For-hire motor carriers are required to register with FMCSA and obtain  federal operating authority before operating in interstate commerce. Reincarnated Motor Carriers Exist

Our analysis of FMCSA data for fiscal years 2007 and 2008 identified 20  motor coach companies that likely reincarnated from “out-of-service”  carriers. This represents about 9 percent of the approximately 220 motor  coach carriers that FMCSA ordered out of service for those fiscal years. The number of potential reincarnated motor coach  carriers is understated because (1) our analysis was based on exact  matches, so it could not find links if abbreviations were used or typos  occurred in the data, (2) FMCSA only provided us data on vehicles and  drivers when an accident or inspection took place, and thus the provided  FMCSA data does not include the entire population of vehicles or drivers  for either new entrants or out-of-service carriers, and (3) our analysis  could not identify owners who purposely provided FMCSA bogus or  otherwise deceptive information on the application (e.g., ownership) to  hide the reincarnation from the agency. Although the number of  reincarnated motor coach carriers that we could identify was relatively  small, the threat these operators pose to the public has proven deadly. According to FMCSA officials, registration and enforcement policies at the  time of the Sherman, Texas, crash, reincarnation was relatively simple to  do and hard to detect. As a result, motor coach carriers known to be safety  risks were continuing to operate, such as the company that was involved  in the bus crash in Sherman, Texas. Five of the reincarnated carriers we identified were still operating as of  May 2009. We referred all five companies to FMCSA for  further investigation. Appendix III  provides a summary of the key data elements that matched on the new  entrants that were substantially related to out-of-service carriers. The same owner started the new company in June 2008. Tools FMCSA Uses to Identify Reincarnated Carriers and Their Limitations

		Passenger Carrier Vetting Process

Prior to the August 2008 crash in Sherman, Texas, FMCSA did not have a  dedicated processe to identify and prevent motor coach carriers from  reincarnating. DOT  officials also provided technical comments to the report, which we  addressed, as appropriate. Our analysis understates the actual number of reincarnated carriers  because the matching scheme used cannot detect even minor changes in  spelling, addresses, or owner names. To determine the tools FMCSA uses to identify reincarnated carriers, we  interviewed FMSCA officials on the process that the agency uses to  attempt to identify potentially reincarnating carriers. Appendix III: Summary of Reincarnated Motor Coach Carriers

As stated earlier, we identified 20 new entrants that were substantially  related to motor carriers ordered out of service.
Why GAO Did This Study

In 2008, the Federal Motor Carrier Safety Administration (FMCSA) reports that there were about 300 fatalities from bus crashes in the United States. Although bus crashes are relatively rare, they are particularly deadly since many individuals may be involved. FMCSA tries to identify unsafe motor coach carriers and take them off the road. GAO was asked to determine (1) to the extent possible, the number of motor coach carriers registered with FMCSA as new entrants in fiscal years 2007 and 2008 that are substantially related to or in essence the same carriers the agency previously ordered out of service, and (2) what tools FMCSA uses to identify reincarnated carriers. To identify new entrants that were substantially related to carriers placed out of service, we analyzed FMCSA data to find matches on key fields (e.g., ownership, phone numbers, etc.). Our analysis understates the actual number of reincarnated carriers because, among other things, the matching scheme used cannot detect minor spelling changes or other deception efforts. We interviewed FMCSA officials on how the agency identifies reincarnated carriers. GAO is not making any recommendations. In July 2009, GAO briefed FMCSA on our findings and incorporated their comments, as appropriate.

What GAO Found

Our analysis of FMCSA data for fiscal years 2007 and 2008 identified twenty motor coach companies that likely reincarnated from "out of service" carriers. This represents about 9 percent of the approximately 220 motor coach carriers that FMCSA placed out of service during these two fiscal years. The number of likely reincarnated motor carriers is understated, in part, because our analysis was based on exact matches and also could not identify owners who purposely provided FMCSA deceptive information on the application (e.g., ownership) to hide the reincarnation from the agency. Although the number of reincarnated motor coach carriers that we could identify was small, these companies pose a safety threat to the motoring public. According to FMCSA officials, under registration and enforcement policies up to summer 2008, reincarnation was relatively simple to do and hard to detect. As a result, motor coach carriers known to be safety risks were continuing to operate. According to FMCSA data, five of the twenty bus companies were still in operation as of May 2009. We referred these cases to FMCSA for further investigation. The twenty cases that we identified as likely reincarnations were registered with FMCSA at the time that FMCSA did not have any dedicated controls in place to prevent motor coach carriers from reincarnating. In 2008, FMCSA instituted a process to identify violators by checking applicant information against those of poor-performing carriers. For example, if FMCSA finds a new entrant with a shared owner name or company address for an out-of-service company, the agency will make inquiries to determine if the new applicant is related to the out-of-service carrier. If such a determination is made, FMCSA still faces legal hurdles, such as proving corporate successorship, to deny the company operating authority.