Private Motor Carriers of Passengers; Rule DEPARTMENT OF TRANSPORTATION

SUMMARY: In accordance with changes in the definitions of interstate

commerce and commercial motor vehicle contained in the Motor Carrier

Act of 1984, the FHWA is amending the Federal Motor Carrier Safety

Regulations (FMCSRs) to make private motor carriers of passengers

involved in interstate transportation subject to them with certain

exceptions. Implementation of the final rule is being delayed to allow

the new class of regulatees an opportunity to comment on the type and

scope of educational and technical assistance necessary and to provide

ample time to come into compliance with the FMCSRs.

DATES: This regulation is effective January 1, 1995; comments must be

received on or before October 1, 1994.

ADDRESSES: All signed, written comments should refer to the docket

number that appears at the top of this document and must be submitted

to HCC-10, room 4232, Office of the Chief Counsel, Federal Highway

Administration, 400 Seventh Street, SW., Washington, DC 20590. All

comments received will be available for examination at the above

address from 8:30 a.m. to 3:30 p.m., e.t., Monday through Friday,

except legal Federal holidays. Those desiring notification of receipt

of comments must include a self-addressed stamped postcard or envelope.

FOR FURTHER INFORMATION CONTACT: Mr. F. Daniel Hartman, Office of Motor

Carrier Standards, (202) 366-4009, or Mrs. Allison Smith, Office of the

Chief Counsel, (202) 366-0834, Federal Highway Administration,

Department of Transportation, 400 Seventh Street, SW., Washington, DC

20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday

through Friday, except legal holidays.

SUPPLEMENTARY INFORMATION:

Statutory Authority

Since 1935, the Federal government has been regulating, for safety

purposes, interstate transportation performed by for-hire carriers of

property and passengers and private carriers of property. Prior to the

passage of the Motor Carrier Act of 1984 (Pub. L. 98-554, 98 Stat.

2832, 49 U.S.C. app. 2501 et. seq.), the Federal government's

jurisdiction did not extend to private motor carriers of passengers

(PMCPs).

With the enactment of the Motor Carrier Safety Act of 1984,

Congress defined the FHWA's jurisdiction on the basis of vehicles

operating in interstate commerce. The stated purposes of the 1984 Act

were to (1) promote the safe operation of commercial motor vehicles;

(2) minimize dangers to the health of operators of commercial motor

vehicles; and (3) assure increased compliance with traffic laws and

with the commercial motor vehicle safety rules.

Congress expanded the definition of commercial motor vehicle (CMV)

in section 204 of that Act (49 U.S.C. app. 2503) to include any self-

propelled or towed vehicle used on highways in interstate commerce to

transport passengers or property if (a) such vehicle has a gross

vehicle weight rating of 10,001 or more pounds; (b) such vehicle is

designed to transport 16 or more passengers, including the driver; or

(c) such vehicle is used in the transportation of hazardous materials

which require a placard.

Interstate commerce was defined in the same section of the Act as

``trade, traffic, or transportation in the United States which is

between a place in a State and a place outside of such State (including

a place outside of the United States) or is between two places in a

State through another State or a place outside of the United States.''

Therefore, anyone operating or causing to be operated vehicles as

defined in the Act in interstate commerce became subject to regulation

by the Secretary of Transportation.

Current Regulations

The FMCSRs are contained in title 49, Code of Federal Regulations,

parts 350 through 399. These regulations set minimum safety standards

for motor carriers, vehicles and drivers involved in interstate

commerce. The areas covered include driver qualification, licensing,

hours of driving and on duty time, vehicle safety equipment, operating

condition, inspection and maintenance. Consistent with the pre-1984

authority, PMCPs are currently exempt from the FMCSRs (parts 390-399)

pursuant to 49 CFR 390.3(f)(6).

The Commercial Motor Vehicle Safety Act of 1986 (CMVSA)(Title XII,

Pub. L. 99-570, 49 U.S.C. app. 2701-2718) established requirements for

testing and licensing of all drivers of commercial motor vehicles as

defined in that Act. Under the implementing regulations in 49 CFR part

383, all drivers subject to that part must successfully complete a

knowledge test and skills examination, as applicable, both of which are

administered by the driver's State of residence. The State then issues

a Commercial Driver's License (CDL), which is the only license that may

be possessed by an operator of a commercial motor vehicle. The

operative definitions in the CMVSA of 1986 extend jurisdiction to any

driver of a defined vehicle, whether in interstate or intrastate

commerce, and whether or not otherwise subject to DOT jurisdiction. The

current rulemaking does not alter the provisions of Part 383 for any

CMV driver, nor does it affect other regulatory exemptions, e.g., the

transportation of school children and government operations.

The FHWA issued a Notice of Interpretation (58 FR 27328, May 7,

1993) to clarify its policy relating to for-hire transportation of

passengers. That notice clarifies the FHWA's policy that businesses

operating passenger-carrying commercial motor vehicles in interstate

commerce, and receiving direct or indirect compensation for their

transportation services, are for-hire motor carriers subject to the

minimum levels of financial responsibility requirements. If the

passenger-carrying capacity of the vehicle is 16 or more, including the

driver, they are also subject to the remainder of the FMCSRs.

Rulemaking History

In 1985, the FHWA issued an advance notice of proposed rulemaking

(ANPRM) in the Federal Register (50 FR 2998, Docket No. MC-114) to

obtain comments on the merits of regulating PMCPs. Recognizing the wide

diversity of operating practices, the FHWA (shortly after the 1984 Act)

contracted for a study to gain greater insight into the operating

practices of these carriers. (ASW Associates, Silver Spring, Md., June

10, 1987.) Although there is little definitive accident data, the study

concluded that highway safety would be enhanced by regulating PMCPs.

After comments to the ANPRM were received and analyzed, the FHWA issued

a notice of proposed rulemaking (NPRM) on February 17, 1989 (MC-88-15),

proposing to assert jurisdiction over these carriers with respect to

certain requirements of the FMCSRs (see 54 FR 7362).

In the NPRM, the FHWA acknowledged that all buses should be in safe

operating condition and driven by qualified drivers. However, it would

be overly burdensome and counterproductive to attempt to require every

entity transporting people by bus, regardless of purpose, to comply

with the whole range of regulations, including recordkeeping

requirements.

In the NPRM, the FHWA divided PMCPs into two groups based on the

relationship of the driver to the motor carrier. Group I consisted of

all employees hired to perform primarily as drivers. Group II consisted

of volunteer drivers (who may also be employees) who received little or

no remuneration for their driving and drove for less than 10 percent of

their work time. The division of the two groups was intended to

recognize the distinction between business and nonbusiness operations.

Under the proposal advanced in the NPRM, Group I would have been

treated the same as for-hire motor carriers of passengers and would

have been subject to all of the FMCSRs. Group II would have been

subject to CDL and the vehicle and maintenance requirements, but would

not have been required to keep driver qualification files.

The FHWA was also aware that some buses currently in use may not

have been subject to the National Highway Traffic Safety

Administration's (NHTSA) fuel system requirements at the time of

manufacture. The NPRM proposed to ``grandfather'' this equipment and,

therefore, would not require retrofitting of the fuel systems if the

vehicle has been maintained and meets the original manufacturer's

standards.

Discussion of Comments to the Docket

The FHWA received 28 comments to this docket: 14 from organizations

and groups potentially affected by the rulemaking, 5 from national

associations, 3 from for-hire bus companies, 2 from State enforcement

agencies, 1 from a Federal advisory board, 1 from a union, and 2 from

individuals. Only three commenters, two of which were churches, opposed

the rule as an unnecessary regulatory burden.

The American Bus Association (ABA) supported the NPRM, expressing

the opinion that PMCPs are less safe than for-hire carriers because

they operate older, inferior equipment, with less experienced drivers,

and in its opinion, are involved in a disproportionate number of fatal

accidents. The ABA also stated that these drivers should be subject to

the same driver qualification and hours of service requirements,

including recordkeeping, because they are usually less experienced and

qualified. The ABA raised questions about the enforceability of the

definition in the NPRM for limited PMCPs, specifically the 10 percent

driving time factor. It felt these carriers would reduce driving time

below 10 percent to avoid the paperwork requirements. The ABA also

recommended that all PMCPs get a U.S. DOT number to facilitate

enforcement.

The United Bus Owners of America and the National School

Transportation Association supported the rule, maintaining that anyone

transporting passengers should comply fully with the FMCSRs, including

recordkeeping, in the interest of safety for the passengers on board a

vehicle and the motoring public at large. The International Brotherhood

of Teamsters supported the rule and favored the division of PMCPs into

groups for the purpose of paperwork burden relief.

Those commenters opposed to the NPRM were concerned that the rule

placed an unnecessary burden on churches, with little accident or

safety data to support the rule. They contended that many churches will

terminate interstate travel rather than attempt to comply with the

requirements.

Two States wrote to the docket--one supporting and one opposing the

proposal. The Transportation Cabinet of the Commonwealth of Kentucky

supported the rule. The Cabinet believed that school bus operations

also should be subject to the FMCSRs, but did not provide data to

support its position. The Department of Motor Vehicles in North

Carolina opposed the rule as an unnecessary burden, claiming private

buses are usually not used in commerce. The Department instead

recommended that FHWA staff focus on truck safety problems.

FHWA's Response

In consideration of the comments to the NPRM, the FHWA concluded

that the use of volunteer driver status, coupled with the 10 percent

driving factor, would not be a workable criterion for separation of the

two groups because of the uncertainty in defining ``volunteer status''

and measuring the 10 percent driving time factor. Instead, the FHWA

will base its distinction on whether the motor carrier is providing the

transportation of passengers in furtherance of a commercial purpose

other than transportation.

Those PMCPs involved in a business activity which provides

transportation, in the furtherance of a commercial purpose other than

for-hire transportation, will be subject to all of the FMCSRs,

including recordkeeping. Those PMCPs engaged in nonbusiness activities,

but providing transportation of some kind, must have safe drivers and

vehicles and will be subject to many of the FMCSRs. These PMCPs will

not be required to comply with the current recordkeeping requirements.

The FHWA also agrees with, and has incorporated into the final rule,

comments that all PMCPs should obtain a U.S. DOT number, which should

facilitate the proper collection of accurate roadside inspection and

enforcement information. The ``grandfather'' provision for fuel system

requirements, as proposed in the NPRM, also has been retained.

Although interstate commerce is historically defined to include

trade, traffic, or transportation across State boundaries and is not

limited to business entities in profit-making ventures, the FHWA

believes most churches will fall within the definition of nonbusiness

PMCPs. As such, these carriers will not be subject to the current

recordkeeping requirements. Under this final rule, once a driver

obtains a CDL, no additional files, such as driver qualification

records including the medical examination certificate, or drivers'

record of duty status, are required to be maintained.

Requirements of the Final Rule

The final rule is very similar to the NPRM except that (1) the

definition of PMCP has been consolidated with the definition of private

motor carrier of property, (2) the definitions of ``nonbusiness PMCPs''

and ``business PMCPs'' have been added, (3) nonbusiness PMCPs will be

exempt from subpart H of part 391 and all current recordkeeping

requirements, (4) PMCPs will not be subject to the road and written

test requirements of part 391, and (5) all passenger carriers will be

required to obtain a US DOT number to identify their buses for

enforcement by Federal and State officials.

Many operations which are classified as PMCPs are companies that

transport their workers to and from job sites. PMCPs also include

nonbusiness-type organizations, including scout, church and civic

groups, that characteristically use volunteers to transport members by

bus and charge no fee, or only a nominal fee to cover expenses of the

transportation service provided.

Definitions

Business PMCPs

A business PMCPs is defined as any entity involved in the

interstate transportation of passengers; the transportation provided is

in the furtherance of the entity's commercial purpose, which is not

for-hire transportation; and the transportation is not available to the

general public. The FHWA believes that any business entity transporting

people should meet the same minimum safety requirements as those

businesses involved in the private transportation of property.

Therefore, these carriers must comply with the entire body of the

FMCSRs, including recordkeeping. These carriers need not comply with

the road and written test requirements of part 391, since these

requirements are essentially met by acquiring a CDL with proper bus

endorsements. In addition, these carriers need not comply with the fuel

system requirements of Sec. 393.67, provided the carrier's commercial

motor vehicle fuel systems have been maintained and meet the original

manufacturer's standards.

Nonbusiness PMCPs

A nonbusiness PMCPs is any entity involved in the interstate

transportation of passengers, other than for-hire, and does not meet

the definition of a business PMCPs. These carriers will be subject to

parts 383, 385 (requiring a Motor Carrier Identification Report), 390,

391 (excluding subpart H and recordkeeping requirements), 392, 393

(excluding fuel systems that have been maintained and meet the original

manufacturer's standards), 395 (excluding the recordkeeping

requirements), and 396 (excluding the recordkeeping requirements).

Churches, civic associations, scouts, and other charitable institutions

that may purchase or lease buses for sponsored activities are included

in this category.

The special treatment afforded nonbusiness carriers is not to

relieve churches or civic associations from compliance with any of the

safety regulations when these carriers arrange tours for the public at

large and charge a fee with the intent to make a profit. In this

instance, nonbusiness carriers are in fact performing transportation

services as for-hire carriers. When engaged in chartering operations,

the transportation service is the primary activity of the organization

and such charter service is not incidental to the non-transportation

purposes of the organization. Such activities are and will continue to

be treated as for-hire transportation of passengers, subject to all the

FMCSRs.

Driver and Carrier Requirements

Business PMCPs

These carriers must meet all of the driver recordkeeping

requirements in part 391, except for the road and written test

requirements, which are essentially met by acquiring a CDL with proper

bus endorsements. This recordkeeping requirement includes maintaining

all documents required in a driver qualification file and drug testing

documentation. These carriers must also comply with the recordkeeping

requirements in part 395 regarding drivers' records of duty status.

Consistent with past FHWA practice, a one-time exemption for

currently employed drivers is provided in this rulemaking. The

recordkeeping requirements, including application for employment

(Sec. 391.21), investigation and inquiries (Sec. 391.23), and

notifications of previous employment (Sec. 383.35), will not apply to

those drivers regularly employed by a motor carrier prior to July 1,

1994 and for as long as the person continues to be regularly employed

as a driver for that motor carrier.

Nonbusiness PMCPs

Nonbusiness PMCPs must comply with the driving and on-duty hours

limitation contained in part 395. The costs associated with requiring

record retention by these motor carriers, who operate sporadically,

would outweigh the benefits and, accordingly, the FHWA will not impose

the recordkeeping requirements of part 395 on these carriers. It is

recognized that some individuals who volunteer to drive for their

church or civic organization may also drive for other motor carriers

and in that capacity are required to maintain a record of duty status

(driver logs). All on-duty and driving time, performed in a volunteer

capacity by an individual who is otherwise regularly employed as a

commercial driver, for a nonbusiness PMCP must be recorded on the

records of duty-status submitted to that driver's regularly employing

motor carrier. On duty and driving time for those drivers regularly

employed must be considered in determining whether the driver has

adequate time to drive as a volunteer, and vice-versa. The FHWA

believes this requirement is necessary to ensure that a fatigued driver

is not permitted or required to drive beyond the hours of service

limits.

These carriers are not required to have their drivers medically

examined and do not have to maintain the records required in parts 391,

395 and 396.

Drug and Alcohol Testing

Nonbusiness PMCPs are not subject to the current drug testing

requirements found in 49 CFR part 391. However, business PMCPs are

subject to those regulations.

Under a final rule published in the Federal Register on February

15, 1994, the FHWA announced new drug and alcohol testing rules. These

rules were issued in response to the Omnibus Transportation Employee

Testing Act of 1991 and will require that all operators of CMVs subject

to the CDL requirements, be tested for controlled substances and

alcohol. Both business and nonbusiness PMCPs will be subject to these

rules.

Due to the broad scope of these rules, business and nonbusiness

PMCPs with 50 or more drivers will have until January 1, 1995 to comply

with the new drug and alcohol testing regulations. Business and

nonbusiness PMCPs with less than 50 drivers will be required to comply

with the new drug and alcohol testing regulations beginning January 1,

1996.

To further the purpose of the Omnibus Transportation Employee

Testing Act, no waiver or exemption from any provision of the new

rules, including the recordkeeping requirements, is provided.

Consequently, all nonbusiness PMCPs will be required to meet certain

recordkeeping requirements when the final rule is fully implemented.

Vehicle Requirements

Business PMCPs

Part 393, Parts and Accessories Necessary for Safe Operation, and

Part 396, Inspection, Repair and Maintenance, provide detailed safety

requirements for commercial motor vehicle components and inspection

thereof. Business PMCPs are required to comply with the vehicle

equipment requirements contained in part 393 (excluding fuel systems

that have been maintained and meet original manufacturer's standards)

and the maintenance and recordkeeping requirements in part 396. A few

carriers may need to perform minor retrofitting to bring their vehicles

into compliance with the requirements of part 393.

Nonbusiness PMCPs

Nonbusiness PMCPs must comply with the vehicle equipment

requirements in part 393 (excluding fuel systems that have been

maintained and meet original manufacturer's standards) and the

maintenance requirements of part 396. These carriers will not have to

comply with the recordkeeping requirements contained in part 396.

Insurance Requirements

Section 18 (a) through (g) of the Bus Regulatory Reform Act of 1982

(Pub. L. 97-261, 96 Stat. 1102, 1120, as amended) established minimum

levels of financial responsibility for for-hire motor carriers of

passengers. The Act did not extend coverage to motor carriers involved

in private transportation of passengers. Therefore, for purposes of

this final rule, PMCPs are not required to comply with part 387.

Enforcement

PMCPs will be subject to the FHWA and State motor carrier safety

enforcement activities. The FHWA has a field staff which monitors

compliance and enforces the regulations primarily by reviews of company

records. Also, the FHWA administers a formula grant program, the Motor

Carrier Safety Assistance Program (MCSAP), to reimburse States for

uniform enforcement of commercial motor vehicle safety and hazardous

materials compliance through roadside driver/vehicle inspections and

review of motor carrier safety practices.

Business PMCPs

The primary enforcement activity will be unannounced terminal and

roadside driver/vehicle inspections conducted by State personnel.

Roadside driver/vehicle inspections may include inspections performed

at origin or destination points such as parking lots, amusement parks,

sporting complexes, and convention centers as well as on the road. A

terminal inspection is a comprehensive vehicle inspection conducted at

the carrier's terminal facility, garage or at a bus station. The

vehicle standards for these inspections are reflected in the current

periodic inspection requirements (part 396, Appendix G). Business PMCP

drivers will have CDLs, medical cards, and records of duty status

reviewed.

Federal and State investigators will also conduct safety and

compliance reviews of these carriers at their principal places of

business. The investigators will review motor carriers' safety

management practices and regulatory compliance as evidenced by records

maintained. These carriers will also be subject to FHWA's rating

process and the provisions of the Motor Carrier Act of 1990 regarding

the consequences of unsatisfactory safety ratings, i.e., an

unsatisfactory rating will prohibit the operation of buses effective 45

days after receipt of the rating. Unsafe carriers will be subject to

the same civil and criminal penalties as all other carriers currently

under the jurisdiction of the FHWA. Carriers identified in FHWA's

information system as having unsafe operations will be scheduled for

safety and compliance reviews.

Nonbusiness PMCPs

Nonbusiness PMCPs will be subject to the same terminal and roadside

driver/vehicle inspections as business PMCPs, except the drivers will

only be subject to having their CDL reviewed and hours of service

verified from evidence gathered at the scene. Compliance reviews will

not be performed on these carriers nor will they be subject to FHWA's

safety rating process, unless the information systems reveal that the

carrier has been identified as having ongoing roadside safety

inspection problems.

Marking

To facilitate State inspections of these vehicles and drivers, the

FHWA is requiring each PMCP to have its name, city and State, and U.S.

DOT number marked on the side of the bus to the extent presently

required of all motor carriers.

Implementation

Marketing and Educational Program

Because PMCPs have not been regulated in the past, the FHWA and

state personnel will be providing educational and technical assistance

for these carriers prior to the effective date. The FHWA is seeking

comments on the type and scope of educational and technical assistance

that should be provided to assist PMCPs in complying with the FMCSRs.

Comments must be received on or before October 1, 1994. The FHWA will

make the materials available to National and State organizations which

represent PMCPs or anyone who requests assistance directly from the

FHWA. The FHWA also has Division offices in every State that can answer

questions and provide technical assistance to these carriers upon

request. The addresses for the FHWA Division Offices are listed in

appendix D to 49 CFR part 7.

Effective Date

PMCPs (business and nonbusiness) will have until January 1, 1995,

to meet these requirements.

Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review) and DOT

Regulatory Policies and Procedures

Because this rulemaking has been the subject of substantial

congressional and public interest, the FHWA has determined that this

final rule is a significant regulatory action within the meaning of

Executive Order 12866 and a significant regulation under the DOT

regulatory policies and procedures. In the Motor Carrier Act of 1984,

Congress expanded the definitions of ``interstate commerce'' and

``commercial motor vehicle'' which expanded the Department of

Transportation's regulatory jurisdiction to include private motor

carriers of passengers. Both Congress and the bus industry have shown a

keen interest in the progress of this rulemaking. The safety benefits

and opportunities for benefits from this rule will offset any cost. A

regulatory evaluation has been prepared and is available for review in

the public docket.

Regulatory Flexibility Act

In compliance with the Regulatory Flexibility Act (Pub. L. 96-354,

5 U.S.C. 605(b)), the FHWA has evaluated the effects of this rule on

small entities. Many small entities will be economically impacted by

this rulemaking and some may decide to cease transportation of

passengers rather than comply with the safety rules and regulations.

However, the overall impact on small entities will be minimal. The FHWA

is exempting the majority of small entities--those defined as

nonbusiness--from the paperwork and recording requirements of this

rule. The vast majority of PMCPs are small entities, especially the

non-business carriers. Some of the smallest entities may find it

preferable to discontinue their operations in interstate commerce, and

to charter buses for their interstate trips. Private carriers which pay

their drivers are even more likely to consider chartering as an option

because of their increased costs for driver salaries or other

compensation. Chartering does not reduce the cost of complying with

this rule, but does place an effective ceiling on how much this rule

might cost small entities. Thus, under the criteria of the Regulatory

Flexibility Act, the FHWA hereby certifies that this action will not

have a significant economic impact on a substantial number of small

entities.

Executive Order 12612 (Federalism Assessment)

This action has been analyzed in accordance with the principles and

criteria contained in Executive Order 12612, and it has been determined

that this action does not have sufficient federalism implications to

warrant the preparation of a federalism assessment. This regulation

amends certain parts of the FMCSRs pertaining to the scope and

applicability of the FMCSRs to interstate transportation by PMCPs as

authorized by the Motor Carrier Act of 1984. The FMCSRs establish

minimum safety regulations which may be supplemented by the States,

provided the State safety laws and regulations are compatible with the

Federal requirements. (See 57 FR 40946, September 8, 1992, which

includes the Tolerance Guidelines for Adopting Compatible State Rules

and Regulations.) The statutory basis for Federal regulation of

interstate commerce has been outlined above. Accordingly, it is

certified that the policies contained in this document have been

assessed in light of the principles, criteria, and requirements of the

Federalism Executive Order.

Executive Order 12372 (Intergovernmental Review)

Catalog of Federal Domestic Assistance Program Numbers 20.217,

Motor Carrier Safety, and 20.218, Motor Carrier Safety Assistance

Program. The regulations implementing Executive Order 12372 regarding

intergovernmental consultation on Federal programs and activities apply

to this program.

Paperwork Reduction Act

The information collection requirements in part 390 of this rule

are being submitted to the Office of Management and Budget for approval

under the Paperwork Reduction Act of 1980, 44 U.S.C. 3501 et seq.

National Environmental Policy Act

The agency has analyzed this action for the purpose of the National

Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and has

determined that this action would not have any effect on the quality of

the environment.

Regulation Identification Number

A regulation identification number (RIN) is assigned to each

regulatory action listed in the Unified Agenda of Federal Regulations.

The Regulatory Information Service Center publishes the Unified Agenda

in April and October of each year. The RIN contained in the heading of

this document can be used to cross reference this action with the

Unified Agenda.

List of Subjects in 49 CFR Parts 390, 391, 393, 395, and 396

Highway safety, Motor carriers, Motor vehicle safety, Reporting and

recordkeeping requirements.

Issued on: February 14, 1994.

Rodney E. Slater,

Federal Highway Administrator.

In consideration of the foregoing, the FHWA is amending title 49,

Code of Federal Regulations, subtitle B, chapter III, parts 390, 391,

393, 395 and 396 as set forth below.

PART 390--[AMENDED]

1. The authority citation for part 390 continues to read as

follows:

Authority: 49 U.S.C. app. 2503 and 2505; 49 U.S.C. 3102 and

3104; 49 CFR 1.48.

Sec. 390.3 [Amended]

2. In Sec. 390.3, paragraph (f)(6) is removed.

Sec. 390.5 [Amended]

3. In Sec. 390.5, the definition of motor carrier is revised; the

definitions of private motor carrier of passengers and private motor

carrier of property are removed; the definitions of private motor

carrier, private motor carrier of passengers (business) and private

motor carrier of passengers (nonbusiness) are added in alphabetical

order as follows:

Sec. 390.5 Definitions.

* * * * *

Motor carrier means a for-hire motor carrier or a private motor

carrier. 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. For purposes of

subchapter B, this definition includes the terms employer, and exempt

motor carrier.

* * * * *

Private motor carrier means a person who provides transportation of

property or passengers, by commercial motor vehicle, and is not a for-

hire motor carrier.

Private motor carrier of passengers (business) means a private

motor carrier engaged in the interstate transportation of passengers

which is provided in the furtherance of a commercial enterprise and is

not available to the public at large.

Private motor carrier of passengers (nonbusiness) means private

motor carrier involved in the interstate transportation of passengers

that does not otherwise meet the definition of a private motor carrier

of passengers (business).

* * * * *

PART 391--[AMENDED]

5. The authority citation for part 391 continues to read as

follows:

Authority: 49 U.S.C. app. 2505; 49 U.S.C. 504 and 3102; 49 CFR

1.48.

Sec. 391.31 [Amended]

6. In Sec. 391.31, paragraph (a) is revised to read as follows:

Sec. 391.31 Road test.

(a) Except as provided in subpart G, a person shall not drive a

motor vehicle unless he/she has first successfully completed a road

test and has been issued a certificate of driver's road test in

accordance with this section.

* * * * *

Sec. 391.35 [Amended]

7. In Sec. 391.35, paragraph (a) is revised to read as follows:

Sec. 391.35 Written examination.

(a) Except as provided in subpart G, a person shall not drive a

motor vehicle unless he/she has first taken a written examination in

accordance with this section.

* * * * *

8. In Sec. 391.51, paragraph (a) is revised to read as follows:

Sec. 391.51 Driver qualification files.

(a) Except as provided in subpart G, each motor carrier shall

maintain a driver qualification file for each driver it employs. A

driver's qualification file may be combined with the driver's personnel

file.

* * * * *

9. Sec. 391.68 is added to subpart G to read as follows:

Sec. 391.68 Private motor carrier of passengers (nonbusiness).

(a) The following rules in this part do not apply to a private

motor carrier of passengers (nonbusiness) and their drivers:

(1) Section 391.11(b)(8), (b)(10), (b)(11), and (b)(12), (relating

to driver qualifications in general).

(2) Subpart C (relating to disclosure of, investigation into, and

inquiries about the background, character, and driving record of,

drivers).

(3) Subpart D (relating to road tests and written examinations).

(4) So much of Secs. 391.41 and 391.45 as require a driver to be

medically examined and to have a medical examiner's certificate on his/

her person.

(5) Subpart F (relating to maintenance of files and records).

(6) Subpart H (relating to controlled substances testing).

(b) The following rules in this part do not apply to a private

motor carrier of passengers (business) driver: subpart D (relating to

road tests and written examinations).

10. Section 391.73 is added to subpart G to read as follows:

Sec. 391.73 Private motor carrier of passengers (business).

The provisions of Sec. 391.21 (relating to applications for

employment), Sec. 391.23 (relating to investigations and inquiries),

Sec. 391.31 (relating to road tests), and Sec. 391.35 (relating to

written examinations) do not apply to a driver who has been a regularly

employed driver (as defined in Sec. 390.5 of this subchapter) of a

private motor carrier of passengers (business) as of July 1, 1994, so

long as the driver continues to be a regularly employed driver of that

motor carrier. Such a driver is qualified to drive a motor vehicle if

that driver fulfills the requirements of paragraphs (b)(1) through

(b)(9) of Sec. 391.11 (relating to qualifications of drivers).

11. In Sec. 391.83, paragraph (a) is revised to read as follows:

Sec. 391.83 Applicability.

(a) Except for a private motor carrier of passengers (nonbusiness),

this subpart applies to motor carriers and persons who operate a

commercial motor vehicle as defined in this subpart in interstate

commerce and are subject to the driver qualification requirements of

part 391 of this subchapter.

* * * * *

PART 393--[AMENDED]

12. The authority citation for part 393 continues to read as

follows:

Authority: 49 U.S.C. app. 2505; 49 U.S.C. 3102; 49 CFR 1.48.

Sec. 393.67 [Amended]

13. Section 393.67 is amended by adding a new paragraph (a)(6) to

read as follows:

Sec. 393.67 Liquid fuel tanks.

(a) * * *

(6) Private motor carrier of passengers. Motor carriers engaged in

the private transportation of passengers may continue to operate a

commercial motor vehicle which was not subject to this section or 49

CFR 571.301 at the time of its manufacture, provided the fuel tank of

such vehicle is maintained to the original manufacturer's standards.

* * * * * *

PART 395--[AMENDED]

16. The authority citation for part 395 continues to read as

follows:

Authority: 49 U.S.C. 3102; 49 U.S.C. app. 2505; and 49 CFR 1.48.

17. In Sec. 395.8, paragraph (a) introductory text is revised to

read as follows:

Sec. 395.8 Driver's record of duty status.

(a) Except for a private motor carrier of passengers (nonbusiness),

every motor carrier shall require every driver used by the motor

carrier to record his/her duty status for each 24 hour period using the

methods prescribed in either paragraphs (a)(1) or (2) of this section.

* * * * *

PART 396--[AMENDED]

18. The authority citation for part 396 continues to read as

follows:

Authority: 49 U.S.C. app. 2509; 49 U.S.C. 3102; 49 CFR 1.48.

19. In Sec. 396.3, the introductory text of paragraph (b) is

revised to read as follows:

Sec. 396.3 Inspection, repair, and maintenance.

* * * * *

(b) Required records--For vehicles controlled for 30 consecutive

days or more, except for a private motor carrier of passengers

(nonbusiness), the motor carriers shall maintain, or cause to be

maintained, the following record for each vehicle:

* * * * *

20. In Sec. 396.11, paragraph (d) is revised to read as follows:

Sec. 396.11 Driver vehicle inspection report(s).

* * * * *

(d) Exemption. The rules in this section shall not apply to a

private motor carrier of passengers (nonbusiness) operations,

driveaway-towaway operations as specified in Sec. 396.15, or to any

motor carrier operating only one (1) motor vehicle.

[FR Doc. 94-3951 Filed 2-22-94; 8:45 am]

BILLING CODE 4910-22-P