The FMCSA (Federal Motor Carrier Safety Administration) amended its rules on Jan. 17 to enable the Agency to suspend or revoke operating authority for what it called repeat offenders.
The rule, which implements section 4113 and section 32112 of the so-called SAFETEA-LU and MAP-21 acts, respectively, targets owners of truck and bus fleets who have a history of purposely avoiding federal regulations by going out of business and recreating their company under a different name.
Implementation of this rule enables the Agency to suspend or revoke the operating authority registration of motor carriers that show egregious disregard for safety compliance, permit persons who have shown egregious disregard for safety compliance to exercise controlling influence over their operations or operate multiple entities under common control to conceal noncompliance with safety regulations. Motor carriers that engage in such conduct may face suspension or revocation of their operating authority registration. FMCSA acknowledges that loss of operating authority registration is a significant penalty. This rule is necessary and appropriate, however, to address motor carriers that engage in a pattern or practice of willfully violating safety regulations or forming new entities or affiliate relationships to avoid compliance or mask or otherwise conceal noncompliance. (www.fmcsa.dot.gov/rules-regulations/administration/rulemakings/final/Patterns-of-Safety.pdf).
According to the FMCSA, a small number of motor carriers across the nation attempt to avoid FMCSA and DOT Compliance by submitting new applications for registration, usually under a different name, to avoid consequences for poor safety history or being placed out of service. Often these carriers shift customers, vehicles, drivers and other operational activities to the new company after the FMCSA places their old company out of service or levies penalties or fines.
The above regulations were created in part as reaction to a fatal 2008 bus crash in Sherman, TX. On August 8, 17 passengers were killed and 39 people including the bus driver were injured after an improperly retreaded tire blew out. The investigation by the FMCSA and the NTSB concluded Angel Tours was operating without authority, was a reincarnation of another bus company, and both companies were under the control of Angel de la Torre. The FMCSA “determined that the companies’ flagrant disregard for safety under this person’s control demonstrated a hazard to the safety of the motoring public.”
De la Torre and another person were indicted in U.S. District Court in Houston, TX on May 13 of last year charges of conspiracy, false statements, and operating a commercial motor vehicle after being placed out of service.
The new regulation highlights more than ever the need for truckers and trucking companies to remain DOT Compliant. For more information on how Office Tenders can ensure your company’s compliance health, contact us today.