Interpretation ID: nht87-2.69

TYPE: INTERPRETATION-NHTSA

DATE: 08/11/87

FROM: AUTHOR UNAVAILABLE; Erika Z. Jones; NHTSA

TO: Ernest Farmer -- Director, Pupil Transportation, Tennessee Dept. of Education

TITLE: FMVSS INTERPRETATION

TEXT:

Mr. Ernest Farmer Director, Pupil Transportation Tennessee Department of Education Office of Commissioner Nashville, TN 37219-5335

This responds to your letter to Administrator Steed, asking how our regulations apply to the refurbishment of used school buses. I would like to apologize for the delay in this reply. In your letter, you explained that the Tennessee Department of Correc tions plans to use prison labor to "refurbish" used school buses. The refurbishing procedures may include replacing the engine in the school bus with a new engine, or replacing the rear axle. You are concerned that this undertaking might conflict in some way with our regulations applicable to school buses, and posed five specific questions as to how our regulations would apply to your planned refurbishment.

Before addressing your specific questions, I would like to provide some background information. As you may know, the National Traffic and Motor Vehicle Safety Act (15 U.S.C. 1381 et seq. gives this agency the authority to regulate the manufacture and sal e of new vehicles. Thus, all new school busses must be certified as complying with all Federal motor vehicle safety standards that are applicable to school buses. Additionally, the Safety Act prohibits commercial establishments, such as repair businesses or school bus dealers, from performing modifications to school buses after they have been sold, if those modifications cause the used bus no longer to comply with the safety standards. As a general rule, however, vehicle owners are not subject to this p rohibition, and are free to modify their vehicles without regard to whether the modified vehicle complies with the safety standards.

It is possible that a vehicle owner's modifications would be so substantial that the resulting vehicle would be a new vehicle instead of just a modified vehicle. In this case, the new vehicle would be required to be certified as complying with all applic able safety standards in effect on its date of manufacture, just like every other new vehicle. This date would be the date such substantial modifications are completed. To allow vehicle modifiers to determine when a modified truck or school bus has been so substantially altered that it is considered a new vehicle, we have set forth specific criteria in 49 CFR @571-7(e) of our regulations. In past interpretations of our regulations, NHTSA has applied @571.7(e) to school buses that are assembled combining new and used components, because school buses are typically manufactured with a truck chassis. Under @571.7(e), a modified school bus or truck is not considered a "new" vehicle if, at a minimum, the engine, transmission, and drive axle(s) are not new an d at least two of these three listed components are taken from the same used vehicle.

I will now address your specific questions in the order they were presented:

1. Has NHTSA taken an official position on the refurbishment of school buses?

Yes, we have. As explained above, we have set forth specific criteria to allow refurbishers to determine whether a refurbished school bus is a new bus, subject to all applicable school bus safety standards in effect on the date of manufacture, or a refur bished used bus.

Further, while we encourage effective school bus maintenance programs, we would be concerned if a refurbishment program has the effect of avoiding the replacement of obsolete school buses. The school bus safety standards do not apply to school buses that were manufactured before April 1, 1977. It is possible that a refurbishment program could be used to continuously recondition these old buses that do not comply with any school bus safety standards, and use them for pupil transportation. We believe that school buses complying with the Federal school bus standards are one of the safest means of transportation, and that school bus safety will improve as complying school buses replace older non-complying school buses. We certainly hope that school bus own ers will ensure that their fleets are replenished with complying school buses. In addition, I am enclosing a copy of a Federal Register notice we published on September 23, 1985, (5O FR 38558 ), which denied a petition for rulemaking from the Blue Bird C ompany concerning the remanufacture of school buses. In this notice, we expressly encouraged school bus operators to consider voluntarily meeting Federal school bus safety standards when they refurbish their school buses.

2. Would such refurbishment void the original manufacturer' s certification?

The original school bus manufacturer's certification means that the school bus as sold was manufactured to comply with all applicable safety standards. The manufacturer's certification does not mean that a school bus continues to comply with the safety s tandards after it is sold, since that obviously depends on many factors beyond the manufacturer's control, such as maintenance, any accidents, any modifications, and so forth. Since the original manufacturer's certification is limited to the vehicle's co ndition at the time of sale, it cannot be "voided" by any subsequent actions of the vehicle owner.

If you were asking whether a refurbisher is required to make a separate certification in addition to the original manufacturer's certification, the answer depends on whether the refurbished school bus is considered "new" or simply refurbished, according to the criteria set forth in @571.7 (e). If the refurbished school bus is new according to those criteria, the refurbisher is required to certify that the school bus complies with all applicable safety standards in effect on the date of manufacture, and affix its own certification label to the school bus. If the refurbished school bus is not considered new, the refurbisher is not required to affix another certification label. Instead, the refurbisher simply allows the original manufacturer's certificati on label to remain on the school bus.

3. Would the State Department of Correction be required to recertify all refurbished buses to the NHTSA?

The answer to this question depends on whether the refurbished buses are considered new under @571.7(e). If the buses are not new according to those criteria, no additional certification is necessary as explained above. However, the specification sheet f or the refurbishment that has enclosed with your letter indicates that the refurbishing procedures may include replacing the engine in the school bus with a new engine, or replacing the rear axle. Every school bus that is equipped with a new engine or dr ive axle would be considered a new school bus, according to @571.7 (e). Additionally, each school bus on which the engine, transmission, and/or rear axle are replaced with used components will be considered a new school bus, unless two of those three com ponents came from the same vehicle. If your refurbishing constituted the manufacture of a new vehicle, the State of Tennessee would be considered the manufacturer of those vehicles.

As explained above, each refurbished school bus that is new, according to the criteria of @571.7(e), must be certified by its manufacturer as complying with the school bus safety standards in effect on the date of manufacture. However, the manufacturer d oes not make any certification directly to the agency. Instead, the Safety Act requires the manufacturer to furnish a certification with the vehicle. We have promulgated a regulation that sets forth how each vehicle must be certified as complying which t he Safety Act (49 CFR Part 567: copy enclosed). As you will see, this regulation requires that the manufacturer permanently affix a label certifying that the vehicle complies with the applicable safety standards. I have also enclosed for your information an information sheet that describes generally the responsibilities of manufacturers of new motor vehicles.

4. Is the refurbishment process permitted under current NHTSA standards?

As explained above, the refurbishment program is permitted, provided that it complies with the applicable requirements.

5. What responsibility and/or liability would be assumed by the Department of Education and the Department of Correction under such a refurbishment proposal?

If the State of Tennessee engages in operations during school bus refurbishing that make it a manufacturer of new vehicles, according to @571.7 (e) , the State would be responsible for compliance with the requirements of the Safety Act itself and this ag ency's regulations issued pursuant to the Safety Act. The State would also be responsible for remedying any vehicles that either do not comply with applicable safety standards or that contain a defect related to motor vehicle safety. NHTSA does not provi de advice on the State's potential liability under State law for manufacturing and refurbishing school buses. Therefore, you might wish to consult an attorney familiar with Tennessee law for information on these matters.

I hope this information is helpful. Please contact this office if you have any further questions on this program.

Sincerely,

Erika Z. Jones Chief Counsel

Enclosures

Ms. Diane Steed NHTSA - U.S. Department of Transportation 400 Seventh Street S.W. Washington, D.C. 20590

Dear Ms. Steed,

The Tennessee Department of Correction is planning to construct a refurbishment facility that will be relying on prison labor to supply the work force required to keep it operable. We have no problem with their wanting to keep inmates busy but we are som ewhat concerned about their intent to keep them busy by working on our older school buses, especially when such may be in conflict with certain standards in your agency.

Your prompt response to the following questions will be appreciated. 1. Has the NHTSA taken an official position on the refurbishment of school buses?

2. Would such refurbishment void the original manufacturer's certification?

3. Would the State Department of Correction be required to re-certify all refurbished buses to the NHTSA?

4. Id the refurbishment process permitted under current NHTSA standards?

5. What responsibility and/or liability would be assumed by the Department of Education and the Department of Correction under such a refurbishment proposal?

Thank you for any assistance you may provide.

Sincerely yours,

Ernest Farmer, Director Pupil Transportation

EF/lr

Enclosures omitted (Specification sheet for refurbishment.)