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DOT/FMCSA

RIN: 2126-AA59

Publication ID: Fall 2007

Title: New Entrant Safety Assurance Process
Abstract: This rulemaking would change the New Entrant Safety Assurance Process by raising the standard of compliance for passing the new entrant safety audit. It also would make clarifying changes to some of the existing new entrant regulations. The rule also proposes a separate application procedure and safety oversight system for non-North America-domiciled motor carriers. The proposed rule would improve the Agency's ability to identify at-risk new entrant carriers and would ensure deficiencies in basic safety management controls are corrected before the new entrant is granted permanent registration. These changes would not impose additional operational requirements on any new entrant carrier. All new entrants would continue to receive educational information on how to comply with the safety regulations and be given an opportunity to correct any deficiencies found. FMCSA recognizes many new entrants are small businesses that are unaware of these requirements and continue to need our assistance.
Agency: Department of Transportation(DOT)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Final Rule Stage
Major: No	Unfunded Mandates: No
CFR Citation: 49 CFR 385
Legal Authority: PL 106-159, sec 210 113 Stat 1748 (1999) PL 107-87, sec 350 49 USC 31144

Legal Deadline: None

Statement of Need: Sec. 210 of the Motor Carrier Safety Improvement Act of 1999 (MCSIA) [Public Law 106-159, December 9, 1999, 113 Stat. 1764] directed the agency to establish a safety monitoring system and application process for owners and operators requesting authority to operate in interstate commerce. The objective is to ensure new owners and new operators are knowledgeable about applicable Federal motor carrier safety standards.

Summary of the Legal Basis: Under sec. 210 of the Motor Carrier Safety Improvement Act of 1999 (MCSIA) [Public Law 106-159, December 9, 1999, 113 Stat. 1764], Congress directed the agency to require new owners and new operators granted operating authority to pass a safety review within 18 months of beginning operations. Additionally, the agency must establish minimum requirements for applicants for new authority to operate in Interstate commerce to ensure applicants are knowledgeable about applicable Federal motor carrier safety standards.

Alternatives: The agency considered requiring a proficiency examination to evaluate a new applicant's knowledge about applicable Federal motor carrier safety standards. Instead, FMCSA required applicants for new entrant authority to self-certify that they are knowledgeable of applicable Federal requirements and provided educational and technical assistance materials to familiarize them with applicable standards. The agency provided two alternatives for increasing the number of new entrant motor carriers audited annually. First, the agency provides an alternative to how a safety auditor may conduct safety audits. The safety auditor may audit a single new entrant motor carrier at its place of business or conduct group audits of multiple new entrant motor carriers at one time at a location other than a motor carrier's place of business. The agency also solicited comment on whether to use private contractors to conduct the safety audits and is exploring the option in forthcoming rulemakings.

Anticipated Costs and Benefits: We estimate the costs to be $490 million (net present value discounted at 7% over 10 years) and the benefits to be $3,900 million (net present value discounted at 7% over 10 years). The full regulatory evaluation for the NPRM is in the docket.

Risks: FMCSA has not yet fully assessed the risks that might be associated with this activity.

Timetable:

Action	Date	FR Cite
Interim Final Rule (IFR)	05/13/2002	67 FR 31978
IFR Comment Period End	07/12/2002
IFR Effective	01/01/2003
NPRM	12/21/2006	71 FR 76730
NPRM Comment Period End	02/20/2007
Final Rule	03/00/2008

Additional Information: Docket ID: FMCSA-2001-11061
Regulatory Flexibility Analysis Required: Yes	Government Levels Affected: None
Small Entities Affected: Businesses	Federalism: No
Included in the Regulatory Plan: Yes
RIN Information URL: www.regulations.gov	Public Comment URL: www.regulations.gov
RIN Data Printed in the FR: Yes
Agency Contact: Stephanie Haller Enforcement and Compliance Division Department of Transportation Federal Motor Carrier Safety Administration 1200 New Jersey Avenue SE, Washington, DC 20590 Phone:202 366-0178 Email: stephanie.haller@dot.gov