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Airport Ground Transportation Association. March 12, 2012 Orlando, Florida Peter Chandler, Team Leader Commercial Passenger Carrier Safety Division. Topics to be Covered. Airport Related Transportation and Interstate Commerce FMCSA’s Commercial Requirements

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airport ground transportation association

Airport Ground Transportation Association

March 12, 2012

Orlando, Florida

Peter Chandler, Team Leader

Commercial Passenger Carrier Safety Division

topics to be covered
Topics to be Covered
  • Airport Related Transportation and Interstate Commerce
  • FMCSA’s Commercial Requirements
  • FMCSA’s Safety Regulations and 9-15 Passenger Vehicles
  • CSA Program Overview
  • SaferBus Mobile Application
interstate commerce
Interstate Commerce
  • Case law has broadened the legal view of interstate commerce in regard to airport related transportation.
  • The expansion of internet-based travel arrangements has prompted a rethinking of the formalistic rules defining interstate travel.
interstate commerce1
Interstate Commerce
  • Through ticketing or a common arrangement, such as a written or contractual agreement with an airline, is no longer viewed as necessary for passenger transportation to or from an airport to be considered interstate commerce.
  • The courts have rejected the view that through tickets are a requirement for interstate commerce.
interstate commerce2
Interstate Commerce
  • Common arrangements or through tickets are not the only ways to have interstate commerce.
  • The prearranged nature of passenger carriage to and from an airport with an absence of random or on-call characteristics can be sufficient to render the transportation service as interstate.
interstate commerce3
Interstate Commerce
  • If local ground transportation is prearranged for interstate travelers, the courts have found the local transportation to be part of the flow of interstate commerce.
  • When passengers arrive at an airport and fend for themselves to get to their next stop in any manner or at any time that suits them, passenger transportation subsequent to airport arrival is not a continuation of an interstate trip.
commercial requirements
Commercial Requirements
  • A for-hire motor carrier that transports passengers in interstate commerce must obtain operating authority from FMCSA.
  • Operating authority can be applied for on-line. There is a $300 fee and an MC number is assigned for your application.
  • Operating authority applicants that are passenger carriers must go through a vetting process to verify the applicant is not a carrier attempting to reincarnate.
commercial requirements1
Commercial Requirements
  • The characteristics of the operated passenger vehicle have no relevance to the requirement to obtain operating authority.
  • Operating authority is not required for the motor transportation of passengers incidental to transportation by aircraft. The transportation must (1) be confined to the transportation of passengers having an immediately prior or subsequent movement by air and (2) be within a 25-mile radius of the airport with exceptions (refer to section 372.177).
commercial requirements2
Commercial Requirements
  • To obtain operating authority, evidence of insurance and designation of a process agent must be filed with FMCSA.
  • Required level of insurance or financial responsibility depends upon the designed seating capacity (including the driver) of the largest vehicle.
    • 16 or more passengers  $5 million
    • 15 or less passengers  $1.5 million
financial responsibility
Financial Responsibility

Even if you company is not required to obtain operating authority, a for-hire motor carrier transporting passengers in interstate commerce is subject to the same Federal financial responsibility requirements.

  • Proof of financial responsibility such as a Form MCS-90B must be maintained at the principal place of business.
  • There is a taxicab service exception.
safety regulations
Safety Regulations
  • A passenger carrier is subject to FMCSA’s safety regulatory oversight when the vehicle transports passengers in interstate commerce and the vehicle is designed or used to transport 9 to 15 passengers (including the driver) for compensation.
  • The applicable regulations depend upon the form of the received compensation (i.e., in the form of either direct compensation or not for direct compensation). 
safety regulations1
Safety Regulations

Direct compensation means payment made to the motor carrier by the passengers or the individual acting on behalf of the passengers for the transportation services provided, and not included in a total package charge or other assessment for highway transportation services. 

safety regulations2
Safety Regulations

Motor carriers operating 9 to 15 passenger-carrying commercial motor vehicles for direct compensation, regardless of the distance traveled, in interstate commerce are subject to the safety standards in part 385 and parts 390 through 396 of the Federal Motor Carrier Safety Regulations.

safety regulations3
Safety Regulations

Motor carriers are subject to these same regulations when their vehicle has a gross vehicle weight or gross vehicle weight rating of 10,001 or more pounds and transports passengers in interstate commerce, even if the vehicle is designed and used to transport 8 or less passengers.

applicable regulations
Applicable Regulations
  • Filing a motor carrier identification report and marking the commercial motor vehicles with the USDOT number
  • New entrant safety audit and safety fitness rating
  • Accident register recordkeeping requirements
  • Medical examination and driver qualification file related requirements
  • Hours of service related requirements
  • Inspection, repair, and maintenance related requirements
safety regulations4
Safety Regulations

Motor carriers operating 9 to 15 passenger-carrying commercial motor vehicles not for direct compensation, regardless of the distance traveled, in interstate commerce are required to:

  • file a motor carrier identification report and obtain a USDOT number,
  • mark their commercial motor vehicles with the USDOT identification number, and
  • maintain an accident register. 

We believe CSA has improved the efficiency and effectiveness of FMCSA’s enforcement and compliance program. CSA better enables FMCSA to achieve the Agency’s mission to reduce commercial motor vehicle crashes, fatalities, and injuries.

administrator ferro s top priorities
Administrator Ferro’s Top Priorities

Raise the bar for motor carriers to enter the industry

Maintain a high standard of safety and compliance to remain in the industry

Remove unsafe drivers and motor carriers from the roadways

what changed
What Changed
  • The way FMCSA assesses motor carrier safety
    • Identifies unsafe carrier and driver behaviors that lead to crashes
    • Uses all safety-based roadside inspection violations (not just out-of-service violations)
  • How FMCSA addresses motor carrier safety issues
    • Reaches more motor carriers earlier and more frequently
    • Improves efficiency of investigations by focusing on specific unsafe behaviors and requiring corrective actions
three core components
Three Core Components

New intervention processEmploys an array of interventions instead of the sole option of a labor-intensive compliance review

Passenger Carriers may have a focused investigation if they have had a comprehensive investigation within the last 12 months.

New approach to Safety Fitness Determination (SFD)

In the future, the safety rating will be tied to current safety performance and not limited to results of acute and critical violations from a compliance review.


BASICs focus on behaviors linked to crash risk

  • Unsafe Driving (Parts 392 & 397)
  • Fatigued Driving (Hours-of-Service) (Parts 392 & 395)
  • Driver Fitness (Parts 383 & 391)
  • Controlled Substances/Alcohol (Parts 382 & 392)
  • Vehicle Maintenance (Parts 393 & 396)
  • Cargo-Related (Parts 392, 393, 397 & HM)
  • Crash Indicator
new intervention tools
New Intervention Tools
  • New intervention tools reach more carriers and influence safety compliance earlier
  • Warning Letters
  • Investigations
    • Off-site Investigations (Not for passengers carriers)
    • Focused On-site Investigations
    • Comprehensive On-site Investigations
  • Follow-on corrective actions
    • Cooperative Safety Plan (CSP)
    • Notice of Violation (NOV)
    • Notice of Claim (NOC)
    • Operations Out-of-Service Order (OOS)

Mandatory High Risk Passenger Carrier Investigation Policy

Passenger carriers that are designated as high risk for one monthly assessment and have had no comprehensive or focused investigation within the previous 12 months must be investigated within 90 days.


SaferBus Mobile Application

The “Look Before You Book” campaign with the SaferBus app as its primary feature grew out of the discussions related to the National Motorcoach Safety Summit.

saferbus mobile application
SaferBus Mobile Application
  • SaferBus app provides 24/7 access to important safety information that passengers should review before selecting a bus company for transportation.
  • We believe consumers who are armed with good information will choose the safest – not necessarily the cheapest – way to get from one place to another.
  • SaferBus app users can link to the NCCDB Web site and file a complaint from their iPhone or iPad.
  • Droid compatible SaferBus app is being developed too.
contacting fmcsa
Contacting FMCSA

You can contact the FMCSA Passenger Carrier Safety Division by e-mail at:


My e-mail is:


Thank You

Any questions?