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Saturday, July 13, 2024 | Back issues
Courthouse News Service Courthouse News Service

Agency Wants Authority to Suspend Carriers

WASHINGTON (CN) - The Federal Motor Carrier Safety Administration plans to suspend or revoke the operating authority of motor carriers found to avoid compliance with safety regulations by changing names or using other methods, according to a newly proposed regulation.

According to the proposal: "The FMCSA has determined that each year a small number of motor carriers have attempted to avoid regulatory compliance or mask or otherwise conceal noncompliance by submitting new applications for registration, often under a different name, to continue operations after being placed out of service. Motor carriers and individuals do this for a variety of reasons that include avoiding payment of civil penalties, circumventing denial of operating authority registration based on a determination that they are not willing or able to comply with the applicable statutes or regulations, or avoiding a negative compliance history. Other motor carriers attempt to avoid compliance, or mask or otherwise conceal noncompliance, by creating or using an affiliated company under common operational control. They shift customers, vehicles, drivers, and other operational activities to one of the affiliated companies when FMCSA places one of the other commonly controlled companies out of service."

The proposal also states that: "FMCSA instituted a vetting process for for-hire passenger and household goods carriers that involves a comprehensive review of registration applications to determine whether the applicants are reincarnations or affiliates of other motor carriers with negative compliance histories or are otherwise not willing and able to comply with the applicable regulations."

But the vetting process does not apply sanctions, according to the rule.

The proposed regulation would allow FMCSA "to suspend or revoke the operating authority registration of motor carriers that have shown egregious disregard for safety compliance, permit [those] who have shown egregious disregard for safety compliance to exercise controlling influence on their operations, or operate multiple entities under common control to conceal noncompliance with safety regulations."

To learn more, click the document icon for this regulation and others.

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