Ask X3What does 49 CFR 390.401 (Applicability) require?
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Based on 49 CFR 390.401, the regulation applies beginning January 1, 2021, to motor carriers operating commercial motor vehicles to transport passengers (regardless of duration or whether compensation is involved) for the following actions:
1. The lease of passenger-carrying commercial motor vehicles.
2. The interchange of passenger-carrying commercial motor vehicles between motor carriers.
Additionally, 49 CFR 390.401 requires that if the use of a passenger-carrying commercial motor vehicle is given to one subject motor carrier by another without a lease or interchange agreement, or if the agreement fails to meet all applicable requirements, both motor carriers will be subject to a civil penalty.
Exceptions where this subpart does not apply:
* Active Carrier Agreements: Contracts and agreements between passenger motor carriers that both hold active passenger carrier operating authority registrations with the Federal Motor Carrier Safety Administration, when one acquires transportation services from the other.
* Financial Leases: Contracts (such as a lease, closed-end lease, hire purchase, lease purchase, purchase agreement, installment plan, or demonstration/loaner vehicle) between a motor carrier and a bank, similar financial organization, manufacturer, or dealer that allows the motor carrier to use the vehicle.