NCCA RECEIVES NHTSA INTERPRETATION
ON VANS AND BUSES, SEPT. 17, 1998

The National Highway Traffic and Safety Administration (NHTSA) gave representatives of NCCA their response to our May 31, 1998 request for interpretation in a face to face meeting during NCCA's Capital Summit. NCCA is dismayed and shocked at the fact that NHTSA's longstanding interpretation allowing the sale of vans to child care centers to transport children has been rescinded. In a footnote, NHTSA states "NHTSA has recently reexamined the two letters to Ms. McCaslin [the former interpretations]. Upon reconsideration, we have decided that the letters did not focus enough on the fact that the buses [vans] were being used to transport school children "from school," ... Therefore, to the extent the May 29, 1991 and September 6, 1991 letters to Ms. McCaslin are inconsistent with this letter, they are hereby superseded."

The announcement of the new interpretation (complete text provided below) has sent shock waves through the industry. There was much discussion about this issue at the Capital Summit. As things are right now, dealers are not allowed (under penalty of fine) to sell 15 passenger vans that are used significantly for transporting children to or from schools to child care centers. Centers must therefore transport children to and from school in vehicles which comply with the safety specifications of a school bus.

NCCA is continuing to analyze the next steps in this upset. We have identified several resource issues which we are working to overcome. They include the supply issues (bus companies simply cannot meet this new demand), personnel issues (CDL drivers are required on school buses with a seating capacity of 15 or more) and cost issues (school buses are estimated to be $10,000 to $15,000 more than vans). We are also talking with school bus companies and contractors to identify some possible solutions.

Meanwhile, dealers are being notified by all manufacturers that they are not able to sell or lease new vans if those vans are to be used to transport children. There is no restriction on the sale of used vans and MPVs (Multiple Purpose Vans seating fewer than 11 people).