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The purpose of a safety audit is to:
- Provide educational and technical assistance to the new entrant; and
- Gather safety data needed to make an assessment of the new entrant’s safety performance and adequacy of its basic safety management controls.
Scope
These requirements apply to new U.S. and Canadian motor carriers that are starting interstate commercial motor vehicle (CMV) operations as a new entrant.
Regulatory citations
- 49 CFR 385, Subpart D — New entrant safety assurance program
Key definitions
- Commercial motor vehicle (CMV): A self-propelled or towed motor vehicle used on a highway, in interstate commerce, that meets any one of the following criteria:
- Has a gross vehicle weight rating (GVWR) or gross combination weight rating (GCWR), or gross vehicle weight (GVW) or gross combination weight (GCW), of 10,001 pounds or more, whichever is greater; or
- Is designed or used to transport more than 8 passengers (including the driver) for compensation; or
- Is designed or used to transport more than 15 passengers (including the driver), and not used to transport passengers for compensation; or
- Is transporting hazardous materials of a type or quantity which requires placarding.
- Safety audit: An examination of a motor carrier’s operations to:
- Provide educational and technical assistance on safety and the operational requirements of the Federal Motor Carrier Safety Regulations (FMCSRs) and applicable Hazardous Materials Regulations (HMRs); and
- Gather critical safety data needed to make an assessment of the carrier’s safety performance and basic safety management controls.
Summary of requirements
The safety audit will consist of a review of the new entrant’s safety management systems and a sample of required records to assess regulatory compliance.
A safety audit of the new entrant will be conducted once the new entrant has been in operation for enough time to have sufficient records to allow the evaluation of its basic safety management controls. Generally, this period is at least three months.
Areas of review include (but are not limited to):
- Driver qualification
- Driver duty status
- Vehicle maintenance
- Accident register and
- Drug and alcohol use and testing requirements.
A Federal Motor Carrier Safety Administration (FMCSA)-certified individual will conduct the safety audit at the new entrant’s business.
Refusal. 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 operation placed out of service unless the new entrant agrees (in writing) within ten days from the service date of the notice, to permit the safety audit to be performed.
Refusal may subject the new entrant to the penalty provisions in 49 U.S.C. 521(b)(2)(A).
If the new entrant does not agree to undergo a safety audit:
- Its registration will be revoked; and
- Its interstate operations will be placed out of service effective the 11th day from the service date of the notice issued.
After the audit. Upon completion of the safety audit, the auditor will review the findings with the new entrant.
If, after the safety audit, FMCSA determines the new entrant has basic safety management controls, FMCSA will provide the new entrant written notice within 45 days that it has adequate basic safety management controls. The new entrant’s safety performance will be closely monitored for the remainder of the 18-month period of new entrant registration.
If, after the safety audit, FMCSA determines the new entrant has inadequate basic safety management controls, it will provide the new entrant written notice within 45 days 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 practices within:
- 45 days if the new entrant transports:
- Passengers in a CMV designed or used to transport more than 15 passengers, including the driver,
- Passengers in a CMV designed to transport between 9 and 15 passengers, including the driver, for direct compensation,
- Hazardous materials requiring placarding; or
- 60 days for all other new entrants.
Automatic failure. A new entrant will automatically fail a safety audit and will receive notice that its USDOT new entrant registration will be revoked if found in violation of any one of the following regulations:
| Regulation citation | Description | Guideline for Determining Automatic Failure |
|---|---|---|
| §382.115(a)/§382.115(b) | Failing to implement an alcohol and/or controlled substances testing program (domestic and foreign motor carriers). | Single occurrence. |
| §382.201 | Using a driver known to have an alcohol content of 0.04 or greater to perform a safety-sensitive function. | Single occurrence. |
| §382.211 | Using a driver who has refused to submit to an alcohol or controlled substances test required under Part 382. | Single occurrence. |
| §382.215 | Using a driver known to have tested positive for a controlled substance. | Single occurrence. |
| §382.305 | Failing to implement a random controlled substances and/or alcohol testing program. | Single occurrence. |
| §383.3(a)/§383.23(a) | Knowingly using a driver who does not possess a valid commercial driver’s license (CDL). | Single occurrence. |
| §383.37(b) | Knowingly allowing, requiring, permitting, or authorizing an employee to operate a CMV with a commercial learner’s permit (CLP) or CDL which is disqualified by a State, has lost the right to operate a CMV in a State or who is disqualified to operate a CMV. | Single occurrence. |
| §383.51(a) | Knowingly allowing, requiring, permitting, or authorizing a driver to drive who is disqualified to drive a CMV. | Single occurrence. (This violation refers to a driver operating a CMV as defined in §383.5.) |
| §387.7(a) | Operating a CMV without having in effect the required minimum levels of financial responsibility coverage. | Single occurrence. |
| §387.31(a) | Operating a passenger-carrying CMV without having in effect the required minimum levels of financial responsibility. | Single occurrence. |
| §391.15(a) | Knowingly using a disqualified driver. | Single occurrence. |
| §391.11(b)(4) | Knowingly using a physically unqualified driver. | Single occurrence. (This violation refers to a driver operating a CMV as defined under §390.5.) |
| §395.8(a) | Failing to require a driver to make a record of duty status. | Requires a violation threshold (51 percent or more of examined records) to trigger automatic failure. |
| §396.9(c)(2) | Requiring or permitting the operation of a CMV declared "out of service" before repairs are made. | Single occurrence. |
| §396.11(a)(3) | Failing to correct out-of-service defects listed by driver in a driver vehicle inspection report before the CMV is operated. | Single occurrence. |
| §396.17(a) | Using a CMV not periodically inspected. | Requires a violation threshold (51percent or more of examined records) to trigger automatic failure. |
Extension of corrective action period. FMCSA may extend the 45-day period for up to an additional ten days if the new entrant has submitted evidence that corrective actions have been taken pursuant to and the FMCSA needs additional time to determine the adequacy of the corrective action. This 45-day extension applies if the new entrant transports:
- Passengers in a CMV designed or used to transport more than 15 passengers, including the driver;
- Passengers in a CMV designed to transport between 9 and 15 passengers, including the driver, for direct compensation; or
- Hazardous materials requiring placarding.
FMCSA may extend the 60-day period 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. This 60-day extension applies to all other new entrants.
Result of corrective action. If the new entrant provides evidence of corrective action acceptable to FMCSA within the time period specified (and if applicable, any authorized extension of that time period), FMCSA will provide written notification to the new entrant that its DOT new entrant registration will not be revoked and it may continue operations.
If the new entrant fails to submit a written response demonstrating corrective action acceptable to FMCSA within the time period specified (and if applicable, any authorized extension of that time period), FMCSA will revoke the new entrant’s registration and issue an out-of-service order effective on day 46 from the date of notification if the new entrant transports:
- Passengers in a CMV designed or used to transport more than 15 passengers, including the driver;
- Passengers in a CMV designed to transport between 9 and 15 passengers, including the driver, for direct compensation; or
- Hazardous materials requiring placarding.
An out-of-service order will be issued effective on day 61 from the date of notification for all other new entrants.
If an extension had been granted, the FMCSA will revoke the new entrant’s registration and issue an out-of-service order the day following the expiration of the extension date.
The new entrant may not operate in interstate commerce on or after the effective date of the out-of-service order.
Administrative review. If a new entrant receives a notice that its new entrant registration will be revoked, it may request FMCSA conduct an administrative review if the new entrant believes FMCSA has committed an error in determining that its basic safety management controls are inadequate. The request must:
- Be made to the Field Administrator of the appropriate FMCSA Service Center;
- Explain the error the new entrant believes FMCSA committed in its determination; and
- Include a list of all factual and procedural issues in dispute and information or documents that support the new entrant’s argument.
FMCSA may request that the new entrant submit additional data and attend a conference to discuss the issue(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.
This request for administrative review should be submitted within 15 days of the notice that the new entrant's basic safety management controls are inadequate. Submitting the request within 15 days allows FMCSA to issue a written decision before prohibitions take effect.
The new entrant must make a request within 90 days of the date it is notified that its basic safety management controls are inadequate or remain inadequate.
FMCSA will complete its review and notify the new entrant in writing of its decision within 30 days after receiving a request for review from a new entrant that transports:
- Passengers in a CMV designed or used to transport more than 15 passengers, including the driver;
- Passengers in a CMV designed to transport between 9 and 15 passengers, including the driver, for direct compensation; or
- Hazardous materials requiring placarding.
FMCSA will complete its review and notify the new entrant in writing of its decision within 45 days after receiving a request for review from all other new entrants.
The Field Administrator’s decision constitutes final FMCSA action.
Reapplication. 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.
If the USDOT new entrant registration was revoked because of a failed safety audit, the new entrant must:
- Submit an updated MCS-150;
- Submit evidence that it has corrected the deficiencies that resulted in revocation of its registration and ensure that it will have basic safety management controls in effect; and
- Begin the 18-month new entrant monitoring cycle again as of the date the refiled application is approved.
If the USDOT new entrant registration was revoked because FMCSA found that the new entrant had failed to submit to a safety audit, the new entrant must:
- Submit an updated MCS-150;
- Begin the 18-month new entrant monitoring cycle again as of the date the refiled application is approved; and
- Submit to a safety audit.
If the new entrant is a for-hire carrier subject to the registration provisions under 49 U.S.C. 13901 and has had its operating authority revoked, it must reapply for operating authority as set forth in Part 365.