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FEDS BEGIN CRACKING DOWN ON CDL FRAUD
By Wayne Schooling

Q: We are confused on who we can bill for the cost of a split specimen. Do we invoice the employer? The parts of the regulation do not seem to make this clear. A: This is where having a good company policy comes into play. You or the company needs to ensure that who pays for the split is added to the company policy. But it must be understood that if the employee says he will not pay for the split, but he still wants the split to be tested, the employer then MUST pay for it. (40.173)

CRACKING DOWN ON CDL FRAUD

The commercial driver’s license fraud that was recently uncovered in the mid-west and east last year has prompted the U.S. DOT’s Office of Inspector General (OIG) to state in a recent report that government officials are not doing enough “to defend against the alarming threat posed by individuals who seek to fraudulently obtain commercial driver licenses.”

The report is the result of an OIG audit of the Federal Motor Carrier Administration’s (FMCSA) oversight of the state CDL testing and licensing process. The CDL process has been under scrutiny since the attacks of September 11. The OIG report recommends that the FMCSA develop “tangible proposals that will tighten controls and ensure consistency in state processes for testing and licensing commercial drivers.”

The report also notes that since 1998, suspected fraud in the testing and licensing of commercial drivers has been identified in 16 states. In response, the report recommends that the FMCSA issue regulations to: 1) Require CDL applicants to show proof of state residency and that they are in the U.S. legally; 2) Require states to verify applicants’ Social Security numbers against government records; 3) Establish training and qualification standards for CDL test examiners; 4) Require those seeking a Learner’s Permit to first pass the knowledge portion of the CDL test; and 5) Require states to test CDL applicants for language proficiency.

Under federal standards, a driver must have a CDL to operate a commercial motor vehicle weighing 26,001 pounds or more, hauling hazardous materials, or transporting at least 16 passengers, including the driver. Commercial drivers are limited to a single license that is issued by one state but recognized in all other states. An estimated 470,000 new CDLs are issued each year.

Further, under Qualifications of Drivers (FMCSA 391.11), drivers must be at least 21 years old and be able to read and speak the English language sufficiently to converse with the general public, to understand highway traffic signs and signals in English, to respond to official inquiries, and to make entries on reports and records.

The report also recommends FMCSA strengthen its oversight of state CDL testing programs and correct the problems it finds. The report urges the FMCSA to be more assertive in ensuring that problems identified are corrected, and to use sanctions when these problems are not fixed promptly. The report notes that the DOT takes an average of 3.8 years to issue significant rules, so the timely adoption of new CDL standards “will require high-level attention.”

As anyone can see, as in the case of the many motor carriers using port haulers in the Los Angeles and Long Beach harbors, there could be many changes in the months ahead. Unless motor carriers start planning now, there will be a significant shift in the balance of supply and demand in this transportation sector. The following section explains that the changes have already started.

NEW CARRIERS FACE MORE SCRUTINY

Starting next year, new interstate motor carriers will have a tougher time entering the business due to strict new rules from the Federal Motor Carrier Safety Administration (FMCSA). The rules require that new U.S. and Canadian motor carriers prove, through an application process, that they are knowledgeable about federal motor carrier safety regulations and that they undergo an on-site safety audit within the first 18 months of operations before receiving permanent operating authority.

New entrants must certify that they will comply with requirements covering driver qualifications, hours of service, drug and alcohol testing, vehicle condition, accident monitoring, and hazardous materials transportation. Carriers failing to demonstrate basic safety management controls during the initial 18-month review period will be denied authorization.

The safety audit will occur at the new entrant’s place of business. The safety audit will be an assessment of the adequacy of basic safety management controls and will include a review of selected carrier records and operational practices such as driver qualification records, driver records of duty status, and vehicle maintenance files.

NTA offers several different programs to help small carriers overcome these problem areas. We can offer you several in-house computerized programs such as log auditing to your own Internet-based driver qualification database, starting as low as $19.50 a month. Now, any company who has access to the Internet can have access to all his driver records on a secure site.

~ The NTA is a nationwide association established to provide services, benefits and information to trucking companies, owner operators and private fleets. We provide our members with more FREE services and benefits than any other. For more information or details call (562) 630-7637 (in California) or 1-800-805-0040, or send me an e-mail at wayne@ntassoc.com. Remember, tell those who may doubt your profession, “If you’ve got it, a trucker brought it!" Until next month, “Drive Safe - Drive Smart!”


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