the oldest and start over • As of 12-18-14, not required if no defects found

37. Maintenance Leased Vehicles • Copies of leases for vehicles that are under a maintenance lease • This proves that the vehicle is under a maintenance lease and that the vehicle maintenance files are kept at the leasing location.

38. Roadside Inspection Reports • Set up a folder for all roadside inspections • If you have to pay any invoices to correct any cited items, staple a copy of the invoice to the back of the roadside inspection report. This is your proof that you corrected the problem and makes it very easy to find. • Retention is 1 year

40. Previous DOT Audits • Set up a file for previous DOT audits • Don’t show them internal audits

41. Driver Files • Suggest 3 files per driver • Driver Qualification File (DQ) • Drug & Alcohol File • Personnel File

43. Driver Qualification (DQ) File • Application for employment (391.21) • Motor vehicle record from states (391.23), • Must be obtained within 30 days of employment • Must be for the prior 3 years • Previous employer information (391.23), • Must be obtained within 30 days of employment • Must be for the prior 3 years

44. 391.23 Investigations and Inquiries • You must check each state the driver has held a license in the past 3 years (driver can only hold a license in one state) • You have to inform the prospective driver of their right to review and correct any information you receive from previous employers • You must inquire to see if the driver had any DOT accidents in the past 3 years • You must inquire about any drug and alcohol test results in the past 3 years

45. 391.23 Investigations and Inquiries • Previous employers must respond to requests within 30 days (however there are no laws holding them to this) • Prospective employers must file the investigative results within 30 days • The investigation may consist of personal interviews, telephone interviews, letters, or any other method for investigating that the carrier deems appropriate • The prospective employer must keep a written record of each previous employer contact for 3 years • For drivers with no previous DOT related work, the prospective employer must document this in the DQ file

46. Driver Qualification (DQ) File • Road test form and certificate (391.31(g)), or license or certificate accepted in lieu of road test (391.33), • A CDL is acceptable. • Medical exam certificate which could now be the MVR, • Any letter granting a waiver of a physical disqualification (391.49)

47. Diabetes Standard • New proposed rule would amend regulations to allow driver with insulin-treated diabetes to operate CMV without a waiver • Current standards require case-by-case applications and approvals • No action yet

48. Driver Qualification (DQ) File • Annual review of driving record (391.25) • Must be done at least annually • Must keep a copy of the state inquiry results in the file. • The motor carrier must consider the driver's accident record and any evidence that the driver has violated laws governing the operation of motor vehicles, and must give great weight to violations, such as speeding, reckless driving, and operating while under the influence of alcohol or drugs, that indicate that the driver has exhibited a disregard for the safety of the public.

50. Driver Qualification (DQ) File • List of violations (391.27) • The driver shall provide a list of driving violations for the previous 12 months. The driver shall sign this list. • If the driver has already provided this information as required by 383.31, then they don’t have to repeat the information. 383.31 requires that drivers notify their carrier within 30 days of any vehicle violations, other than parking tickets, of which they have been convicted. The notification must be in writing and contain the 7 items listed in 383.31. (use your states bureau of vehicle and driver records – record lookup file)