Consortium/Third-party administrator (C/TPA)

Scope

This regulation applies to motor carriers that operate a commercial motor vehicle (CMV) requiring the driver to possess a commercial driver’s license (CDL) in interstate, intrastate, or foreign commerce.

Regulatory citations

• 49 CFR 382.107 — Definitions
• 49 CFR 40.15 — May an employer use a service agent to meet DOT drug and alcohol testing requirements?
• 49 CFR 40, Subpart Q — Roles and responsibilities of service agents

Key definitions

• Commercial driver’s license (CDL): A license issued to an individual by a state or other jurisdiction of domicile, in accordance with the standards contained in 49 CFR 383, to an individual which authorizes the individual to operate a class of a commercial motor vehicle.
• Commercial motor vehicle (CMV): A motor vehicle or combination of motor vehicles used in commerce to transport passengers or property if the motor vehicle is a:
  • Combination Vehicle (Group A) — Having a gross combination weight rating (GCWR) or gross combination weight (GCW) of 26,001 pounds or more, whichever is greater. The towed unit(s) must have a gross vehicle weight rating (GVWR) or gross vehicle weight (GVW) of more than 10,000 pounds, whichever is greater; or
  • Heavy Straight Vehicle (Group B) — Having a GVWR or GVW of 26,001 pounds or more, whichever is greater; or
  • Small Vehicle (Group C) — Does not meet Group A or B requirements but is either:
    • Designed to transport 16 or more passengers, including the driver; or
    • Of any size and is used in the transportation of hazardous materials as defined in 383.5.
• Consortium/third party administrator (C/TPA): A service agent that provides or coordinates one or more drug and/or alcohol testing services for Department of Transportation (DOT)-regulated employers.

Summary of requirements

C/TPAs typically provide or coordinate the provision of a number of such services and perform administrative tasks concerning the operation of the employers’ drug and alcohol testing programs.

A C/TPA groups two unique services together as one — a consortium and a third-party administrator. However, each plays a slightly different role in the management of motor carrier compliance.

• Consortium. A consortium typically pools together small motor carriers and owner-operators into one random selection from which to draw names. The consortium as a whole must test at least 50 percent of the average number of drivers in the consortium for drugs and 10 percent of the average number of drivers in the consortium for alcohol by the end of the calendar year.

• Third-party administrator. A third-party administrator may take on a variety of functions for a motor carrier. They may be contracted to:
  • Manage the random selection and generate the list of selected drivers for each testing cycle,
  • Arrange testing facilities, lab contracts, and Medical Review Officer (MRO) and Substance Abuse Professional (SAP) services,
  • Act as an intermediary in the transmission of testing information (within the confines of 40.355),
  • Maintain drug and alcohol records and review the information for accuracy and completeness for compliance with the regulations,
  • Report violations, negative return-to-duty tests, and completed follow-up programs to the CDL Drug and Alcohol Clearinghouse on behalf of owner-operators (required role),
  • Report violations, negative return-to-duty tests, and/or completed follow-up programs to the CDL Drug and Alcohol Clearinghouse on behalf of motor carriers (optional provision), and/or
  • Request pre-employment and/or full queries of the CDL Drug and Alcohol Clearinghouse on behalf of motor carriers or owner-operators (optional provision).

The service agent cannot act as a Designated Employer Representative (DER), as it cannot be defined as the employer for DOT purposes.

A carrier’s individual contract will determine what services are rendered on behalf of the motor carrier. A consortium may take on these third-party administrator roles as well.

An organization may take on all or some of the roles with a variety of clients.

Motor carrier responsibilities. According to 49 CFR 40.11, motor carriers are responsible for the actions of their service agents in carrying out its compliance efforts. In addition, 40.17 states that employers are responsible for obtaining information required under the regulations from its service agents. If the C/TPA acts as an intermediary, the motor carrier must still follow through to make sure test results have been received. They cannot assume that “no news is good news.”