5. Amend Sec.  385.305 to remove paragraph (b)(3) and to redesignate
paragraph (b)(4) as (b)(3).
0
6. Add Sec.  385.306 to subpart D to read as follows:

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.

0
7. Amend Sec.  385.307 to revise paragraph (a) to read as follows:

Sec.  385.307  What happens after a motor carrier begins operations as
a new entrant?

* * * * *
    (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.
* * * * *

0
8. Add Sec.  385. 308 to subpart D to read as follows:

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.
    (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.

0
9. Revise Sec.  385.319 to read as follows:

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.
    (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.

0
10. Revise Sec.  385.321 to read as follows:

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.
------------------------------------------------------------------------

0
11. Revise Sec.  385.323 to read as follows:

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.

0
12. Amend Sec.  385.325 to revise paragraph (b) to read as follows:

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?

* * * * *
    (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.
* * * * *

0
13. Revise Sec.  385.327 to read as follows:

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 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.

0
14. Revise Sec.  385.329 to read as follows:

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.

0
15. Revise Sec.  385.331 to read as follows:

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.

0
16. Amend Sec.  385.337 to revise paragraph (a) to read as follows:

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.
* * * * *

0
17. Amend Sec.  385.405 to revise paragraph (a) to read as follows:

Sec.  385.405  How does a motor carrier apply for a safety permit?

    (a) Application form(s). (1) To apply for a 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.
* * * * *

0
18. Amend Sec.  385.421 by revising paragraph (a)(2) to read as
follows:

Sec.  385.421  Under what circumstances will a safety permit be subject
to revocation or suspension by FMCSA?

    (a) * * *
    (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)).
* * * * *

0
19. Amend part 385 by adding and reserving subparts F and G, and by
adding a new subpart H consisting of new Sec. Sec.  385.601 through
385.609 and an Appendix to subpart H to read as follows:
Subpart H--Special Rules for New Entrant Non-North America-Domiciled
Carriers
Sec.
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 H--Special Rules for New Entrant Non-North America-
Domiciled Carriers

Sec.  385.601  Scope of rules.

    The rules in this subpart govern the application by a non-North
America-domiciled motor carrier to provide transportation of property
and passengers in interstate commerce in the United States.

Sec.  385.603  Application.

    (a) Each applicant applying under this subpart must submit an
application that consists of:
    (1) Form OP-1(NNA)--Application for U.S. Department of
Transportation (USDOT) Registration by Non-North America-Domiciled
Motor Carriers;
    (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) FMCSA will only process an 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(NNA), 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) An applicant must submit the application to the address
provided in Form OP-1(NNA).
    (d) An applicant may obtain the application forms from any FMCSA
Division Office or download them from the FMCSA Web site at: http://
www.fmcsa.dot.gov/forms/forms.htm.

Sec.  385.605  New entrant registration driver's license and drug and
alcohol testing requirements.

    (a) A non-North America-domiciled motor carrier must use only
drivers who possess a valid commercial driver's license--a CDL,
Canadian Commercial Driver's License, or Mexican Licencia de Federal de
Conductor--to operate its vehicles in the United States.
    (b) A non-North America-domiciled motor carrier must subject each
of the drivers described in paragraph (a) of this section to drug and
alcohol testing as prescribed under part 382 of this subchapter.

Sec.  385.607  FMCSA action on the application.

    (a) FMCSA will review and act on each application submitted under
this subpart in accordance with the procedures set out in this part.

    (b) FMCSA will validate the accuracy of information and
certifications provided in the application by checking, to the extent
available, data maintained in databases of the governments of the
country where the carrier's principal place of business is located and
the United States.
    (c) Pre-authorization safety audit. Every non-North America-
domiciled motor carrier that applies under this part must
satisfactorily complete an FMCSA-administered safety audit before FMCSA
will grant new entrant registration to operate in the United States.
The safety audit is a review by 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. FMCSA will evaluate the
results of the safety audit using the criteria in the Appendix to this
subpart.
    (d) An application of a non-North America-domiciled motor carrier
requesting for-hire operating authority under part 365 of this
subchapter may be protested under Sec.  365.109(b). Such a carrier will
be granted new entrant registration after successful completion of the
pre-authorization safety audit and the expiration of the protest
period, provided the application is not protested. If a protest to the
application is filed with FMCSA, new entrant registration will be
granted only if FMCSA denies or rejects the protest.
    (e) If FMCSA grants new entrant registration to the applicant, it
will assign a distinctive USDOT Number that identifies the motor
carrier as authorized to operate in the United States. In order to
initiate operations in the United States, a non-North America-domiciled
motor carrier with new entrant registration 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.  387.7(e)(2), Sec.  387.31(e)(2),
and Sec.  387.301 of this subchapter, as applicable; and
    (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.
    (f) A non-North America-domiciled motor carrier must comply with
all provisions of the safety monitoring system in part 385, subpart I
of this subchapter, including successfully passing North American
Standard commercial motor vehicle inspections at least every 90 days
and having safety decals affixed to each commercial motor vehicle
operated in the United States as required by Sec.  385.703(c) of this
subchapter.
    (g) FMCSA may not re-designate a non-North America-domiciled
carrier's registration from new entrant to permanent prior to 18 months
after the date its USDOT Number is issued and subject to successful
completion of the safety monitoring system for non-North America-
domiciled carriers set out in part 385, subpart I of this subchapter.
Successful completion includes obtaining a Satisfactory safety rating
as the result of a compliance review.

Sec.  385.609  Requirement to notify FMCSA of change in applicant
information.

    (a)(1) A motor carrier subject to this subpart must notify FMCSA of
any changes or corrections to the information the Form BOC-3--
Designation of Agents--Motor Carriers, Brokers and Freight Forwarders
that occur during the application process or after having been granted
new entrant registration.
    (2) A motor carrier subject to this subpart must notify FMCSA of
any changes or corrections to the information in Section I, IA or II of
Form OP-1(NNA)--Application for U.S. Department of Transportation
(USDOT) Registration by Non-North America-Domiciled Motor Carriers that
occurs during the application process or after having been granted new
entrant registration.
    (3) A motor carrier must notify FMCSA in writing within 45 days of
the change or correction to information under paragraphs (a)(1) or
(a)(2) of this section.
    (b) If a motor carrier fails to comply with paragraph (a) of this
section, FMCSA may suspend or revoke its new entrant registration until
it meets those requirements.

Appendix to Subpart H of Part 385--Explanation of Pre-Authorization
Safety Audit Evaluation Criteria for Non-North America-Domiciled Motor
Carriers

I. General

    (a) FMCSA will perform a safety audit of each non-North America-
domiciled motor carrier before granting the carrier new entrant
registration to operate within the United States.
    (b) FMCSA will conduct the safety audit at a location specified
by the FMCSA. 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 new entrant registration, if any of these vehicles have not
received a decal required by Sec.  385.703(c) 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 CDL, Canadian Commercial
Driver's License, or Mexican Licencia de Federal de Conductor, as
applicable, of each driver the carrier intends to assign to operate
under its new entrant registration; 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 non-North
America-domiciled motor carrier must demonstrate to FMCSA that it
has the required elements in paragraphs I (c)(2), (3), (4), (7), and
(8) of this appendix and other basic safety management controls in
place which function adequately to ensure minimum acceptable
compliance with the applicable safety requirements. FMCSA developed
``safety audit evaluation criteria,'' which uses data from the
safety audit and roadside inspections to determine that each
applicant for new entrant registration has basic safety management
controls in place.
    (e) The safety audit evaluation process developed by FMCSA is
used to:
    (1) Evaluate basic safety management controls and determine if
each non-North America-domiciled carrier and each driver is able to
operate safely in the United States; 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 issues new entrant registration to
operate within the United States.

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. FMCSA developed this
tool to assist auditors, inspectors, and investigators in assessing
the adequacy of a non-North

America-domiciled carrier's basic safety management controls.
    (b) The safety audit is a review of a non-North America-
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; and
    (2) In the event that a carrier is found not to be in compliance
with applicable FMCSRs and HMRs, educate the carrier on how to
comply with U.S. safety rules.
    (c) Documents such as those contained in driver qualification
files, records of duty status, vehicle maintenance records, drug and
alcohol testing 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 receive new entrant registration if
FMCSA cannot:
    (1) Verify a controlled substances and alcohol testing program
consistent with part 40 of this title;
    (2) Verify a system of compliance with the 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 the qualifications of each driver the carrier intends
to assign to operate commercial motor vehicles in the United States,
as required by parts 383 and 391 of this subchapter, including
confirming the validity of each driver's CDL, Canadian Commercial
Driver's License, or Mexican Licencia de Federal de Conductor, as
appropriate.
    (b) If FMCSA confirms each item under paragraphs III (a)(1)
through (5) of this appendix, the carrier will receive new entrant
registration, unless FMCSA finds the carrier has inadequate basic
safety management controls in at least three separate factors
described in part IV of this appendix. If FMCSA makes such a
determination, the carrier's application for new entrant
registration will be denied.

IV. Evaluation of Regulatory Compliance

    (a) During the safety audit, 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; Parts 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 of this chapter 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 of this chapter.
    (2) Roadside inspection information is retained in the MCMIS and
is integral to evaluating a motor carrier's ability to successfully
maintain its vehicles, thus preventing being placed OOS during a
roadside inspection. Each safety audit will continue to have the
requirements of part 396 of this chapter, 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 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) [Reserved]
    (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) 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 IV (k)(1)(i) through (v) of this appendix
(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 paragraph IV (k)(1)(vi) of this appendix, 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
paragraphs III (a)(1)

through (5) of this appendix, if the safety audit determines the
carrier has inadequate basic safety management controls in at least
three separate factors described in paragraph III of this appendix,
the carrier's application for new entrant registration 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 new entrant
registration 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.

0
20. Amend part 385 by adding a new Subpart I consisting of new
Sec. Sec.  385.701 through 385.717 to read as follows:
Subpart I--Safety Monitoring System for Non-North America-Domiciled
Carriers
Sec.
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.

Subpart I--Safety Monitoring System for Non-North American Carriers

Sec.  385.701  Definitions.

    The following definitions apply to this subpart:
    Compliance review means a compliance review as defined in Sec.
385.3 of this part.
    New entrant registration means the provisional registration under
subpart H of this part that FMCSA grants to a non-North America-
domiciled motor carrier to provide interstate transportation within the
United States. 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.
    Non-North America-domiciled motor carrier means a motor carrier of
property or passengers whose principal place of business is located in
a country other than the United States, Canada or Mexico.

Sec.  385.703  Safety monitoring system.

    (a) General. Each non-North America-domiciled carrier new entrant
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 non-North America-domiciled carrier
new entrant will be subject to intensified monitoring through frequent
roadside inspections.
    (c) Safety decal. Each non-North America-domiciled carrier must
have on every commercial motor vehicle it operates in the United States
a current decal attesting to a satisfactory North American Standard
Commercial Vehicle inspection by a certified FMCSA or State inspector
pursuant to 49 CFR 350.201(k). This requirement applies during the new
entrant operating period and for three years after the carrier's
registration becomes permanent following removal of its new entrant
designation.
    (d) Compliance review. FMCSA will conduct a compliance review on a
non-North America-domiciled carrier within 18 months after FMCSA issues
the carrier a USDOT Number.

Sec.  385.705  Expedited action.

    (a) A non-North America-domiciled motor carrier committing any of
the following actions identified through roadside inspections, or by
any other means, may be subjected to an expedited compliance review, or
may be required to submit a written response demonstrating corrective
action:
    (1) Using a driver not possessing, or operating without, a valid
CDL, Canadian Commercial Driver's License, or Mexican Licencia Federal
de Conductor. 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 without taking the 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, within the United States 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, occurring within the United States and involving any
hazardous material not listed in paragraph (a)(3) of this section.
    (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 commercial motor vehicle
without the levels of financial responsibility required under part 387
of this subchapter.
    (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 the carrier's new entrant 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
compliance review during the new entrant registration period.

Sec.  385.707  The compliance review.

    (a) The criteria used in a compliance review to determine whether a
non-North America-domiciled new entrant exercises the necessary basic
safety management controls are specified in Appendix B to this part.
    (b) Satisfactory Rating. If FMCSA assigns a non-North America-
domiciled carrier a Satisfactory rating following a compliance review
conducted under this subpart, 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 registration will
remain in provisional status and its on-highway performance will
continue to be closely monitored for the remainder of the 18-month new
entrant registration period.
    (c) Conditional Rating. If FMCSA assigns a non-North America-
domiciled carrier a Conditional rating following a compliance review
conducted under this subpart, it will initiate a revocation proceeding
in accordance with Sec.  385.709 of this subpart. The carrier's

new entrant registration will not be suspended prior to the conclusion
of the revocation proceeding.
    (d) Unsatisfactory Rating. If FMCSA assigns a non-North America-
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.  385.709 of this subpart.

Sec.  385.709  Suspension and revocation of non-North America-domiciled
carrier registration.

    (a) If a carrier is assigned an ``Unsatisfactory'' safety rating
following a compliance review conducted under this subpart, 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 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.
    (c) If the carrier demonstrates that the compliance review
contained material error, its new entrant registration will not be
suspended. If the carrier fails to show a material error in the
compliance review, FMCSA will issue an Order:
    (1) Suspending the carrier's new entrant registration and requiring
it to immediately cease all further operations in the United States;
and
    (2) Notifying the carrier that its new entrant 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
paragraphs (a) through (c) of this section will apply, except that its
new entrant 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 compliance review upon reasonable request, or
fails to submit evidence of the necessary corrective action as required
by Sec.  385.705 of this subpart, FMCSA will provide the carrier with
written notice, as soon as practicable, that its new entrant
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 is produced and:
    (1) The carrier is rated Satisfactory after a compliance review; or
    (2) FMCSA determines, following review of the carrier's response to
a demand for corrective action under Sec.  385.705, that the carrier
has taken the necessary corrective action.
    (f) If a carrier commits any of the actions specified in Sec.
385.705(a) of this subpart after the removal of a suspension issued
under this section, the suspension will be automatically reinstated.
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
action(s). If the carrier fails to demonstrate that it did not commit
the action(s), FMCSA will issue an Order revoking its new entrant
registration.
    (g) If 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 new entrant registration should
not be revoked. If the carrier fails to make the necessary showing,
FMCSA will revoke its registration.
    (h) If a non-North America-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), as adjusted by inflation, not to exceed amounts for each
offense under part 386, Appendix B of this subchapter.
    (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.  385.711  Administrative review.

    (a) A non-North America-domiciled motor carrier may request FMCSA
to conduct an administrative review if it believes FMCSA has committed
an error in assigning a safety rating or suspending or revoking the
carrier's new entrant registration under this subpart.
    (b) The carrier must submit its request in writing, in English, to
the Associate Administrator for Enforcement and Program Delivery,
Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue,
SE., Washington DC 20590.
    (c) The carrier's request must explain the error it believes FMCSA
committed in assigning the safety rating or suspending or revoking the
carrier's new entrant registration and include any information or
documents that support its argument.
    (d) 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.

Sec.  385.713  Reapplying for new entrant registration.

    (a) A non-North America-domiciled motor carrier whose provisional
new entrant registration has been revoked may reapply for new entrant
registration no sooner than 30 days after the date of revocation.
    (b) If the provisional new entrant registration was revoked because
the new entrant failed to receive a Satisfactory rating after
undergoing a compliance review, 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) Successfully complete a pre-authorization safety audit in
accordance with Sec.  385.607(c) of this part.
    (4) Begin the 18-month new entrant monitoring cycle again as of the
date the re-filed application is approved.
    (c) If the provisional new entrant registration was revoked because
FMCSA found that the new entrant had failed to submit to a compliance
review, it must do all of the following:
    (1) Submit an updated MCS-150.
    (2) Successfully complete a pre-authorization safety audit in
accordance with Sec.  385.607(c) of this Part.
    (3) Begin the 18-month new entrant monitoring cycle again as of the
date the re-filed application is approved.
    (4) Submit to a compliance review upon request.
    (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 subchapter.

Sec.  385.715  Duration of safety monitoring system.

    (a) Each non-North America-domiciled carrier subject to this
subpart will remain in the safety monitoring system for at least 18
months from the date FMCSA issues its new entrant registration, 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

rating was Satisfactory and no additional enforcement or safety
improvement actions are pending under this subpart, the non-North
America-domiciled carrier's new entrant registration will become
permanent.
    (c) If, at the end of this 18-month period, FMCSA has not been able
to conduct a compliance review, the carrier will remain in the safety
monitoring system until a compliance review is conducted. If the
results of the compliance review are satisfactory, the carrier's new
entrant registration will become permanent.
    (d) If, at the end of this 18-month period, the carrier's new
entrant registration is suspended under Sec.  385.709(a) of this
subpart, the carrier will remain in the safety monitoring system until
FMCSA either:
    (1) Determines that the carrier has taken corrective action; or
    (2) Completes measures to revoke the carrier's new entrant
registration under Sec.  385.709(c) of this subpart.

Sec.  385.717  Applicability of safety fitness and enforcement
procedures.

    At all times during which a non-North America-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.

0
21. Amend Appendix A to part 385, section III to add new paragraph (i)
to read as follows:

Appendix A to Part 385--Explanation of Safety Audit Evaluation Criteria

* * * * *

III. Determining if the Carrier Has Basic Safety Management Controls

* * * * *
    (i) FMCSA also gathers information on compliance with applicable
household goods and Americans with Disabilities Act of 1990
requirements, but failure to comply with these requirements does not
affect the determination of the adequacy of basic safety management
controls.
* * * * *

PART 387--MINIMUM LEVELS OF FINANCIAL RESPONSIBILITY FOR MOTOR
CARRIERS

0
22. The authority citation for part 387 is revised to read as follows:

    Authority: 49 U.S.C. 13101, 13301, 13906, 14701, 31138, 31139,
and 31144; and 49 CFR 1.73.

0
23. Amend Sec.  387.3 by revising paragraph (c)(1) to read as follows:

Sec.  387.3  Applicability.

* * * * *
    (c) Exception. (1) The rules in this part do not apply to a motor
vehicle that has a gross vehicle weight rating (GVWR) of less than
10,001 pounds. This exception does not apply if the vehicle is used to
transport any quantity of a Division 1.1, 1.2, or 1.3 material, any
quantity of a Division 2.3, Hazard Zone A, or Division 6.1, Packing
Group I, Hazard Zone A, or to a highway route controlled quantity of a
Class 7 material as it is defined in 49 CFR 173.403, in interstate or
foreign commerce.
* * * * *

0
24. Amend Sec.  387.7 by revising paragraph (e) to read as follows:

Sec.  387.7  Financial responsibility required.

* * * * *
    (e)(1) The proof of minimum levels of financial responsibility
required by this section shall be considered public information and be
produced for review upon reasonable request by a member of the public.
    (2) In addition to maintaining proof of financial responsibility as
required by paragraph (d) of this section, non-North America-domiciled
private and for-hire motor carriers shall file evidence of financial
responsibility with FMCSA in accordance with the requirements of
subpart C of this part.
* * * * *

0
25. Revise Sec.  387.9 to read as follows:

Sec.  387.9  Financial responsibility, minimum levels.

    The minimum levels of financial responsibility referred to in Sec.
387.7 of this subpart are hereby prescribed as follows:

                  Schedule of Limits--Public Liability
------------------------------------------------------------------------
       Type of carriage        Commodity transported    January 1, 1985
------------------------------------------------------------------------
(1) For-hire (In interstate    Property                         $750,000
 or foreign commerce, with a    (nonhazardous).
 gross vehicle weight rating
 of 10,001 or more pounds).
(2) For-hire and Private (In   Hazardous substances,           5,000,000
 interstate, foreign, or        as defined in 49 CFR
 intrastate commerce, with a    171.8, transported
 gross vehicle weight rating    in cargo tanks,
 of 10,001 or more pounds).     portable tanks, or
                                hopper-type vehicles
                                with capacities in
                                excess of 3,500
                                water gallons; or in
                                bulk Division 1.1,
                                1.2 and 1.3
                                materials. Division
                                2.3, Hazard Zone A,
                                or Division 6.1,
                                Packing Group I,
                                Hazard Zone A
                                material; in bulk
                                Division 2.1 or 2.2;
                                or highway route
                                controlled
                                quantities of a
                                Class 7 material, as
                                defined in 49 CFR
                                173.403.
(3) For-hire and Private (In   Oil listed in 49 CFR            1,000,000
 interstate or foreign          172.101; hazardous
 commerce, in any quantity;     waste, hazardous
 or in intrastate commerce,     materials, and
 in bulk only; with a gross     hazardous substances
 vehicle weight rating of       defined in 49 CFR
 10,001 or more pounds).        171.8 and listed in
                                49 CFR 172.101, but
                                not mentioned in (2)
                                above or (4) below.
(4) For-hire and Private (In   Any quantity of                 5,000,000
 interstate or foreign          Division 1.1, 1.2,
 commerce, with a gross         or 1.3 material; any
 vehicle weight rating of       quantity of a
 less than 10,001 pounds).      Division 2.3, Hazard
                                Zone A, or Division
                                6.1, Packing Group
                                I, Hazard Zone A
                                material; or highway
                                route controlled
                                quantities of a
                                Class 7 material as
                                defined in 49 CFR
                                173.403.
------------------------------------------------------------------------

0
26. Amend Sec.  387.31 by revising paragraph (e) to read as follows:

Sec.  387.31  Financial responsibility required.

* * * * *
    (e)(1) The proof of minimum levels of financial responsibility
required by this section shall be considered public information and be
produced for review upon reasonable request by a member of the public.
    (2) In addition to maintaining proof of financial responsibility as
required by paragraph (d) of this section, non-North America-domiciled
private and for-hire motor carriers shall file evidence of financial
responsibility with FMCSA in

accordance with the requirements of subpart C of this part.
* * * * *

PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL

0
27. The authority citation for part 390 is revised to read as follows:

    Authority: 49 U.S.C. 508, 13301, 13902, 31133, 31136, 31144,
31502, 31504, and sec. 204, Public Law 104-88, 109 Stat. 803, 941
(49 U.S.C. 701 note); sec. 114, Public Law 103-311, 108 Stat. 1673,
1677; sec. 217, Public Law 106-159, 113 Stat. 1748, 1767; and 49 CFR
1.73.

0
28. Revise Sec.  390.19 to read as follows:

Sec.  390.19  Motor carrier identification report.

    (a) Applicability. Each motor carrier must file the Form MCS-150 or
Form MCS-150B with FMCSA as follows:
    (1) A U.S., Canada-, Mexico-, or non-North America-domiciled motor
carrier conducting operations in interstate commerce must file a Motor
Carrier Identification Report, Form MCS-150.
    (2) A motor carrier conducting operations in intrastate commerce
and requiring a Safety Permit under 49 CFR part 385, subpart E of this
chapter must file the Combined Motor Carrier Identification Report and
HM Permit Application, Form MCS-150B.
    (b) Filing schedule. Each motor carrier must file the appropriate
form under paragraph (a) of this section at the following times:
    (1) Before it begins operations; and
    (2) Every 24 months, according to the following schedule:

------------------------------------------------------------------------
            USDOT No. ending in               Must file by last day of
------------------------------------------------------------------------
1.........................................  January.
2.........................................  February.
3.........................................  March.
4.........................................  April.
5.........................................  May.
6.........................................  June.
7.........................................  July.
8.........................................  August.
9.........................................  September.
0.........................................  October.
------------------------------------------------------------------------

    (3) If the next-to-last digit of its USDOT Number is odd, the motor
carrier shall file its update in every odd-numbered calendar year. If
the next-to-last digit of the USDOT Number is even, the motor carrier
shall file its update in every even-numbered calendar year.
    (c) Availability of forms. The forms described under paragraph (a)
of this section and complete instructions are available from the FMCSA
Web site at http://www.fmcsa.dot.gov (Keyword ``MCS-150,'' or ``MCS-
150B''); from all FMCSA Service Centers and Division offices
nationwide; or by calling 1-800-832-5660.
    (d) Where to file. The required form under paragraph (a) of this
section must be filed with FMCSA Office of Information Management. The
form may be filed electronically according to the instructions at the
Agency's Web site, or it may be sent to Federal Motor Carrier Safety
Administration, Office of Information Management, MC-RIO, 1200 New
Jersey Avenue, SE., Washington, DC 20590.
    (e) Special instructions for for-hire motor carriers. A for-hire
motor carrier should submit the Form MCS-150, or Form MCS-150B, along
with its application for operating authority (Form OP-1, OP-1(MX), OP-
1(NNA) or OP-2), to the appropriate address referenced on that form, or
may submit it electronically or by mail separately to the address
mentioned in paragraph (d) of this section.
    (f) Only the legal name or a single trade name of the motor carrier
may be used on the forms under paragraph (a) of this section (Form MCS-
150 or MCS-150B).
    (g) A motor carrier that fails to file the form required under
paragraph (a) of this section, or furnishes misleading information or
makes false statements upon the form, is subject to the penalties
prescribed in 49 U.S.C. 521(b)(2)(B).
    (h)(1) Upon receipt and processing of the form described in
paragraph (a) of this section, FMCSA will issue the motor carrier an
identification number (USDOT Number).
    (2) The following applicants must additionally pass a pre-
authorization safety audit as described below before being issued a
USDOT Number:
    (i) A Mexico-domiciled motor carrier seeking 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
must pass the pre-authorization safety audit under Sec.  365.507 of
this subchapter. The Agency will not issue a USDOT Number until
expiration of the protest period provided in Sec.  365.115 of this
subchapter or--if a protest is received--after FMCSA denies or rejects
the protest.
    (ii) A non-North America-domiciled motor carrier seeking to provide
transportation of property or passengers in interstate commerce within
the United States must pass the pre-authorization safety audit under
Sec.  385.607(c) of this subchapter. The Agency will not issue a USDOT
Number until expiration of the protest period provided in Sec.  365.115
of this subchapter or--if a protest is received--after FMCSA denies or
rejects the protest.
    (3) The motor carrier must display the number on each self-
propelled CMV, as defined in Sec.  390.5, along with the additional
information required by Sec.  390.21.
    (i) A motor carrier that registers its vehicles in a State that
participates in the Performance and Registration Information Systems
Management (PRISM) program (authorized under section 4004 of the
Transportation Equity Act for the 21st Century [(Public Law 105-178,
112 Stat. 107]) is exempt from the requirements of this section,
provided it files all the required information with the appropriate
State office.

    Issued on: December 4, 2008.
 John H. Hill,
 Administrator.
 [FR Doc. E8-29253 Filed 12-15-08; 8:45 am]

BILLING CODE 4910-EX-P