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Passenger Carrier Resource GuideFederal Motor Carrier Safety Administration

Passenger Carrier Resource Guide TOCii

TOC Passenger Carrier Resource GuideIntroduction. 1Chapter 1Overview of the Passenger Carrier Industry31a. Intercity, Regular Route . 31b. Curbside Operators . 42a. Charter Operations . 42b. Tour Bus Operations . 53. Limousine Operations . 54. Van Operations. 65. Private Motor Carriers of Passengers . 66. School Bus Operations . 87. Transit Bus Operations . 9Chapter 2Definitions and General Applicability (Part 390)for Motor Carriers of Passengers11Defining the Different Types of Passenger Operations. 12Non-Business Private Motor Carriers of Passengers (Non-Business PMCPs). 13Business Private Motor Carriers of Passengers (Business PMCPs). 14Small Passenger-Carrying Commercial Motor Vehicles. 14School Bus Operations. 15Chapter 3Special Topics Unique to Passenger Operations171. Transportation, Incidental to Travel by Other Modes(i.e., Airport Service, Cruise Lines) . 172. Brokerage. 173. Lease and Interchange of Vehicles. 174. Interline Agreements. 175. Subcontracting. 186. Notice of Safety Rating. 197. Americans with Disabilities Act (ADA) . 198. Passenger Carrier Regulations in Part 374 . 219. Investigations and New Entrant Audits on Non-Business PMCPs. 2110. Passenger Carriers that Receive a Federal Transit Administration Grant. 21iii

Passenger Carrier Resource Guide TOCChapter 4Investigation Guidelines23Part 382—Drug and Alcohol Testing. 23Part 383—Commercial Driver’s License Standard . 23Part 387— Financial Responsibility Applicability to Motor Carriers of Passengers. 24Part 391—Qualifications of Drivers . 24Part 395—Hours-of-Service of Drivers . 25Part 396—Inspection, Repair, and Maintenance . 27Part 177—Hazardous Materials . 27Chapter 5Interpretations. Regulatory Guidance Specific to Passenger Carriers29Part 382—Controlled Substances & Alcohol Use and Testing . 29Section 382.301 Pre-employment TestingSection 382.305 Random TestingSection 382.401 Retention of RecordsPart 383—Commercial Driver’s License Standards. 30Section 383.3 ApplicabilitySection 383.5 DefinitionsSection 383.91 Commercial Motor Vehicle GroupsSection 383.93 EndorsementsSpecial Topics—Motorcoaches and CDLs. 31Part 387—Minimum Levels of Financial Responsibility for Motor Carriers. 32Section 387.27 ApplicabilityPart 390—General Section. 32Section 390.3 General ApplicabilitySection 390.5 DefinitionsPart 392—Driving of Motor Vehicle . 35Section 392.5 Intoxicating BeverageSection 392.16 Use of Seat BeltsPart 393—Parts and Accessories Necessary for Safe Operation . 36Section 393.44 Front Brake Lines, ProtectionSection 393.61 Window ConstructionSection 393.62 Window ObstructionsSection 393.75 TiresSection 393.89 Bus Drive Shaft ProtectionSection 393.92 Buses, Marking Emergency DoorsSection 393.93 Seats, Seat Belts Assembliesiv

TOC Passenger Carrier Resource GuidePart 395—Hours-of-Service of Drivers . 38Section 395.2 DefinitionsSection 395.5 Driver’s Record of Duty StatusPart 396—Inspection, Repair, and Maintenance . 39Section 396.3 Inspection, Repair and MaintenanceAppendix AGlossary of Motorcoach Industry Terms. 41Appendix BGlossary of ADA-Related Terms. 43Appendix CHelpful Web Sites. 45v

Passenger Carrier Resource Guide TOCvi

Introduction Passenger Carrier Resource GuideIntroductionU.S. DEPARTMENT OF TRANSPORTATION FEDERAL MOTOR CARRIER SAFETYADMINISTRATION PASSENGER CARRIER RESOURCE GUIDEThe United States Department of Transportation, Federal Motor Carrier Safety Administration isresponsible for the regulatory oversight of the passenger carrier industry. This resource guide, developedby the National Passenger Technical Assistance Group, is intended to be utilized as an aid to assistFederal and State personnel while conducting investigations on passenger carriers. The informationcontained in this document is provided as guidance. The Field Operations Training Manual (FOTM)should be consulted as well.1

Passenger Carrier Resource Guide Introduction2

Chapter 1 Passenger Carrier Resource GuideChapter 1:Overview of the Passenger Carrier IndustryAs with any other mode of highway transportation,the passenger carrier industry has several distincttypes of service. It is important to note that theapplicability to the Federal Motor Carrier SafetyRegulations (FMCSRs) is very specific to eachtype of service. This industry overview will providea general description of each type of service and asummary of the regulatory oversight by the FederalMotor Carrier Safety Administration (FMCSA). Thefollowing types of service will be discussed:1a. Intercity, Regular Route1b. Curbside Operators2a. Charter Operations2b. Tour Bus Operations3. Limousine Operations4. Van Operations5. Private Motor Carriers of Passengers6. School Bus Operations7. Transit Bus Operations1a. Intercity, Regular RouteAn intercity, regular-route motorcoach operation isa business that provides passenger transportationservices to the general public for compensation overspecified, predetermined, and published regularroutes between cities or terminals. This type ofpassenger transportation service is sometimescalled scheduled service. Regular route servicefares are normally collected on an individualbasis. The motorcoach industry asserts that morepassengers travel by motorcoach than by any othercommercial mode.With the introduction of curbside operators andother discount intercity operations, the industryhas seen significant growth in this segment overthe past 5 years. Greyhound Lines Inc. is theonly nation-wide provider of intercity motorcoachtransportation in the United States, with a fleet ofmore than 1,500 motorcoaches. Approximately 100motorcoach companies provide regular route servicebetween certain predetermined cities or terminals.Approximately half of all motorcoach industrymileage occurs during regular route service.Description of VehiclesTypically UsedThe primary vehicle used by this type of operationis an over-the-road bus (OTRB), which iscommonly called a motorcoach. An OTRB has anelevated passenger deck located over a baggagecompartment. Most modern OTRBs are 40 or45 feet in length and are designed to transportapproximately 50 to 55 seated passengers for along distance. The major OTRB manufacturer inNorth America is Motor Coach Industries (MCI).Other manufacturers are Prevost Car (Canada),Van Hool (Belgium) and Setra (Germany).Regulatory Oversight by the FederalMotor Carrier Safety AdministrationIntercity, regular-route motorcoach companiesoperate commercial motor vehicles (per thedefinitions in 49 CFR Parts 383 and 390) ininterstate commerce. They are, therefore, subjectto full applicability of the FMCSRs (includingthe controlled substance and alcohol testingregulations), minimum levels of financialresponsibility, insurance filing requirements, andlicensing/operating authority requirements.3

Passenger Carrier Resource Guide Chapter 11b. Curbside Operators2a. Charter OperationsDefinition of Curbside OperatorIntroduction and General OverviewThe term “curbside operator” commonly refers tolow cost intercity providers that avoid traditional busterminals in favor of curbside or storefront pointsof origin typically although not limited to inner-cityenvironments. Initially, the term “curbside operator”referred to companies with ties to Asian communitiesoperating in the Northeast corridor. As this industrysector evolved, traditional carriers such as GreyhoundLines, Inc., and Peter Pan Bus Lines through BoltBus, and Coach USA through Megabus enteredthe Northeast regular route curbside bus market.Most of the growth in this sector is due to the entryof traditional carriers with substantial resources forrapid expansion. As currently used, the term “curbsideoperator” includes mainstream, traditional carriersas well as other carriers rooted in ethnic beginnings.Curbside operators have expanded well beyond theNortheast corridor and now can be found in manymajor U.S. cities across the country.The number of motorcoach companies isoverwhelmingly dominated by charter operators.A charter occurs when a pre-formed group ofpeople (e.g. organization, association, club, school,etc.) hire a motorcoach for their exclusive use. Thegroup usually travels to a selected location for aspecific purpose (e.g., sporting events, ski trips,etc.). Charter operations also include excursions toamusement parks such as Walt Disney World. Mostcharters are for one day, but some last several days.Charter service charges are normally computedand assessed on a vehicle mileage or time of usebasis, or a combination thereof.Historical Overview of the Originsof Curbside OperatorsCurbside operators originated in the Asiancommunities in the Northeast. It is believedthat it had its earliest beginnings transportingChinese workers from city to city and eventuallygrew to become a means of inexpensive intercitytransportation catering to the Chinese communitiesand eventually college students. Prior to 2006, therewas violent organized gang activity associatedwith Chinese curbside operators due to fiercecompetition among companies. Since 2005,FMCSA has invested significant resources inoverseeing the curbside sector. The U.S. House ofRepresentatives held a hearing on curbside busoperations on March 2, 2006.Corporate StructureThe industry had its beginnings with small individualcompanies with complex business relationships withone another often resulting in co-mingling of driversand equipment which has continued as of the dateof this resource guide.4Almost all motorcoach companies, well over 90percent, offer charter service. There are about3,700 to 3,900 for-hire motorcoach companiesdomiciled in the United States and Canada; about5 to 10 percent of these companies providingcharter service are based in Canada. Motorcoachcompanies providing charter service are comprisedof mostly small businesses. Approximately 90percent of motorcoach companies operate fewerthan 25 buses. Approximately 65 percent operatefewer than 10 buses.Description of Vehicles Typically UsedThe primary vehicle used in charter bus service isan over-the-road bus (OTRB), which is commonlycalled a motorcoach. For more information aboutOTRBs, see the respective section for intercity,regular-route motorcoach operations.Regulatory Oversight by the FederalMotor Carrier Safety AdministrationCharter motorcoach companies that operate ininterstate commerce are subject to full applicabilityof the FMCSRs (including the controlled substanceand alcohol testing regulations), minimum levels offinancial responsibility, insurance filing requirements,and licensing/operating authority requirements.

Chapter 1 Passenger Carrier Resource GuideSome charter motorcoach companies, especiallythose located in large States, operate in intrastatecommerce. From a Federal regulatory standpoint,such companies are only subject to the commercialdriver’s license standards and the controlledsubstance and alcohol testing regulations. MostStates, however, have intrastate safety standardsthat are similar to the Federal regulations.2b. Tour Bus OperationsIntroduction and General OverviewA tour is a planned or prearranged trip offered forsale by a motorcoach company or tour companyat a fixed price to travelers. A tour is generally aselection of destinations or attractions that has beenassembled into a tour package and advertised to thegeneral public. Typically, a tour operator will assembleand advertise a tour and contract with a passengertransportation. FMCSA has no regulatory authorityover tour operators. Price usually includes lodging,meals, sightseeing, and passenger transportation.A tour usually involves a set itinerary of places and/or events that the group will attend. Tours typically runfor several days and can extend to several weeks.Examples of tour bus operations include fall foliagetours in New England and tours of multiple nationalparks in the west.Description of Vehicles Typically UsedThe primary vehicle used by this type of operationis an OTRB, which is commonly calleda motorcoach. For more information aboutOTRBs, see the respective section for intercityregular-route motorcoach operations.Regulatory Oversight by the FederalMotor Carrier Safety AdministrationThe vast majority of tour bus companies operateOTRBs in interstate commerce. They are, therefore,subject to full applicability of the FMCSRs(including the controlled substance and alcoholtesting regulations), minimum levels of financialresponsibility, insurance filing requirements, andlicensing/operating authority requirements.Some tour bus companies, especially those locatedin large States, operate only in intrastate commerce.From a Federal regulatory standpoint, suchcompanies are mainly subject to the commercialdriver’s license standards, and the controlledsubstance and alcohol testing regulations. MostStates, however, have intrastate safety standardsthat are similar to the Federal regulations.3. Limousine OperationsIntroduction and General OverviewLimousine companies provide a demandresponsive passenger transportation servicefor individuals and small groups with smallpassenger vehicles.The top revenue sources for limousinecompanies are weddings, airport transportation,corporate clients, nights on the town, funerals,and hotels/resorts.Description of Vehicles Typically UsedSedans outnumber all other types of vehicles as themost used vehicles by limousine and chauffeuredtransportation companies. Approximately 50%of limousine companies have 1 to 4 vehicles.Approximately 10% have more than 20 vehicles.The average fleet size is 5 to 6 vehicles. Extendedstretch limousines such as Escalades, Navigators,or Hummers can be designed or used to transportmore than 15 passengers including the driver.5

Passenger Carrier Resource Guide Chapter 1Regulatory Oversight by the FederalMotor Carrier Safety AdministrationRegulatory Oversight by the FederalMotor Carrier Safety AdministrationLimousine companies that exclusively operatevehicles designed to transport 8 or lesspassengers (including the driver) in interstatecommerce are only subject to minimum levelsof financial responsibility, the insurance filingrequirements, and the licensing/operatingauthority requirements. Most limousine driversare not subject to the commercial driver’s licensestandards, and the controlled substance andalcohol testing regulations because almost alllimousines are not commercial motor vehicles (asdefined in 49 CFR Part 383). Limousine operationsthat exclusively operate vehicles designed totransport 8 or less passengers (including thedriver) in intrastate commerce are generally notsubject to FMCSA regulatory oversight. Limousinecompanies that operate vehicles designed orused to transport between 9 and 15 passengers(including the driver) in interstate commerce aresubject to the FMCSRs (excluding the controlledsubstance and alcohol testing regulations) whenthey are directly compensated for such services.For more information about regulatory thresholdsfor small passenger-carrying vehicles, see therespective section for van operations.Vans that transport 8 or less passengers (includingthe driver) in interstate commerce (except taxi cabs)are only subject to minimum levels of financialresponsibility, the insurance filing requirements,and the licensing/operating authority requirements.The vast majority of van drivers are not subject tothe commercial driver’s license standards, and thecontrolled substance and alcohol testing regulationsbecause most vans are not commercial motorvehicles (as defined in 49 CFR Part 383). Vanoperations that transport passengers in intrastatecommerce are generally not subject to FMCSAregulatory oversight.4. Van OperationsIntroduction and General OverviewPassenger van service is commonly used in shorthaul service, typically hotel and airport transfers.Some limousine operators expand their serviceduring a growth phase to include small passengervans to cater to small groups and corporate clients.There are van operations that do provide intercityservice over long distances.Description of Vehicles Typically UsedVans are small passenger-carrying vehicles thatare designed to transport 9–15 passengers,including the driver.6For-hire carriers that operate vehicles designedor used to transport more than 8 passengers(including the driver) for direct compensationin interstate commerce are subject to the fullapplicability of the FMCSRs with the exceptionof controlled substances and alcohol testing andCDL requirements.Direct compensation means payment made tothe motor carrier by the passengers or theindividual acting on behalf of the passengersfor the transportation services provided, andnot included in a total package charge or otherassessment for highway transportation services(see 49 CFR §390.5).5. Private Motor Carriersof PassengersIntroduction and General OverviewPrivate Motor Carriers of Passengers (PMCPs) fallinto one of two groups: Business or Non-Business.Business PMCPs provide private, interstatetransportation of passengers in the furtheranceof a commercial enterprise. For PMCPs to besubject, the vehicle must be designed or used totransport more than 15 passengers, including thedriver, unless the vehicle otherwise meets thedefinition of a commercial motor vehicle in49 CFR §390.5.

Chapter 1 Passenger Carrier Resource GuideExamples of Business PMCPs include companiesthat use buses to transport their own employees, andentertainers who use their buses for transportationto a show or performance location. Commercialbusinesses that provide transportation services forthe general public for compensation are for-hireoperations and are not Business PMCPs.Non-Business PMCPs provide private, interstatetransportation of passengers that is not in thefurtherance of a commercial purpose. Examplesof Non-Business PMCPs include churches, scoutgroups, and other charitable organizations that ownor lease buses for the private transportation of theirrespective group. Churches, charities, or privateassociations that offer passenger transportationservices to the general public for compensation arefor-hire operations and are not Non-Business PMCPs.Description of Vehicles Typically UsedThe type, age, and condition of vehicles usedby PMCPs vary quite significantly from entityto entity. Business PMCPs that transport theirown employees may operate an over-the-roadbus (OTRB), minibus, or a converted school busdepending on the company’s size, resources, andfrequency of passenger transportation. Entertainersmay operate vehicles ranging from luxury,customized OTRBs to converted trucks or schoolbuses depending upon resources and specialneeds. Churches, charities, clubs, and privateassociations use a variety of buses such as OTRBs,minibuses, and converted school buses.Regulatory Oversight by the FederalMotor Carrier Safety AdministrationPMCPs often operate buses that meet the definitionof a commercial motor vehicle as defined in 49 CFRPart 383. PMCPs that operate such vehicles aresubject to different regulatory oversight dependingupon whether the motor carrier is categorized asBusiness or Non-Business.Business PMCPs are subject to thefollowing standards: Commercial Driver’s License Controlled Substances and Alcohol Testing afety Regulations contained in 49 CFR SParts 390 through 396 (except the road testrequirements of 49 CFR Part 391)Non-Business PMCPs are subject to thefollowing standards: Commercial Driver’s License Controlled Substances and Alcohol Testing S afety Regulations contained in49 CFR Parts 390 through 396 (exceptall recordkeeping requirements withinthese Parts, and the road test requirementsof 49 CFR Part 391)All PMCPs (Business and Non-Business) areexempt from the fuel system requirements of49 CFR §393.67, provided the vehicle fuelsystem is maintained to the originalmanufacturer’s standards.7

Passenger Carrier Resource Guide Chapter 16. School Bus OperationsIntroduction and General OverviewA school bus operation transports students and/or school personnel to and from school or schoolrelated events. The role of the Federal governmentin school bus transportation is not as great asthe State governments. Most regulatory oversightoccurs at the State level.School bus operations are distinguished fromother types of passenger transportation operationsbecause of their highly specialized service. For themost part, the operation of a school bus entailsthe transportation of school children and/or schoolpersonnel from home to school and school to home.This type of transportation generally involves theregularly scheduled operation of school buses into andthrough residential, rural, and business areas, whichcollectively encompass a relatively small geographicarea within the confines of a single State. The routesare, in most circumstances, predetermined and ofa “stop and go” nature during specific morning andafternoon hours.There are secondary aspects of some schoolbus operations that are outside of the scope oftransportation between home and school such asthe transportation of a school team to a competitiveathletic event.The transportation of school children to schoolis either performed by the local public schoolsystem, a for-hire bus operation under contract tothe local public school system, or a private school.Approximately one-third of all school buses areoperated by contractors. Approximately 450,000yellow school buses provide transportationservice daily nationwide. Approximately halfof all kindergarten to 12th grade students inthe U.S. ride yellow school buses.Description of Vehicles Typically UsedA school bus is a bus manufactured to FederalMotor Vehicle Safety Standard (FMVSS) 571 ofthe National Highway Traffic Safety Administration.Most school buses have a yellow body installedupon a chassis with an elevated passenger deck,an engine entirely in front of the windshield, and asingle entrance door behind the front wheels. Some8large school buses look more like a transit bus withthe engine mounted entirely behind the windshield(in the front, middle, or rear of the bus), and asingle entrance door ahead of the front wheels.Most small school buses have a conversion or bodyconstructed upon a van-type chassis, but theydo meet FMVSS 571.Regulatory Oversight by the FederalMotor Carrier Safety AdministrationSchool bus drivers are subject to the commercialdriver’s license requirements in 49 CFR Part 383because most medium to large school buses meetthe definition of a CMV as defined in such part(i.e., designed to transport 16 or more passengers,including the driver). The employers of school busdrivers (who are required to hold a commercialdriver’s license) are required to have a controlledsubstances and alcohol testing program for theirdrivers. Nongovernmental motor carriers that transportschool children in interstate commerce, other thanfrom home-to-school and from school-to-home, arecurrently subject to the applicable provisions of theFMCSRs such as the driver qualification standards,driver hours of service standards, etc.The FMCSRs presently have two exceptions toapplicability that affect school bus operations. Thefirst exception in Section 390.3(f)(1) exempts schoolbus operations that transport only school childrenand/or school personnel from home to schooland from school to home. The second exceptionin Section 390.3(f)(2) makes transportation by agovernment entity exempt from the FMCSRs. Someschool bus operations are subject to the FMCSRs.One example is where a private school transports

Chapter 1 Passenger Carrier Resource Guidepassengers in a commercial motor vehicle (CMV)across a State boundary line, and outside the scopeof home to school and school to home. Anotherexample is a for-hire school bus contractor thattransports school children and/or school personnelacross a State boundary line, and outside the scopeof home to school and school to home.7. Transit Bus OperationsIntroduction and General OverviewTransit bus operations are multiple-occupancyvehicle services designed to transport passengerson local and regional routes, usually corner tocorner. These services are usually performed by apublic mass transit agency or by a bus companyunder contract to a public transportation agency.In some cases, transit agencies are fundedthrough grants provided by the Federal TransitAdministration. Transit bus ridership is highestin large cities. Transportation to and from theworkplace is the most common reason for ridinga transit bus.Description of Vehicles Typically UsedThe vehicle typically used in transit bus operations iscommonly known as a “low floor” bus in contrast toan over-the-road bus or motorcoach that has spaceunderneath the passenger compartment for luggage,however OTRBs are often used in commuter servicefrom the suburban areas into large cities.Regulatory Oversight by the FederalMotor Carrier Safety AdministrationTransit bus drivers are subject to the commercialdriver’s license requirements in 49 CFR Part 383because transit buses meet the definition of acommercial motor vehicle as defined in such part(i.e., designed to transport 16 or more passengers,including the driver). Any driver who is requiredto hold a commercial driver’s license, is subjectto mandatory employer conducted controlledsubstances and alcohol testing. The majority oftransit bus operations are not subject to additionalFMCSA laws or regulations because (1) mosttransit buses are government operated, andtransportation by a government entity is exemptfrom the FMCSRs, and (2) most transit buses donot transport passengers in interstate commerce.However, government agencies that transportpassengers for-hire with a transit bus in interstatecommerce are generally subject to the operatingauthority requirements unless such transportationis wholly within a commercial zone. In addition,interstate for-hire transit bus transportation by apublic or private entity is subject to the financialresponsibility requirements in 49 CFR Part 387.However, any passenger carrier that receives aFederal Transit Administration grant under 49 U.S.C.5307, 5310, or 5311 is permitted to maintain a levelof financial responsibility/insurance at the highestlevel required by any State in which the transitservice is provided instead of the Federal level in 49CFR Section 387.33.9

Passenger Carrier Resource Guide Chapter 110

Chapter 2 Passenger Carrier Resource GuideChapter 2:Definitions and General Applicability(Part 390) for Motor Carriers of PassengersApplicabilityThe first step in determining applicability isto determine whether the vehicle(s) meets thedefinition of a commercial motor vehicle as definedin 49 CFR §390.5:Commercial motor vehicle means any self-propelledor towed motor vehicle used on a highway ininterstate commerce to transport passengers orproperty when the vehicle—

The following types of service will be discussed: 1a. Intercity, Regular Route 1b. Curbside Operators 2a. Charter Operations 2b. Tour Bus Operations 3. Limousine Operations 4. Van Operations 5. Private Motor Carriers of Passengers 6. School Bus Operations 7. Transit Bus Operations 1a. Intercity, Regular Route

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