Thinking about starting your own trucking authority? If so, you’ve probably already learned about new venture trucking insurance. However, if you’re a new venture trucking company looking to conduct interstate operations within the United States you will need to pass a new entrant safety audit before being legally registered with the U.S. Department of Transportation (DOT).
What does the audit consist of?
The safety audit will consist of a review of the carrier’s safety management system. The areas of review include, but are not limited to, the following:
- Driver qualifications
- Accident register
- Driver record of duty status
- Controlled substances and alcohol use and testing requirements
- Vehicle maintenance
- Hazardous materials
If you refuse to permit a safety audit, the FMCSA will provide you with written notice that your registration will be revoked and your operations placed out of service unless you agree in writing, within 10 days from the service date of the notice, to permit the safety audit to be performed.
What may cause an expedited action?
If you commit any of the following actions, identified through roadside inspections or by any other means, you may be subjected to an expedited new entrant safety audit, a compliance review or may be required to submit a written response demonstrating corrective action:
- Using a driver not possessing a valid commercial driver’s license (CDL) to operate a commercial motor vehicle (CMV) as defined under § 383.5. An invalid CDL includes one that is falsified, revoked, expired or missing a required endorsement.
- Operating a vehicle placed out of service for violations of the Federal Motor Carrier Safety Regulations or compatible state laws and regulations without taking necessary corrective action
- Being involved in, through action or omission, a hazardous materials reportable incident, as described under 49 CFR 171.15 or 171.16, involving any of the following:
- A highway route controlled quantity of certain radioactive materials (Class 7)
- Any quantity of certain explosives (Class 1, Division 1.1, 1.2 or 1.3)
- Any quantity of certain poison inhalation hazard materials (Zone A or B)
- Being involved in, through action or omission, two or more hazardous materials reportable incidents as described under 49 CFR 171.15 or 171.16, involving hazardous materials other than those listed above
- Using a driver who tests positive for controlled substances or alcohol or who refuses to submit to required controlled substances or alcohol tests
- Operating a CMV without the levels of financial responsibility required under part 387
- Having a driver or vehicle out-of-service rate of 50 percent or more based upon at least three inspections occurring within a consecutive 90-day period
What happens after the audit?
Upon completion of the safety audit, the auditor will review the findings with you:
- Pass: If the FMCSA determines that the safety audit discloses that you have adequate basic safety management controls, the agency will provide you written notice as soon as practicable—but not later than 45 days after completion of the safety audit—that you have adequate basic safety management controls. Your safety performance will continue to be closely monitored for the remainder of the 18-month period of new entrant registration.
- Fail: If the FMCSA determines that the safety audit discloses that your basic safety management controls are inadequate, the agency will provide you written notice as soon as practicable—but not later than 45 days after the completion of the safety audit—that your DOT new entrant registration will be revoked and your operations placed out of service unless you take the actions specified in the notice to remedy your safety management practices.
After the 18-month new entrant safety-monitoring period has passed, you will be notified in writing that the new entrant registration designation will be removed and your registration has become permanent.
16 Reasons Why Companies Fail Audits
- Failing to implement alcohol and/or controlled substance testing program Domestic and Motor carrier. (must be approved by FMCSA)
- Using a driver known to have an alcohol content of 0.04 or great when driving (prescription included)
- Driver who refuses to take an alcohol test. you put them on you can get your authority revoked.
- Using a driver known to have tested positive for a controlled substance.
- Failing to a random controlled substance and/or alcohol testing program (10,000 Fine) (Not all drug & Alcohol programs meet FMCSA Qualification)
- Knowingly using a driver who does not posses a Valid CDL – You need to have a process (have a copy of the license and violations INCLUDING YOURSELF) All fines must be paid,
- Knowingly allowing, requiring, permitting, or authorizing an employee with a commercial drivers license which is suspended revoked or canceled by a state or who is disqualified to operate a commercial motor vehicle. (YOU are responsible to check drivers license)
- Knowingly allowing a driver who is disqualified to drive a commercial motor vehicle. Medical and physical condition. (like they tell you there eye site is bad and you let them drive anyways)
- Having no insurance in place – check out our New Venture Trucking Insurance options
- Having no insurance in place for private passenger
- Knowingly using a disqualified driver
- Knowingly using a physical unqualified driver. You are required to know the regulations
- Failing to require a driver to make a record of duty status (must show last 6 months) Only show them 6 months and that’s it. DONT show them the other (not required) (Be cautious about what you say.. don’t volunteer information that is not required.)
- Requiring or permitting the operation of a commercial motor vehicle declared “out-of-service” before repairs are made. (must have file of all service and repairs, add notes that its taken care of)(got to show you fixed it before you drive again, if you do the repairs after you drive again you will be in trouble
- Failing to correct out of service inspection report before the vehicle is operated again. (required to keep records for 3 months if more than one driver)
- Using a commercial motor vehicle not periodically inspected. You are required to keep maintenance records for your trucks. Keep a log of services done, even if you do them your self. (It shows that you care about being safe)