WASHINGTON Getting federal authority to operate a motorcoach company has just gotten a little more difficult. And, its going to get even tougher.

The Federal Motor Carrier Safety Administration said new companies applying for operating authority now are being examined much more closely under a new record-checking procedure to verify they actually are a new business and not simply a renamed outfit that had been shut down recently by regulators.

In addition, beginning Feb. 17, start-up companies based in the United States, and carriers from Canada applying for operating authority in the U.S., will be required under a new federal rule to meet higher compliance standards for passing new entrant safety audits and correct safety deficiencies before they receive a permanent registration.

Both of the programs are meant to assure that new operators fully understand the safety requirements covering their operations, according to Rose McMurray, FMCSAs chief safety officer and assistant administrator.

"Changes in FMCSA's new-entrant program and motorcoach vetting process will contribute significantly to ensuring new operators comply with key safety requirements and will enable FMCSA and its state partners to identify unsafe carriers and ensure the early correction of unsafe practices," she said.

Crash sparks move

The new vetting process was developed after an August bus rollover accident near Sherman, Texas, that killed 17 Vietnamese Catholics on a pilgrimage. The cause of the accident was traced to the blowout of a retread tire that was being used illegally on the steering axle. (See Sept. 1 Bus & Motorcoach News.)

Investigators learned shortly after the crash that the operator started the business in June, just days after another charter company he owned had been shut down by federal authorities because of repeated safety violations.

The companies ultimately were fined last year more than $50,000 by the FMCSA.

The Sherman accident prompted the FMCSA to briefly halt all new-entrant approvals until it could review its procedures. The freeze was subsequently lifted and new entrants are being processed, but under a broader vetting procedure that includes a much closer examination of the information provided by the companies and other information gathered by the agency.

"Our increased scrutiny of applicants is necessary to safeguard the traveling public from rogue operators that may be reapplying for authority after they established critical safety deficiencies under a different operator name," said McMurray.

"Although we can't stop every rogue operator bent on violating safety requirements, the FMCSA, along with our state law enforcement partners, aggressively pursues violators when they have been discovered."

Weeding em out

Since the Sherman crash, the agency has received 304 applications from new companies and 127 of them are being reviewed under the new procedure. Nineteen were dismissed because the applicants did not respond to requests for more information and the remaining 158 are awaiting review.

McMurray noted that important information was missing from more than 90 percent of the applications, prompting the agency to contact each of them to obtain the needed data.

Meantime, the new rule, which has been in the works for nearly three years and was not related to the new vetting process, is meant to help new carriers succeed at establishing and maintaining a comprehensive safety management program, according to outgoing FMCSA Administrator John Hill.

"Imposing these tougher standards will ensure that new entrants are fully aware and compliant with federal safety regulations aiding in the continued reduction of highway crashes and fatalities on our nations highways," he said.

Under the measure, a newly registered bus company will automatically fail its safety audit if it violates any one of 16 essential federal regulations during the 18-month safety monitoring period.

These essential regulations cover controlled substances and alcohol testing, hours of service, driver qualifications, vehicle condition, and carrier financial responsibility.

Fixes required

If a company fails the audit, its registration with the agency could be revoked, unless the carrier takes corrective action within a specific time period. Carriers operating buses with seats for 16 or more passengers will have 45 days to comply, while companies with vehicles that carry between 9 and 15 passengers will have 60 days.

The rule also requires that if during the 18-month monitoring period, violations are discovered during roadside inspections, the company may be subjected to a new-entrant expedited safety audit or, in the case of serious safety violations, a more comprehensive compliance review that can result in fines and penalties.

The carrier may also be required to submit a written corrective action plan explaining in detail how it will achieve compliance with the safety rules and improve its safety performance.

Some changes were made to the rule in response to concerns that violations based on a single driver or a single bus might be unfair to larger companies. Under the change, thresholds were added to 2 of the 16 violations that can result in failure of an audit.

Now, a company will fail an audit if a driver failed to prepare a record of duty status in more than half of the trips examined during the review or the carrier failed to perform periodic inspections on more than half of the fleet vehicles examined during the audit.

To read the new rule, which updates the New Entry Safety Assurance Program, go to www.fmcsa.dot.gov and click on the "Latest Rulemakings and Notices" link.