Interpretation ID: 1985-02.45

TYPE: INTERPRETATION-NHTSA

DATE: 06/19/85

FROM: AUTHOR UNAVAILABLE; Jeffrey R. Miller; NHTSA

TO: Charles E. Gillipsie -- President, Salem Quality Equipment, Inc.

TITLE: FMVSS INTERPRETATION

TEXT:

Mr. Charles E. Gillipsie President Salem Quality Equipment, Inc. 501 East 8th Street Salem, Virginia 24153-6385

This responds to your April 30, 1985 letter asking if your leasing company is allowed to occasionally rent 10- and 15-passenger vans to schools for special school activity trips. As Ms. Hom of my staff informed you in a telephone conversation on April 26, 1985, you are not prohibited by Federal statute or regulation from renting vans to schools on a one-time or very occasional basis.

The National Highway Traffic Safety Administration (NHTSA) has the authority under the National Traffic and Motor Vehicle Safety Act to issue motor vehicle safety standards that apply to the manufacture and sale of new motor vehicles. The parties directly affected by the Vehicle Safety Act are manufacturers of new school buses and persons selling new school buses. The Vehicle Safety Act prohibits those parties from selling new buses for use as school buses if those vehicles do not comply with the Federal school bus safety standards.

When Congress passed the 1974 amendments to the Vehicle Safety Act, Congress adopted the following definition of a "school bus": "Schoolbus means a passenger motor vehicle which is designed to carry more than 10 passengers in addition to the driver, and which the Secretary determines is likely to be significantly used for the purpose of transporting primary, preprimary, or secondary school students to or from such schools or events related to such schools...." (Emphasis added.)

Two basic considerations are relevant, therefore, to the Vehicle Safety Act's definition of a "school bus" and the applicability of the Act's requirements to school bus sellers. The first is the vehicle's passenger capacity, and second, its intended use. If you buy a new 12- or 15-passenger van to rent to schools on a regular basis, that van would be a "school bus," since it would have the passenger capacity of a "bus" and is school bus," since it would have the passenger capacity of a "bus' and is "likely to be significantly used" to carry school children. A dealer or distributor who sells you the new van would have to ensure that the van meets our school bus safety standards. Conversely, the less frequently a bus is used for school service, the less likely it is that its use is "significant." If you use your van to carry students on a very infrequent basis, as the case appears to be, then it would not bc considered a "school bus," and the van would not have to meet the school bus safety standards.

In your letter, you referred to a Federal Register notice (40 FR 60033; December 31, 1975) that amended NHTSA's regulatory definition of a "school bus" and discussed leasing arrangements. NHTSA's definition of a school bus covers buses "sold or introduced in interstate commerce for purposes that include carrying students to and from school or related events." The notice explained that NHTSA's definition includes buses "introduced in interstate commerce" in order to account for those situations where buses are leased to schools for transporting students. You asked for clarification of this discussion.

The term "introduction in interstate commerce" and the reference in the Federal Register notice to leasing arrangements addressed those situations where a new bus is leased by a manufacturer, distributor or dealer directly to a school or school district. In those situations, there is no sales transaction involved. When a new bus is leased to a school or school district directly from its manufacturer, distributor or dealer, the Vehicle Safety Act requires that the bus must comply with the school bus safety standards.

If you have further questions, do not hesitate to contact my office.

Sincerely,

Jeffrey R. Miller Chief Counsel

April 30, 1985

Jeffrey R. Miller Office of Chief Counsel Nations Highway Traffic Administrations R5219, 400 7th Street S.W. Washington, D.C. 20596

Dear Mr. Miller:

We rent and lease 15 and 21 passenger vans to colleges, churches and other businesses. We have had several requests from public and private schools to rent these vehicles for special trips or small groups, normally 10 to 15 students. We have always refused because of the Preamble To Amendment To Part 571 ---- Federal Motor Vehicle Safety Standards.

Recently Roanoke City asked for a van to take 11 students on a special camping trip on the Virginia Coast. We refused, so the instructor rented a motor home. One of the patrons was upset and called Deirie Hom, she advised us that we would not be in violation to rent these vehicles for a short term. I can understand the school concern because driving a large school bus from Roanoke to Washington is quite an expense and certainly not comfortable.

As a school bus distributor I certainly do not plan to sell or lease these type vehicles to a public or private school, however, I would like the opinion of your department concerning short term rental for special field trips.

Your consideration and response to this request would be greatly appreciated.

Sincerely,

SALEM QUALITY EQUIPMENT, INC.

Charles E. Gillipsie, President

CEG/tah