FMCSA Exempts 9- and 15-passenger Vans From Operating Authority Requirements

On Feb. 26, 2024, the Federal Motor Carrier Safety Administration (FMCSA) amended its regulations to implement the statutory exemption from its operating authority registration requirements for providers of recreational activities. The FMCSA also defines “recreational activities” to clarify the exemption.

The final rule goes into effect on April 26, 2024. Petitions for reconsideration of this final rule must be submitted to the FMCSA administrator no later than March 27, 2024.

Exemption Overview

The exemption from operating authority registration applies to motor carriers operating a motor vehicle designed or used to transport between nine and 15 passengers (including the driver), whether operated alone or with a trailer attached to the transport vehicle, if the motor vehicle is operated by a person who provides recreational activities and the transportation is provided within a 150-air-mile radius of the location passengers initially boarded the motor vehicle at the outset of the trip.

The operating authority requirements provide the FMCSA with information about motor carriers and their operations. Although the requirements for operating authority registration apply only to carriers subject to the FMCSA’s commercial regulations, they provide the FMCSA with an opportunity to evaluate those potential new entrant motor carriers’ willingness and ability to comply with all commercial and safety regulations.

The FMCSA also defines “recreational activities” to clarify the exemption. The statute, which requires that the motor vehicle be operated ‘‘by a person that provides recreational activities,” does not define “recreational activities.” The FMCSA’s definition clarifies the types of recreational activities it has determined would qualify for the exemption in 49 U.S.C. 13506(b)(4). This code provides transportation by a motor vehicle designed or used to transport not fewer than nine and not more than 15  passengers (including the driver), whether operated alone or with a trailer attached for the transport of recreational equipment, if the:

•  Motor vehicle is operated by a person that provides recreational activities;
• Transportation is provided within a 150-air-mile radius of the location at which passengers initially boarded the motor vehicle at the outset of the trip; and
• Motor vehicle is transporting passengers over a route between a place in a state and a place in another state; in these cases, the person operating the motor vehicle must lawfully provide transportation of passengers over the entire route in accordance with applicable state law.

The FMCSA adopts a definition of “recreational activities” consistent with the activities that Congress outlined in another section of the Infrastructure Investment and Jobs Act (IIJA) that uses this term. Section 11512 of the IIJA provided examples of “groups representing recreational activities and interests,” which include: 

• Hiking;
• Biking;
• Mountain biking;
• Horseback riding;
• Water trails;
• Snowshoeing;
• Cross-country skiing;
• Snowmobiling;
• Off-highway motorcycling;
• All-terrain vehicle and other off-road motorized vehicle activities; and
•  Recreational trail advocates.  

Motor Carrier Next Steps

Motor carriers should determine if they fall under the exemption for their operation of nine- and 15-passenger recreational vans. If so, then they will be exempt from the operating authority requirements. If not, they will still be required to comply with the operating authority requirements.

HIGHLIGHTS & IMPORTANT DATES 

Feb. 26, 2024

The FMCSA amends its regulations to include a statutory exemption from its operating authority requirements for providers of recreational activities.

March 27, 2024

Date submissions for petitions for reconsideration of this final rule must be submitted to the FMCSA administrator by this date.

April 26, 2024

The final rule goes into effect. The new rule provides the requirements for the exemption and defines “recreational activities” to clarify the exemption.

This Legal Update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

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