New FMCSA Rules (and fines)

Some significant changes that independents and small carriers should be aware of. My attorney hosted a conference call and played a recording of briefing by FMCSA. I found these bullet points and they do a good job summing up what is happening.

Here are the major items:

• The fine for violating reporting and record-keeping requirements has been bumped from $500 to $1,000.
• The fine for violating registration requirements has been bumped from $500 to $10,000.
• The fine for transporting hazmats has gone from a maximum of $20,000 to a minimum of $20,000 and a maximum of $40,000.
• The maximum fine for failing to obey a subpoena or an agency order to testify has gone from $5,000 to $10,000.
• The penalty for violating an out-of-service order following a finding of being unfit or an imminent hazard is $25,000.
• Willful violation of the rules can cost up to $5,000 for the first instance and $7,000 for the second.
• The fine for hazmat violations that lead to death or severe injury has jumped significantly, from a maximum of $100,000 to $175,000.
• Brokers and freight forwarders must maintain a bond of at least $75,000.
• New entrants to the business now must undergo a safety review within a year of beginning operations, rather than the 18 months that was formerly required. Fines and out-of-service orders will now be issued.
• Formerly, the agency could put a truck out of service for operating without registration or outside the scope of its registration. Now it can put the entire company out of service. {BBB Comment: We have found some drivers that have submitted false records. Carriers have no choice but to be less trusting of all drivers because one bad driver can impact all drivers.}
• Formerly, an employer was forbidden from letting a driver drive when he knew that the person had lost his license. Now the standard is, knows or should reasonably know. {BBB Comment: This will be the big one for closing new shops. We know if at lease one new carrier that didn't do a complete background check on new drivers. This carrier will be fined and placed OOS during his entry audit. They view allowing an unqualified driver or not doing the checking to make sure a driver is qualified at the same level.}
• The agency used to consider a carrier’s ability to pay, among other factors, when assessing a fine. Now it will not.

 

Apparently (according to the attorney that hosted the call I was on) the state partners where frustrated with how they could not respond to chameleon carriers. Fines could be issued on some things but they could appeal and once the process was completed these carriers would have been in business for 24-months only to start another carrier and do it all over again.

Insurance, drug testing, maintenance, pre-screening, record keeping, logs - they basically didn't care about anything and just pushed it as long as possible.