[Federal Register: March 30, 2004 (Volume 69, Number 61)]
[Rules and Regulations]               
[Page 16683-16722]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30mr04-20]                         


[[Page 16683]]

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Part III





Department of Transportation





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Federal Motor Carrier Safety Administration



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49 CFR Parts 380, 390, and 391



Safety Performance History of New Drivers and Minimum Training 
Requirements for Longer Combination Vehicle (LCV) Operators and LCV 
Driver-Instructor Requirements; Final Rule


[[Page 16684]]


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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 390 and 391

[Docket No. FMCSA-97-2277]
RIN 2126-AA17

 
Safety Performance History of New Drivers

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule.

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SUMMARY: The Federal Motor Carrier Safety Administration amends the 
Federal Motor Carrier Safety Regulations (FMCSRs) to specify: The 
minimum driver safety performance history data that new or prospective 
employers are required to seek for applicants under consideration for 
employment as a commercial motor vehicle (CMV) driver; where, and from 
whom, that information must be sought; and that previous employers must 
provide the minimum driver safety performance history information. This 
action will enable prospective motor carrier employers to make more 
sound hiring decisions of drivers to improve CMV safety on our nation's 
highways.

EFFECTIVE DATE: April 29, 2004.

FOR FURTHER INFORMATION CONTACT: Mr. David Goettee, (202) 366-4097, 
Office of Policy, Plans and Regulation, FMCSA, 400 Seventh Street, SW., 
Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Outline

Background
Summary of the NPRM
Summary of the SNPRM
Discussion of Comments to the SNPRM
    General Support and Opposition
    Timetable To Obtain Safety Performance History for New Drivers
    Prospective Employer Responsibilities
    Previous Employer Responsibilities
    Applicants--Driver Rights
    Access to Data
    Rejection Rate and Cost/Benefits
    Fees
    Miscellaneous
Rulemaking Analyses and Notices
Regulatory Evaluation: Summary of Benefits and Costs

Background

    Current Sec.  391.23 of Title 49 of the Code of Federal Regulations 
(CFR), ``Investigations and Inquiries,'' sets forth each motor 
carrier's responsibilities to inquire into the driving record and 
investigate the employment history of each prospective new driver. The 
investigations are to obtain the driver's employment history from the 
driver's previous employers \1\ during the preceding three years. The 
inquiries are to obtain the driver's driving records from each State in 
which the driver held a motor vehicle operator's license or permit 
during the preceding three years.
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    \1\ As noted below, FMCSA's definition for the term ``previous 
employer'' includes a current employer of the driver applicant.
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    These investigations and inquiries must be completed within 30 days 
of hiring the new employee, or the employer must have documentation of 
a good faith effort to complete them. Currently, there is no 
specification in the FMCSRs for what minimum information must be 
investigated, nor is there a requirement for previous employers to 
provide that information to prospective motor carrier employers when 
requested. Consequently, many former employers decline to respond to 
employment investigations, while others--for fear of litigation--merely 
verify that the driver worked for the carrier and provide the driver's 
dates of employment.
    The Hazardous Materials Transportation Authorization Act of 1994 
was signed into law on August 26, 1994 (Pub. L. 103-311, 108 Stat. 
1677) (HazMat Act), partly codified at 49 U.S.C. 5101 through 5127. 
Section 114 of the HazMat Act directed the Secretary of Transportation 
(Secretary) to amend Sec.  391.23 to specify the minimum safety 
information to be investigated from previous employers as part of 
performing the required safety background investigations on driver 
applicants. Section 114 of the HazMat Act requires a motor carrier at 
minimum to investigate a driver's accident record and alcohol and 
controlled substances history from all employers the driver worked for 
within the previous three years. All previous employers are required to 
respond to the investigating employer within thirty days of receiving 
the investigation request.
    The agency published a Notice of Proposed Rulemaking (NPRM) for 
implementing driver safety performance history regulations in the 
Federal Register on March 14, 1996 (61 FR 10548) and a Supplemental 
Notice of Proposed Rulemaking (SNPRM) on July, 17, 2003 (68 FR 42339).

Summary of the NPRM

    In response to the requirement at section 114 of the HazMat Act of 
1994, the agency (then the Federal Highway Administration (FHWA), 
FMCSA's predecessor agency) issued an NPRM on March 14, 1996. It 
proposed changes to 49 CFR part 391 (Qualification of Drivers), with 
proposed conforming amendments to parts 382 (Controlled Substances and 
Alcohol Use and Testing), 383 (Commercial Driver's License Standards; 
Requirements and Penalties), and 390 (Federal Motor Carrier Safety 
Regulations; General). The agency proposed under Sec.  391.23 that 
motor carriers investigate the following minimum safety information for 
the previous 3-year period from all employers who employed the driver 
during that time: (1) Hours-of-service violations that resulted in an 
out-of service order; (2) accidents as defined under Sec.  390.5; (3) 
failure to undertake or complete a rehabilitation program recommended 
by a substances abuse professional (SAP) under Sec.  382.605; and (4) 
any ``misuse'' of alcohol or use of a controlled substance by the 
driver after he/she had completed a Sec.  382.605 SAP referral.
    The existing Sec.  391.23(b) requirement to make an inquiry for a 
driver's driving record(s) from the State(s) was retained. In addition, 
to harmonize the proposed Sec.  391.23(e) with then current alcohol and 
controlled substances regulations under Sec.  382.413, the agency 
proposed the conforming amendment that the motor carrier must obtain 
the driver's written authorization to investigate the required alcohol 
and controlled substances information. Current and former employers 
will be required to respond to an investigating employer within 30 days 
of receiving an investigation request. The investigating motor carrier 
would have to afford the driver a reasonable opportunity to review and 
comment on any information obtained during the employment 
investigation, and would have to inform the driver of his/her right to 
review the investigation information received at the time of 
application for employment. Conforming changes were also proposed to 
Sec. Sec.  383.35(f) and 391.21(d) to reinforce the driver notification 
requirement.
    Further, the agency proposed under Sec.  390.15 to change the 
required retention period for the accident register maintained by motor 
carriers from one year to three years, and to begin requiring motor 
carriers to provide information from the accident register in response 
to all prospective employer investigations pursuant to Sec.  391.23. 
These provisions would facilitate the required investigation of 
accident information by prospective employers by expanding a source of 
accident data that was already being collected and maintained by motor 
carriers for other purposes.
    When the NPRM was published in 1996, FMCSA's alcohol and controlled

[[Page 16685]]

substances regulations (codified at 49 CFR part 382) required employers 
to investigate: (1) Alcohol tests with a result of 0.04 or greater 
alcohol concentration, (2) verified positive controlled substances test 
results, and (3) refusals to be tested. Section 382.413(a)(2) then 
allowed a previous employer to pass along alcohol and controlled 
substances test information received from other previous employers (as 
long as the information covered actions occurring within the previous 
two-year period). Under then Sec.  382.413(b), if an employer found 
that it was not feasible to obtain the alcohol and controlled 
substances information prior to the first time a driver performed a 
safety-sensitive function for the employer, that employer could only 
continue to use the driver in a safety sensitive function for up to 14 
calendar days. After that time period, the employer could not use the 
driver in a safety-sensitive function unless the requisite information 
was obtained, or the employer documented having made a good faith 
effort to obtain it.
    In its 1996 NPRM, the agency also proposed numerous conforming 
amendments to expand the type of alcohol and controlled substances 
information that should be sought under Sec.  382.413(a). Employers 
would be required to investigate whether, in the past 3 years, a driver 
had: (1) Violated the prohibitions in subpart B of part 382 or the 
alcohol or controlled substances rules of another DOT agency, and (2) 
failed to undertake or complete a SAP's rehabilitation referral 
pursuant to Sec.  382.605 or pursuant to the alcohol or controlled 
substances regulations of another DOT agency.
    Beyond incorporating the HazMat Act requirements into part 382, the 
violations enumerated in Sec.  382.413 would also have been included in 
the alcohol and controlled substances regulations of ``all DOT 
agencies.'' The FHWA believed that some drivers might apply for 
positions that require driving a CMV after having violated the alcohol 
or drug use prohibitions of another DOT agency. Therefore, the agency 
included a requirement for an employer to investigate information from 
all past employers for which a driver had worked in a position covered 
by the alcohol and/or drug prohibitions and testing requirements of 
another DOT agency. That could ensure that persons applying for 
positions that involved operating a CMV would have all of their 
relevant records of violations investigated. It would also have ensured 
that a SAP evaluated persons who test positive, and that violators 
completed a recommended rehabilitation program before returning to 
perform safety-sensitive functions.
    The proposed revision to Sec.  382.413(a)(2) making it a 
requirement to pass along alcohol and controlled substances information 
received from other previous employers, when responding to a 
prospective employer's investigation required by then Sec.  
382.413(a)(1), was previously incorporated into the FMCSRs by a 
technical amendment published in the Federal Register on March 8, 1996 
(61 FR 9546). However, because it was later determined that change to 
Sec.  382.413(a)(2) constituted a substantive change, which should have 
been subject to public notice and comment before becoming a final rule, 
the agency included it in the March 14, 1996 NPRM. It was also 
subsequently included in the notice and comment that led to revision of 
part 40 in 2000.
    In a related conforming amendment proposed to then Sec.  382.405, 
disclosure of the information pursuant to then Sec.  382.413(a) would 
have required the driver's written authorization, and responding 
employers would have been required to reply within 30 days of receiving 
the investigation request. Under Sec.  382.413(b), the agency proposed 
extending the time period a new employer would be allowed to use a 
driver in a safety-sensitive function without having received the 
requisite alcohol and controlled substances information from 14 days to 
30 days. After 30 days, the employer would have been prohibited from 
continuing to use the driver to perform safety sensitive functions 
without having received, or documented a good faith effort to obtain, 
the driver's alcohol and controlled substances history.

Summary of the SNPRM

    Comments received on the NPRM were summarized in the SNPRM. One 
significant issue was concern on the part of motor carriers that they 
would be subjected to considerable costs through litigation if they 
furnished background information and it was used to deny employment to 
drivers. In section 4014 of the Transportation Equity Act for the 21st 
Century (TEA-21) (Pub. L. 105-178, 112 Stat. 107, 409, (June 9, 1998)), 
Congress created a limitation on liability to protect motor carriers, 
their agents and insurers from being found liable because they supplied 
and used driver safety performance history records in the hiring 
decision process, but also established restrictions intended to protect 
the rights of drivers and their privacy from misuse of such 
investigative information.
    Another significant concern was that the proposal would impose 
significant new recordkeeping and reporting burdens on previous motor 
carriers, especially small entities. Commenters, including the Small 
Business Administration (SBA), requested that the agency include 
considerably more discussion of possible burdens to foster more 
informed comments from the public.
    FMCSA responded to the requirements of section 4014 of TEA-21, now 
codified at 49 U.S.C. 508, and the requests to provide more discussion 
of the possible burdens on previous employers. The agency published an 
SNPRM on July 17, 2003 (68 FR 42339). The FMCSA revised the proposals 
through the SNPRM to include the new employer liability limitation and 
driver protections mandated by section 4014 of TEA-21. It also refined 
the safety performance history data list of items prospective employers 
must request for new applicants in response to comments to the NPRM, 
and related changes to agency alcohol and controlled substances 
regulations made by rulemakings since the 1996 NPRM. In addition, an 
enhanced regulatory flexibility analysis, Paperwork Reduction Act 
analysis, and a detailed regulatory evaluation required by the new 
designation as a significant rulemaking, were added addressing comments 
to the docket from the SBA and others.
    The SNPRM specified minimum safety performance history data that a 
motor carrier must investigate from previous employers under the 
proposed Sec.  391.23(d) and (e). It differed from the NPRM by: (1) 
Refining the list of what information is to be investigated from 
previous employers, (2) establishing employer liability limitation for 
providing and using the driver safety performance history information, 
(3) clarifying drivers' rights to review, correct, or rebut information 
provided, (4) providing enhanced Regulatory Flexibility Act and 
Paperwork Reduction Act analyses, (5) providing a detailed Regulatory 
Evaluation, and (6) dropping conforming amendments to part 382 because 
they were previously addressed under separate rulemakings. The SNPRM 
provided 45 days for public comment, which closed on September 2, 2003.

Discussion of Comments to the SNPRM

    As of October 1, 2003, the FMCSA had received 38 written comments 
on the SNPRM. Commenters include motor carriers, corporations, 
associations, individuals, an insurance company, a

[[Page 16686]]

union, and a public interest organization.

General Support and Opposition

    Fifteen commenters including motor carriers, associations, public 
interest groups, and a union generally support the SNPRM and state that 
the proposed rule is a long overdue step in the right direction.
    Many of those same commenters, and others, criticize various 
proposals in the SNPRM. For example, American Trucking Associations, 
Inc. (ATA) writes--

    Generally, there is consensus [among their membership] that the 
proposal to amend the Federal Motor Carrier Safety Regulations 
(FMCSRs) to require previous employers to respond to employment and 
safety history inquiries will be beneficial and will enhance the 
ability of motor carriers to obtain specific, objective information 
on important aspects of prior safety performance of driver 
applicants beyond what is now generally furnished. * * * Despite our 
general support, the intended safety gains will not be realized 
unless several fundamental changes are made in the proposed rule.

    The opposition to the proposals set forth in the SNPRM generally 
center around the process for obtaining driver safety performance 
history information, the limited liability of employers, the burden 
placed on motor carriers to provide and obtain the employee 
information, and FMCSA's cost/benefit analysis. For example, Con-Way 
Transportation Services (Con-Way) comments that the rule would ``delay 
the hiring of drivers, increase paperwork and [administrative burdens] 
with little or no benefit'' and ``[t]he cost assumptions made by the 
FMCSA are insufficient.'' In addition, one individual writes that the 
burden should not be on the motor carriers to enforce alcohol and 
controlled substances rules, but rather on the State to suspend a 
driver's license.
    Owner Operator Independent Drivers Association, Inc. (OOIDA) also 
states that ``The requirements for motor carriers to investigate the 
safety background of truck drivers as part of the hiring process has 
always been a good idea in theory but a dubious practice under the 
FMCSA rules.'' OOIDA continues, ``Beyond a carrier's duty to determine 
whether a driver is qualified under the rules to drive a truck, the 
existing rule does not require a carrier to take any particular action 
or make any particular decisions based on the driver information it 
receives.''
    OOIDA also expresses a unique concern to this proposed rule. OOIDA 
comments that--

    It is important for the FMCSA to create rules that are fair on 
their face and comport with the legal rights and responsibilities of 
the parties under the law. But FMCSA should also keep in mind that 
professional drivers have little or no bargaining power with motor 
carriers. Carriers set the driver's agenda through every step of the 
hiring process and during the length of their relationship. Drivers 
who do not accede to a carrier's demands, no matter what they are, 
usually face one result, termination. Drivers who try to assert 
their rights, including the kind of rights proposed in this rule, 
are told to be quiet if they want to keep their job.

    FMCSA Response: The FMCSA appreciates the thoughtful comments and 
many specific suggestions received from commenters on both the NPRM and 
SNPRM. As discussed under the following topics, the FMCSA has carefully 
considered these comments and has incorporated many of the suggestions 
into the final rule.

Timetable To Obtain Safety Performance History for New Drivers

    Several commenters discuss the timetable for prospective employers 
to obtain safety performance histories for driver applicants outlined 
in the proposed rule. Those commenting from the perspective of being a 
prospective hiring motor carrier commonly suggested reducing the 
allotted time. Those commenting from the perspective of being a 
previous employer providing driver safety performance history 
information, commonly suggested increasing the allotted time.
    Several commenters are opposed to the overall length of time the 
proposed rule, in their view, would permit for obtaining, providing, 
and refuting employee history information. Under the proposed rule, 
past employers would have 30 days to respond to prospective employers' 
investigation requests. There are up to two additional days for 
providing copies of the investigations to a driver wanting to review 
his or her record, and possibly another 30 days for the rebuttal 
process. Truckload Carriers Association (TCA) states that ``assuming 
that FMCSA intends for the prospective employer to delay its hiring 
decision pending the running of the appeal time, it would be possible 
under the proposed rule for carrier hiring decisions to be forced to be 
delayed for as long as sixty (60) days.''
    The length of time, write other commenters, forces motor carriers 
to hire drivers conditionally. As Con-way writes, ``most carriers, 
would not want to hire someone until the investigation is complete. 
Hiring a driver and then terminating his employment after receiving 
information from previous employers is not an acceptable practice.'' 
Another general concern with the time allowed to obtain a driver's 
safety performance history is that such a delay in the hiring decision 
process will compel drivers to look for jobs outside the industry.
    Con-Way recommends an alternative timetable. Con-Way suggests a 5/
5/2/5 business day structure where: (1) The prospective employer has 
five business days to request the driver safety performance history 
investigation data, (2) the previous employer has five business days to 
respond to the request for information, (3) the applicant must send 
corrections to the previous employer within two business days, and (4) 
the previous employer must respond to the request for corrections 
within five business days.
    FMCSA Response: Because this is a rather complex process with 
numerous possibilities, each component of the time line is discussed 
below in detail as a separate topic. FMCSA has carefully considered 
these comments and has incorporated many of the suggestions into the 
final rule, while balancing the need for large truck and bus safety on 
our nation's highways.
30-Day Investigation Period (Sec.  390.15 and Sec.  391.23 (g))
    Seven commenters answered from the perspective of a hiring motor 
carrier and recommend reducing the time period allowed for previous 
employers to respond to requests for new driver safety performance 
history information. One of those commenters proposes that the response 
time period be ten days. Most of those seven commenters suggest 
reducing the time period allowed for the investigation from 30 days to 
five days.
    Commenters cite various reasons for recommending the reduction in 
response time. For example, the TCA explains from the perspective of 
the truckload sector, ``the trucking industry has been experiencing a 
driver shortage for years and this shortage is not expected to end any 
time soon. Because of the shortage, carriers have a critical need to be 
able to screen prospective drivers in the shortest time possible.'' 
Commenters express concern that the length of time would force some 
drivers to look for employment outside the motor carrier industry. In 
addition, Consumer Energy remarks, a lesser amount of time ``should be 
ample time to gather information that would already be assembled in 
order to not delay a potential employer's hiring decision.'' Finally, 
commenters express concern that the length of time will force 
conditional hiring of drivers while the process is completed. As TCA 
explains,


[[Page 16687]]


    A major safety drawback of the 30-day time frame proposed is 
that many carriers will find themselves being forced to hire drivers 
on a conditional basis instead of waiting as long as thirty days to 
receive and review the required information beforehand, only to 
later find out that one or more of the drivers they hired should not 
have been hired because of the safety risk they pose. Clearly, such 
an outcome unnecessarily puts the public at risk and could easily be 
prevented if the 30-days were reduced to five.

    The International Brotherhood of Teamsters (IBT) offers no 
objection to reducing the time period as long as employers can provide 
accurate information in compliance with the regulations in that time 
frame.
    Two commenters answered from the perspective of a previous employer 
providing information. One recommends increasing the time period for a 
previous employer to respond. This commenter suggests increasing the 
time period to 60 days in order to reduce the burden on small 
businesses. Another commenter proposes a 15-day hardship extension if 
the prospective employer agrees.
    FMCSA Response: The length of time allowed for previous employers 
to respond to an investigation is specified in the HazMat Act as within 
30 days. Although FMCSA could specify a shorter response time, the 
agency is cognizant that the majority of motor carriers that will now 
be required to provide this information for the first time are small 
businesses. FMCSA believes that the implied 30 days in the existing 
regulation for provision of this data continues to be the most 
considerate for the majority of impacted entities. The regulation at 
Sec.  391.23 (b) and (c) has for many years said ``* * * must be made 
within 30 days of the date the driver's employment begins.'' The text 
proposed in the SNPRM for Sec.  391.23(c) was slightly revised to 
conform to the language set forth in 49 CFR 40.25(d) as ``* * * must be 
completed within 30 days of the date the driver's employment begins.''
    FMCSA notes that it has always been up to the motor carrier whether 
to immediately employ an applicant and have that person operate a 
commercial motor vehicle for that motor carrier during the 30-days 
allowed for the motor carrier to obtain the required inquiry and 
investigation information. This final rule still leaves that decision 
to the motor carrier and its insurer.
Two-Day Response to Driver (Sec.  391.23(i)(2))
    The SNPRM proposed that the prospective employer be required to 
provide the driver with his or her previous employer-provided records 
within two days of the driver's written request, or within two days of 
having received the information if the driver request is presented 
before the investigation information arrives. Five commenters recommend 
increasing the time that a prospective employer has to respond to a 
driver's request for copies of the information received from previous 
employers. Recommendations were for five, seven, or ten days. 
Commenters cite the proposed 2-day requirement as an unreasonable 
burden especially during concentrated hiring periods, stating that the 
time to retrieve records, especially if records are kept off site, and 
limited staff resources are reasons to increase the time period. Most 
commenters mention that an increase in this time period should not 
unduly disrupt prospective employer hiring operations.
    One commenter agrees with FMCSA's proposal of two business days for 
the prospective employer to provide a copy of the investigative data to 
the driver.
    FMCSA Response: FMCSA asked whether a longer time period should be 
allowed, and suggested 5, 7 and 10 days. Comments to the docket, 
especially in regard to small business concerns, appear to generally 
favor lengthening the time allowed for a prospective motor carrier to 
provide previous employer information to a driver who requests a copy 
of that investigation information. Therefore in the final rule FMCSA 
has increased the proposed 2 days for that function to 5 days. The 
agency believes this will provide carriers a greater degree of 
flexibility without detrimentally impacting driver rights.
30-Day Driver Correction and Rebuttal Period (Sec.  391.23(j)(3))
    Almost no commenters directly addressed this issue. Two commenters 
recommend reducing the time the previous employer has to send the 
corrected or rebutted information to the prospective employer from 30 
days to 20 days. Another recommends 5 days. The commenters suggest this 
change in order to significantly reduce the time both the applicant and 
the prospective employer are awaiting a decision on the applicant's 
employment.
    OOIDA is concerned that drivers have no leverage to get previous 
employers to correct driver safety performance history, and a 
disgruntled previous employer might deliberately delay responding as 
long as allowed, thus leaving the driver unemployed for that period of 
time. Both TCA and National School Transportation Association (NSTA) 
are concerned about the total time that could elapse before a hiring 
decision could be made.
    FMCSA Response: The few commenters who addressed this question are 
in favor of shortening the time period allowed for the driver and a 
previous employer to resolve differences, or include a rebuttal from 
the driver in the previous employer's information. There was no 
opposition to shortening the time allowed from any of the commenters to 
the docket in response to this question in the SNPRM. After reviewing 
these comments, FMCSA believes a shorter response period is warranted.
    Therefore, the final rule is revised to reduce the proposed 30 days 
for a previous employer to respond to a request for correction to 15 
days. This still allows the previous employer the time and opportunity 
to review the driver's record to determine if the previous employer 
agrees the correction is warranted.
    The final rule further clarifies that if the driver chooses to 
submit a rebuttal, the previous employer has 5 days to forward the 
rebuttal to the prospective motor carrier employer and to append a copy 
of the rebuttal to any other information in the driver's safety 
performance history record. The agency believes that drivers will have 
somewhat of a disincentive to submit a rebuttal first, if a correction 
is possible. This is because a rebuttal presents a conflicting story to 
a prospective motor carrier employer, whereas a correction represents 
agreement between the parties involved. Upon receiving a rebuttal, the 
previous employer must forward a copy of it to the prospective motor 
carrier employer and append it to the driver's safety performance 
history record.
    There are two scenarios that could occur when the driver applicant 
receives a copy of the previous employers' safety performance history 
information. Under the first scenario, the driver could first request a 
correction. The previous employer could agree to the correction and 
forward the corrected information to the prospective motor carrier 
employer within 15 days. However, if the previous employer disagrees 
with the driver that a correction is warranted, the previous employer 
could decline to correct and notify the driver within 15 days of its 
decision not to do so. The driver could then submit a rebuttal, and the 
previous employer would have five (5) days to forward the rebuttal to 
the prospective motor carrier employer, and include the rebuttal in the 
driver's safety performance history record.
    Under the second scenario, the driver could simply submit a 
rebuttal as a first step, with no request for correction of

[[Page 16688]]

the data. The previous employer would then have five days to forward a 
copy of the rebuttal to the prospective motor carrier employer.
    Thus, the 30 day time period is reduced to a minimum of 5 days and 
a maximum of 20 days. FMCSA believes this responds to commenters 
concerns, while not detrimentally impacting the drivers or employers 
involved.
Review Time
    Under the proposed rule at Sec.  391.23(i)(2), a driver may submit 
a written request to the prospective employer to review his or her 
safety performance histories received by that motor carrier. OOIDA 
suggests that, rather than the driver needing to request his or her 
previous employer information to review, the prospective employer 
should automatically give the driver a copy of any background 
information it receives. OOIDA supports the driver's right to access 
his or her record, and believes this recommendation will lead to 
quicker corrections, streamline the investigation process, and 
eliminate unnecessary burden on the driver to submit a request.
    American Truck Dealers Division of the National Automobile Dealers 
Association (ATD) states that as proposed, employers would have two 
days to provide an employee access to information upon request, and 
prior employers would have 30 days to respond to a driver's concerns. 
They point out that the rule does not appear to set a time limit for 
the driver's review itself. ATD recommends that we allow drivers 3 days 
after receipt of requested information to request corrections.
    FMCSA Response: In response to OOIDA's point, FMCSA believes it is 
important to minimize the cost of regulations. However, it is also 
necessary that a reasonable opportunity be provided drivers to review, 
correct and rebut previous employer safety performance history 
information. Thus, any driver must be able to request that prospective 
motor carrier employers provide information received from previous 
employers. To minimize the potential for such requests to be frivolous 
actions taken by some drivers, FMCSA requires this request to be in 
writing. FMCSA believes that it would be overly burdensome for 
prospective employers to provide information not requested or 
frivolously requested by the driver.
    FMCSA can not address ATD's recommendation in this final rule on 
setting a limit on how long a driver has to respond to a previous 
employer seeking correction or rebuttal, since this is not addressed in 
the SNPRM. Moreover, the agency believes this is likely to be self-
regulating, since it is in the driver's interest to request correction 
or rebuttal as quickly as possible.

Prospective Employer Responsibilities

3-Year Requirement (Sec.  390.15(a); Sec.  391.23(d))
    Under the proposed rule, motor carriers must contact all the 
previous DOT regulated employers of the applicant driver from the last 
three years. Seven commenters address this requirement. Several 
commenters mention the ineffectiveness and paperwork burden of this 
requirement. Two commenters state that with the high level of driver 
turnover involved in their sector of the industry [truckload], 
requesting information from prior employers in the last three years 
could involve numerous inquiries. Also, the potential for gaps in 
employment history poses problems in complying with this requirement. 
Another commenter mentions the paperwork burden on small businesses and 
that this requirement forces motor carriers to keep employment records 
longer than the six months now required for hours-of-service record of 
duty status logs.
    A few commenters discuss more specifically the requirement that 
three years of employment history must be investigated. One commenter 
recommends that all DOT modes be consistent in the time period required 
for the background investigations. For example, the length of 
background investigations is specified as 2-years in part 40, and 3-
years in part 391. Another commenter submits that no requirement in the 
rules should create longer retention periods than those currently 
applicable. For example, records relating to the collection process for 
alcohol and controlled substances testing programs must be retained for 
two years (Sec.  382.401(b)(2)), whereas records of negative and 
cancelled controlled substances test results must be maintained for a 
minimum of one year (Sec.  382.401(b)(3)). Finally, commenters suggest 
that only the immediate former employer needs to be contacted or that a 
valid commercial driver's license should be sufficient evidence of a 
prospective employee's driving record.
    OOIDA expresses concern that if ``FMCSA requires former carriers to 
turn over all safety employment history in the carrier's possession, 
then in many instances it will be requiring more than three years of 
records to be transmitted.'' OOIDA continues by saying that ``FMCSA 
does not give guidance in the SNPRM as to whether the previous carrier 
should be required to delete any information older than three years 
from its own records or from the records it received from other 
carriers.'' OOIDA is concerned that older information would be less 
reliable and less accurate.
    AT&T observed that driving is a minor part of at least some of 
their jobs. They asked whether the inquiries and investigations must be 
made for every job applicant or only for candidates who are actually 
being extended a job offer, and when must they be made?
    FMCSA Response: The requirement to investigate all former employers 
of the past 3 years is specified in the HazMat Act. FMCSA therefore has 
no latitude, and must specify in the final rule that the background 
investigation cover the prior three years. The problem with possible 
gaps in employment history based on this process is well known. It 
includes former employers that have gone out of business, as well as 
those not listed by the driver applicant when applying for a job. The 
alcohol and controlled substances regulations at 49 CFR 40.25(c) and 
40.333(a)(2) attempt to mitigate such possible gaps in previous 
employer information by requiring an employer to retain for 3 years any 
Sec.  40.25(b) specified information that any previous employer 
furnished and to pass the most recent 2-years of it along to 
prospective employers performing an investigation of the driver 
applicant.
    The retention period specified for data in the driver qualification 
file in Sec.  391.51(d) has been 3-years since at least 1971. The data 
retention period specified for hours-of-service records of duty status 
logs in Sec.  395.8(k) has been 6-months since 1982. No changes to 
these retention periods were proposed in the SNPRM, and therefore none 
are being made in this final rule.
    Parts 40 and 382 currently specify making investigations to 
previous employers for a minimum of 2-years regarding alcohol and 
controlled substances data. However, the HazMat Act requires all safety 
performance history investigations, including those for alcohol and 
controlled substances information, to be made to all employers of the 
driver for the previous three years, which is what was proposed in the 
SNPRM. A motor carrier that is in compliance with the new 3-year 
investigation requirement in Sec.  391.23 will automatically be in 
compliance with the 2-year background investigation requirements of 
parts 40 and 382.
    The 2-year requirement for data retention found at Sec.  
382.401(b)(2) refers to information about the processes used

[[Page 16689]]

by the employer to collect the alcohol and controlled substances 
information, not the actual results that are considered driver safety 
performance history information. The correct reference for data 
retention about positive driver test results would be Sec.  
382.401(b)(1), and it specifies 5 years as the minimum retention time. 
The one year requirement for data retention found at Sec.  
382.401(b)(3) refers to negative test results and canceled tests.
    However, FMCSA believes the thrust of the comments is focused on 
the background time period that must be investigated. They are correct 
that Sec.  40.25(b) specifies investigating employers from the previous 
2-years. Since the HazMat Act specifies this investigation must be for 
3-years, motor carriers will now be required to investigate one 
additional year of alcohol and controlled substances background driver 
safety performance history information than entities regulated by other 
DOT modes.
    In order to clarify when the 3-year time period begins, text for 
the final rule is modified for Sec.  391.23(e) to define that the three 
years to be investigated and reported on begins from the date of the 
employment application. This is the point of reference used in parts 40 
and 382, and such text already exists in the proposed text at Sec.  
391.23(d) for accident data. In regard to OOIDA's concern about more 
than 3-years of background data being provided by previous employers, 
FMCSA believes most employers where allowed will choose not to retain 
or provide data older than the 3-year minimum requirement as a means of 
reducing their costs.
    The requirements in parts 40 and 382 encourage the prospective 
employer to complete the investigations before allowing the driver to 
perform safety sensitive functions for that employer. However, just as 
in part 391, they do not require the employer to complete the 
investigations until 30 days from the date the driver's employment 
begins. Thus, an employer would be free to screen and test the driver 
in any way the employer chooses prior to performing the investigations 
required by this rulemaking, including hiring the driver. However, 
after 30 days from beginning employment, the employee may not be used 
to operate a CMV unless the responses to the investigation requests are 
received and placed in the appropriate file, or documentation of a good 
faith effort to obtain such data is placed in that file.
    In regard to the question by AT&T, FMCSA is aware there are 
different screening processes used by different employers covered by 
the FMCSRs. As pointed out by AT&T, some employers physically see and 
screen the driver before deciding to perform the background inquiries 
and investigations required by Sec.  391.23 under this final 
rulemaking. Some begin the Sec.  391.23 inquiry and investigation 
process immediately for all records available based on phone 
applications for each applicant before seeing them.
    Companies absolutely may perform substantial screening of potential 
employees on their own company job criteria that forms the major 
portion of the job responsibilities. The requirement contained in this 
final rule merely requires the company to complete the inquiries and 
investigations required by Sec.  391.23 on all drivers that will 
operate a CMV within 30 days of that employee being hired. Such drivers 
have invested considerably in acquiring skills sufficient to qualify to 
work for companies. A similar pattern applies to a number of employers 
covered by the FMCSRs, but whose primary business requires the employee 
to have skills in addition to being a driver, plumber, electrician, 
etc. All such employees have much more at stake to preserve their 
professions, and may be less likely to have used alcohol or controlled 
substances or been involved in numerous accidents. It would be good 
business sense for such companies to only perform inquiries and 
investigations required by Sec.  391.23 after they have determined the 
applicant passes all their other company screening requirements.

Accident Information (Sec.  391.23(d)(2))

    The HazMat Act requires prospective motor carrier employers to 
investigate accident data for the prior three years, and for previous 
motor carrier employers to provide all accident data for that driver 
for the previous three years from the date of the application. As 
pointed out in the SNPRM, some process is needed to enable a smooth 
transition from the current regulation's one year retention requirement 
to the three year retention period required by the HazMat Act.
    The SNPRM proposed a phased process whereby beginning on the 
effective date of the final rule, motor carriers would be required to 
retain all accident information then retained in their accident 
registers, plus all new accident information, for three years. This 
adds a requirement of two additional years of retention to the current 
one year retention requirement. Thus, the retained accident data will 
grow from the current one year of retained data to three years over 
time.
    No comments were received on that phased approach to data 
retention. Therefore, the proposal as presented in the SNPRM is 
included in the final rule.
    TCA states that the proposed Sec.  391.23(d)(2) would require past 
employers to report and prospective employers to review the specific 
data related to a driver's accident record, as specified at Sec.  
390.15, for the preceding three years, and include it in the driver's 
investigation history file. TCA believes that, while such accident 
information may be relevant to FMCSA and clearly should be maintained 
by carriers, such information is not at all relevant to a hiring 
decision and should therefore not be required.
    OOIDA is concerned about the definition of ``accidents.'' OOIDA 
states, ``It is the experience of OOIDA members that the term 
``accident'' is sometimes used loosely in the trucking industry. * * * 
This casual use of the word `accident' leaves drivers' safety histories 
vulnerable to interpretations that are inaccurate and could 
unreasonably damage their job prospects.'' OOIDA suggests referring to 
the definition of ``accident'' as defined in Sec.  390.5 to help avoid 
this problem.
    Other commenters express concern about the accident data itself. 
Current Sec.  390.15(b)(1) lists six items that must appear on the 
accident register. ATA believes that two items from the accident 
register, driver's name and date of accident, along with two data 
elements that are not in the accident register, (1) any traffic 
citation(s) related to each accident and (2), if available, whether 
each accident was determined to be ``preventable'' or ``non-
preventable.'', are necessary to make an informed hiring decision.
    In contrast, J.B. Hunt expresses considerable concern about the 
amount of effort that would be required to deal with driver protests 
about carrier attribution of ``preventability.'' It says ``We deal with 
requests daily to change our attribution of preventability of accidents 
on driver's records. The burden to maintain all of the rebuttals and 
explanations on why every accident should be non-preventable would, in 
and of itself, be extremely burdensome.''
    FMCSA Response: The HazMat Act requires previous employers to 
report 3-years of accident information to prospective employers. The 
NPRM, SNPRM and this final rule all use the existing definition of 
accident as contained at 49 CFR 390.5. The only changes proposed in the 
SNPRM and finalized in this rule to Sec.  390.15 are for accident data 
retention to allow a phase-in period from the current one year to the 
required three years of accident data

[[Page 16690]]

retention and provision. If employers choose to share information about 
minor accidents not included in the definition at Sec.  390.5, there is 
no prohibition on them doing so. However, for purposes of making the 
minimum requirement clear, the phrase ``as defined by Sec.  390.5 of 
this chapter'' is added to Sec.  391.23(d)(2) in the final rule.
    Regarding ATA's comments to change the data items/elements recorded 
in the existing accident register and reported in response to requests 
for information, FMCSA believes this would represent a substantial 
change in the existing definition of accident data, and is outside the 
scope of this rulemaking. Comments to the docket, very explicitly by 
J.B.Hunt, point out that attribution of ``preventable'' and ``non-
preventable'' contributes to drivers contesting the carrier's accident 
information. Thus, FMCSA has decided not to make revision to the 
definition of accident as part of this final rule.
Standardized Forms and Instructions (Sec.  391.23(f))
    The SNPRM proposed a conforming amendment in Sec.  391.23(f) that 
the prospective employer provide the previous employer with the 
driver's written authorization to obtain his or her safety performance 
history information, often via a release form. Online Employment 
Verification Services (OEVS) states that the problem of releasing 
alcohol and controlled substances information is magnified because 
prospective employers do not know the proper verbiage to include on the 
driver authorization release. According to OEVS, at least 10% of the 
requests do not meet the requirements of DOT for driver authorization. 
In addition, up to 75% are vague or difficult to interpret as to 
whether they comply, resulting in slower turn around time for the 
prospective employer to receive the requested information. OEVS 
suggests that DOT provide standard verbiage for requestors to include 
in the driver authorization form they use. This would allow 3rd party 
providers, such as OEVS and previous employers, to process such 
requests without hesitation, eliminating the time and cost required to 
scrutinize and analyze whether the correct details are contained within 
the document, thus increasing the percentage of successful requests and 
shortening the response times.
    Also, commenters suggest that the FMCSA provide outreach and 
standard instructions along with standardized forms. For example, 
Petroleum Marketers Association of America (PMAA) ``believes that the 
way FMCSA issued its new hours-of-service regulation is an appropriate 
model of how to publicize any new regulations on conducting safety 
background checks. The brochures, pocket cards, etc., explaining the 
hours-of-service rule were very beneficial to PMAA members.''
    FMCSA Response: The defining procedures for what must be 
investigated and what must be reported for alcohol and controlled 
substances are spelled out in parts 40 and 382. This rule merely adds 
conforming amendments for that requirement to part 391. The 
specification of what must be included in the driver's authorization 
for the previous employer to release the alcohol and controlled 
substances data is found at Sec.  40.321(b). In order to clarify what 
authorization information must be provided, a reference to Sec.  
40.321(b) is added in this final rule at Sec.  391.23(f). FMCSA notes 
that entities like OEVS are free to provide their clients with a form 
meeting the requirements of Sec.  40.321(b).

Record of Compliance

    The proposed rule would require employers, both prospective and 
previous, to maintain certain employee records. Petroleum 
Transportation & Storage Association (PTSA) urges the FMCSA to drop the 
1-year record retention requirement for non-hired drivers. PTSA 
believes that this provision would make prospective employers a 
depository of information that is completely unrelated to their 
responsibility for maintaining and providing employee records under the 
FMCSRs. In addition, PTSA argues that there is no need for a 
prospective employer to keep such records, since the very same 
information is already on file with the driver's previous employer, and 
that the potential liability involved with the management of non-hire 
driver information is far too great when weighed against any 
discernable regulatory benefit that may result. Finally, PTSA stresses 
the burden for small businesses of maintaining records. Reusable 
Industrial Packaging Association (RIPA) agrees with PTSA's arguments 
and also does not believe it serves any purpose to require employers, 
who decide against hiring a driver applicant, to maintain for a year 
any information received from previous employers.
    Two commenters specifically discuss the documentation requirement 
at Sec.  391.53(b)(2) for the prospective employer to show that a 
``good faith'' effort was made to contact previous employers. National 
Ready Mixed Concrete Association (NRMCA) explains that good faith ``is 
a vague term, open to many interpretations.'' It asks for specific 
examples of ``good faith'' efforts to help eliminate any question about 
being in compliance. The other commenter states that the ``current 
system of ``good faith'' checks is absolutely abysmal'' and that any 
system of contacting former employers should be administered by a 
pseudo-governmental agency or contractor.
    FMCSA Response: FMCSA proposed the one year retention of background 
investigation information for all drivers as part of its desire to 
establish an enhanced capability for enforcement of these requirements. 
However, we are persuaded that eliminating this requirement would do no 
harm. If the driver is not hired, it is not relevant to safety concerns 
whether the prospective employer performed the investigations and 
inquiries required by Sec.  391.23. Further, if the driver applies and 
is hired by another motor carrier, that employer is required to have 
performed the required investigations and inquiries and to have placed 
the information received in the appropriate file, or documented a good 
faith effort to have done so. Any additional data that may have been 
gained regarding previous employers who are failing to provide the 
required information can be gained via the complaint process, as 
recommended in Sec. Sec.  391.23(g)(3) and 391.23(j)(4).
    With regard to NRMCA's request for examples of good faith efforts, 
FMCSA notes that this term has been used in the FMCSRs for a number of 
years. The agency believes that the most appropriate guidance it can 
give in the context of this rule is that employers document in the 
driver investigation history file their efforts to comply with the 
requirements to obtain the background investigation information. This 
could also include documentation of having reported previous employers 
to FMCSA using the procedures at Sec.  386.12 that failed to provide 
the required safety performance history information.
    Further, FMCSA believes the environment for verifying the ``good 
faith'' requirement will be substantially changed by this rule. There 
is no current requirement for previous employers to respond to 
investigations. Establishment of this requirement by this final rule 
requires previous employers to furnish the information and keep records 
of having done so. This will make it possible to corroborate whether a 
motor carrier has contacted a previous employer. Thus, the substantial 
change in the reporting and recordkeeping requirements of previous 
employers will in turn create the ability to verify

[[Page 16691]]

whether there was a good faith effort made by prospective motor 
carriers to obtain this data.
    In regard to assigning the responsibility for administering driver 
safety background checks to a separate entity, the HazMat Act 
specifically requires the prospective employer, or perhaps their agent, 
to make the investigations to the previous employers, or their agent.

Previous Employer Responsibilities

Requirement To Respond
    Several commenters express concern that the proposed rule does not 
impose a requirement on the previous employer to respond to the 
prospective employer's request. Most commenters on this issue state 
that there is no burden of compliance placed on the previous employer. 
Coach USA explains that in their experience, ``many previous employers 
fail to respond because they are not required to keep a record as such 
and do not fear enforcement.'' In contrast, DAC Services recommends 
that--

    The record keeping requirements should be consistent between 
Parts 40.25 and 391.23. If the FMCSA has found part 40.25(g) useful, 
it might prove useful under the requirements of 391.23. On the other 
hand, if 40.25(g) has not been beneficial, it should not be required 
under 391.23 and the 40.25(g) requirement should be revisited, as it 
requires considerable record keeping efforts on the part of motor 
carriers.

    Although the proposed rule provides previous employers with 
liability ``limitation'' regarding their response to investigations, 
Coach USA points out that it does not allow for any means to enforce 
non-compliance by previous employers that choose to ignore such 
requests. Coach USA believes that this rule will be ineffective unless 
it includes an unequivocal requirement to respond for previous 
employers and to maintain corresponding records.
    Two commenters are specifically concerned that the rule does not 
place liability with former employers that do not respond to a 
prospective employer's request for information within 30 days. In 
addition to issuing the rule, one commenter suggests that FMCSA educate 
employers, provide standard forms (possibly via the internet), and 
otherwise eliminate every possible reason for not supplying a valid 
response.
    Five commenters sought clarification of the rule's enforcement 
mechanism. For example, Consumer Energy states, ``The SNPRM suggests 
taking enforcement action, but does not provide details of the action, 
when an employer does not provide the required information in the 
allotted time.'' Advocates for Highway and Auto Safety (AHAS)

    * * * strongly supports this rulemaking action, but we are 
concerned that the agency does not plan any targeted oversight 
actions to ensure that prospective employers are requesting safety 
performance information on applicant drivers or that current or 
previous employers are complying with requests for the appropriate 
information.

AHAS states that the agency needs to emphasize, with specific action 
items, how it intends to publicize and educate the motor carrier 
community about its new responsibilities under this proposed 
regulation, exactly what oversight actions it will carry out to ensure 
very high rates of compliance, and specifically what enforcement 
actions will be brought against non-complying motor carriers.
    Dart Transit Company (Dart) comments that the enforcement 
procedures, if a carrier does not respond, are unclear. Dart asks, 
``What penalty or penalties will be imposed and how will enforcement be 
achieved and by whom?'' OOIDA agrees that ``if FMCSA expects carriers 
to comply with these rules, it needs to consider adopting some kind of 
enforcement mechanism, including monetary penalties.'' In addition, 
Dart believes some direction should be adopted in terms of the 
inquiring carrier. For example, Dart asks, ``What is an inquiring 
carrier obligated to do if a response is not received?'' OOIDA also 
remarks that whereas a driver who does not authorize release of his or 
her alcohol and controlled substances data cannot be hired, there are 
no penalties or consequences for carriers that fail to abide by this 
proposed rule. Finally, these commenters identify enforcement as an 
important issue and obstacle to the success of this rule.
    Also, two commenters state that there is no requirement for 
previous employers to document or even maintain a log of to whom 
information about a previous employee was furnished. The commenters 
believe that, without this requirement, many previous employers may 
fail to respond because they are not required to keep a record as such 
and do not fear enforcement.
    However, one commenter, concerned with the additional 
administrative burden, disagrees with the other commenters. It prefers 
that the FMCSA allow the industry some flexibility in responding to 
inquiries about the performance of past employees without mandating 
completion and retention of additional forms, especially if the driver 
retires, leaves the industry, or otherwise does not seek further 
employment.
    FMCSA Response: The conforming requirement in this rule for 
providing the required information to the prospective motor carrier 
employer and keeping a record of having done so, especially for alcohol 
and controlled substances, is based on the provisions found at Sec.  
40.25(g). That provision states that a previous employer must maintain 
a written record of the information released, including the date, the 
party to whom it was released, and a summary of the information 
provided. Thus, this previous employer recordkeeping provision is 
already contained in the proposed driver safety performance history 
requirements. Nonetheless, as clarification to avoid any possible 
confusion in the future, the language contained at Sec.  40.25(g) is 
also added to the conforming language in the final rule at Sec.  
391.23(g)(1).
    As with all violations of our regulations, FMCSA may cite and take 
enforcement action against carriers that do not comply with our 
regulatory requirements. Carriers who fail to maintain the records 
required by this rule may be cited and are subject to the fines and 
penalties prescribed in Appendix B paragraph (a)(1) to Part 386, 
Penalty Schedule; Violations and Maximum Monetary Penalties; 
Recordkeeping, which says ``a person or entity that fails to prepare or 
maintain a record required by parts 385 and 390-399 of this subchapter, 
or prepares or maintains a required record that is incomplete, 
inaccurate, or false, is subject to a maximum civil penalty of $550 for 
each day the violation continues, up to $5,500.''
    FMCSA is aware a number of previous employers covered by 
requirements in parts 40 and 382 are currently failing to provide the 
information specified at Sec.  40.25(b) and required by Sec.  40.25(h). 
Carriers that fail to provide the information required by Sec. Sec.  
391.23(g)(1) and 391.23(j) are subject to the fines and penalties 
prescribed in Appendix B paragraph (a)(3) to Part 386, Penalty 
Schedule; Violations and Maximum Monetary Penalties; Non-recordkeeping 
violations, which says ``a person or entity who violates parts 385 or 
390-399 * * * is subject to a civil penalty not to exceed $11,000 for 
each violation.''
    FMCSA has a formal process in place for drivers and carriers that 
wish to file a complaint against a person or entity that fails to 
comply with the FMCSRs. FMCSA intends for drivers and prospective motor 
carriers to inform the agency using the existing complaint process 
specified at Sec.  386.12, entitled

[[Page 16692]]

``Complaint.'' This includes previous motor carriers that either fail 
to correct their records or include the driver's rebuttal, or who fail 
to provide the required information to prospective motor carriers. To 
make this clear, the FMCSA has added language to the final rule in 
Sec. Sec.  391.23(g) and 391.23(j) pointing out that drivers and 
prospective employers should report information about such failures to 
comply with these requirements. Complaints about failures to comply 
will be investigated and carriers failing to comply will be cited, and 
in addition may be subject to civil penalties for other violations 
found during a carrier compliance review.
    The agency believes inclusion in this rule of the requirement to 
record and provide the alcohol and controlled substances data, as well 
as accident data, may additionally create a legal liability for 
previous employers who fail to provide this data. Previous employers 
who fail to provide the required driver safety performance history 
information may ultimately be found liable if the requesting motor 
carrier hires an unsafe driver without receiving the requested history 
and the driver is involved in an accident.
    Additionally, FMCSA believes the motor carriers who will choose to 
pay little attention to safety performance history information received 
and hire drivers with substantial adverse safety performance histories, 
likely are the same ones already doing this with driving behavior 
traffic conviction information received on the MVR from the licensing 
State or such predecessor States. FMCSA is in the process of analyzing 
a capability to enable SafeStat to better identify motor carriers who 
are systematically hiring drivers with poor driving records, and target 
them for a carrier compliance review. This is expected to also help 
with identifying motor carriers who continue to hire drivers with poor 
safety performance history. A copy of a current updated report on that 
analysis is included in the docket as document 85.
    To ensure the effectiveness of this rule, FMCSA will undertake a 
number of activities, including: (1) Preparing guidance materials for 
enforcement of these new requirements; (2) monitoring the level of 
complaints received for non-compliance; (3) removing the previously 
issued interpretation Question and Answer 1 under Sec.  391.23; (4) 
encouraging use of the FMCSA safety violation and commercial complaint 
hotline (1-800-DOT-SAFT) and Web site (http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://nccdb.fmcsa.dot.gov) for 

filing complaints; and (5) assembling a team to develop recommendations 
for continued improvements to the program.
    With regard to the commenter concerned about recordkeeping 
regarding drivers that retire, leave the industry, or otherwise do not 
seek further employment as a driver after leaving a previous employer, 
there would be no requirement placed on any employer to report 
additional information.
Use of Third Party Providers
    Two commenters ask FMCSA to add appropriate language to the final 
rule to specifically allow third-party providers to obtain driver 
safety performance history information for motor carriers. These 
commenters believe that third-party providers perform valuable services 
for motor carriers, especially during the driver-applicant screening 
and hiring process. The commenters state that, as written, the rule 
seems to imply that a motor carrier may use a third-party to perform 
the required investigations. The commenters believe that the rule 
should explicitly allow third parties to obtain information for 
prospective employers.
    FMCSA Response: The language in the proposed rule does not address 
how the prospective motor carrier may obtain information from previous 
employers. FMCSA does not believe it is appropriate for it to 
specifically endorse commercial companies.
    The agency has existing guidance in the form of Question and Answer 
2 under Sec. 391.23, indicating that a motor carrier may use a third 
party provider to obtain information to meet the inquiry requirements 
of Sec.  391.23. Question 2 under Sec.  391.23 says: ``May motor 
carriers use third parties to ask State agencies for copies of the 
driving record of driver-applicants?'' The answer is: ``Yes. Driver 
information services or companies acting as the motor carrier's agent 
may be used to contact State agencies. However, the motor carrier is 
responsible for ensuring the information obtained is accurate.'' There 
is similar guidance under Sec.  391.25. FMCSA is aware that many motor 
carriers use third parties to obtain this information for them rather 
than directly dealing with many different State driver-licensing 
agencies.
    The preamble to the SNPRM pointed out that if such a third-party 
party is the agent of the motor carrier, it would be covered by the 
limited liability implemented by this rule. If the third party is not 
the agent of the motor carrier, then it is not covered by these 
regulations, but is still operating under the provisions of the Fair 
Credit Reporting Act (FCRA) (15 U.S.C. 1681 et seq.) for performing 
this function.
    The provision by Congress of granting limited liability to agents 
of the motor carriers in carrying out the requirements of the HazMat 
Act is an opportunity for motor carriers and their agents to take 
advantage of such services, but it is not a requirement. The discussion 
about whether previous employers may charge fees for providing the 
required data, talks in terms of FMCSA encouraging a competitive, open, 
free, efficient, market economy approach to management of the fee 
issue.
Driver Information To Be Reported (Sec.  391.23(d)(1) and (2))
    Several commenters urge FMCSA to clarify and to add details on what 
needs to be included in the information investigated about a driver's 
safety performance history, and what must be provided. For example, 
Qwest Communications International, Inc. (Qwest) recommends that 
additional language be added to Sec.  391.23(d)(1) describing the 
general information about a driver's employment record that should be 
investigated. Qwest proposes that the general information further 
identify employment and job responsibilities.
    OOIDA agrees and asks FMCSA to revise the description of employee 
background information in two ways. First, the rule should limit the 
investigation to information directly related to a driver's 
qualifications under Federal or State law. Second, the rule should 
require that the information reported in safety background 
investigations be made with sufficient detail so that an accurate 
safety assessment of the driver can be made. OOIDA is concerned that 
the broad language of proposed Sec.  391.23(d)(1) could invite the 
dissemination of a wide range of non-safety information. In that 
section FMCSA would require that a prospective employer investigate 
``General information about a driver's employment record.'' OOIDA 
believes that this requirement invites any and all information to be 
transmitted as part of a driver's safety background. OOIDA asks that 
FMCSA be much more specific, by listing the ``facts'' that make up the 
general background history that FMCSA proposes be transmitted, such as 
date of hire, safety information, and final date of employment.
    FMCSA Response: FMCSA agrees that the wording contained in Sec.  
391.23(d)(1) of the SNPRM for information the prospective employer is 
to request of the previous employer is general in nature. What was 
intended for this category is for the prospective motor carrier to

[[Page 16693]]

provide the driver identifying data, such as name, date-of-birth, and 
social security number for the driver on whom it is requesting safety 
performance history information, and for the previous employer to 
provide information about that same driver, such as starting and ending 
employment dates and job responsibilities. However, the agency is not 
specifying that information in the regulatory text of this final rule, 
so that employers have some degree of flexibility in providing such 
basic information. FMCSA does not believe that this type of information 
will detrimentally impact drivers. All of the information requested in 
Sec.  391.23 is in the context of driver safety performance history.
How To Respond Absent Any Data (Sec.  391.23(g))
    Section 391.21(g) requires all previous employers to respond to 
each request for a driver's record as outlined in the rule. Safe Fleet, 
Inc. comments that the proposed rule does not require a response unless 
the previous employer has derogatory information to report; however, 
the new employer must have a response within 30 days from every 
previous employer. Safe Fleet believes the previous employers should be 
required to respond in every case.
    FMCSA Response: All previous employing motor carriers must respond 
to each investigation within 30 days as specified in the HazMat Act. 
Responses are required even in the absence of data on accidents, or 
alcohol and controlled substances abuse. Accordingly, FMCSA has made 
this more explicit in Sec.  391.23(g) of the final rule by adding words 
clarifying that a response is required even when there is no accident 
or alcohol or controlled substances data, by stating that no such data 
is on file.
Designated Contact Persons
    Qwest requests that FMCSA include a provision indicating that 
employers must designate a person to receive requests for information 
from prospective employers and former employees, and clarify when the 
proposed time frames for required actions start. Qwest states that it 
is a large, national company, which routinely receives correspondence 
that is incorrectly or inadequately addressed, thus delaying delivery 
to the responsible party by up to several days. Qwest believes that 
compliance with time frames for required actions in the rule should be 
based on start times that begin when the designated responsible person 
within the organization receives the request for action, rather than 
when the request may be received by the organization.
    FMCSA Response: Each employer is free to provide their contact 
information in any way they desire to facilitate this process, such as 
on its Website, or perhaps designating an agent.
    FMCSA has added requirements in the final rule language at Sec.  
391.23(d) for each prospective employer to include information on a 
point of contact when requesting this investigative background 
information, and for the previous employer to provide similar contact 
information on its response for use by a driver who may wish to contact 
that previous employer.
    FMCSA intends for the previous employer's 30-day response period to 
begin when the prospective motor carrier submits the investigation 
request to the previous employer or its agent.

Applicability to Current Employer

    Three commenters state that the term ``previous employer'' does not 
include the current employer. If an individual is currently employed 
and is seeking a new position, his or her current employer should be 
required to provide the accident history. FMCSA has clearly stated that 
previous employers must respond to requests for information under the 
new regulations. Unaddressed however, is the issue of whether a company 
currently employing a driver must respond to a request from a company 
that may be recruiting its driver. Two commenters want the FMCSA to 
clarify whether a carrier that currently employs a driver must respond 
to a request for information from a prospective employer. A third 
commenter recommends that FMCSA require both previous and current 
employers to respond to new or prospective employer inquiries.
    FMCSA Response: The HazMat Act defines previous employer as any 
employer that employed the driver in the preceding 3 years. From the 
prospective employer's point of view, a current employer is a previous 
employer. In accordance with the HazMat Act definition, FMCSA has added 
a definition for previous employer to Sec.  390.5 in the final rule to 
clarify that it includes a current employer.
Appending Rebuttal (Sec.  391.23(j)(3))
    Under proposed Sec.  391.23(j)(3), if a driver refutes information 
from a previous employer, that rebuttal must be appended to, and 
provided with, the driver safety performance history information to 
each subsequent prospective employer that requests it. Commenters state 
that requiring previous employers to maintain rebuttals adds a 
significant and unnecessary burden to previous employers. For example, 
Coach USA requests that proposed Sec.  391.23(j)(3) be amended to 
exclude the last sentence, which requires the previous employer to 
append the driver's rebuttal to its file information and to provide the 
complete file in any future requests. Coach USA believes that this 
specific requirement will place an undue burden on previous employers, 
and prejudice any response they may give to prospective investigating 
employers. Coach USA considers the fact that the rule allows for an 
applicant's rebuttal as sufficient to ensure that previous employers 
provide accurate information, should they choose to respond.
    J.B. Hunt states that it has a concern with

    * * * the provision for requiring motor carriers to maintain and 
provide to prospective employers the rebuttals of former drivers 
when the information provided by the motor carrier is correct, 
complete, and factual. J.B. Hunt terminates many drivers whose only 
purpose in life after termination is to make anyone associated with 
the carrier miserable. These drivers would likely submit rebuttals 
of several hundred pages, just to increase the carrier's costs.

    J.B. Hunt further says ``It should not be the previous motor 
carrier's responsibility to provide the rebuttal to prospective 
employers.''
    Two commenters suggest that, in order to keep the process 
manageable and to be consistent with the Fair Credit Reporting Act, the 
rebuttal should be limited to not more than 100 words.
    FMCSA Response: The HazMat Act specifies that the safety 
performance history data be requested from the previous employer. The 
TEA-21 limitation on liability requires the driver to have an 
opportunity to correct the data or rebut it. If the driver determines a 
rebuttal is needed, it is necessary for that rebuttal to be provided 
each time, along with the data to which the driver does not agree. 
Since the data is coming from the previous employer or its agent, it is 
necessary for the driver rebuttal information to also come from the 
previous employer or its agent. Without this mechanism in place, future 
prospective employers would not receive the driver's rebuttal as part 
of the information furnished.
    FMCSA has not specified a limit for the length of the driver 
rebuttal. The agency believes it is important for drivers to have the 
opportunity to adequately respond to what they believe is inaccurate 
information. Further, the agency has no evidence demonstrating

[[Page 16694]]

that this would be widely abused by drivers.

Applicants--Driver Rights

Applicants Rights (Sec.  391.23 (i), (j), (k) and (h))
    Under the proposed rule, the prospective employer must inform the 
driver in writing of his or her review, correction and rebuttal rights 
in the hiring process. DAC Services recommends that the rule explicitly 
state that this written notification may be given to the driver 
subsequent to initiating the hiring application and initial screening 
processes to obtain driver safety performance history data, other than 
alcohol and controlled substances. This clarification would allow motor 
carriers to accept driver applications for employment over the phone or 
via the Internet without written notification of due process slowing or 
hindering such methods of quickly obtaining information.
    Similarly, PTSA wants clarification of the rule that requires 
prospective employers to notify driver applicants of their rights 
regarding previous employers' records before an application is 
submitted. The rule only specifies that the prospective employer must 
``inform'' the driver of the procedures for the use and collection of 
safety performance records. PTSA asks, ``Does the FMCSA intend that 
this notification, like the notice of due process rights under 49 CFR 
391.23(i), be in writing?'
    PTSA also wants guidance on the requirement that the previous 
employer ``take all precautions reasonably necessary to ensure the 
accuracy of the records.'' PTSA requests that this language (and 
similar language contained in Sec. Sec.  391.23(h) and (k)(2)) be 
clarified to specify the type of precautions the FMCSA has in mind.
    FMCSA Response: FMCSA has added a clarifying statement to the final 
rule language for Sec.  391.23(i) that says the required notification 
in writing of driver rights may occur anytime prior to a hiring 
decision being made, but it must be made in writing to all applicants, 
including those not hired. The SNPRM pointed out that if a motor 
carrier is in compliance with Sec.  391.21(b) this could be done as 
part of the employment application the driver signs.
    The intent is to make it clear that provisions of the Fair Credit 
Reporting Act can apply as part of the job application process. The 
FCRA allows notification of the driver by telephone (or other 
electronic communication) that the prospective employer will obtain the 
inquiry and investigation information required by Sec.  391.23 based on 
that application communication. FMCSA also notes that if the driver 
makes the application over the Internet, the required notification in 
writing about the driver's due process rights to review, correct and 
rebut could be provided by the prospective employer as part of the 
application process as well.
    The request by PTSA for guidance regarding how previous employers 
can be in compliance with the requirement to ``take all precautions 
reasonably necessary to ensure the accuracy of the records'' cannot be 
addressed by FMCSA. To qualify for limited liability protection set 
forth in the HazMat Act, Congress intends for the previous employer to 
furnish accurate safety performance history information. As part of 
that limited liability concept, Congress also established the 
requirement for drivers to be able to review, correct and rebut the 
information furnished. The test of whether an employer has taken 
reasonable precautions to ensure accuracy would be addressed within the 
context of a driver taking a previous employer to court trying to prove 
the information furnished is false. With this as the test, employers 
should have sufficient records to substantiate that any information 
they reported is accurate to the best of their knowledge.
Employee Access and Rebuttal
    The proposed rule allows the driver to submit a written rebuttal to 
the previous employer when agreement cannot be reached on whether 
information provided to the prospective employer is erroneous. 
According to commenters, while the SNPRM is clear on the 
responsibilities of the driver and the previous employer with regard to 
the rebuttal, the proposal is silent on the prospective employer's 
responsibility when faced with conflicting information. PTSA requests 
``that this provision be clarified so that prospective employers fully 
understand their responsibilities (if in fact there are any) when faced 
with conflicting information relating to driver safety performance 
history.''
    Two commenters disagree with the requirement of allowing a 
prospective driver an opportunity to refute investigative information, 
citing a large burden on small businesses and slowing the hiring 
process with no significant benefit. Several commenters think that the 
driver should only be allowed to access the information if employment 
is denied. For example, Qwest--

    * * * proposes that access to this information be provided only 
if employment is denied by the prospective employer based solely on 
the investigative information. This will allow drivers who have been 
denied employment an opportunity to rebut potentially inaccurate 
information. It will also decrease the administrative burden on 
employers.

Further, ATA states that an applicant's right to review information 
provided by previous employers should only address those persons who 
are rejected for employment because of the information received. Hired 
drivers have the ability to review and access their personnel files, 
making a regulation for such drivers unnecessary. TCA agrees and 
states,

    The costs that such an across-the-board requirement would impose 
on carriers would be significant and, in the absence of a dispute 
over the accuracy of the information, seems entirely unnecessary and 
unjustified. FMCSA's final rule should only extend the right of a 
driver to receive the information from the prospective employer in 
the event that the driver is denied employment based, in whole or in 
part, on the information provided by a past employer.

    The IBT, however, agrees with the provision that the driver should 
be allowed, upon request, to see his or her records obtained from 
previous employers. In addition, the IBT questions the other 
commenters' assertion that the cost of providing records to drivers 
would be burdensome. The IBT claims ``that allowing drivers to view the 
information provided whether they are denied employment or not may be 
more efficient and result in saved costs as it will allow drivers to 
correct or rebut information sooner, without having to wait until they 
are denied jobs based on the information.''
    Finally, OOIDA believes that the rebuttal process leaves the driver 
in a distinct disadvantage because a driver can only correct his or her 
record during the hiring process while the carrier can make changes to 
the driver's record at any time. OOIDA suggests that a driver have a 
right of rebuttal or correction any time a carrier makes a change to 
the driver's record.
    FMCSA Response: Congress, in the HazMat Act, requires that the 
previous employer provide driver safety performance history information 
to the prospective motor carrier employer. TEA-21 requires that all 
drivers have the right to a rebuttal, and that the previous employers' 
information may be made available to the prospective motor carrier's 
insurance provider. TEA-21 also requires that provisions implementing 
these requirements be added to Sec.  391.23 dealing with investigations 
and inquiries required as part of the hiring process.

[[Page 16695]]

    There are no requirements in the HazMat Act, TEA-21, or existing 
regulations regarding what a prospective employer is required to do 
with previous employer information. They are similarly silent regarding 
what to do with driver rebuttals that presumably will conflict with the 
previous employer information.
    TEA-21, however, provides the insurer of the motor carrier 
requesting the data with the same limited liability as the prospective 
motor carrier requesting the data. FMCSA believes that by also granting 
insurers limited liability to gain access to the information (the final 
rule excludes the alcohol and controlled substances information), 
Congress intended for business decisions between the prospective motor 
carrier and the insurance provider to function as a mechanism by which 
this data will be evaluated. FMCSA believes there is motivation for the 
carrier and insurer to make good sound judgments of the relative risk 
of prospective drivers. Those judgments will now be based on better 
documentation about the driver's past safety performance history.
    FMCSA believes the final rule must allow all drivers the right to 
submit a rebuttal, as specified in TEA-21. The request by OOIDA to 
allow the driver a rebuttal right at any time a motor carrier makes an 
entry to the driver's record is not required by the HazMat Act or TEA-
21, and would be intrusive on the operating practices of motor 
carriers.
Appeal Process (Sec.  391.23(i) and (j))
    Commenters express concern that the appeal process would inhibit 
prospective employers from hiring a driver. For example, TCA opposes 
FMCSA's proposed appeal process. A driver's dispute over information 
provided by a past employer, would require the prospective employer to 
delay making its hiring decision until the dispute has been resolved or 
the driver provides his or her rebuttal. TCA believes the impact that 
such a mandatory requirement would have on carriers [in the truckload 
sector of the industry] would be extremely impractical from an 
operational standpoint and also unduly burdensome and costly. TCA 
states, on the other hand, ``* * * FMCSA's decision not to mandate such 
a delay in hiring decisions would have a minimal impact on drivers, 
since the dispute resolution process should enable the driver to cure 
the inaccuracy in a reasonably timely fashion and thereby limit any 
denial of work based on the disputed information * * *''
    The IBT, however, disagrees with TCA's position. The IBT does not 
think it would be proper for the FMCSA to issue a regulation explicitly 
permitting a prospective employer to make a decision not to hire a 
driver before the process is complete.
    FMCSA Response: There is no requirement for the motor carrier to 
delay putting the driver to work pending the appeal process. The 
proposal in the SNPRM was that the investigations `` * * * must be 
completed within 30 days of the date the driver's employment begins.'' 
FMCSA has modified Sec.  391.23(c) in the final rule to make it clearer 
that the employer is allowed to put the driver to work for up to 30 
days without having completed the required safety performance history 
background investigation.
    FMCSA desires to keep the new requirement for safety performance 
history Sec.  391.23 as close as possible to current requirements so 
that the provisions of this rule are consistent with existing 
requirements. The requirement is that the inquiries and investigations 
must be performed and information received within 30 days or the motor 
carrier must not allow the driver to continue operating a CMV. In order 
to keep that requirement as it is, the additional new times added by 
this rule for completing the driver appeal process are defined as being 
outside of the 30 days allowed for obtaining the initial safety 
background information. For example, a motor carrier hires a driver and 
on the 29th day from the start of employment, the hiring motor carrier 
receives a response from a previous employer that contains accident 
data. If the driver requests a copy of that report from the prospective 
(hiring) employer, and then decides to request correction or to rebut 
it, the hiring motor carrier is not required by these regulations to 
prevent the driver from operating a CMV for the new (prospective) 
employer while the driver is exercising his or her rights to review, 
correct or rebut the information provided.

Access to Data

Insurer Access to Data (Sec. Sec.  391.23 (h) and 391.53(a)(1))
    The Daily Underwriters of America thinks that the regulation should 
be expanded to include insurers of commercial autos. It argues that 
``Allowing the insurance company access to the same information would 
enhance the decision making process and offer another professional 
opinion on the safety risk presented by each driver.''
    The TCA and ATA are opposed to allowing insurers of motor carriers 
access to safety performance history information. TCA argues that the 
provision will effectively give insurers the implicit right to direct 
the hiring decisions of motor carriers and may expose carriers to 
liability for adverse hiring decisions.
    ATA points out that part 40 allows the release of alcohol and 
controlled substance information to anyone named on the driver's 
release authorization. ATA states that `` * * * Sec.  391.53(a)(1), as 
proposed, would be inconsistent with Sec.  40.25.''
    FMCSA Response: In regard to the Daily Underwriters of America 
request to expand this rule to include commercial autos, the FMCSA 
notes it only has authority to regulate commercial motor vehicles as 
defined in Sec.  390.5. Unless the autos are carrying placardable 
amounts of hazardous materials (thus requiring a commercial driver 
license (CDL) to operate them) they are not CMVs. Additionally, in part 
391 FMCSA only has authority over motor carriers operating in 
interstate commerce. Thus, unless the commercial autos are being 
operated by a motor carrier in interstate commerce carrying placardable 
amounts of hazardous materials, FMCSA has no jurisdiction over such 
autos even if used commercially, such as in sales fleets.
    In regard to TCA and ATA not wanting to release accident data to 
their insurers, FMCSA notes that Congress specified in TEA-21 that the 
motor carrier's insurer could have access to the safety performance 
history. This is one of the mechanisms by which the safety performance 
history data is made part of the hiring decision process.
    In regard to ATA's question about whether the proposed Sec.  
391.53(a)(1) is inconsistent with Sec.  40.25, FMCSA believes the 
reference should more accurately be to Sec.  40.321. FMCSA further 
notes that the regulations in Sec.  391.23 apply to what a motor 
carrier can do. Section 391.53(a)(1) says the prospective motor carrier 
cannot give the alcohol and controlled substances information to its 
insurer. Departmental policy in part 40 seeks to protect the privacy 
rights of drivers, and does not want alcohol and controlled substances 
information released for purposes other than intended, namely to keep 
drivers with positive tests from operating CMVs until they have 
completed the process of return-to-duty status. There is no need for 
insurers to have access to this data, because prospective employers are 
prohibited from allowing such drivers to operate CMVs.

[[Page 16696]]

    However, as ATA points out, if a driver wishes to give 
authorization for their alcohol and controlled substance data to be 
released by the previous employer to the insurer of the prospective 
motor carrier, they are free to do so. However, there is no regulatory 
requirement for them to do so.
Access to and Use of Driver Investigation History File (Sec.  
391.53(a))
    The SNPRM contained a provision that restricts access to the Driver 
Investigation History file to the hiring decision process and to those 
persons involved. Con-Way and the ATA oppose this provision. Both 
commenters cite the burden of maintaining two files--a Driver 
Investigation History file, which can only be accessed by those 
involved in the hiring process, and a second Driver Qualification file 
with the rest of an employee's information. Both commenters recommend 
that the provision be amended to permit storage of all of an employee's 
information in one file. ATA also argues that management personnel of a 
motor carrier should have the right to review the information in a 
driver's file for any valid reason whether or not they were involved in 
the hiring process.
    RIPA seeks guidance with regard to the agency's interpretation of 
the term ``controlled access'' as it is used in Sec.  391.53. In this 
section, the proposed rule states that the Driver Investigation History 
file ``must be maintained in a secure location with controlled 
access.''
    FMCSA Response: FMCSA does not believe it has any latitude to 
permit the investigation records required by the rule to be mingled 
with the inquiry records, nor to allow the investigation information to 
be used for any other purpose, even for FMCSA required reviews, such as 
the annual review required by Sec.  391.25.
    TEA-21, as codified at 49 U.S.C. 508(b)(1)(B), requires the 
prospective motor carrier to ``* * * protect the records from 
disclosure to any person not directly involved in deciding whether to 
hire that individual.'' In addition, 49 U.S.C. 508(b)(1)(C) requires 
that ``the motor carrier has used those records only to assess the 
safety performance of the individual who is the subject of those 
records in deciding whether to hire that individual.''
    In addition to the Congressional requirement at 49 U.S.C. 
508(b)(1)(C), as it relates to Con-Way's and ATA's concern about the 
burden of maintaining an extra file, FMCSA notes that this file is 
customarily maintained separately for alcohol and controlled substance 
results. The proposal at Sec.  391.53 was developed based on this 
common practice of motor carriers maintaining such files separately in 
order to be able to withstand driver court challenges when asked how 
they can prove they met the requirements of part 40 for secure and 
controlled access. Thus, FMCSA proposed that the Driver Investigation 
History file could be combined with the already separately maintained 
alcohol and controlled substances response file in order to minimize 
any additional costs imposed on motor carriers.
    The terms secure and controlled-access are adopted as a conforming 
amendment from part 40, which has used these terms for some time.
National Database or Access to FMCSA Data Files
    Instead of requesting driver information from previous employers, 
nine commenters advocate a national or centralized database to include 
information, such as driver accidents, alcohol and controlled 
substances test results, safety related medical conditions, citations, 
and out of service inspections. The arguments presented for such a 
database include better tracking of drivers, less expensive and easier 
access to the information, and less burden on the motor carriers. For 
example, Consumer Energy explains that a database system could 
eliminate the paperwork burden, limit the possibility of a driver's 
falsification of employment, failure to provide documentation of 
previous employers, and speed up the hiring process. Consumer Energy 
recommends modeling a database after the Nuclear Regulatory 
Commission's Personnel Access Data System (PADS).
    J.B Hunt concurs that a database would lessen the burden to motor 
carriers from the thousands of requests for information gathered in the 
hiring process. This commenter suggests adopting a national program 
similar to the California Pull-Notice Program where motor carriers 
register new drivers in a database of safety performance indicators, 
such as accidents, alcohol and controlled substances test failures, and 
traffic convictions. The administrator of the database notifies 
employing motor carriers when a driver's record changes, and drivers 
would have access to their records to make rebuttals. The American Bus 
Association agrees that such a database ``would solve the problem that 
occurs when a driver applicant `forgets' to list a previous employer to 
avoid scrutiny.''
    TCA, ATA, and DAC Services all urge FMCSA to allow motor carriers 
access to driver information in the Motor Carrier Management 
Information System (MCMIS) database. These commenters argue that by 
giving access to this data, motor carriers would gain access to more 
information about a driver than under this rule. ATA urges FMCSA

to immediately take the necessary action to allow prospective motor 
carriers to access the MCMIS database, on a real-time basis, for the 
purpose of obtaining driver-applicants accident data, as well as 
other important roadside inspection safety compliance and 
performance data.

Similarly, the Commercial Vehicle Safety Alliance (CVSA) states that 
roadside safety inspection reports include information that would allow 
prospective employers the opportunity to analyze the driving habits of 
prospective employees by reviewing their FMCSR violation histories and 
that of the vehicles they operated. Access to this information might be 
accomplished by providing access to driver specific information via 
SAFER [Safety And Fitness Electronic Records] and/or other databases. 
Access to this driver information would provide motor carriers a more 
comprehensive rendering on which to base their hiring decisions. While 
the CVSA strongly recommends motor carrier access to driver specific 
roadside safety inspection information, it also recognizes the fiscal 
implication at both the Federal and State levels. For this reason the 
CVSA requests that FMCSA be cognizant and sensitive to the limited 
resources available in regard to proposed upgrades to information 
systems.
    The IBT strongly opposes making individual driver records publicly 
available via MCMIS. IBT is concerned about maintaining the 
confidentiality of the information and believes the rule as proposed 
implements the necessary precautions to protect the confidentiality of 
this information by making it only available to individuals involved in 
the hiring process.
    FMCSA Response: The FMCSA recognizes the interests demonstrated by 
the suggestions to provide the safety performance history for new 
drivers using national databases rather than investigations to previous 
employers. For the benefit of those interested, FMCSA provides this 
summary of related activities in each of the suggested areas.
    FMCSA has been building the MCMIS database of motor carrier 
information for many years. However, the agency is also aware that 
there are accompanying cost and individual privacy issues. As the 
commenters indicate, the MCMIS contains information on accidents and 
out-of-service orders, and is used by

[[Page 16697]]

FMCSA for various purposes, including prioritizing motor carriers to 
receive carrier compliance reviews. In any event, access to that MCMIS 
database or the development of another database was not proposed in the 
SNPRM, and is outside the scope of this rulemaking.
    Regarding an alcohol and controlled substances database, section 
226 of the Motor Carrier Safety Improvement Act of 1999 (MCSIA) (Pub. 
L. 106-159, 13 Stat. 1748 (December 9, 1999)) requires a report to 
Congress on the feasibility and merits of an alcohol and controlled 
substance database capability. Work on that report is progressing. When 
the report is released to the public after being sent to Congress, it 
will be placed in docket FMCSA-2001-9664. The long title of the report 
is ``A Report to Congress On the Feasibility and Merits of Reporting 
Verified Positive Federal Controlled Substance Test Results to the 
States and Requiring FMCSA-Regulated Employers to Query the State 
Databases Before Hiring a Commercial Driver's License (CDL) Holder.''
    Regarding medical certification information as part of the CDL 
process, section 215 of MCSIA requires a rulemaking to provide medical 
certification information as part of the CDL licensing process. Work on 
that rulemaking effort is progressing as well.
    There were studies related to the possible value of a national 
database of citations. However, there is no proposal or funding to 
proceed with such an effort. It appears far more cost effective to 
instead focus on using the data about traffic convictions available 
from the Commercial Driver License Information System (CDLIS), and also 
available to motor carriers from the Motor Vehicle Record (MVR) 
obtained from the licensing State, and already required by Sec.  
391.23(b). For CDL drivers, the FMCSA is working with the States to 
improve the quality of this data in accordance with section 221 of 
MCSIA.

Rejection Rate and Cost/Benefits

    Several commenters addressed FMCSA's rejection rate in its SNPRM 
cost/benefit analysis. Two commenters take issue with the FMCSA use of 
a 4 percent rejection rate of applicants in the SNPRM regulatory 
evaluation. These commenters state that the actual rate is much higher 
and that therefore the FMCSA underestimated the cost of the proposed 
rule. Con-Way states that the rejection rate is closer to 80 percent, 
and that therefore the cost would be $1.52 billion, not $76 million as 
stated in the SNPRM. Con-Way states,

    * * * there is no doubt that the proposal will result in lots of 
paper and administration. Not only employers but also potential 
applicants would be impacted, as applicants may not be hired as 
quickly, creating more hardship and loss of income for job seekers.

    Con-Way further states that the analysis assumes, with no data to 
support the assumptions, that there may be a 0 percent, 10 percent, 25 
percent or 50 percent reduction in accidents (what is identified as 
``deterrence effect''). In the opinion of Con-Way, the fact that there 
is a wide range in accident reductions included in the sensitivity 
analysis implies there is little data to support a more definitive 
statement of benefits. Con-Way concludes that the benefit analysis is 
inadequate, flawed, and based on little data and many assumptions.
    The ATA contacted several motor carriers of varying sizes, 
presumably among their membership, to get a better estimate of the 
rejection rate of CMV driver applicants. ATA submitted the results of 
its inquiries to the docket. ATA states that the information indicates 
the actual driver employment rejection rate may be considerably higher 
than the four per cent used by FMCSA in its cost/benefit analysis. The 
table contained in ATA's document 83 in this docket gives the results 
of the ATA inquiries. It also gives a weighted mean rejection rate of 
80.1 percent. ATA suggests that FMCSA needs to further investigate its 
rejection rate assumption and reexamine its cost/benefit analysis based 
on the new information.
    Three commenters assert that associated and administrative costs 
will significantly exceed FMCSA's estimates and will cause significant 
economic burden on the industry. For example, AT&T estimates that its 
efforts to comply with these regulatory changes would result in very 
costly modifications to an established, well-functioning system, which 
would take considerable time. In AT&T's opinion, the FMCSA did not 
prove that the benefit of the SNPRM's proposal would outweigh these 
costs.
    FMCSA Response: FMCSA stated in the preamble to the SNPRM, with a 
reference to the supporting study in the docket, that it was aware of 
the CDL Effectiveness focus groups study involving motor carrier safety 
directors who stated that there is a substantial rejection rate of CMV 
driver applicants. A copy of the relevant portions of that publication 
is included in the docket as document 41. The preamble also stated that 
because of limited information, that observation was not included in 
the regulatory evaluation. Additionally, the SNPRM requested that more 
information about rejection rates be provided in comments to the 
docket. Based on the additional information received, FMCSA has revised 
both the paperwork burden estimates and the regulatory evaluation, 
using a higher rejection rate, and thus yielding higher burden and 
cost. These are discussed in detail in the ``Paperwork Reduction Act'' 
and ``Regulatory Evaluation: Summary of Benefits and Costs'' sections 
later in this preamble.

Fees (Previous Employers or Third Parties Charge)

    Of those commenters that addressed this issue, some do not want 
previous employers to be allowed to charge a fee to offset their costs 
of providing safety background information about their previous 
employees. Safe Fleet asserts that all motor carriers are both previous 
and new employers, so all should share the burden and help out one 
another with this cost. Two commenters suggest that, if previous 
employers can require a payment for the required safety performance 
history information, it should be a standard amount determined by the 
FMCSA. ATA specifically urges FMCSA to make a decision on whether 
charging a fee for safety performance history information is allowed or 
prohibited.
    FMCSA Response: There are two distinct requirements under Sec.  
391.23, namely for ``Investigations'' and ``Inquiries.'' Under 
``Inquiries'' motor carriers are required to obtain the driving record 
from all States where the driver held a license or permit in the last 
three years. All States commercially sell this information as the Motor 
Vehicle Record (MVR) to authorized users. Payment of the fee set by 
each State is a condition of the MVR being released by the State. These 
fees are set by State government agencies for access to public records. 
FMCSA has no part in setting these fees.
    Under the ``Investigations'' requirements of the Sec.  391.23 
``Investigations and inquiries,'' prospective motor carriers continue 
to be required to request investigatory information from previous 
employers, and the minimum data elements are now defined by this 
rulemaking. In addition, previous employers are now required by this 
rule to provide the specified minimum information.
    Further, as pointed out in the SNPRM, it is an established practice 
for some motor carriers to require a driver to have driving experience 
before they will hire the driver. (See document 41 in this docket.) 
This means some carriers are hiring the inexperienced new entrant 
drivers, who systematically leave their employ to go to work for 
carriers

[[Page 16698]]

requiring some type of driving experience.
    Those carriers hiring inexperienced new entrant drivers will 
systematically be subject to the costs of providing the safety 
performance history data, but will not equally get the advantages of 
this data from other previous employers. The Regulatory Evaluation 
section presents two possible scenarios, each indicating that some 
motor carriers hire drivers with no driving experience. Under scenario 
1, the percent of drivers hired from outside the industry would be over 
25 percent new entrants. Under Scenario 2, the percent of the drivers 
hired from outside the industry would be over 34 percent new entrants.
    FMCSA points out that our regulations do not prevent previous 
employers from charging a fee for this information. If such fees are 
charged to offset carriers' cost of providing the required safety 
performance data, FMCSA encourages development of a market that 
establishes reasonable, predictable fees. Although FMCSA agrees any 
fees should be reasonable and predictable, somewhat like the State fees 
for the MVRs, FMCSA does not believe it has the authority to set fees 
for release of former driver safety performance history information to 
prospective employers.
    However, FMCSA believes it has the authority to require previous 
employers to release the minimum data, for alcohol and controlled 
substances specified in part 382 and for accidents as defined in Sec.  
390.5, to the investigating prospective motor carrier within the time 
period required at Sec.  391.23(g)(1), even if the previous employer 
has to initially absorb the costs for maintaining and providing this 
information, i.e., extend credit. Previous employers may not condition 
release of this required investigative safety performance history 
information on first receiving payment of a fee by the prospective 
motor carrier. A copy of a corresponding FMCSA interpretation to this 
effect in the context of alcohol and controlled substance information 
was placed in the docket as document 55. This does not apply to 
accident data not defined by FMCSA and retained either pursuant to 
Sec.  390.15(b)(2) or because the motor carrier chooses to maintain 
more detailed minor accident information for their own purposes.
    FMCSA does not believe it has a regulatory role in establishing 
reasonable, predictable fees for the safety performance history 
information previous employers are required to provide once this rule 
is implemented. What such fees may be, and how they are collected, 
should be determined in a free, open, efficient, competitive 
marketplace.

Miscellaneous

Relation of Hours of Service to Safety Performance
    The ATA believes that the regulatory evaluation discussion in the 
SNPRM did not provide the evidence showing the claimed positive 
relationship between hours of service violations resulting in out-of-
service orders and future safety performance. ATA urges FMCSA to place 
appropriate proof of this claimed relationship in the public docket.
    AHAS strongly disagrees with FMCSA's decision to accept the SBA 
request to delete the requirement for previous employers to disclose 
records evidencing previous driver hours of service (HOS) violations 
resulting in out-of-service orders. AHAS is not persuaded that the 
agency's rationale for excising this aspect of the proposed rule has 
any merit. AHAS challenges that a ``failure to require employers to 
provide such information on driver HOS violations to any prospective 
new employer of that driver arguably abets ongoing HOS violations by 
refusing to stop their concealment from subsequent employers.''
    FMCSA Response: With regard to ATA's comment, the information 
referred to in the SNPRM was developed in a study for FMCSA. A 
preliminary report on this study was presented at the 2002 annual 
Transportation Research Board meeting in Washington, DC. A copy of a 
current report on that analysis is included in the docket as document 
85.
    More accurately, the SNPRM discussion refers to a positive and 
significant relationship between a measure developed by that study of 
traffic convictions and driver out-of-service (OOS) orders, which are 
largely from hours of service violations or record of duty (logbook/
timecard) violations. Drivers receiving more traffic convictions for 
moving violations, particularly those defined as CDL serious or 
disqualifying convictions, are identified by the required Commercial 
Driver License Information System (CDLIS) recordkeeping functions.
    Depending on the traffic law conviction received and the number of 
such convictions, the driver may be identified by the State driver 
licensing agency as a safety risk requiring driver improvement actions, 
such as suspension or revocation, in accordance with the CDL program 
regulations. It is an underlying premise of the CDL program that 
drivers with such conviction patterns are considered higher risk for 
being involved in accidents, and should be removed from driving CMVs, 
either temporarily or permanently.
    The study found a significant, positive, linear correlation between 
the proposed carrier-driver conviction measure with OOS orders and 
carrier power unit crash rate. This implies that if the driver OOS 
information were available to prospective employers, it could also be 
useful in predicting future safety problems, including accidents. The 
relationship of driver OOS orders and future crash involvement is being 
further researched.
    In regard to the AHAS comments, as stated in the SNPRM, FMCSA 
continues to believe ``* * * requiring this information collection and 
establishing a motor carrier recording requirement would be 
particularly burdensome to small entities * * *'' ``* * * because this 
information is only systematically reported to FMCSA as part of the 
Motor Carrier Safety Assistance Program (MCSAP) enforcement activities 
of the States.'' FMCSA provides the following additional details why 
this would be burdensome on small entities, as well as not meet the 
three-year reporting requirement of the HazMat Act.
    Motor carriers are not currently required by the FMCSRs to maintain 
a three-year record for hours of service violations resulting in an 
out-of-service order. Requiring motor carriers to maintain and provide 
three-years of such information would necessitate creating a new 
recordkeeping requirement for motor carriers to obtain and maintain 
this data, and creation of such a process could be problematic.
    The following things are currently required. Drivers are required 
by Sec.  395.13(d)(3) to notify their employer of having received a 
driver out-of-service order for an hours-of-service violation. Motor 
carriers are then required by Sec.  395.8(k)(1) to retain such data as 
a supporting document for 6-months. Under Sec.  396.9(d)(3), motor 
carriers are required to retain a copy of inspection reports they 
receive from the driver, some of which could include information about 
a driver out-of-service order, for 1-year.
    Because of the known problem with drivers not providing all such 
information to their motor carrier, FMCSA created a capability for 
motor carriers to obtain a carrier profile from FMCSA for a fee. If 
there is information on that profile about a driver-out-of-service 
order the motor carrier did not receive from the driver, the motor 
carrier may either contact the State MCSAP agency that issued the 
report, or request a facsimile copy of that

[[Page 16699]]

information from the FMCSA for their records for a fee.
    There is no requirement for the motor carrier to regularly obtain a 
carrier profile in order to search for possible missing driver OOS 
orders. However, if the carrier requests a profile from FMCSA, we 
require the carrier to pay a fee to the agency for both the profile and 
any missing facsimile data. This means there is no reliable, 
institutionalized process for motor carriers to be notified of all such 
orders received by their drivers. Even if the information were 
obtained, the longest the motor carrier is required to keep reports on 
file is 12 months for inspections.
    The more reliable reporting process in place is the States' MCSAP 
agency reporting this data to FMCSA, using SAFETYNET \2\ to place it in 
MCMIS. There is no requirement for the States to provide this 
information to motor carriers.
---------------------------------------------------------------------------

    \2\ SAFETYNET is a database management system that allows entry, 
access, analysis, and reporting of data from driver/vehicle 
inspections, crashes, compliance reviews, assignments, and 
complaints. It is operated at State safety agencies and Federal 
Divisions and includes links to SAFER and MCMIS. It is an Oracle 
based client-server system.
---------------------------------------------------------------------------

Broader Applicability (Non Safety Sensitive Functions)
    The proposed rule requires that prospective employers investigate 
alcohol and controlled substance testing information for prospective 
drivers previously employed in safety-sensitive positions. Qwest 
supports this requirement. However, Qwest believes the language in 
Sec.  391.23(e) should be modified to state that all prospective driver 
alcohol and controlled substance testing information should be 
investigated, not just drivers that will perform safety-sensitive 
functions for the prospective employer.
    FMCSA Response: The requirements of part 382 only apply to persons 
covered by part 383 (CDL) requirements. Section 391.23(e) adds 
conforming amendments for the requirements of part 382 to those of part 
391 as required by the HazMat Act. It is possible an applicant for a 
driving job that does not require a CDL may have previously driven 
vehicles requiring a CDL and failed an alcohol or controlled substance 
required test.
    The specification at Sec.  391.23(e) applies to all drivers who 
held a safety sensitive job in the previous 3 years. For motor 
carriers, this is a CDL driver. If they are driving a CMV, whether they 
will perform a safety sensitive job for the prospective employer does 
not matter. The prospective employer is required for such drivers to 
request the alcohol and controlled substances information. The 
requirement at 49 CFR 390.3(d) states an employer may specify more 
stringent requirements as a condition of employment. However, if during 
the previous three-year period the driver did not hold a safety 
sensitive job subject to the requirements of part 40 or part 382, there 
is no requirement for the previous employer to have applied the testing 
requirements required for safety sensitive jobs. FMCSA does not have 
the authority to require drivers not performing safety sensitive 
functions to be subject to the requirements of parts 40 and 382.
Liability Limitation (Sec.  391.23 (l))
    All commenters support the provision that limits liability when 
previous employers are furnishing driver records. Two commenters raise 
questions about whether immunity will apply to State courts and whether 
this provision will prevent a driver who was not hired from suing. 
Three commenters have specific recommendations regarding the language 
of the provisions. First, Con-Way proposes that protections should 
apply unless a person knowingly and intentionally furnishes false 
information. Second, ATA urges the FMCSA to delete from Sec.  
391.23(l)(2) the second phrase ``* * * or who are not in compliance 
with the procedures specified for these investigations * * *'' by 
placing a period after the word ``information'' and striking the 
balance of the sentence in order to strengthen the employer 
protections. However, the IBT disagrees with ATA and claims that this 
suggestion would immunize employers from liability even if they do not 
comply with the regulations. Finally, Qwest recommends protections for 
good faith compliance.
    However, OOIDA believes that motor carriers' fear of liability is 
exaggerated. OOIDA states

    The proposed rule emphasizes carriers' supposed fear of their 
exposure to legal liability for following the rules. OOIDA finds 
this fear suspect and vastly overstated. OOIDA does not understand 
why any carrier would express any fear of liability unless they know 
or believe that the information they are using is false, or that 
they are engaged in the improper use of such information. 
Furthermore, OOIDA is unaware of any litigation brought against a 
carrier for the creation of false information in a driver's safety 
performance history or the misuse of such information. FMCSA 
presents no factual record to back up this fear. From OOIDA members' 
experience, drivers' careers are much more likely to be damaged by 
carrier misuse of background information than carriers are at risk 
for litigation under the rules.

In addition, OOIDA expresses concern that motor carriers knowingly 
passing along false information received from another carrier would be 
shielded from legal liability.
    FMCSA Response: The only basis provided under the statute and this 
regulation for a driver to have standing in court is to allege the 
previous employer knowingly provided false information. If the driver 
proves false information was provided by the previous employer, the 
liability limitation does not apply and the court can determine and 
assess a penalty on the previous employer. The preemption language in 
TEA-21 at section 4014(c) (see document 39 in this docket) explicitly 
refers to State and local law and regulations that create liability 
associated with providing or using safety performance history 
investigative information.
    FMCSA concurs with the IBT comment to the docket that the HazMat 
Act does not provide discretion for partial or good faith compliance 
with the procedures established by this final rule. Motor carriers must 
comply with the regulations.
Implementation
    The previous topics and their discussions indicate many commenters 
are concerned about a number of practical difficulties that must be 
dealt with to effectively implement this rule. Additionally the Small 
Business Administration (SBA) submission to the docket in response to 
the NPRM, document 26, expresses concern that the implementation needs 
of the large number of small businesses should be given more explicit 
attention. Two issues SBA explicitly addressed were the phasing in of 
accident data retention and providing compliance assistance.
    FMCSA Response: The issue of phasing in accident data retention is 
addressed separately, and FMCSA is doing that. However, it only 
addresses that specific aspect of implementation that is impossible to 
accomplish until enough time has passed to allow accumulation of three 
years of data.
    An additional issue is allowing a reasonable enough time for all 
parties to effectively implement the newly required processes for data 
retention, investigating, reporting, using data obtained as part of the 
hiring decision process, and managing the driver rights processes. 
FMCSA determined that six months after the effective date of this rule 
is a reasonable balance between motor carrier implementation and safety 
requirements for all impacted parties to implement the process 
capabilities required to operate in compliance with

[[Page 16700]]

this rule. This will also allow the industry together with FMCSA to 
develop and make available various non-mandatory guidance materials.

Rulemaking Analyses and Notices

Privacy Act

    Anyone is able to search the electronic form of all comments 
received into any of our dockets by the name of the individual 
submitting the comment (or signing the comment, if submitted on behalf 
of an association, business, labor union, etc.) You may review DOT's 
complete Privacy Act Statement in the Federal Register published on 
April 11, 2000 (Volume 65, Number 70; Pages 19477-78) or you may visit 
http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://dms.dot.gov.


Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    The FMCSA determined this action is a significant regulatory action 
within the meaning of Executive Order 12866, and is significant within 
the meaning of Department of Transportation regulatory policies and 
procedures (DOT Order 2100.5 dated May 22, 1980; 44 FR 11034, February 
26, 1979), because the subject of requirements for background checks of 
prospective driver safety performance history information generated 
considerable public and congressional interest. FMCSA estimates the 
economic impact of this rule will not exceed the annual $100 million 
threshold for economic significance. The Office of Management and 
Budget (OMB) reviewed the final rule, Paperwork Reduction Act 
submission, the regulatory evaluation, and the regulatory flexibility 
analysis associated with this action.
    Under a following section of this rule entitled ``Regulatory 
Evaluation: Summary of Benefits and Costs,'' the agency estimates the 
first-year costs to implement this rule will amount to approximately 
$15 million. Total discounted costs over the 10-year analysis period 
(2004-2013) will be $113 million, using a discount rate of seven 
percent. All these costs are associated with the statutorily mandated 
requirements of section 114 of the Hazmat Act and section 4014 of TEA-
21. First-year benefits associated with this rule are estimated at $7 
million. Total discounted direct benefits over the 10-year analysis 
period (2004-2013) are estimated at $107 million. Total discounted net 
benefits from implementing this rule are estimated at -$6 million 
(without consideration of a deterrence effect) or as high as $47 
million (with consideration of a deterrence effect).
    A key assumption used in the above analysis involved the percentage 
of newly available accidents for which prospective employers would be 
able to determine, or infer, that the truck driver was at fault and 
therefore deny the driver employment as a result. In the analysis 
performed for the SNPRM, now called scenario 1, it was estimated that 
30% of the drivers are at fault, and from those a total of 10% of 
driver applicants would be denied employment. In this final rule it is 
estimated from preliminary data from the Large Truck Crash Causation 
Study that 38.64% of the drivers are at fault, and from those in 
scenario 1 a total of 12.88% of driver applicants would be denied 
employment. Both the 10% in the SNPRM and the 12.88% in this rule are 
derived as one-third of the vehicle accidents involving a large truck 
where the truck driver is estimated to be at fault.
    For purposes of sensitivity analysis perspective, FMCSA also 
presents a scenario 2 in the regulatory analysis where we assume the 
full 38.64 percent of drivers at fault would be denied employment by 
prospective employers because the employer would be able to determine, 
or infer, from the data that the CMV driver was at fault in the 
accident, and would choose to deny employment to all. This new, more 
aggressive assumption is presented in an effort to provide readers with 
the range of possible impacts, in light of the inherent uncertainty 
regarding how much new accident data will become available to 
prospective employers and exactly how they will use this data to make 
hiring decisions. However, the more aggressive scenario 2 estimates are 
only presented for sensitivity analysis perspective. FMCSA continues to 
cite the original (now scenario 1) as the primary analysis performed 
for this rule.
    Under the scenario 2 assumption that prospective employers will be 
able to accurately determine, or infer, fault in all the accident data 
involving drivers applying for positions, and that all the drivers who 
were at fault would be denied employment as CMV drivers for on average 
six-months, the costs would remain the same, $113 million. But, the 
first year benefits could be as high as $24 million, and the total 
discounted 10-year benefits could be as high as $406 million. This 
means the total discounted net benefits under this aggressive scenario 
2 could be as high as $294 million over the 10-year analysis period 
(2004-2013).

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement and Fairness Act (SBREFA), requires 
Federal agencies to analyze the impact of rulemakings on small 
entities, unless the agency certifies the rule will not have a 
significant economic impact on a substantial number of small entities. 
In response to SBA's request for more information on the economic 
impact of this final rule upon small entities, and the determination 
that this is considered a significant rulemaking proposal, the agency 
prepared a final regulatory evaluation and the following Regulatory 
Flexibility Analysis.
    (1) A description of the reasons why action by the agenc