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Interpretation ID: 17384.drn

Steve Cox, President
Cox Chevrolet
2900 Cortez Road West
Bradenton, FL 34207-1191

Dear Mr. Cox:

This responds to your letter regarding the use of 15-passenger vans by a dance studio to pick up school children from school "five days a week" to transport to the studio. You ask whether the vans are "school buses" under Federal law. As explained below, a new 15-passenger van leased for such a purpose is a school bus. When your dealership leases new buses to the dance studio for this purpose, the dealership must lease only buses that meet Federal motor vehicle safety standards for school buses.

In a telephone conversation with Dorothy Nakama of my staff, you explained that your dealership leases three 15-passenger vans to Ms. Ellen Meade, who owns Ellen Meade Studios, a "Professional School for the Performing Arts."(1) You also provided copies of the three passenger van lease agreements, with each lease agreement describing the vehicle as "new."

By way of background, the National Highway Traffic Safety Administration (NHTSA) is authorized to issue and enforce Federal motor vehicle safety standards applicable to new motor vehicles, including school buses. In 1974, Congress enacted legislation directing NHTSA to issue safety standards on specific aspects of school bus safety.

Our statute at 49 U.S.C. 30112 requires any person selling or leasing a new vehicle to sell or lease a vehicle that meets all applicable standards. Under our regulations, a "bus" is any vehicle, including a van, that has a seating capacity of 11 persons or more. Our statute defines a "school bus" as any vehicle that is designed for carrying 11 or more persons and which is likely to be "used significantly" to transport "preprimary, primary, and secondary" students to or from school or related events (emphasis added). 49 U.S.C. 30125. Therefore, a 15-passenger van that is likely to be used significantly to transport students is a "school bus."

If the new van is sold or leased to transport students (e.g., leased on a regular or long-term basis), the vehicle must meet NHTSA's school bus standards. Conventional 15-passenger vans cannot be certified as doing so, and thus cannot be sold or leased, as new vehicles, to carry students on a regular basis.

In your situation, Ms. Meade writes that she is using the vans to "retriev[e] children from the area schools for our after school program." It is therefore clear Ms. Meade's studio is using the vans to pick the students up "from school."

Whether the buses are "used significantly" to transport the students is an issue that the agency finds appropriate to resolve case-by-case, focusing on the intended use of the vehicle. In your case, we note Ms. Meade's letter states that the vehicles are used "five days a week" in picking up students from schools. In our view, such regular use of the vehicle to pick up students "from school" (even if the same students are not transported each of the five days), would constitute a "significant" use of the vehicle. Therefore, when leasing new buses to Ellen Meade Studios for the purpose of picking up students from school, you must lease buses that meet the Federal motor vehicle safety standards applicable to "school buses."

As you may be aware, in interpretation letters of May 29, 1991 and September 6, 1991 to Ms. Vel McCaslin, Director of Grace After School, an after school care program, NHTSA stated that buses used to transport children to Ms. McCaslin's program would be "school buses" only if the program is a "school or school-related event." The September 1991 letter indicated that the program picks up children from three area schools and brings them to the church on a "daily" basis. These letters concluded that Grace After School did not appear to be a "school," that the program was not a "school-related event," and that NHTSA's school bus requirements thus did not apply. NHTSA has reexamined the two letters to Ms. McCaslin in view of your letter. Upon reconsideration, we have decided that the letters to Ms. McCaslin did not focus enough on the fact that the buses were being used to transport school children "from school," as specified in 49 U.S.C. 30125. Therefore, to the extent the May 29, 1991 and September 6, 1991 letters to Ms. McCaslin are inconsistent with this letter, they are hereby superceded.

We note that you have included a letter from Ms. Meade to you in which she seeks advice about "what to do." Requirements for the use of a motor vehicle are determined by State law, so Florida's requirements should be consulted to determine how students must be transported to and from school or school-related activities. In addition, NHTSA believes that school buses are one of the safest forms of transportation in this country, and therefore strongly recommends that all buses that are used to transport school children be certified as meeting NHTSA's school bus safety standards. Using 15-passenger vans that do not meet the school bus standards to transport students could result in increased liability in the event of a crash. Since such liability would be determined by State law, you and Ms. Meade may wish to consult with an attorney or insurance carrier for advice on this issue.

I hope this information is helpful. If you have any further questions, please feel free to contact Dorothy Nakama at this address or by telephone at (202) 366-2992.

Sincerely,
Frank Seales, Jr.
Chief Counsel
Enclosures
cc: Ms. Ellen Meade
Ellen Meade Studios
1323 63rd Avenue East
Bradenton, FL 34203
cc: Ms. Vel McCaslin, Director
Grace After School
10221 Ella Lee at Sam Houston Tollway
Houston, TX 77042

ref:VSA#571.3
d.6/1/98

1. It is unclear whether the dealership's representative arranging the leases knew that Ms. Meade owned a studio and that she intended to use the vans to transport her dance students from schools.