Waynes World - December 2009
FMCSA TO REWRITE HOURS OF SERVICE RULES
AGAIN, MORE ON CSA 2010, AND...
CHOOSING YOUR PRINCIPLE
PLACE OF BUSINESS
by Wayne Schooling
BREAKING NEWS: Here we go again for the third time – the FMCSA announced that they are going to rewrite the Hours of Service rules, but don’t hold your breath, because it will take at least nine months.
CSA 2010: Beginning this month, as a precursor to the full implementation of CSA 2010 (set to happen in July of 2010), the FMCSA is debuting their Commercial Drivers Pre-Employment Screening Program, which will provide carriers with individual drivers’ safety performance histories with his/her previous employers. These “Driver Profiles” will contain important driver data, including crash and inspection histories. CSA 2010 is the biggest change to trucking in 30 years - I implore you to not dismiss this lightly. We will keep you up-to-date about CSA 2010 as it gets closer to implementation.
NTA NEWS: I am excited to announce that the NTA (NorthAmerican Transportation Association) is now an Authorized Employer Pull Notice (EPN) Agent for the Department of Motor Vehicles in California. NTA is the first and only association to be appointed by the State. In addition, NTA was also awarded by the U.S. Commerce Association with the “Best of Long Beach Award” as a medical services organization in October. NTA also received the “Best of Carson City Award” back in June from the same association.
FMCSA RULES CALENDAR: Here are some “Final Rulings” expected to be made by the FMCSA in the near future: Electronic On-Board Recorders 12/29/09; CDL testing and Learner’s Permit standards 4/30/10; Entry-level driver training 5/27/10; National Registry of Certified Medical Examiners 5/31/10; and a rule on the Drug and Alcohol Test Results Database around 6/18/10.
PRINCIPAL PLACE OF BUSINESS: The FMCSA recently announced new guidelines concerning its definition of “principle place of business.” No prior interpretations, whether published or unpublished, may be relied upon as authoritative if they are inconsistent with this new guidance published on July 29, 2009. This guidance will provide the motor carrier industry and federal, state, and local law enforcement officials uniform information for use in determining which locations may be designated by a carrier as its principal place of business. This regulatory guidance was effective as of August 12, 2009. Let’s look at what this new guidance actually means.
When determining the “principle place of business” for a carrier that has more than one office or terminal, the regulations do not explicitly place a restriction on which location a motor carrier may designate as such. The definition does state that such a location is “normally” the carrier’s headquarters, but the rule does not require motor carriers to use the company’s corporate headquarters as its principal place of business. However, motor carriers are limited to using an actual place of business of the motor carrier. Also, a motor carrier may designate as its “principal place of business” only locations that have offices of the carrier’s upper executives, managers, or employees responsible for the oversight of safety operations and compliance with the FMCSR’s and Haz-Mat regulations.
In determining its principal place of business, a motor carrier must consider the following factors: (a) the relative importance of the activities performed at each location, and (b) the time spent at each location by motor carrier management and/or corporate officers. The FMCSA will use these factors to determine whether a carrier has designated an appropriate location as its principal place of business. In addition, FMCSA may also consider whether the location is operated, controlled or owned by the carrier, whether operations relating to the transportation of persons or property regularly take place at the location, whether any of the employees of the carrier regularly report to the location for duty, whether any leased or owned company vehicles are maintained on the premises, and whether any of the records required by parts 382, 387, 390, 391, 395, 396 and 397 are maintained on the premises. If a motor carrier designates an improper location as its principal place of business, FMCSA may initiate enforcement or take action regarding the carrier’s U.S. DOT registration.
A motor carrier with multiple locations may maintain some records at locations of the motor carrier other than, or in addition to, its principal place of business. However, after a request has been made by an FMCSA representative, a motor carrier with multiple locations must make records available for inspection at the principal place of business or other location specified by the agent or authorized representative within 48 hours (excluding Saturdays, Sundays and Federal holidays). A motor carrier with just a single business location must make these records available upon request.
A motor carrier may not designate as its principal place of business any location where the carrier is not engaged in business operations related to the transportation of persons or property. For example, post office box centers or commercial courier service establishments that receive and hold mail for third-party pickup may not be designated as a principal place of business (other than by the courier provider itself). A motor carrier may not designate the office of a consultant, service agent or attorney as their principal place of business if the carrier is not engaged in operations related to the transportation of persons or property at that location.
A motor carrier with a single business location, including a private residence, cannot designate a different location as its principal place of business. The definition of “principal place of business” in 49 CFR 390.5 allows a carrier with multiple terminals or offices to designate a single terminal or office as its primary business location. Consistent with this definition, a motor carrier with a single place of business may designate only its actual place of business as the “principal place of business.”
As the new year begins, there are plenty of looming regulations on the horizon. I will do my best to keep you informed about the most important ones, so stay tuned!
~ NTA remains a name you can trust. Our website (www.ntassoc.com) is your official U.S. DOT Internet Training Site and we are administrators of a Nationally Accredited Drug and Alcohol Program. If you have any questions, call me at (562) 279-0557 or send an e-mail to wayne@ntassoc.com. Until next month, “Drive Safe – Drive Smart!”