Author: Stephen Glazier
Knowing whether your fleet is subject to Department of Transportation (DOT) regulations is critical. In Are You Subject to DOT Regulations (Part 1): Capacity, Weight and Threshold, we outlined weight issues that can push you into DOT compliance territory without realizing it. Breaking that weight rating threshold can happen when a nine-to-15 passenger vehicle with a gross vehicle weight rating (GVWR) below 10,001 lbs. is attached to a trailer. If that combination pushes the combined rating of both the vehicle and trailer above 10,001 lbs., all the exceptions mentioned in this article no longer apply. These same weight considerations apply to vehicles being used to transport passengers even without a trailer. This article focuses on triggers related to passenger count and the type of payment received for services.
As in part 1, for this article, we assume that your company is operating in commerce and on public roadways.
When is a passenger vehicle considered a commercial motor vehicle?
The Federal Motor Carrier Safety Administration (FMCSA) considers you an operator of a commercial motor vehicle (CMV) when you operate a vehicle in commerce that's designed to transport nine to 15 people (including the driver) if you charge any kind of fee or if you transport 16 or more people (including the driver), regardless of compensation. DOT regulations apply to CMVs. How many regulations apply to your specific operation can depend on both passenger count and the type of fee you charge.
If you charge a direct fee for transportation, the full spectrum of DOT regulations applies, even if the vehicle used carries fewer than 16 people. If your vehicles are designed to carry 16 or more people, regardless of weight, payment type or actual passenger count, your drivers will have to maintain a CDL driver's license, 1 and as an employer, you have to follow additional regulations, such as drug testing and all other driver qualification requirements.
Some states have regulations for intrastate operations that exceed these federal requirements. For example, in California, if you operate a truly intrastate fleet, you'll trigger DOT regulations with just 10 passengers, which will require your drivers to have a CDL, even if you're a nonprofit organization such as a church. Drivers in an intrastate or interstate passenger carrier fleet who reside and drive in California are required to have a CDL endorsement on their license, which triggers record-keeping requirements for your company.
Exceptions to federal regulations for passenger vehicles
You can take advantage of federal exceptions — which can save you time and money — if all of the following apply:
- You operate interstate or in a state that follows federal regulations for intrastate operations.
- You operate a vehicle meant for nine to 15 passengers (including the driver).
- You take no direct payment for the trip. For example, you run a nonprofit, or your company transports passengers as part of a tour package or for hotel guests without charging a separate fee.
- The vehicle weight doesn't exceeds 10,001 pounds (see Are You Subject to DOT Regulations (Part 1): Capacity Weight, and Threshold for details).
Keep in mind that even some enforcement agencies don't know or understand the exceptions, so training your drivers and keeping a copy of the FMCSA's exceptions for passenger vehicles2 in your vehicles can be helpful.
Another area to consider when trying to determine if you're subject to DOT regulations is whether you're hauling hazardous materials. See the third article in this series, Are You Subject to DOT Regulations (Part 3): Hazardous Substances, Agents and Toxins.
Learn more about regulations related to commercial passenger vehicles
You can learn more about federal regulations at the FMCSA website.3 Send questions about state-specific regulations to your Gallagher account team or to a state-specific enforcement agent, such as the state patrol or state police. Most DOT regulations also require proof of insurance or an endorsement. Your Gallagher account team can help you sort through those requirements.
