[Federal Register Volume 66, Number 145 (Friday, July 27, 2001)]
[Proposed Rules]
[Pages 39248-39261]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18312]



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Part III





Department of Transportation





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Federal Motor Carrier Safety Administration



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49 CFR Parts 350 et al.



Commercial Driver's License Standards, Requirements and Penalties; 
Commercial Driver's License Program Improvements; Proposed Rule

  Federal Register / Vol. 66, No. 145 / Friday, July 27, 2001 / 
Proposed Rules  

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 350, 383, and 384

[Docket No. FMCSA-2001-9709]
RIN 2126-AA60


Commercial Driver's License Standards, Requirements and 
Penalties; Commercial Driver's License Program Improvements

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Notice of proposed rulemaking (NPRM).

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SUMMARY: The FMCSA proposes various changes to its Commercial Driver's 
License (CDL) Program. The Motor Carrier Safety Improvement Act of 1999 
(MCSIA) mandates these revisions. They are designed to enhance the 
safety of commercial motor vehicle (CMV) operations on our nation's 
highways by ensuring that only safe drivers operate CMVs.

DATES: We must receive your comments by October 25, 2001.

ADDRESSES: You can mail, fax, hand deliver or electronically submit 
written comments to the Docket Management Facility, U.S. Department of 
Transportation, Dockets Management Facility, Room PL-401, 400 Seventh 
Street, SW., Washington, DC 20590-0001. The fax number is (202) 493-
2251. Comments to the web site 
(http://dmses.dot.gov/submit) may be typed on-line. You must include 
the docket number that appears at in the heading of this document in 
your comment. You can examine and copy all comments at the above 
address from 9 a.m. to 5 p.m., e.t., Monday through Friday, except 
Federal holidays. You may also review the docket on the Internet at 
http://dms.dot.gov. If you want notification of receipt of comments, 
please include a self-addressed, stamped envelope or postcard, or after 
submitting comments electronically, print the acknowledgment page.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Redmond, Office of State 
Programs, (202) 366-5014, Federal Motor Carrier Safety Administration, 
Department of Transportation, 400 Seventh Street, SW., Washington, DC 
20590. Office hours are from 7:45 a.m. to 4:15 p.m., e.t., Monday 
through Friday, except Federal holidays.

SUPPLEMENTARY INFORMATION: All comments received before the close of 
business on the comment closing date indicated above will be considered 
and will be available for examination using the docket number appearing 
at the top of this document in the docket room at the above address. 
The FMCSA will file comments received after the comment closing date in 
the docket and will consider late comments to the extent practicable. 
The FMCSA may, however, issue a final rule at any time after the close 
of the comment period.

Background

    The Commercial Motor Vehicle Safety Act of 1986 (CMVSA) (Public Law 
99-570, 100 Stat. 3207-170, 49 U.S.C. 31301) established the commercial 
driver's license (CDL) program and the Commercial Driver's License 
Information System (CDLIS) to serve as a clearinghouse and repository 
of commercial driver licensing and conviction data. The CMVSA also 
requires States to ensure that drivers convicted of certain serious 
traffic violations be prohibited from operating a CMV. The Secretary of 
Transportation was directed to monitor the States' compliance with the 
standards established under the CMVSA. The goal of the CMVSA is to 
improve highway safety by ensuring that drivers of large trucks and 
buses are qualified to operate those vehicles and to remove unsafe and 
unqualified drivers from the highways.
    In 1994, the agency initiated a benefits and effectiveness study to 
evaluate the effectiveness of the CDL program. The final report, 
submitted to Congress in 1999, documented vulnerabilities within the 
CDL program and provided recommendations to correct them.
    Responding in part to the findings of this report, Congress passed 
the Motor Carrier Safety Improvement Act of 1999 (MCSIA) (Public Law 
106-159,113 Stat. 1748). The MCSIA amended numerous provisions of title 
49 of the United States Code relating to the licensing and sanctioning 
of CMV drivers required to hold a CDL, and directed the Department of 
Transportation (DOT) to amend its regulations to correct specific 
weaknesses in the CDL program. This rulemaking proposes to amend 
various provisions of Parts 350, 383 and 384 of 49 CFR to implement 
these Congressionally mandated changes. The following is an analysis of 
these proposed regulations.

Emergency CDL Grants to States

    Section 103(d) of the MCSIA authorizes the FMCSA to provide 
emergency CDL grants to assist States whose CDL programs may fail to 
meet the compliance requirements of 49 U.S.C. 31311(a) [49 CFR part 
384, subpart B]. These grants of up to $1,000,000 per State are subject 
to the annual appropriation of funds by Congress for information system 
grants. The FMCSA proposes adding language at 49 CFR 384.407 
implementing FMCSA's authority to administer emergency CDL grants.

Withholding MCSAP Funds From States in Noncompliance With CDL 
Requirements

    Section 103(e) of the MCSIA requires the FMCSA to withhold Motor 
Carrier Safety Assistance Program (MCSAP) grant funds authorized under 
section 103(b)(1) of MCSIA from States not in substantial compliance 
with 49 CFR part 384, subpart B. This new sanction is in addition to 
the one currently contained in 49 CFR part 384, subpart D requiring the 
agency to withhold five percent of some of a State's Federal-aid 
highway funds following the first year of non-compliance and 10 percent 
of such funds following the second and subsequent years of non-
compliance. The amount of money a State could lose is therefore 
considerable. The FMCSA proposes amending 49 CFR 350.217 and 384.401 to 
implement this new sanction.

Disqualification for Driving While Suspended or Disqualified, and 
Causing a Fatality

    Section 201(a) of the MCSIA amended the CMVSA to create two new 
disqualifying offenses, (1) driving a CMV after one's CDL has been 
revoked, suspended or canceled for violations while operating a CMV, 
and (2) causing a fatality through the negligent or criminal operation 
of a CMV.
    The first of these disqualifying offenses requires a violation 
while driving a CMV that results in the revocation or suspension of the 
driver's CDL [49 U.S.C. 31310(b)(1)(D)]. However, section 201(b) of 
MCSIA also requires the disqualification of CDL-holders who are 
convicted of a drug-or alcohol-related offense while driving a non-CMV, 
provided that conviction results in the revocation, suspension, or 
cancellation of the driver's license [49 U.S.C. 31310(g)]. The FMCSA 
recently issued a separate NPRM to implement that requirement [66 FR 
22499; May 4, 2001], but is proposing in this rulemaking to amend 
section 383.51 to disqualify drivers who continue to operate CMVs after 
being disqualified, or having had their CDLs revoked, suspended, or 
cancelled, regardless of whether the drivers were originally 
disqualified, or had their licenses revoked, suspended, or canceled, 
for

[[Page 39249]]

violations that occurred in a CMV or non-CMV.
    The second disqualifying offense in section 201(a) requires a 
conviction for ``causing a fatality through negligent or criminal 
operation of a commercial motor vehicle'' [49 U.S.C. 31310(b)(1)(E)]. A 
conviction of this type would be included on the driver's record, but 
State laws classify convictions for ``negligent or criminal operation'' 
of CMVs in a variety of different ways. The FMCSA proposes to amend 
section 383.51 to add as new disqualifying offenses convictions of 
``homicide by motor vehicle, manslaughter, or negligent homicide.'' The 
agency requests comments on the accuracy and adequacy of that language 
to describe State convictions corresponding to ``negligent or criminal 
operation'' of a CMV.
    The FMCSA also proposes adding a definition of fatality to section 
383.5. It would differ from the definition found in section 390.5, 
which requires that the death must occur within 30 days of the 
accident. The proposed definition has no time restriction because that 
is more consistent with the assessment of criminal culpability in 
vehicle death cases and, accordingly, better implements the intent of 
this new statutory requirement.

Emergency Disqualification of Drivers Posing an Imminent Hazard

    Section 201(b) of the MCSIA requires the Secretary of 
Transportation to impose an emergency disqualification on drivers whose 
continued operation of a CMV the Secretary determines would constitute 
an imminent hazard as defined in 49 USC 5102. If the disqualification 
is to be for a period of more than 30 days, the MCSIA further requires 
the Secretary to provide the driver with a notice of the proposed 
action and an opportunity for a hearing prior to imposition of the 
disqualification [49 U.S.C. 31310(f)].
    The FMCSA proposes adding a new section (49 CFR 383.52) 
establishing the agency's criteria for implementing this new 
disqualification, including the notice and hearing requirements for 
disqualifications that exceed 30 days. The Associate Administrator for 
Enforcement and Program Delivery is the most appropriate official to 
make the determination whether or not a driver should be subject to an 
emergency disqualification, and the NPRM proposes to assign this 
authority accordingly.
    Although the legislation does not establish a maximum period for 
this disqualification, the FMCSA believes that a one-year maximum is an 
appropriate period. In recognition of the fact that many drivers who 
would be likely candidates for an emergency disqualification may also 
be subject to a longer disqualification under other provisions of the 
FMCSRs, the FMCSA proposes adding language to the regulation making 
clear that the imposition of an emergency disqualification does not 
preclude the imposition of an additional disqualification period if the 
driver is later convicted of any disqualifying offense arising out of 
the same incident.
    The FMCSA notes that there is currently no code to identify this 
new Federal emergency disqualification on a driver's history and 
encourages the States and AAMVAnet to develop an appropriate code to 
identify such an action so that a driver's record may accurately 
reflect the fact that this sanction has been imposed.

New Serious Traffic Violations

    Section 201(c) of the MCSIA adds three new offenses to the 
definition of serious traffic violations [49 U.S.C. 31301(12)(D), (E) 
and (F)]. These new violations include: driving a CMV when the driver 
has not obtained a CDL; driving a CMV without a CDL in his or her 
possession; and driving a CMV without having met the minimum testing 
standards for the specific class of CMV being operated or for the type 
of cargo being transported on the vehicle. The FMCSA proposes adding 
these new offenses to the definition of serious traffic violations in 
section 383.5 and to the disqualification of driver provisions in 
section 383.51.

Expanded Driver Record Check

    Before issuing a new CDL, States are currently required to request 
an applicant's driving record from any State that previously issued him 
or her a CDL. As amended by section 202(a) of the MCSIA, States will be 
required, before issuing or renewing a CDL, to request the applicant's 
record from each State that issued him or her any kind of driver's 
license [49 U.S.C. 31311(a)(6)]. The FMCSA proposes amending sections 
383.71 and 384.206 to incorporate these new requirements.

New Notification Requirements

    Section 202(b) of the MCSIA amends 49 USC 31311(a)(8) to add a 
requirement that States include and record the violation that resulted 
in the driver's disqualification, or the revocation, suspension or 
cancellation of his or her CDL, as part of the notification they are 
currently required to make under this statutory provision. The FMCSA 
proposes adding a new section (49 CFR 384.208) incorporating this new 
legislative mandate.
    Section 202(c) of the MCSIA clarifies a State's responsibility for 
notifying the State where a CDL driver is licensed whenever such an 
out-of-state driver is convicted of a violation of any State or local 
law relating to motor vehicle traffic control (other than a parking 
violation), even if the driver was operating a non-CMV when the offense 
was committed [49 U.S.C. 31311(a)(9)]. The MCSIA also requires the 
State where such an offense was committed to notify the State where the 
driver is licensed if the offense was committed in a CMV, even if the 
driver did not have a CDL at the time. The MCSIA further requires that 
this notification be made no later than ten days after the driver's 
conviction.
    Based on its current knowledge of State capabilities to obtain and 
transmit driver conviction information, the FMCSA believes that to 
immediately impose a ten-day time period would place an extensive and 
unreasonable burden on the States. Accordingly, the FMCSA proposes 
phasing in this time limitation over six years according to the 
following time schedule. Within three years of the effective date of 
the final rule, notification must be made within 30 days of the 
conviction. Within six years, notification must be made within ten 
days. The FMCSA proposes incorporating this new notification 
requirement into 49 CFR 384.209.

Prohibition on Issuing Hardship Licenses to Drivers Who Lose CDL

    Suspension or revocation of a CDL for an offense committed in a 
private car or light truck has the collateral effect of barring truck 
and bus drivers from operating a CMV, and thus from earning a living in 
that field. In order to avoid that result, some States issue 
``hardship'' licenses that authorize holders to operate CMVs, while 
barring them from driving all non-CMVs. Although this practice has 
always been questionable from a safety standpoint, FMCSA did not have 
the authority to prohibit it. Section 202(d) of the MCSIA [49 U.S.C. 
31311(a)(10)] now gives the agency that authority. It explicitly 
prohibits States from issuing a provisional or temporary hardship 
license to CDL-holders who have been disqualified from operating a CMV 
or whose CDL has been revoked, suspended or canceled. A truck or bus 
driver whose CDL was suspended for speeding or reckless driving in his 
sport utility vehicle will now be unable to obtain a hardship license 
and may not drive a CMV until his CDL is restored. The FMCSA proposes 
amending 49 CFR

[[Page 39250]]

384.210 to implement this new requirement.

Penalties for Violating Licensing Requirements

    Section 202(e) of the MCSIA clarifies the responsibility of States 
for establishing and imposing appropriate civil and criminal penalties 
for drivers committing offenses while operating a CMV. The FMCSA 
proposes amending 49 CFR 384.213 to incorporate this provision.

Maintaining Record of All Violations

    Section 202(f) of the MCSIA requires the States to maintain a 
driver history record for CDL drivers of all convictions of State or 
local motor vehicle traffic control laws while operating any type of 
motor vehicle [49 U.S.C. 31311(a)(18)]. It also specifies that this 
information must be made available to authorized CDLIS users as part of 
normal operating practices. While the MCSIA does not specify a 
retention period for information on these convictions and other 
licensing actions, a minimum retention period of three years is needed 
to promote uniformity among the States. The FMCSA proposes adding 
section 384.225 to implement this new requirement.

Masking Prohibition

    Section 202(g) of the MCSIA prohibits the practice of masking 
convictions required to be maintained by or transmitted to the State 
where the driver is licensed [49 U.S.C. 31311(a)(19)]. A Joint 
Explanatory Statement issued by Congress in conjunction with the MCSIA 
makes clear that this new provision is intended to prohibit States not 
only from masking convictions, but also from using diversion programs 
or any other disposition that would defer the listing of a guilty 
verdict on a CDL driver's record. This provision of the MCSIA also 
requires that records of such conviction information be made available 
to all authorized parties and government entities. The FMCSA proposes 
adding this new requirement as section 384.226.

Decertification of State CDL Programs for Noncompliance

    Section 203 of the MCSIA requires the FMCSA to prohibit a State 
from issuing, renewing, transferring, or upgrading CDLs if the agency 
has determined that the State is in substantial noncompliance with the 
CDL licensing and sanctioning requirements of 49 CFR part 384, subpart 
B [49 U.S.C. 31312]. Because of the severity of this new sanction and 
the potential inconvenience to drivers and motor carriers located in 
States found to be in non-compliance, this penalty should be used only 
after other attempts to bring the State into substantial compliance 
with CDL requirements have failed. The FMCSA proposes adding language 
at 49 CFR 384.405 to authorize the agency to implement this 
decertification authority, and to establish conditions for taking such 
action.
    To mitigate the impact on drivers and motor carriers in States that 
have been decertified, the MCSIA proposes adding a provision to 49 CFR 
Secs. 383.7 and 384.405(h) allowing drivers licensed before a State was 
decertified to continue to operate CMVs, as long as their licenses 
remain valid. The FMCSA also proposes to include language in 49 CFR 
383.23(b)(2) authorizing States that are in substantial compliance to 
issue nonresident CDLs to drivers living in States that have been 
decertified.

School Bus Endorsement

    Section 214 of the MCSIA requires the FMCSA to create a new 
endorsement that CDL holders must obtain to operate a school bus. To 
implement this new endorsement, the FMCSA proposes adding a definition 
of school bus to 49 CFR 383.5; amending other provisions of part 383 to 
recognize the new school bus endorsement; adding a license code for the 
endorsement; and specifying that applicants must pass both a knowledge 
and a skills test to obtain the endorsement. We also propose adding a 
new section (49 CFR 383.123) to establish the minimum knowledge and 
skills test requirements enumerated in the MCSIA for this new 
endorsement.
    While the MCSIA established the minimum knowledge and skills test 
requirements that applicants for the school bus endorsement must meet, 
it does not specify what other requirements applicants must meet. The 
FMCSA is therefore proposing to require all applicants to meet the same 
knowledge and skills requirements they would need to meet to obtain a 
passenger vehicle endorsement. The agency would add language to 
proposed section 383.123 specifying that applicants for a school bus 
endorsement must meet all the requirements for obtaining a passenger 
vehicle endorsement as a condition of qualifying for a school bus 
endorsement.
    During the rulemaking process to implement the CMVSA, numerous 
States expressed concern that they lacked the financial and human 
resources needed to provide the mandated skills test to the large 
number of drivers they anticipated would be applying for a CDL. To 
accommodate these concerns, the agency included a provision authorizing 
States to substitute driving experience and a good driving record for 
the skills test requirements in the final rule implementing the CDL 
testing requirements. This ``grandfathering'' provision worked well in 
meeting the needs of the States by greatly limiting the number of CDL 
applicants having to take a skills test. To ensure that only qualified 
individuals would be eligible to receive a CDL without taking the 
skills test, the regulations required applicants to have a safe driving 
record and experience in the type vehicle they would be driving.
    The skills test requirement for the new school bus endorsement 
mandated in the MCSIA would impose similar resource burdens on the 
States if all current school bus drivers were required to take the new 
school bus skills test. Accordingly, the FMCSA proposes including a 
provision in 49 CFR 383.123(b) giving States the option of not 
requiring applicants for the school bus endorsement to take the skills 
test in cases where the applicant has past experience driving a school 
bus and a good driving record. Such a ``grandfather clause'' 
incorporates appropriate experience and safety requirements to 
accomplish the objective of the MCSIA without imposing an undue burden 
on the States.

Substantial Compliance

    The CDL provisions of the MCSIA that are proposed in this 
rulemaking add to the list of conditions necessary for States to 
achieve substantial compliance with the CMVSA of 1986. Substantial 
compliance is required to avoid having certain Federal-aid highway 
funds withheld. As provided by section 103(e) of the MCSIA, substantial 
compliance is also required to avoid having Motor Carrier Safety 
Assistance Program (MCSAP) funds withheld. The FMCSA understands the 
complexity of revising State legislation and establishing procedures to 
incorporate the new requirements into existing systems.

Section-by-Section Analysis

Section 350.217.  What Are the Consequences for a State With a CDL 
Program Not in Substantial Compliance With 49 CFR Part 384, Subpart B?

    Proposed Sec. 350.217 would require the FMCSA to withhold MCSAP 
grant funds authorized under section 103(b)(1) of MCSIA from States 
determined not to be in substantial compliance with 49 CFR part 384, 
subpart B.

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Section 383.5  Definitions

    Section 383.5 would be amended to add three new definitions and 
change two existing definitions of words used in part 383 to implement 
provisions of the MCSIA. The definitions cover ``fatality'', ``imminent 
hazard'', and ``school bus.'' The revised definitions cover 
``nonresident CDL,'' to authorize the issuance of a CDL to an 
individual domiciled in a State that has been prohibited from issuing 
CDLs under 49 CFR 384.405; and ``serious traffic violation,'' by adding 
three new offenses to those for which a CDL holder may be disqualified. 
These violations are driving a CMV when the driver has not obtained a 
CDL; driving a CMV without a CDL in the driver's possession; and 
driving a CMV without having met the minimum testing standards for the 
specific class of CMV being operated or for the type of cargo being 
transported on the vehicle.

Section 383.7  Validity of CDL Issued by Decertified State

    Proposed Sec. 383.7 would clarify that a CDL issued by a State 
subsequently prohibited from issuing CDLs under 49 CFR 384.405 remains 
valid until expiration.

Section 383.23  Commercial Driver's License

    Section 383.23 would be amended to allow drivers domiciled in a 
State that has been prohibited from issuing CDLs under 49 CFR 384.405, 
to apply for a nonresident CDL from a State electing to issue such a 
license. References to the date ``April 1, 1992'' are being deleted 
from this section because that date has passed and it is no longer 
relevant.

Section 383.51  Disqualification of Drivers

    The FMCSA would revise Sec. 383.51 by using an if-then table format 
that is more easily understandable. We also propose to reserve rows 
within the table which are included in an NPRM recently published in 
the Federal Register under RIN 2126-AA55 relating to non-CMV 
convictions (66 FR22499; May 4, 2001).
    Section 383.51 adds two new major violations, and three additional 
serious traffic violations, to those for which a CDL holder may be 
disqualified. The two new major violations are driving a CMV while the 
driver's CDL is revoked, suspended or canceled, or while the driver is 
disqualified; and causing a fatality through negligent or criminal 
operation of a CMV. The three new serious violations are driving a CMV 
when the driver has not obtained a CDL; driving a CMV without a CDL in 
the driver's possession; and driving a CMV without having met the 
minimum testing standards for the specific class of CMV being operated 
or for the type of cargo being transported on the vehicle. This section 
would also be amended to specify the disqualification period for first 
time and subsequent offenders.

Section 383.52  Disqualification of Drivers Determined To Constitute an 
Imminent Hazard

    Proposed Sec. 383.52 would establish the FMCSA's criteria for 
implementing the emergency disqualification of CDL drivers posing an 
imminent hazard as defined in Sec. 383.5.

Section 383.71  Driver Application Procedures

    Section 383.71 would be amended to require applicants for an 
initial or transferred CDL to provide the State with the name of all 
States where they have previously been licensed to drive any type of 
motor vehicle so that the State may obtain a complete driving record 
for that person.

Section 383.73  State Procedures

    Section 383.73 would be amended to require the State to request the 
complete driving record of applicants for an initial license, renewal 
or transfer of a CDL from all States where the applicant has previously 
been licensed to drive any type of motor vehicle.

Section 383.93  Endorsements

    Section 383.93 would be amended to add a new paragraph recognizing 
the new school bus endorsement and specifying that applicants must pass 
both a knowledge and a skills test to obtain this new endorsement.

Section 383.123  Requirements for a School Bus Endorsement

    Proposed Sec. 383.123 would establish the knowledge and skills test 
requirements for the school bus endorsement. It would also allow States 
to exempt applicants, who meet specified requirements and who have a 
good driving record, from taking the skills test.

Section 383.153  Information on the Document and Application.

    Section 383.153 would be amended to add a license code for the 
proposed school bus endorsement.

Section 384.206  State Record Checks

    Section 384.206 would be amended to add a requirement that before 
issuing or allowing an applicant to transfer a CDL, the State must 
conduct a record check of all States where the applicant may have 
received a license to operate any type of motor vehicle.

Section 384.208  Notification of Disqualification

    Proposed Sec. 384.208 would require any State that disqualifies, or 
takes any other action to prohibit, a CDL driver licensed by another 
State from operating a CMV for a period of 60 days or more, to notify 
the State where the driver is licensed of such action no later than 10 
days after the driver is disqualified. This new provision also requires 
the notification to identify the violation that resulted in the 
disqualification, revocation, suspension or cancellation. The 
notification and the information it provides must be recorded on the 
driver's record.

Section 384.209  Notification of Traffic Violations

    Section 384.209 would be amended to require the State where a CDL 
holder is convicted of a State or local traffic control law (except a 
parking violation) to notify the State where the driver is licensed, 
regardless of the type of vehicle he or she was operating. This 
reporting requirement would also apply if the offense were committed 
while the driver was operating a CMV, regardless of whether or not the 
driver had a CDL. States will need time to implement this new 
notification requirement, and the following phase-in period is 
therefore proposed. Within three years of the effective date of the 
final rule, States must make this notification within 30 days of the 
conviction. States are encouraged to implement the ten day notification 
time frame established in the MCSIA as expeditiously as possible, with 
all States making the required notification within 10 days of the 
conviction no later than six years after the effective date of the 
final rule.

Section 384.210  Limitation on Licensing

    Section 384.210 would be amended to prohibit a State from issuing a 
special commercial driver's license or permit (including a provisional 
or temporary license) to any CDL driver who is disqualified or who has 
his or her non-commercial driver's license or driving privilege 
revoked, suspended or canceled.

Section 384.213  State Penalties for Drivers of CMVs

    Section 384.213 would be amended to require States to establish and 
impose appropriate civil and criminal penalties consistent with the 
penalties required by part 383 for violations committed by CDL drivers 
while operating a CMV.

[[Page 39252]]

Section 384.225  Record of Violations

    Proposed Sec. 384.225 clarifies a State's responsibility for 
maintaining records on CDL drivers and drivers convicted of offenses 
while operating a CMV that require the driver to have a CDL. This new 
section also specifies what information those records must contain, how 
long the information must be retained, and who must have access to it.

Section 384.226  Prohibition on Masking Convictions

    Proposed Sec. 384.226 prohibits a State from masking conviction 
information, and from using diversion programs or other dispositions 
that defer the listing imposition of a guilty verdict on a CDL driver's 
record.

Section 384.301  Substantial Compliance--General Requirements

    Section 384.301 would be amended to add a new paragraph (b) 
allowing States up to three years from the effective date of any newly 
adopted requirements of subpart B of this part to come into substantial 
compliance with those new requirements.

Section 384.307  FMCSA Program Reviews of State Compliance

    Section 384.307 would be amended to remove the July 1 deadline by 
which the FMCSA must notify a State that a preliminary substantial 
noncompliance determination has been made. Removing this requirement 
gives the Agency the flexibility to conduct State compliance reviews 
until the end of the Federal fiscal year. A provision would also be 
added to this section giving a State aggrieved by an adverse decision 
under this section the right to seek judicial review consistent with 49 
CFR 350.215 governing the cessation of MCSAP grant funding.

Section 384.401  Withholding of Funds Based on Noncompliance

    Section 384.401 would be amended to authorize the withholding of 
MCSAP supplemental grant funds authorized under section 103(b)(1) of 
the MCSIA, in addition to the Federal-aid highway funds specified in 49 
U.S.C. 31314, if the FMCSA finds that a State is not in substantial 
compliance with 49 CFR part 384, subpart B.

Section 384.403  Availability of Funds Withheld for Non-compliance

    Section 384.403 would be amended to delete all references to funds 
withheld on or before September 30, 1995, because that date has passed 
and no funds were withheld from highway trust funds under this section 
prior to that date.

Section 384.405  Decertification of State CDL Program

    Proposed Sec. 384.405 would prohibit a State from issuing, renewing 
or upgrading a CDL if the Administrator has determined the State is in 
substantial noncompliance with 49 CFR part 384, subpart B. This section 
would also contain language clarifying that the validity of a CDL 
issued by a State prior to the date the Administrator determined that 
State to be in substantial noncompliance would remain valid until its 
stated expiration date.

Section 384.407  Emergency CDL Grants

    Proposed Sec. 384.407 would allow the FMCSA to make emergency CDL 
grants to States whose CDL program may fail to meet the compliance 
requirements of 49 CFR part 384, subpart B. These grants of up to 
$1,000,000 per State would be subject to the annual appropriation of 
funds by Congress for information system grants.

Rulemaking Analyses and Notices; Executive Order 12866 (Regulatory 
Planning and Review) and DOT Regulatory Policies and Procedures

    This NPRM is not a significant regulatory action under section 3(f) 
of Executive Order 12866 and does not require an assessment of 
potential costs and benefits under section 6(a)(3) of that Order. It 
has not been reviewed by the Office of Management and Budget under that 
Order. It is not significant under the regulatory policies and 
procedures of the Department of Transportation (DOT) (44 FR 11040; 
February 26, 1979).

Costs

    Six provisions in this NPRM were analyzed. Each is represented here 
by the MCSIA section number and the title used in the NPRM. They 
include:
     Section 201(a), ``Disqualification for Driving While 
Suspended, Disqualified and Causing a Fatality'';
     Section 201(b), ``Emergency Disqualification of Drivers 
Posing an Imminent Hazard'';
     Section 201(c), ``New Serious Traffic Violations'';
     Section 202(a), ``Expanded Driver Record Check'';
     Section 202(b), ``New Notification Requirements; and
     Section 202(g), ``Masking Prohibition''.
    Several other provisions were examined for potential costs but were 
considered non-significant (relative to the above-mentioned sections) 
after initial consideration and, as a result, were not analyzed in 
detail. These include:
     Section 103(c), ``Emergency CDL Grants to States'';
     Section 103(e), ``Withholding MCSAP Funds from States in 
Non-Compliance with CDL Requirements'';
     Section 202(d), ``Prohibition on Issuing Hardship License 
to Drivers Who Lose CDL'';
     Section 202(e), ``Penalties for Violating Licensing 
Requirements'';
     Section 203, ``Decertification of State CDL Programs for 
Non-Compliance''; and
     Section 214, ``School Bus Endorsement'';
     Section 201(b), ``Serious Offenses Involving a Non-
commercial Motor Vehicle'' and
     Section 215, ``Medical Certification,'' are being analyzed 
as part of separate NPRMs.
    The primary categories of costs considered in this analysis 
include: (1) Information system implementation, modification, and 
maintenance costs to State government agencies; (2) labor costs to the 
State government agencies to handle new data collection and processing; 
and (3) wage reduction costs to CDL holders who are suspended or 
disqualified as a result of the new serious traffic violations and 
disqualifying offenses addressed under this proposed rule.

First-Year Costs

    First-year costs for the six provisions examined for this NPRM 
total approximately $12.3 million (present value) and primarily include 
information system developments and modifications by State government 
agencies. The year of implementation for each provision varies between 
2002 and 2004 (depending upon the phase-in period outlined in the 
NPRM), but the majority of provisions are assumed to be implemented in 
years 2002 and 2003. The totals, broken down by sections of the MCSIA, 
are contained in Table A.

[[Page 39253]]



                             Table A.--Total ``First-Year'' Costs, by MCSIA Section
----------------------------------------------------------------------------------------------------------------
                                                                                          Total first-year costs
                 MCSIA section                             MCSIA section title            (millions of dollars,
                                                                                              present value)
----------------------------------------------------------------------------------------------------------------
201(a).........................................  ``* * * Driving While Suspended * *                       $1.61
                                                  *''.
201(b).........................................  ``* * * Imminent Hazard''.............                     2.15
201(c).........................................  ``Expanded Definition of Serious                           1.41
                                                  Traffic Violations''.
202(a).........................................  ``Expanded Driver Rercord Check''.....                 \1\ 1.46
202(b).........................................  ``New Notification Rerquirements''....                 \1\ 0.58
202(g).........................................  ``Masking Prohibition''...............                 \2\ 5.12
                                                                                        ------------------------
      Total....................................  ......................................                    12.33
----------------------------------------------------------------------------------------------------------------
\1\ Information system implementation costs were spread over three calendar years.
\2\ Includes information system implementation costs, State labor costs to collect, input, and transmit CDL
  data, and wage reduction costs to disqualified CDL holders.

    These first-year cost estimates were taken from a survey conducted 
in the Fall of 2000, by the American Association of Motor Vehicle 
Administrators (AAMVA), which queried State motor vehicle 
administrations on the potential implementation costs of various 
sections of MCSIA. FMCSA used these estimates, submitted by a limited 
number of States (between seven and twelve, depending on the particular 
MCSIA section) to AAMVA, and extrapolated results to represent 
information system development and modification costs to all fifty 
States and the District of Columbia. These costs represent personnel, 
hardware, and software costs to the State departments of motor vehicles 
to install and/or modify State information systems to accommodate the 
new MCSIA requirements. Since most of these provisions would be 
implemented simultaneously by the States, one could expect some 
economies of scale to occur and it is assumed that such cost savings 
are included in the estimates submitted by States to AAMVA.

Later-Year Costs

    Total later-year costs (e.g., those occurring beyond the first year 
of implementation of each provision) are estimated at $272.6 million 
(present value, using a 7 percent discount rate). The majority of 
later-year costs occur between the years 2003 and 2011, after 
implementation of most provisions has begun. These totals, by sections 
of the MCSIA, are contained in Table B.

                             Table B.--Total ``Later Years'' Costs, by MCSIA Section
----------------------------------------------------------------------------------------------------------------
                                                                                          Total first-year costs
                 MCSIA section                             MCSIA section title            (millions of dollars,
                                                                                              present value)
----------------------------------------------------------------------------------------------------------------
201(a).........................................  ``* * * Driving While Suspended * *                       $87.5
                                                  *''.
201(b).........................................  ``* * * Imminent Hazard''.............                     17.6
201(c).........................................  ``Expanded Definition of Serious                           43.8
                                                  Traffic Violations''.
202(a).........................................  ``Expanded Driver Rercord Check''.....                    103.4
202(b).........................................  ``New Notification Rerquirements''....                      3.2
202(g).........................................  ``Masking Prohibition''...............                     17.1
                                                                                        ------------------------
      Total....................................  ......................................                    $72.6
----------------------------------------------------------------------------------------------------------------

    These costs are primarily comprised of wage reduction costs to CDL 
holders who will now be suspended or disqualified as a result of this 
rule's implementation. As mentioned, there are also labor costs to 
State government employees to handle new or expanded data collection 
and processing, although these costs comprise a much smaller percentage 
of the total than the wage reduction costs. Examples of expanded or new 
data collection costs include the time required by State police to 
issue new citations (e.g., ``Expanded Definition of Serious Traffic 
Violations'') and time costs for Stateemployees to log new convictions 
(as defined under the Federal Motor Carrier Safety Regulations, or 
FMCSRs) and transmit to the Commercial Driver's License Information 
System (CDLIS).
    Analysis indicates that on average, approximately 31,897 commercial 
motor vehicle (CMV) drivers will have their CDLs disqualified (e.g., 
revoked, suspended or cancelled) annually as a result of implementing 
the six provisions analyzed here. The breakdown of estimated new CDL 
withdrawals by MCSIA section is contained in Table C:

Table C.--Estimated Number of CDL Withdrawals Annually, by MCSIA Section
------------------------------------------------------------------------
                                                              Annual CDL
          MCSIA section               NPRM section title     withdrawals
------------------------------------------------------------------------
201(a)...........................  ``Driving While                 4,296
                                    Suspended* * * ''.
201(b)...........................  ``* * * Imminent                  299
                                    Hazard''.
201(c)...........................  ``Expanded Definition of        7,077
                                    Serious Traffic
                                    Violations''.
202(a)...........................  ``Expanded Driver Record       16,500
                                    Check''.
202(b)...........................  ``New Notification              \1\0
                                    Requirements''.

[[Page 39254]]

 
202(g)...........................  ``Masking Prohibition''.        3,725
                                                            ------------
      Total......................  ........................       31,897
------------------------------------------------------------------------
\1\ Any CDL disqualifications associated with this provision are
  accounted for under other, related provisions. For example, States
  will be required to notify CDLIS of those convictions CDL holders
  receive while operating a non-CMV, but resulting CDL disqualifications
  are accounted for under the ``Non-CMV Offenses'' NPRM.

The 31,897 annual CDL disqualifications estimated to occur as a result 
of this rule's implementation represent roughly 0.6 percent (or 6/10ths 
of one percent) of the total 5.75 million CDL holders currently 
estimated to be ``active'' CMV operators.
    Given that the current unemployment rate is 4.2 percent (January, 
2001, U.S. Department of Labor) and the driver shortage in the motor 
carrier industry is currently estimated at approximately 80,000 
(American Trucking Associations), FMCSA assumed that those CDL holders 
disqualified as a result of this rule would find alternative employment 
in the industry (or closely-related ones), albeit at a 10-percent 
reduction in hourly wages.
    The specific disqualification period assumed for each driver 
(during which they are assumed to earn 10 percent less in average 
weekly wages) differs significantly from provision to provision 
(depending on specific conviction cited), but generally lasts between 
520 working hours (e.g., roughly 3 months) and 2080 working hours 
(e.g., roughly one year). The specific disqualification periods assumed 
for each section of the MCSIA analyzed here are contained in Table D.

 Table D.--Disqualification Period Assumed per Driver, by MCSIA Section
------------------------------------------------------------------------
                                                        Disqualification
         MCSIA section            NPRM section title     period (hours)
------------------------------------------------------------------------
201(a)........................  ``. . . Driving While       2080 hours
                                 Suspended* * *''.
201(b)........................  ``* * *Imminent              520 hours
                                 Hazard''.
201(c)........................  ``Expanded Definition        520 hours
                                 of Serious Traffic
                                 Violations''.
202(a)........................  ``Expanded Driver            520 hours
                                 Record Check''.
202(b)........................  ``New Notification                 N/A
                                 Requirements''.
202(g)........................  ``Masking                    520 hours
                                 Prohibition''.
------------------------------------------------------------------------

    For instance, two convictions of serious traffic violations (e.g., 
excessive speeding, 15 mph over speed limit) within a three-year period 
carries a disqualification period of 60 days, while three convictions 
within a three-year period carries 120 days, with a midpoint of 90 days 
(e.g., 3 months or 520 hours, assuming a 40-hour workweek). A single 
conviction of a disqualifying offense (e.g., alcohol-related 
conviction) generally carries a one-year disqualification period, or 
2080 hours.

Total Costs of MCSIA Provisions

    The total cost of this rule to industry and government agencies is 
estimated to be approximately $285 million (present value) over the 
ten-year analysis period from 2002 through 2011, using a discount rate 
of 7 percent.

Benefits

    The primary societal benefits expected from this rule are the 
truck-related crashes that one would expect to be avoided due to the 
additional CMV operators (CDL holders specifically) who will be 
suspended or disqualified for violation of the new disqualifying 
offenses and serious traffic violations covered under this proposed 
rule. It was not possible to estimate the specific number of truck-
related crashes that would be avoided from implementing each provision 
of this rule, given that FMCSA analysts had no available data on the 
direct link between these specific FMCSR-defined offenses and truck-
related crashes. However, FMCSA analysts did use cost data on truck-
related crashes from Zaloshnja, Miller, and Spicer (``The Costs of 
Large Truck-and Bus-Involved Crashes,'' 2000) to derive an estimate of 
the total number of truck-related crashes that would have to be avoided 
per year for this rule to be cost effective (e.g., for discounted 
benefits to equal/exceed discounted costs). Zaloshnja, et al., estimate 
that the average cost of all police-reported crashes (e.g., fatal, 
injury, and property-damage-only (PDO) crashes) involving trucks with a 
gross weight rating of more than 10,000 pounds is $75,637 (in 1999 
dollars). The average cost of large truck crashes involving a fatality 
is $3.42 million, $217,000 for those involving injuries, and $11,300 
for PDO crashes. Using data from ``Trends in Motor Vehicle Crashes'' 
(FMCSA, December, 2000), it can be seen that fatal, injury, and PDO 
crashes accounted for one percent, 21 percent, and 78 percent of all 
large truck-related crashes, respectively, in 1999. As such, safety 
benefits of this proposed rule would exceed implementation costs if an 
average of 500 truck-related crashes are avoided annually over the 
2003-2011 analysis period. (No crash reduction benefits are assumed to 
occur during the first year of implementation (2002), as a conservative 
assumption.) The 500 large truck crashes avoided (mostly PDO crashes), 
represents just 0.1 percent (or 1/10th of 1 percent) of the total 
452,542 truck-related crashes reported in 1999. Breaking this total 
down by type of truck-related crash, the proposed rule will be cost 
effective if just 5 fatal crashes, 105 injury-related crashes, and 390 
PDO crashes are avoided each year. Due to the conservative assumptions 
made here regarding the number of CDL holders expected to be 
disqualified because of this NPRM (e.g., more optimistic assumptions 
regarding CDL disqualifications would raise the potential crash 
reduction expectation), FMCSA analysts believe such crash reduction 
estimates are achievable, making this rule likely to be cost-effective.

[[Page 39255]]

    As support, the 31,897 annual CDL disqualifications can be examined 
more closely. Assume each CDL disqualification period averages three 
months, since the disqualification period is assumed to be 90 days in 
most cases. Also assume that each CDL holder drives an average of 
65,261 miles per year. This estimate is considered conservative, since 
other research indicates that large truck operators may travel upwards 
of 100,000 miles per year. However, data from the 1999 Highway 
Statistics (Table VM-1) on the annual distance traveled in miles for 
combination trucks indicates that each vehicle averages 65,261 miles 
annually. Therefore, the reduction in total commercial vehicle miles 
traveled (VMT) by this group is estimated at 520 million per year 
(e.g., 65,261  x  31,897  x  0.25 (% of annual calendar days 
disqualified on average). Data from Wang, Knipling, and Blincoe 
(Journal of Transportation Statistics, May, 1999) indicates that the 
vehicle involvement rate in police-reported crashes for combination 
unit trucks is 225.52 per 100 million VMT. As such, from a static 
perspective, one could expect crashes involving combination trucks to 
be reduced by 1,176 per year from this rule. However, it is probably 
more realistic to assume that a sizable portion of these drivers' 
shipments would be picked up by other, existing CDL holders. If it is 
assumed that only one half of the initial crash reduction estimate is 
actually experienced, then 588 combination truck crashes are avoided 
each year from this rule. Even at 588 crashes avoided, this rule is 
cost-effective, with discounted benefits equaling $317 million (or $32 
million more than total discounted costs of $285 million over the 2002-
2011 analysis period).

Regulatory Flexibility Act

    The FMCSA has considered whether this interim rule would have a 
significant economic impact on a substantial number of small entities, 
and has determined that such businesses would not be adversely affected 
by this rule relative to larger carriers. The term ``small entities'' 
comprises small businesses, not-for-profit organizations that are 
independently owned and operated and are not dominant in their fields, 
and governmental jurisdictions with populations less than 50,000.
    In the motor carrier industry, the Small Business Administration 
(SBA) defines small entities as those firms earning less than $18.5 
million in gross revenues annually. Examining U.S. Census Bureau data 
on the revenue size of firms in the ``General Freight Trucking'' sector 
(NAICS Code 4841), the vast majority of firms represented in the sample 
fall below the SBA annual revenue threshold. And while these small 
entities represent over 90 percent of the firms in the sample, they 
employ only about 58 percent of the workers.
    The primary focus of this rule is to expedite and expand the 
exchange of CDL violation information among the states, with the 
overall goal of improving commercial vehicle safety through the 
retrieval of more accurate, up-to-date CDL holder information. The only 
potentially significant cost to the motor carrier industry would be to 
CDL holders, due to greater potential for disqualification as a result 
of adding new disqualifying offenses and serious traffic violations to 
the FMCSRs. However, even the estimated number of new driver 
disqualifications resulting from this rule annually (approximately 
31,897) is only 0.6 percent of the total number of CDL holders 
currently estimated to be active drivers (5.75 million). Since this 
proposed rule focuses on all CDL holders, and the number of new drivers 
likely to be disqualified is relatively small, FMCSA analysts believe 
that small entities are not adversely impacted in absolute terms, or 
relative to industry participants overall.

Paperwork Reduction Act

    This NPRM calls for collection of information under the Paperwork 
Reduction Act (PRA) of 1995 (44 U.S.C. 3501-3520). As defined in 5 CFR 
1320(c), ``collection of information'' comprises reporting, record 
keeping, monitoring, posting, labeling, and other similar actions. The 
title and description of the information collections, a description of 
those who must collect the information, and an estimate of the total 
annual burden follow.
    The time costs associated with implementation of this NPRM are 
primarily comprised of the following:
    (1) The additional time spent by State police to check a CDL 
holder's record for new violations under the FMCSRs. The time cost is 
assumed to be 30 seconds per record checked;
    (2) The additional time spent by State police to write citations 
for new violations covered under this NPRM (e.g., Expanded Definition 
of Serious Traffic Violations). The time required is assumed to be 5 
minutes per citation written;
    (3) The time required by State data entry employees to log the new 
conviction data and transmit to CDLIS. These costs are assumed to be 
one minute per record; and
    (4) The time required by State department of motor vehicle 
employees to review a CDL holder's record during license application 
and renewal. These costs are assumed to be one minute per record 
reviewed. The total new time requirements under this NPRM are contained 
in Table E.

 Table E.--Annual State Labor Costs To Process Paperwork Resulting From
                                  MCSIA
------------------------------------------------------------------------
                                                                Hours
          MCSIA section               NPRM section title       required
                                                               annually
------------------------------------------------------------------------
201(a)...........................  ``* * * Driving While          19,641
                                    Suspended * * *''.
201(b)...........................  * * * Imminent Hazard''.          \1\
201(c)...........................  ``Expanded Definition of        6,259
                                    Serious Traffic
                                    Violations''.
202(a)...........................  ``Expanded Driver Record       27,500
                                    Check''.
202(b)...........................  ``New Notification              2,438
                                    Requirements''.
202(g)...........................  ``Masking Prohibition''.        1,089
                                                            ------------
    Total Annual Time Cost.......  All Six Provisions             56,927
                                    Examined.
------------------------------------------------------------------------
\1\ Negligible

    The total annual additional time cost associated with 
implementation of this NPRM is estimated to be 56,927 hours. These 
costs are almost exclusively borne by State government employees who 
are being asked to expand the collection

[[Page 39256]]

and transmission of conviction information for CDL holders, and from 
writing additional citations related to new FMCSR violations outlined 
in this NPRM.

Unfunded Mandates Reform Act

    This rule does not impose a Federal mandate resulting in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any one year (2 
U.S.C. 1531 et seq.).

Executive Order 12988 (Civil Justice Reform)

    This action meets applicable standards in sections 3(a) and 3(b)(2) 
of Executive Order 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

Executive Order 13045 (Protection of Children)

    We have analyzed this action under Executive Order 13045, 
Protection of Children from Environmental Health Risks and Safety 
Risks. This rule is not an economically significant rule and does not 
concern an environmental risk to health or safety that may 
disproportionately affect children.

Executive Order 12630 (Taking of Private Property)

    This rule will not effect a taking of private property or otherwise 
have taking implications under Executive Order 12630, Governmental 
Actions and Interference with Constitutionally Protected Property 
Rights.

Executive Order 13132 (Federalism)

    This proposed action has been analyzed in accordance with the 
principles and criteria contained in Executive Order 13132, dated 
August 4, 1999, and it has been determined that it would have 
significant Federalism implications or limit the policymaking 
discretion of the States.
    The Federalism implications of the CDL program were addressed in 
detail in the rule that established the initial minimum standards (53 
FR 27628, July 21, 1988). A summary of the points covered in that rule 
includes:
    (a) The Congress determined that minimum Federal standards were 
required because medium and heavy trucks are involved in a 
disproportionately large percentage of fatal accidents. The States were 
carefully consulted in establishing the minimum standards that were 
established.
    (b) The safety problem associated with CMVs is national in scope, 
requiring a consistent and reciprocal approach to licensing, which 
retained the basic role of the States in issuing licenses.
    (c) The standards adopted deliberately allowed maximum flexibility 
to the States in implementation of this program.
    We believe the policies in this proposed rule are consistent with 
the principles and Federalism assessment in the CDL rule that 
established the initial minimum standards. Comments on this conclusion 
are welcome and should be submitted to the docket.

Executive Order 12372 (Intergovernmental Review)

    Catalog of Federal Domestic Assistance Program Number 20.217, Motor 
Carrier Safety. The regulations implementing Executive Order 12372 
regarding intergovernmental consultation on Federal programs and 
activities do not apply to this program.

National Environmental Policy Act

    The agency has analyzed this action for purposes of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and it has 
determined under DOT Order 5610.1C (September 18, 1979) that this 
action does not require any environmental assessment.

List of Subjects

49 CFR Part 350

    Grant programs--Transportation, Highway safety, Motor carriers, 
Motor vehicle safety, Reporting and recordkeeping requirements.

49 CFR Part 383

    Administrative practice and procedure, Commercial driver's license, 
Commercial motor vehicles, Highway safety, Motor carriers.

49 CFR Part 384

    Administrative practice and procedure, Commercial driver's license, 
Commercial motor vehicles, Highway safety, Intergovernmental relations, 
Motor carriers.

    In consideration of the foregoing, the FMCSA proposes to amend 49 
CFR chapter III, as set forth below:

PART 350--[AMENDED]

    1. Revise the authority citation for 49 CFR part 350 to read as 
follows:

    Authority: 49 U.S.C. 31100-31104, 31108, 31136, 31140-31141, 
31161, 31310-31312, 31502; Sec. 103 of Pub. L. 106-159, 113 Stat. 
1753; and 49 CFR 1.73.

    2. Add Sec. 350.217 to subpart B to read as follows:


Sec. 350.217  What are the consequences for a State with a CDL program 
not in substantial compliance with 49 CFR part 384, subpart B?

    (a) A State with a CDL program not in substantial compliance with 
49 CFR part 383, subpart B, as required by 49 CFR part 384, subpart C, 
is subject to the loss of all Motor Carrier Safety Assistance Program 
(MCSAP) grant funds authorized under section 103(b)(1) of the Motor 
Carrier Safety Improvement Act of 1999 (Public Law 106-159, 113 Stat. 
1748) and loss of certain Federal-aid highway funds, as specified in 49 
CFR part 384, subpart D.
    (b) Withheld MCSAP grant funds will be restored to the State if the 
State meets the conditions of Sec. 384.403 (b) of this subchapter.

PART 383--[AMENDED]

    3. Revise the authority citation for 49 CFR part 383 to read as 
follows:

    Authority: 49 U.S.C. 521, 31136, 31301 et seq., 31502; Sec. 214 
of Pub. L. 106-159, 113 Stat. 1748; and 49 CFR 1.73.

    4. Amend Sec. 383.5 to revise the definitions of the terms 
``Nonresident CDL'' and ``Serious traffic violation'' and to add the 
definitions of the terms ``Fatality'', ``Imminent hazard'' and ``School 
bus'' in alphabetical order to read as follows:


Sec. 383.5  Definitions.

* * * * *
    Fatality means the death of a person as a result of a motor vehicle 
accident.
* * * * *
    Imminent hazard means the existence of a condition that presents a 
substantial likelihood that death, serious illness, severe personal 
injury, or a substantial endangerment to health, property, or the 
environment may occur before the reasonably foreseeable completion date 
of a formal proceeding begun to lessen the risk of that death, illness, 
injury or endangerment.
* * * * *
    Nonresident CDL means a CDL issued by a State under either of the 
following two conditions:
    (a) To an individual domiciled in a foreign country meeting the 
requirements of Sec. 383.23(b)(1).
    (b) To an individual domiciled in another State meeting the 
requirements of Sec. 383.23(b)(2).
* * * * *
    School bus means a CMV used to transport pre-primary, primary, or 
secondary school students from home to school, from school to home, or 
to and from school sponsored events. School bus does not include a bus 
used as a common carrier.

[[Page 39257]]

    Serious traffic violation means conviction, when operating a CMV, 
of:
    (a) Excessive speeding, involving any single offense for any speed 
of 15 miles per hour or more above the posted speed limit;
    (b) Reckless driving, as defined by State or local law or 
regulation, including but not limited to offenses of driving a CMV in 
willful or wanton disregard for the safety of persons or property;
    (c) Improper or erratic traffic lane changes;
    (d) Following the vehicle ahead too closely;
    (e) A violation, arising in connection with a fatal accident, of 
State or local law relating to motor vehicle traffic control (other 
than a parking violation). (Serious traffic violations exclude vehicle 
weight and defect violations.);
    (f) Driving a CMV without obtaining a CDL;
    (g) Driving a CMV without a CDL in the driver's possession. Any 
individual who provides proof to the enforcement authority that issued 
the citation, by the date the individual must appear in court or pay 
any fine for such a violation, that the individual held a valid CDL on 
the date the citation was issued, shall not be guilty of this offense; 
or
    (h) Driving a CMV without the proper class of CDL and/or 
endorsements for the specific vehicle group being operated or for the 
passengers or type of cargo being transported.
* * * * *
    5. Add Sec. 383.7 to subpart A to read as follows:


Sec. 383.7  Validity of CDL issued by decertified State.

    A CDL issued by a State prior to the date the State is notified by 
the Administrator in accordance with the provisions of Sec. 384.405 of 
this subchapter that the State is prohibited from issuing CDLs will 
remain valid until its stated expiration date.
    6. Amend Sec. 383.23 to revise paragraphs (a)(2) and (b) to read as 
follows:


Sec. 383.23  Commercial driver's license.

    (a) * * *
    (2) Except as provided in paragraph (b) of this section, no person 
may legally operate a CMV unless such person possesses a CDL which 
meets the standards contained in subpart J of this part, issued by his/
her State or jurisdiction of domicile.
    (b) Exception. (1) If a CMV operator is not domiciled in a foreign 
jurisdiction which the Administrator has determined tests drivers and 
issues CDLs in accordance with, or under standards similar to, the 
standards contained in subparts F, G, and H of this part, the person 
may obtain a Nonresident CDL from a State which does comply with the 
testing and licensing standards contained in such subparts F, G, and H 
of this part.
    (2) If an individual is domiciled in a State while that State is 
prohibited from issuing CDLs in accordance with Sec. 384.405 of this 
subchapter, that individual is eligible to obtain a Nonresident CDL 
from any State which complies with the testing and licensing standards 
contained in subparts F, G, and H of this part.
* * * * *
    7. Amend Sec. 383.51, as proposed to be revised at 66 FR 22508, by 
adding new paragraphs (b)(7) and (b)(8) to Table 1 and by adding new 
paragraphs (c)(6), (c)(7), and (c)(8) to Table 2 to read as follows:


Sec. 383.51  Disqualifications of drivers.

* * * * *
    (b) * * *

                                                                 Table 1 to Sec.  383.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                          For a first
                                                                                     conviction or refusal
                                                                                       to be tested while        For a second
                                                                                        operating a CMV     conviction or refusal       For a second
                                     For a first conviction                               transporting        to be tested in a    conviction or refusal
                                        or refusal to be     For a first conviction   hazardous materials    separate incident of    to be tested in a
                                     tested while operating     or refusal to be         requied to be       any offense in this    separate incident of
    If a driver operates a motor         a CMV, a person     tested while operating   placarded under the   Table while operating   any offense in this
            vehicle and              required to have a CDL     a non-CMV, a CDL      Hazardous materials      a CMV, a person     Table while operating
                                      and a CDL holder must      holder must be       Regulations (49 CFR     required to have a   a CMV or a non-CMV, a
                                      be disqualified from      disqualified from    part 172, subpart F),   CDL and a CDL holder    CDL holder must be
                                       operating a CMV for     operating a CMV for    a person required to   must be disqualified    disqualified from
                                                                                      have a CDL and a CDL   from operating a CMV   operating a CMV for
                                                                                         holder must be              for
                                                                                       disqualified from
                                                                                      operating a CMV for
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                   *                  *                  *                  *                  *                  *                  *
--------------------------------------------------------------------------------------------------------------------------------------------------------
(7) drives a CMV when the driver's   1 year................  N/A...................  3 years..............  life.................  N/A.
 CDL is revoked, suspended, or
 canceled, or the driver is
 disqualified from operating a CMV.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(8) commits homicide by motor        1 year................  N/A...................  3 years..............  life.................  N/A.
 vehicle, manslaughter, or
 negligent homicide through the
 operation of a CMV.
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                   *                  *                  *                  *                  *                  *                  *
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (c) * * *

[[Page 39258]]



                                             Table 2 to Sec.  383.51
----------------------------------------------------------------------------------------------------------------
                                                                            For a third or      For a third or
                                     For a second        For a second         subsequent          subsequent
                                   conviction of any   conviction of any   conviction of any   conviction of any
                                    offense in this     offense in this     offense in this     offense in this
                                      Table in a          Table in a          Table in a          Table in a
                                   separate incident   separate incident   separate incident   separate incident
 If the driver operates a motor     within a 3-year     within a 3-year     within a 3-year     within a 3-year
           vehicle and               period while        period while        period while        period while
                                  operating a CMV, a  operating a CMV or  operating a CMV, a  operating a CMV or
                                  person required to    non-CMV, a CDL    person required to    non-CMV, a CDL
                                  have a CDL must be    holder must be    have a CDL must be    holder must be
                                   disqualified from   disqualified from   disqualified from   disqualified from
                                    operating a CMV     operating a CMV     operating a CMV     operating a CMV
                                          for                 for                 for                 for
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
(6) drives a CMV without          60 days...........  60 days...........  120 days..........  120 days.
 obtaining a CDL.
----------------------------------------------------------------------------------------------------------------
(7) drives a CMV without a CDL    60 days...........  60 days...........  120 days..........  120 days.
 in the driver's possession.
----------------------------------------------------------------------------------------------------------------
(8) drives a CMV without the      60 days...........  60 days...........  120 days..........  120 days.
 proper class of CDL and/or
 endorsements for the specific
 vehicle group being operated or
 for the passengers or type of
 cargo being transported.
----------------------------------------------------------------------------------------------------------------

* * * * *
    8-9. Add Sec. 383.52 to read as follows:


Sec. 383.52  Disqualification of drivers determined to constitute an 
imminent hazard.

    (a) The Associate Administrator for Enforcement and Program 
Delivery or his/her delegate will disqualify from operating a CMV any 
driver whose driving is determined to constitute an imminent hazard, as 
defined in Sec. 383.5.
    (b) In making the determination that a driver constitutes an 
imminent hazard at least two of the following six factors must be found 
to exist:
    (1) The driver has been charged with committing an offense that 
upon conviction would require the driver to be disqualified.
    (2) The driver's action or inaction resulted in a fatality or 
serious bodily injury.
    (3) The driver has a condition that makes the driver medically 
unqualified to operate a CMV.
    (4) The driver transports passengers or hazardous materials.
    (5) The driver is an habitual offender, as evidenced by having been 
convicted of three or more disqualifying offenses within the past ten 
years.
    (6) The driver has been convicted of one or more disqualifying 
offenses, but has never been disqualified by the State where he or she 
is licensed.
    (c) The period of the disqualification may not exceed 30 days 
unless the provisions of paragraph (d) of this section have been 
complied with.
    (d) Before imposing a disqualification for a period of more than 30 
days, the Associate Administrator for Enforcement and Program Delivery 
or his/her delegate will provide the driver notice of the proposed 
disqualification and an opportunity for a hearing to present a defense 
to the proposed disqualification. A disqualification imposed under this 
section may not exceed one year in duration.
    (e) Any disqualification imposed in accordance with the provisions 
of this section must become a part of the driver's record maintained by 
the jurisdiction where the driver is licensed.
    (f) Nothing in this section precludes a driver who would, upon 
conviction of a specific offense, be subject to a longer 
disqualification under other provisions of this subpart, or State law 
or regulation, from being disqualified for the longer period required 
by those provisions.
    10. Amend Sec. 383.71 to remove the period at the end of paragraph 
(a)(6) and add a semicolon in its place, to remove the period at the 
end of paragraph (a)(7) and add ``; and'' in its place, to remove 
``and'' at the end of paragraph (b)(3), to remove the period at the end 
of paragraph (b)(4) and add ``; and'' in its place, to remove ``and'' 
at the end of paragraph (c)(2), to remove the period at the end of 
paragraph (c)(3) and add ``; and'' in its place, and to add paragraphs 
(a)(8), (b)(5) and (c)(4) to read as follows:


Sec. 383.71  Driver application procedures.

    (a) * * *
    (8) Provide the name of all States where the applicant has 
previously been licensed to drive any type of motor vehicle.
    (b) * * *
    (5) Provide the name of all States where the applicant has 
previously been licensed to drive any type of motor vehicle.
    (c) * * *
    (4) Provide the name of all States where the applicant has 
previously been licensed to drive any type of motor vehicle.
* * * * *
    11. Amend Sec. 383.73 to revise paragraphs (a)(3)(ii) and 
(a)(3)(iii) introductory text and to add paragraph (a)(3)(iv) to read 
as follows:


Sec. 383.73  State procedures.

    (a) * * *
    (3) * * *
    (ii) A check with the CDLIS to determine whether the driver 
applicant already has a CDL, whether the applicant's license has been 
suspended, revoked, or canceled, or if the applicant has been 
disqualified from operating a commercial motor vehicle;
    (iii) A check with the National Driver Register (NDR) to determine 
whether the driver applicant has:
* * * * *
    (iv) A request for the applicant's complete driving record from all 
States where the applicant was previously licensed to drive any type of 
motor vehicle; and
* * * * *
    12. Amend Sec. 383.93 to add paragraphs (b)(5) and (c)(5); and 
revise paragraphs

[[Page 39259]]

(b)(3), (b)(4), (c)(3) and (c)(4) to read as follows:


Sec. 383.93  Endorsements.

* * * * *
    (b) * * *
    (3) Tank vehicles;
    (4) Required to be placarded for hazardous materials; or
    (5) School buses.
    (c) * * *
    (3) Tank vehicle--knowledge test;
    (4) Hazardous Materials--knowledge test; and
    (5) School bus--knowledge and skills test.
    13. Add Sec. 383.123 to subpart G to read as follows:


Sec. 383.123  Requirements for a school bus endorsement.

    (a) An applicant for a school bus endorsement must satisfy the 
following three requirements:
    (1) Qualify for passenger vehicle endorsement. Pass the knowledge 
and skills test for obtaining a passenger vehicle endorsement.
    (2) Knowledge test. Must have knowledge covering at least the 
following three topics:
    (i) Loading and unloading children, including the safe operation of 
stop signal devices, external mirror systems, flashing lights and other 
warning and passenger safety devices required for school buses by State 
or Federal law or regulation.
    (ii) Emergency exits and procedures for safely evacuating 
passengers in an emergency.
    (iii) State and Federal laws and regulations related to safely 
traversing highway rail grade crossings.
    (3) Skills test. Must take a driving skills test in a school bus of 
the same vehicle group (see Sec. 383.91(a)) as the school bus applicant 
will drive.
    (b) Substitute for driving skills test. (1) At the discretion of a 
State, the driving skills test required in paragraph (a)(3) of this 
section may be waived for an applicant who is currently licensed, has 
experience driving a school bus, has a good driving record, and meets 
the conditions set forth in paragraph (b)(3) of this section.
    (2) A State that wishes to waive the skills test otherwise required 
by paragraph (a)(3) of this section, must subject applicants, at a 
minimum, to the conditions and limitations specified in paragraph 
(b)(3) of this section.
    (3) An applicant must certify and the State must verify that, 
during the two-year period immediately prior to applying for the school 
bus endorsement, the applicant:
    (i) Held a valid CDL with a passenger vehicle endorsement to 
operate a school bus representative of the group he or she will be 
driving;
    (ii) Has not had his or her driver's license or CDL suspended, 
revoked or canceled or been disqualified from operating a CMV;
    (iii) Has not been convicted of any of the disqualifying offenses 
in Sec. 383.51(b) or of any offense in a non-CMV that would be 
disqualifying under Sec. 383.51(b) if committed in a CMV;
    (iv) Has not had more than one conviction of any of the serious 
traffic violations defined in Sec. 383.5, while operating any type 
motor vehicle;
    (v) Has not had any conviction for a violation of State or local 
law relating to motor vehicle traffic control (other than a parking 
violation) arising in connection with any traffic accident;
    (vi) Has no record of an accident in which he or she was at fault; 
and
    (vii) Has been regularly employed as a school bus driver and 
operated a school bus representative of the group the applicant seeks 
to drive and provides evidence of such employment.
    (4) After [date 3 years after the effective date of final rule] the 
provisions in this paragraph (b) do not apply.
    14. Amend Sec. 383.153 to redesignate paragraph (a)(9)(vi) as 
paragraph (a)(9)(vii), revise paragraph (a)(9)(v) and add new paragraph 
(a)(9)(vi) to read as follows:


Sec. 383.153  Information on the document and application.

    (a) * * *
    (9) * * *
    (v) X for a combination of tank vehicle and hazardous materials 
endorsements;
    (vi) S for school bus; and
* * * * *

PART 384--[AMENDED]

    15. Revise the authority citation for 49 CFR part 384 to read as 
follows:

    Authority: 49 U.S.C. 31136, 31301 et seq., 31502; Sec. 103 of 
Pub. L. 106-159, 113 Stat. 1748; and 49 CFR 1.73.

    16. Amend Sec. 384.206 to revise paragraph (a)(2) to read as 
follows:


Sec. 384.206  State record checks.

    (a) * * *
    (2) Other States' records. Before the initial or transfer issuance 
of a CDL to a person, and before renewing a CDL held by any person, the 
issuing State must:
    (i) Require the applicant to provide the names of all States where 
the applicant has previously been licensed to operate any type of motor 
vehicle.
    (ii) Within the time period specified in Sec. 384.232, request the 
complete driving record from all States where the applicant was 
previously licensed to operate any type of motor vehicle.
    (iii) States receiving a request for the driving record of a person 
currently or previously licensed by the State must provide the 
information within 30 days.
* * * * *
    17. Add Sec. 384.208 to read as follows:


Sec. 384.208  Notification of disqualification.

    (a) No later than 10 days after disqualifying a CDL holder licensed 
by another State, or revoking, suspending, or canceling an out of State 
CDL holder's privilege to operate a commercial motor vehicle, for at 
least 60 days, the State must notify the State that issued the license 
of the disqualification, revocation, suspension, or cancellation.
    (b) The notification must include both the disqualification and the 
violation that resulted in the disqualification, revocation, 
suspension, or cancellation. The notification and the information it 
provides must be recorded on the driver's record.
    18. Revise Sec. 384.209 to read as follows:


Sec. 384.209  Notification of traffic violations.

    (a) Required notification with respect to CDL holders. Whenever a 
person who holds a CDL from another State is convicted of a violation 
of any State or local law relating to motor vehicle traffic control 
(other than a parking violation), in any type of vehicle, the licensing 
entity of the State in which the conviction occurs must notify the 
licensing entity in the State where the driver is licensed of this 
conviction within the time period established in paragraph (c) of this 
section.
    (b) Required notification with respect to non-CDL holders. Whenever 
a person who does not hold a CDL, but who is licensed to drive by 
another State, is convicted of a violation in a CMV of any State or 
local law relating to motor vehicle traffic control (other than a 
parking violation), the licensing entity of the State in which the 
conviction occurs must notify the licensing entity in the State where 
the driver is licensed of this conviction within the time period 
established in paragraph (c) of this section.
    (c) Time period for notification of traffic violations. (i) 
Beginning on [date 3 years after effective date of final rule], the 
notification must be made within 30 days of the conviction.
    (ii) Beginning on [date 6 years after effective date of final 
rule], the notification must be made within 10 days of the conviction.

[[Page 39260]]

    19. Revise Sec. 384.210 to read as follows:


Sec. 384.210  Limitation on licensing.

    A State must not knowingly issue a CDL or a commercial special 
license or permit (including a provisional or temporary license) 
permitting a person to drive a CMV during a period in which:
    (a) A person is disqualified from operating a CMV, as 
disqualification is defined by Sec. 383.5 of this subchapter, or under 
the provisions of Sec. 383.73(g) of this subchapter;
    (b) The CDL holder's noncommercial driving privilege has been 
revoked, suspended, or cancelled; or
    (c) Any type of driver's license held by such person is suspended, 
revoked, or canceled by the State where the driver is licensed for any 
State or local law related to motor vehicle traffic control (other than 
parking violations).
    20. Revise Sec. 384.213 to read as follows:


Sec. 384.213  State penalties for drivers of CMVs.

    The State must impose on drivers of CMVs appropriate civil and 
criminal penalties that are consistent with the penalties prescribed 
under part 383, subpart D, of this subchapter.
    21. Add Sec. 384.225 to read as follows:


Sec. 384.225  Record of violations.

    The State must:
    (a) CDL holders. Record and maintain as part of the driver history 
all convictions, disqualifications and other licensing actions for 
violations of any State or local law relating to motor vehicle traffic 
control (other than a parking violation) committed in any type of 
vehicle.
    (b) Non-CDL holders. Record and maintain as part of the driver 
history all convictions, disqualifications and other licensing actions 
for violations of any State or local law relating to motor vehicle 
traffic control (other than a parking violation) committed while the 
driver was operating a CMV.
    (c) Make driver history information required by this section 
available to the authorized users designated in paragraph (e) of this 
section within 10 days of:
    (1) Receiving the conviction or disqualification information from 
another State; or
    (2) The date of the conviction, if it occurred in the same State.
    (d) Retain on the driver history record all convictions, 
disqualifications and other licensing actions for violations for at 
least 3 years or longer as required under Sec. 384.231(d).
    (e) Only the following authorized users may receive the designated 
information:
    (1) States--All information on all driver records.
    (2) Secretary--All information on all driver records.
    (3) Driver--Only information related to that driver's record.
    (4) Motor Carrier or Prospective Motor Carrier--After notification 
to a driver, all information related to that driver's, or prospective 
driver's, record.
    22. Add Sec. 384.226 to read as follows:


Sec. 384.226  Prohibition on masking convictions.

    The State must not mask, defer imposition of judgment, or allow an 
individual to enter into a diversion program that would prevent a CDL 
driver's conviction for any violation, in any type of motor vehicle, of 
a State or local traffic control law (except a parking violation), from 
appearing on the driver's record, whether the driver was convicted for 
an offense committed in the State where the driver is licensed or 
another State.
    23. Revise Sec. 384.301 to read as follows:


Sec. 384.301  Substantial compliance-general requirements

    (a) To be in substantial compliance with 49 U.S.C. 31311(a), a 
State must meet each and every standard of subpart B of this part by 
means of the demonstrable combined effect of its statutes, regulations, 
administrative procedures and practices, organizational structures, 
internal control mechanisms, resource assignments (facilities, 
equipment, and personnel), and enforcement practices.
    (b) A State shall come into substantial compliance with the 
requirements of subpart B of this part in effect as of [effective date 
of final rule] as soon as practical, but, unless otherwise specifically 
provided in this part, not later than three years after [effective date 
of final rule].
    24. Revise Sec. 384.307 to read as follows:


Sec. 384.307  FMCSA program reviews of State compliance.

    (a) FMCSA Program Reviews. Each State's CDL program will be subject 
to review to determine whether or not the State meets the general 
requirement for substantial compliance in Sec. 384.301. The State must 
cooperate with the review, and provide any information requested by the 
FMCSA.
    (b) Preliminary FMCSA determination and State response. If, after 
review, a preliminary determination is made either that the State has 
not submitted the required annual self-certification or that the State 
does not meet one or more of the minimum standards for substantial 
compliance under subpart B of this part, the State will be informed 
accordingly.
    (c) Reply. The State will have up to 30 calendar days to respond to 
the preliminary determination. The State's reply must explain what 
corrective action it either has implemented or intends to implement to 
correct the deficiencies cited in the notice or, alternatively, why the 
FMCSA's preliminary determination is incorrect. The State must provide 
documentation of corrective action as required by the Agency. 
Corrective action must be adequate to correct the deficiencies noted in 
the program review and be implemented on a schedule mutually agreed 
upon by the Agency and the State. Upon request by the State, an 
informal conference will be provided during this time.
    (d) Final FMCSA determination. If, after reviewing a timely 
response by the State to the preliminary determination, a final 
determination is made that the State is not in compliance with the 
affected standard, the State will be notified of the final 
determination. In making its final determination the FMCSA will take 
into consideration the corrective action either implemented or planned 
to be implemented in accordance with the mutually agreed upon schedule.
    (e) State's right to judicial review. Any State aggrieved by an 
adverse decision under this section may seek judicial review under 5 
U.S.C. chapter 7.
    25. Revise Sec. 384.401 to read as follows:


Sec. 384.401  Withholding of funds based on noncompliance.

    (a) Following first year of noncompliance. A State is subject to 
both of the following sanctions:
    (1) An amount equal to five percent of the Federal-aid highway 
funds required to be apportioned to any State under each of sections 
104(b)(1), (3), and (4) of title 23, U.S.C., shall be withheld on the 
first day of the fiscal year following such State's first year of 
noncompliance under this part.
    (2) The Motor Carrier Safety Assistance Program (MCSAP) grant funds 
authorized under section 103(b)(1) of the Motor Carrier Safety 
Improvement Act of 1999 (Public Law 106-159, 113 Stat. 1754) shall be 
withheld from a State on the first day of the fiscal year following the 
fiscal year in which the FMCSA determined that the State was not in 
substantial compliance with subpart B of this part.

[[Page 39261]]

    (b) Following second and subsequent year(s) of noncompliance. A 
State is subject to both of the following sanctions:
    (1) An amount equal to ten percent of the Federal-aid funds 
required to be apportioned to any State under each of sections 
104(b)(1), (3), and (4) of title 23, U.S.C., shall be withheld on the 
first day of the fiscal year following such State's second or 
subsequent year of noncompliance under this part.
    (2) The Motor Carrier Safety Assistance Program (MCSAP) grant funds 
authorized under section 103(b)(1) of the Motor Carrier Safety 
Improvement Act of 1999 (Public Law 106-159, 113 Stat. 1754) shall be 
withheld from a State on the first day of the fiscal year following the 
fiscal year in which the FMCSA determined that the State had not 
returned to substantial compliance with subpart B of this part.
    26. Revise Sec. 384.403 to read as follows.


Sec. 384.403  Availability of funds withheld for non-compliance.

    (a) Federal-aid highway funds withheld from a State under 
Sec. 384.401 (a)(1) or (b)(1) shall not thereafter be available for 
apportionment to the State.
    (b) MCSAP funds withheld from a State under Sec. 384.401(a)(2) or 
(b)(2) remain available until June 30 of the fiscal year in which they 
were withheld. If, before June 30 the State submits a document signed 
by the Governor or his delegate certifying, and the FMCSA determines, 
that the State is now in substantial compliance with the standards of 
subpart B of this part, the withheld funds shall be restored to the 
State. After June 30 unrestored funds shall lapse and be allocated in 
accordance with Sec. 350.313 of this subchapter to all States currently 
in substantial compliance with subpart B of this part.
    27. Add Sec. 384.405 to read as follows:


Sec. 384.405  Decertification of State CDL program.

    (a) Prohibition on CDL licensing activities. The Administrator may 
prohibit a State found to be in substantial noncompliance from 
performing any of the following four licensing transactions:
    (1) Issuance of initial CDLs.
    (2) Renewal of CDLs.
    (3) Transfer of out-of-State CDLs to the State.
    (4) Upgrade of CDLs.
    (b) Conditions considered in making decertification determination. 
The Administrator will consider, but is not limited to, the following 
five conditions in determining whether the CDL program of a State in 
substantial noncompliance should be decertified:
    (1) The State computer system does not check the Commercial Drivers 
License Information System (CDLIS) and/or National Driver Register 
(NDR) as required by Sec. 383.73 of this subchapter when processing CDL 
applicants, drivers transferring a CDL issued by another State, CDL 
renewals and upgrades.
    (2) The State does not disqualify drivers convicted of 
disqualifying offenses in commercial motor vehicles.
    (3) The State does not transmit convictions for out of State 
drivers to the home State.
    (4) The State does not properly administer knowledge and/or skills 
tests to CDL applicants or drivers.
    (5) The State fails to submit a corrective action plan for a 
substantial compliance deficiency or fails to implement a corrective 
action plan within the agreed upon time frame.
    (c) Standard for considering deficiencies. The deficiencies 
described in paragraph (b) of this section must affect a substantial 
number of either CDL applicants or drivers.
    (d) Decertification: preliminary determination. If the 
Administrator finds that a State is in substantial noncompliance with 
subpart B of this part, as indicated by the factors specified in 
Sec. 384.405(b), among other things, the FMCSA will inform the State 
that it has made a preliminary determination of noncompliance and that 
the State's CDL program may therefore be decertified. Any response from 
the State, including factual or legal arguments or a plan to correct 
the noncompliance, must be submitted within 30 calendar days after 
receipt of the preliminary determination.
    (e) Decertification: final determination. If, after considering all 
material submitted by the State in response to the FMCSA's preliminary 
determination, the Administrator decides that substantial noncompliance 
exists which warrants decertification of the CDL program, he or she 
will issue a decertification order prohibiting the State from issuing 
CDLs until such time as the Administrator determines that the 
condition(s) causing the decertification has (have) been corrected.
    (f) Recertification of a State. The Governor of the decertified 
State or his or her designated representative must submit a 
certification and documentation that the condition causing the 
decertification has been corrected. If the FMCSA determines that the 
condition causing the decertification has been satisfactorily 
corrected, the Administrator will issue a recertification order, 
including any conditions that must be met in order to begin issuing 
CDLs in the State.
    (g) State's right to judicial review. Any State aggrieved by an 
adverse decision under this section may seek judicial review under 5 
U.S.C. chapter 7.
    (h) Validity of previously issued CDLs. A CDL issued by a State 
prior to the date the State is prohibited from issuing CDLs in 
accordance with provisions of paragraph (a) of this section, will 
remain valid until its stated expiration date.
    28. Add Sec. 384.407 to read as follows:


Sec. 384.407  Emergency CDL grants.

    The FMCSA may provide grants of up to $1,000,000 per State from 
funds made available under 49 U.S.C. 31107(a), to assist States whose 
CDL programs may fail to meet the compliance requirements of subpart B 
of this part.

    Issued on: July 17, 2001.
Julie Anna Cirillo,
Acting Deputy Administrator.
[FR Doc. 01-18312 Filed 7-26-01; 8:45 am]
BILLING CODE 4910-EX-P