United States Department of TransportationInterpretation ID: 2516y
United States Senate
1100 Commerce, Room 7C14
Dallas, TX 75242
Dear Senator Bentsen:
Thank you for your letter to Administrator Curry on behalf of your constituent, Johannah Bonewald of Voskamp Motors in Hallettsville, Texas. The Administrator has asked me to reply. Ms. Bonewald enclosed a bulletin from the Ford Rent-A-Car System to all System members setting out Ford's policy concerning the rental of Ford vans with more than 10 designated seating positions. Ms. Bonewald questions the basis under Federal law for Ford's policy with regard to using these vans to transport students, and asked for additional information about the Federal law in this area. I am pleased to have this chance to provide you with the following information.
Ford's policy described in the bulletin is that dealers should not rent vans with more than 10 seating positions to customers, if the dealer knows or has reason to know that the vehicle will be used to transport students. The bulletin also recommends that dealers renting these vans should obtain a signed statement from the customer to the effect that the vehicle is not being used to carry students to and from school or related events. While Ford's policy is consistent with Federal requirements and this agency's safety recommendations, rental companies are not actually required by Federal law to take the actions recommended by Ford.
The National Highway Traffic Safety Administration (NHTSA) has the authority under the National Traffic and Motor Vehicle Safety Act (the Safety Act) to issue motor vehicle safety standards that apply to new motor vehicles and items of motor vehicle equipment. Several of our standards set forth requirements for new "school buses," which are defined as vehicles designed for carrying more than 10 persons that are "sold, or introduced into interstate commerce, for purposes that include carrying students to and from school or related events." Thus, it is the vehicle's anticipated use, determined at the time of the new vehicle's first sale, that indicates whether it is a "school bus" for the purposes of the safety standards.
Section 108(a)(1)(A) of the Safety Act specifies that no person shall "manufacture for sale, sell, offer for sale, or introduce or deliver for introduction in interstate commerce, or import into the United States" any motor vehicle manufactured on or after the date any applicable safety standard takes effect unless the vehicle conforms with all such standards. Thus, every person that manufactures a bus that it knows will have the purpose of carrying students must certify that it complies with all school bus safety standards. Similarly, if a dealer sells or offers to sell to a school district or school bus contract operator a bus that will be used as a school bus, the Safety Act makes the dealer responsible for ensuring that the vehicle it sells is certified as complying with all applicable school bus standards.
The agency has previously stated, in the enclosed December 31, 1975 Federal Register notice that accompanied the adoption of the regulatory definition of "school bus," that if a seller has reason to believe that a bus will be used for student transportation, the seller can clarify the intentions of the purchaser by requesting a written statement of purpose from the purchaser. If that statement indicates that the vehicle will be used for student transportation, the seller can only provide a certified school bus.
Pursuant to section 108(b)(1) of the Safety Act, however, the requirement that a vehicle comply with all applicable safety standards does not apply after the first purchase of the vehicle for purposes other than resale. In a typical rental situation, the person offering the vehicle for rent has already purchased the vehicle for a purpose other than resale, i.e., in order to offer the vehicle to the public for rent. Thus, a dealer wishing to offer vehicles for rent for the purposes of carrying students is not required by the Vehicle Safety Act to offer vehicles that fully comply with all safety standards applicable to school buses. Further, once a vehicle has been sold and delivered to the person who plans to rent the vehicle to the public, the vehicle is no longer considered to be new and therefore is not required to remain in compliance with all applicable safety standards.
Having said this, I would like to emphasize some additional points. First, a manufacturer, distributor, or dealer that sells a new vehicle to a rental company that the seller knows or has reason to know intends to rent it to customers for the purpose of carrying students to or from school or related events is required by Federal law to sell that rental company only a vehicle certified as complying with the school bus standards. In Ms. Bonewald's letter to you, she indicates that the schools in the area are "probably the biggest customer" Voskamp Motors has for the rental of its 15-passenger vans. Any person that knows or has reason to know of this fact must either:
a. sell Voskamp Motors only certified school buses for use in Voskamp's rental fleet, or b. obtain assurance from Voskamp Motors that the vans it purchases that are not so certified will not be rented to customers that will use them for student transportation.
Second, although NHTSA does not have authority to regulate the use of vehicles as school buses, the State of Texas does have such authority, and has exercised that authority. Your constituent may wish to contact the State government to learn more about any State requirements applicable to vehicles used as school buses.
Third, we strongly endorse the use of certified school buses as the vehicles rented for the purposes of transporting school children, because the certified school bus has been shown to be the safest way to transport students. Based on these safety considerations, NHTSA endorses Ford's recommendation that its dealers rent only certified school buses for student transportation purposes.
I hope this information is helpful in responding to your constituent. I have also forwarded a copy of this correspondence to the Ford Rent-A-Car System. Please do not hesitate to contact me if you have any further questions or need some additional information.
Sincerely,
Stephen P. Wood Acting Chief Counsel
Enclosure
cc: Mr. W.A. Jacques Dealer Fleet Operations Manager Ford Rent-A-Car System 300 Renaissance Center P.O. Box 43311 Detroit, MI 48243
ref: VSA d:5/25/90