[Federal Register Volume 67, Number 147 (Wednesday, July 31, 2002)]
[Rules and Regulations]
[Pages 49742-49764]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18457]



[[Page 49741]]

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Part II





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 and Noncommercial 
Motor Vehicle Violations; Final Rule

  Federal Register / Vol. 67, No. 147 / Wednesday, July 31, 2002 / 
Rules and Regulations  

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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 350, 383, 384 and 390

[Docket Nos. FMCSA-2001-9709 and FMCSA-00-7382]
RIN 2126-AA60 and RIN 2126-AA55


Commercial Driver's License Standards, Requirements and 
Penalties; Commercial Driver's License Program Improvements and 
Noncommercial Motor Vehicle Violations

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

ACTION: Final rule.

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SUMMARY: The FMCSA revises 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.

EFFECTIVE DATE: September 30, 2002. The incorporation by reference of 
certain publications in this rule is approved by the Director of the 
Federal Register as of September 30, 2002.

FOR FURTHER INFORMATION CONTACT: Mr. Robert Redmond, Office of Safety 
Programs, (202) 366-5014, Federal Motor Carrier Safety Administration, 
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

Regulatory Information

    The FMCSA published two Notices of Proposed Rulemaking (NPRMs) [66 
FR 22499 on May 4, 2001 and 66 FR 39248 on July 27, 2001] to amend 
various provisions of parts 350, 383, 384 and 390 of Title 49 Code of 
Federal Regulations (CFR) to implement congressionally mandated 
changes. Nearly 200 comments were received in response to these two 
NPRMs. Both NPRMs are being finalized in this action.
    This rule uses plain language so that individuals unfamiliar with 
FMCSA regulations will find it easier to follow. We are making the text 
clearer, standardizing terms, changing to the active voice, 
reorganizing material for added clarity, inserting or revising headings 
to reflect content accurately, and correcting typographical, 
punctuation, and grammatical errors. The FMCSA is also revising the 
disqualification sanctions found inSec. 383.51 by organizing them into 
an if-then table format that we believe is easier to understand than 
the current regulatory text.

Background

    The Commercial Motor Vehicle Safety Act of 1986 (CMVSA) [Public Law 
99-570, Title XII, 100 Stat. 3207-170, 49 U.S.C. chapter 313] 
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 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 rule also clarifies the FMCSA relationship to the Commercial 
Driver's License Information System (CDLIS). Section 12007 of the 
CMVSA, codified as 49 U.S.C. 31309, requires the Secretary of 
Transportation to establish or designate an information system to serve 
as the clearinghouse and depository of information about any person who 
operates CMVs, including his/her identification, licensing history, and 
disqualification history. This system, known as CDLIS, also includes 
information about a person required to have a CDL who has been 
convicted of any of the disqualifying offenses listed in 49 CFR 383.51.
    In 1988, the Federal Highway Administration (FHWA) entered into an 
agreement pursuant to 49 U.S.C. 31309 with the American Association of 
Motor Vehicle Administrators and its former affiliate AAMVAnet, Inc.\1\ 
(AAMVAnet), to establish a communications network to implement the 
CDLIS. The agreement designated AAMVAnet the CDLIS operator. Section 
106(b) of MCSIA, transferred the agreement from the FHWA to the FMCSA 
where it remains in effect until the FMCSA modifies or terminates it. A 
copy of the 1988 agreement is in the public docket.
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    \1\ On May 31, 2002, AAMVAnet, Inc. was merged into AAMVA. 
AAMVAnet, Inc. no longer exists as a separate corporation.
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    Because States regularly utilize AAMVAnet to access the CDLIS to 
obtain and transmit information on CDL drivers, the AAMVAnet agreement 
and CDLIS operational procedures are being incorporated by reference 
into this rulemaking.
    The following commentary will analyze the content of the 
regulations and address significant issues raised in comments received 
in response to the NPRMs.

Section-by-Section Discussion of Comments with FMCSA Response

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?

    Section 103(e) of the MCSIA requires the FMCSA to withhold all 
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 added 
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 noncompliance and 10 percent 
of such funds following the second and subsequent years of 
noncompliance.
    Fifteen States and State affiliated associations commenting on this 
provision oppose the withholding of MCSAP funds from States not in 
substantial compliance with the Federal Motor Carrier Safety 
Regulations (FMCSRs). Of particular concern was the fact that the 
agencies facing the potential loss of MCSAP funds, primarily law 
enforcement agencies, have no direct control over compliance by other 
State agencies, particularly the courts. Compliance with the proposed 
10-day conviction reporting requirement of 49 CFR 384.209 is the issue 
which raises the greatest concerns. One agency also proposes that the 
withholding of MCSAP funding requirement be

[[Page 49743]]

amended to adopt the same formula used to withhold highway funding from 
States in substantial noncompliance.
    The FMCSA understands these concerns, but is bound by statutory 
language of the MCSIA requiring the withholding of MCSAP funds from 
those States found to be in substantial noncompliance with 49 CFR part 
384, subpart B. The FMCSA urges each State's chief executive to 
coordinate the efforts of all State agencies--including the judiciary--
to ensure their compliance with these requirements.

Section 383.5--Definitions.

    Section 383.5 will add four new definitions and change four 
existing definitions of terms used in 49 CFR parts 383 and 384 to 
implement provisions of the MCSIA. The new definitions include 
``fatality,'' ``imminent hazard,'' ``non-CMV,'' and ``school bus.'' The 
revised definitions include ``disqualification,'' ``driving a 
commercial motor vehicle while under the influence of alcohol,'' 
``nonresident CDL,'' and ``serious traffic violation.'' The term 
``serious traffic violation'' is being amended to add three new 
offenses to the existing list of offenses warranting disqualification 
of a CDL holder.
    The FMCSA has added a new definition for the term ``non-CMV'' to 
identify the vehicles types in which--if a driver is convicted of 
committing a serious traffic offense other than those specifically 
limited to commercial vehicles--he/she is subject to disqualification.
    One commenter suggested that the definition of ``fatality'' be 
revised to be consistent with current Federal definitions, without 
providing an example of the preferred definition(s). FMCSA notes that 
the 49 CFR 390.5 fatality definition-- `` * * * any injury which 
results in the death of a person at the time of the motor vehicle 
accident or within 30 days of the accident'' (emphasis added)--is 
primarily used within the context of fatality reporting. Because the 
new 49 CFR part 383 definition is to be used within the context of 
driver sanctions, FMCSA has deleted the reference to a 30-day time 
period. Otherwise a driver involved in an accident which results in a 
death more than 30 days after the accident could possibly avoid 
sanctions. Such an effect is both inconsistent with the objective of 
CDL sanctioning requirements and contrary to general principles of 
common law under which any death occurring within one year of the event 
may be charged criminally. FMCSA recognizes, of course that a death 
which occurs long after an accident may have a proximate cause or 
causes other than the injuries sustained in the accident. Therefore, 
the deletion of the ``30-day'' reference is in no way intended to 
weaken the causal link necessary to qualify as a fatality.
    Seven commenters proposed revisions to the definition of ``school 
bus.'' Three proposed that the FMCSA use the National Highway Traffic 
Safety Administration (NHTSA) definition or that the term only include 
vehicles that transport 16 or more passengers including the driver; 
while two proposed that the passenger capacity be lowered to 10 or more 
passengers. Two other commenters objected to the proposed definition, 
but offered less specific comments. The FMCSA has reviewed the NHTSA 
definition and believes that the proposed definition is consistent with 
it, except for using the term CMV. The term CMV was included in the 
``school bus'' definition because only vehicles meeting the CMV 
definition are subject to the CDL licensing requirements of 49 CFR part 
383, including the new school bus endorsement. As with other CDL 
requirements in 49 CFR part 383, the school bus definition is intended 
to establish a minimum standard. A State is free to establish more 
stringent standards for CDL drivers. Allowable variations to the school 
bus definition include lowering the vehicle passenger capacity 
threshold for which a school bus endorsement is required. For these 
reasons, the FMCSA has included the ``school bus'' definition proposed 
in the NPRM to this final rule.
    The commentary to Sec. 383.23 discusses comments concerning the 
definition of ``nonresident CDL.''
    One commenter questioned the different terminology proposed in the 
NPRM for one of the serious traffic violations described in Sec. 201(c) 
of MCSIA. New 49 U.S.C. 31301(12)(F) reads:

    ``(F) Driving a commercial motor vehicle when the individual has 
not met the minimum testing standards--
    (i) Under section 31305(a)(3) for the specific class of vehicle 
the individual is operating; or
    (ii) Under section 31305(a)(5) for the type of cargo the vehicle 
is carrying; and.''

    Paragraph (h) under the Sec. 383.5 definition for ``serious traffic 
violation'' reads ``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.'' The FMCSA believes 
that the revised language more clearly conveys congressional intent 
that only those drivers who are fully qualified to operate a specific 
vehicle be allowed to operate it. The evidence that a driver has met 
the minimum CDL testing standards is that he/she has been issued a CDL 
and all required endorsements for the class and specific type of CMV 
he/she intends to operate.

Section 383.7--Validity of CDL Issued by Decertified State.

    Sec. 383.7 is a new provision to clarify that a CDL issued by a 
State subsequently prohibited from issuing CDLs under 49 CFR 384.405 
remains valid until expiration. Based upon the fact that FMCSA received 
no opposing comments and a single supporting comment on this provision, 
it is included in the final rule as proposed.

Section 383.23--Commercial Driver's License.

    Section 383.23 has been amended to allow a driver who is domiciled 
in a State that has been prohibited (under the decertification 
provisions found in Sec. 384.405) from issuing CDLs, to apply for a 
nonresident CDL from any other State that is both in compliance with 
such decertification provisions and elects to issue nonresident CDLs. 
References to the date ``April 1, 1992'' have also been deleted from 
this section because the date referred to a compliance deadline which 
is no longer relevant.
    Six States expressed concern that the proposed new language in this 
section would require them to issue nonresident CDLs to drivers living 
in States that had been decertified. The intent of this new language 
was to authorize, but not require States to issue nonresident CDLs to 
such drivers. The FMCSA has added language to the final rule to clarify 
this issue.
    A State objected that allowing States to issue nonresident CDLs to 
drivers domiciled in other States would result in confusion over State-
specific endorsements. Because the agency anticipates that the sanction 
under Sec. 384.405 will rarely be invoked, the FMCSA believes that 
State-specific endorsements will not pose a significant problem to 
States issuing nonresident CDLs or States taking enforcement action 
against drivers possessing nonresident CDLs.

Section 383.51--Disqualification of Drivers.

    Section 383.51 has been revised to incorporate requirements of 
Section 201 of the MCSIA. These revisions include: imposing a 
disqualification on CDL drivers who have been convicted of traffic 
offenses while operating a non-CMV which result in their license being

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canceled, revoked or suspended; or of committing drug or alcohol 
related offenses while driving a non-CMV; and adding two new 
disqualifying offenses: driving a CMV after the driver's CDL was 
revoked, suspended or canceled for violations while operating a CMV and 
causing a fatality through the negligent or criminal operation of a 
CMV. As discussed in the commentary to Sec. 383.5, three new offenses 
are being added to the serious traffic violations for which a driver 
can be disqualified if convicted two or more times within a three-year 
period. These three new offenses are: (1) Driving a CMV when the driver 
has not obtained a CDL, (2) driving a CMV without a CDL in the driver's 
possession, and (3) 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 is 
also being amended to specify the disqualification period for first-
time and subsequent offenders.
    The CMVSA originally required the disqualification of drivers only 
for offenses committed while operating a CMV (49 U.S.C. 31310). The 
MCSIA made additional offenses disqualifying, even if they were 
committed while operating a non-CMV. For these offenses, the Secretary 
of Transportation is required to specify the disqualification periods 
to be imposed by the States.
    In addition, the FMCSA is clarifying that any person who operates a 
CMV must first obtain a CDL and that these drivers are subject to the 
same disqualification period as a CDL holder. While the MCSIA addresses 
the type of offenses that must result in a disqualification if 
committed in a non-CMV, it is silent regarding the length of the CMV 
disqualification, requiring only that the disqualification period be no 
longer than the disqualification period for the same or similar 
offenses committed while operating a CMV. Based on this language, the 
FMCSA has added language to this section clarifying that CDL holders 
convicted of serious traffic violations and other offenses in either a 
non-CMV or a CMV serve the same period of disqualification.
    The revised Sec. 383.51 lists both the CMV convictions of CDL 
holders for the original offenses under the CMVSA and the non-CMV 
convictions for other offenses added in subsequent statutory 
amendments. A clarification is also provided in Sec. 383.51(a)(4) that 
both CMV and non'CMV convictions for disqualifying offenses will be 
used in determining first and subsequent violations. The entire section 
is being revised to incorporate an easy to understand ``if-then'' table 
format.
    Five commenters expressed their view that the if-then table format 
was confusing or did not clearly indicate the circumstances that 
triggered the stated disqualification period for offenses listed in the 
various headings and columns. Based on these comments, the FMCSA has 
reviewed the tables and has made a few minor changes to clarify their 
intended meaning. The agency believes that after users become familiar 
with the new format, they will find it easier to locate the appropriate 
disqualification period for all of the disqualifying offenses.
    The FMCSA received a total of 96 comments on the May 4, 2001 NPRM 
concerning ``Noncommercial Motor Vehicle Violations.'' While most 
comments expressed general support for the concept of CDL holders being 
held accountable for offenses committed in both CMVs and non-CMVs, many 
comments offered suggestions for revisions to the final rule. Some 
comments specifically mentioned that the tables listing the offenses 
and the period for which a driver is disqualified were a great 
improvement over narrative explanations of these disqualifying 
offenses. Other comments suggested that changes to other areas of the 
rule may need to be made. The following discussion addresses these 
comments.
    Ten comments indicated that no other profession prevents a person 
from making a living based on driving convictions that occurred while 
operating a private automobile or other noncommercial vehicle. CDL 
holders are, unlike most licensed passenger car drivers, professional 
drivers. They earn their living by operating large, heavy vehicles and/
or transporting passengers. Given their status as professionals, CDL 
holders are held to a higher standard. CDL holders should not engage in 
risky, unsafe behavior while pursuing their profession--driving. The 
Congress has chosen, in the interest of safety, not to distinguish 
between risk-taking behavior in a passenger car or a CMV. Section 
201(b) of the MCSIA specifically directed the Secretary of 
Transportation to issue regulations requiring the disqualification of 
CDL holders convicted of serious offense while operating a non-CMV.
    Twenty commenters fully support the concept of CDL drivers being 
held to a higher standard by being accountable for both CMV and non-CMV 
convictions, while seven other commenters supported this concept in 
regard to alcohol and drug related offenses, but do not believe that 
convictions for serious traffic violations in a non-CMV for excessive 
speed and following too closely should be included. Seven comments 
oppose holding CDL drivers accountable for non-CMV convictions and 
describe it as an unnecessary burden and a double standard. The FMCSA 
believes that all serious traffic violations by a CDL holder should be 
counted when operating a non-CMV because these types of violations have 
consistently contributed to crashes and fatalities.
    Ten comments suggest that if CDL holders are going to be held to 
higher standards and penalties when operating a non-CMV than drivers 
with an automobile license, then everyone who drives a vehicle should 
be liable for these higher penalties when operating their private 
automobiles. This suggestion falls outside the scope of this rulemaking 
and the authority of the agency. The FMCSA does not have authority to 
set standards and penalties for drivers licensed to operate only non-
CMVs.
    Fourteen comments recommended that penalties for a conviction in a 
non-CMV should be less than in a CMV, at a higher threshold as far as 
the number of convictions that would cause the driver to be 
disqualified or that the FMCSA should let each State decide the length 
of the penalties. These comments argue that if Congress wanted the same 
penalties for both types of offenses, it would have been specifically 
addressed in Federal law. The FMCSA has the authority to set the same 
penalties for both types of offenses; Congress simply said that 
penalties in a non-CMV may not be greater than the penalties for the 
same offense in a CMV. The FMCSA believes that by setting the minimum 
penalties for all offenses rather than leaving non-CMV penalties to the 
States, there will be greater national uniformity and consistency in 
the administration of the CDL program.
    Ten comments object to railroad-highway grade crossing offenses 
being included in non-CMV offenses, either as currently worded because 
these types of offenses do not apply to non-CMVs, or because the 
inclusion of these offenses goes beyond the intent of Congress. The 
FMCSA agrees that the wording of these types of offenses specifically 
addresses actions that only apply to CDL holders while operating a CMV. 
Therefore the non-CMV railroad-highway grade crossing offenses have 
been eliminated from the final rule.
    Five comments request a clarification of the relationship between 
alcohol related ``convictions,'' ``administrative per se suspensions'' 
and ``refusal to be tested'' in Table 1 to Sec. 383.51. They express 
confusion over what action is to

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be taken against a driver's CDL under these three actions, particularly 
for non-CMV offenses. The FMCSA has modified Table 1 to Sec. 383.51 to 
clarify what actions must be taken for alcohol related ``convictions'' 
and ``refusal to be tested.'' The relationship between ``convictions'' 
and ``administrative per se suspensions'' is discussed in current 
regulatory text under Sec. 383.51(f) and is being moved to Sec. 384.203 
to make it more visible.
    Concerning the relationship between ``convictions'' and 
``administrative per se suspensions,'' the FMCSA offers the following 
background information. The CMVSA required that CDL drivers convicted 
of operating a CMV with an alcohol concentration of 0.04 or greater be 
subject to being disqualified from operating a CMV for a period of one 
to three years for a first conviction, depending on the cargo being 
transported. This sanction does not apply to CDL drivers operating a 
non-CMV at this alcohol concentration. Table 1 to Sec. 383.51 has been 
revised to clarify this fact. The Sec. 383.5 definition of 
``conviction'' includes guilty findings by ``an authorized 
administrative tribunal.'' This definition was intended to encompass 
any type of administrative determination of guilt including State 
administrative per se DWI laws. Accordingly, a CDL driver found guilty 
of operating a CMV with an alcohol concentration of 0.04 or greater or 
of violating a State's DWI laws as a result of an administrative 
hearing, while operating a CMV or non-CMV, would be subject to being 
disqualified under the requirements of Sec. 383.51.
    One comment asks whether the definition of ``non-CMV'' includes 
recreational vehicles used in an off road environment (e.g. 
snowmobiles, watercraft, all terrain vehicles, etc.). The regulations 
define the term ``motor vehicle'' in Sec. 383.5 as a vehicle `` * * * 
used on highway * * *'' It does not include recreational vehicles 
designed for off road use.
    Four comments ask whether conviction in a non-CMV prior to applying 
for a CDL will prevent the issuance of the CDL. The Act clearly states 
that penalties for offenses committed by a CDL holder in a non-CMV 
shall be counted. Therefore, only non-CMV convictions for offenses 
committed after a person obtains a CDL can be counted against his or 
her driving record.
    Seven comments ask if a State must include non-CMV convictions that 
occurred prior to enactment of MCSIA. The FMCSA can only take action on 
offenses that occur after the effective date of the final rule and a 
State only has to take action upon the effective date of its State law 
or regulation.
    Three comments state that the new disqualification requirements are 
complex and difficult to understand in the tables. While the FMCSA 
developed these tables in keeping with guidelines for using plain 
language and if/then tables for Federal regulations, we have made some 
revisions to help clarify the intent of the new requirements. There 
were also several comments that indicate that the tables make it easier 
to understand the requirements.
    Eight comments indicate that 49 U.S.C. 31310(g) refers to operators 
of CMVs who are convicted of drug or alcohol related offenses in a non-
CMV, and that only convictions for serious offenses in a non-CMV which 
result in State revocation, suspension or cancellation of a driver's 
non-CMV privileges shall result in the disqualification from operating 
a CMV. The comments argue that by naming specific offenses and penalty 
periods the FMCSA has exceeded its authority. The language of Section 
31310(g), enacted by Sec. 201 of MCSIA gives the FMCSA ample authority 
to specify what constitutes a ``serious offense,'' although the 
violation will not be disqualifying unless the State also finds that 
the circumstances of the offense warrant ``revocation, cancellation, or 
suspension of the individual's license.'' Section 31310(g)(2) 
specifically authorizes the FMCSA to ``establish the minimum periods 
for which the disqualification shall be in effect * * *'' That is 
exactly what the agency has done in Sec. 383.51 in order to promote 
safety and uniformity among the States. The FMCSA further believes that 
Congress, in using the term ``serious offense'' in Section 
31310(g)(1)(A), was referring to the ``serious traffic violations'' 
already specified in Secs. 383.5 and 383.51(c). Violations are not 
listed as disqualifying in Sec. 383.51 unless they are demonstrably 
significant, i.e., contribute to crashes and fatalities.
    Three comments state that the FMCSA should not give the States the 
option of using .04-alcohol concentration as a disqualifying offense 
for a non-CMV conviction. The FMCSA only has the authority to establish 
a minimum alcohol concentration disqualification standard for CDL 
drivers. As with other minimum standards, however, individual States 
are free to impose more stringent standards, including establishing a 
lower alcohol concentration, for both CDL and non-CDL drivers licensed 
by their State.
    One comment proposed revisions to permit a driver to operate while 
a CMV conviction is under judicial appeal. The FMCSA defers to State 
law and procedure to determine this issue. If, as is the case in many 
jurisdictions, a trial court judgment does not become a final 
conviction for a certain period of time to allow a defendant to appeal 
the verdict, the driver may continue to operate until that time or if 
an appeal is filed, until the appellate court renders judgment. 
However, if a conviction is entered as final, the penalty provisions of 
this regulation apply.
    One comment recommends that the rule require States to record the 
number of miles per hour by which the driver of a non-CMV exceeds the 
posted speed limits. The only disqualifying offense for speeding in a 
CMV or non-CMV is excessive speeding, i.e., 15 miles per hour or more 
over the posted speed limit. A code already exists in the CDLIS for 
this offense when it is committed in a CMV. The code will be revised to 
include CMV and non-CMV.
    Three comments suggest that both the May 4 and July 27 NPRMs be 
given the same effective date because many provisions are tied 
together. The FMCSA agrees. We decided to merge both MCSIA proposals 
into one final rule with a single effective date for all provisions.
    Three comments ask if the State of licensure can disqualify CMV 
drivers for failure to pay child support. Each State has the authority 
to set additional disqualification requirements for drivers licensed in 
their State, including failure to pay child support. This rule only 
sets the minimum disqualification requirements for a State to remain in 
substantial compliance with the Federal requirements.
    One comment questions whether the costs of the rule on non-CMV 
violations constitute an unfunded mandate under the Federal regulations 
when considered with other CDL-related MCSIA requirements. Based on the 
agency's economic analysis of this issue discussed in the Rulemaking 
Analyses and Notices section of this rulemaking, the FMCSA does not 
believe that this requirement imposes an unfunded mandate on the 
States.
    One comment requested clarification of the use of a non-CMV in the 
commission of a felony involving a controlled substance. The FMCSA 
believes that this is self-explanatory. If the vehicle is used in the 
manufacturing, distributing, or dispensing of a ``controlled 
substance'' as defined in 49 CFR 383.5, it is a CDL felony offense.
    One comment suggests that the FMCSA also provide a narrative text 
describing the offenses and

[[Page 49746]]

disqualification penalty in Tables 1 through 4 to Sec. 383.51. Such a 
narrative would defeat the purpose of the tables: to provide a more 
easily understandable description of the offenses and penalties. Each 
State is, however, free to use a narrative form of the tables in its 
own legislation or regulations. A narrative form can be easily 
developed from the tables.
    One comment asks why hazardous materials drivers are being 
penalized differently from other CDL drivers for violations that occur 
in a non-CMV that is not carrying hazardous materials. The commenter 
appears to have misread the Sec. 383.51 table, which only requires that 
enhanced penalties be imposed against drivers who are actually carrying 
hazardous materials in a CMV at the time of the offense.
    One comment states that proposed Secs. 383.51, 384.218 and 384.219 
are drafted in a style completely different from Sec. 384.224. The 
commenter suggests either that all sections cross-reference Sec. 383.51 
or that each section require disqualification for particular offenses. 
All the sections mentioned by the comment relate to compliance with 
Sec. 383.51. The styles in which they are written are different because 
there are separate State substantial compliance requirements for second 
and third serious traffic violations while there is only one specific 
requirement for non-CMV violations.
    Two comments request the FMCSA to develop a definition of the term 
``authorized agents.'' The FMCSA believes that this term is 
sufficiently defined under individual State statute, regulation or case 
law, and need not be included in this rulemaking.
    One comment asks why the NPRM does not address how the new 
regulations on non-CMV violations of a CDL holder will apply to 
Mexican, Canadian and other foreign drivers. Mexican and Canadian CDL 
drivers may operate in the U.S. on a license issued by their home 
jurisdiction in accordance with reciprocity agreements between the U. 
S. and Canada and Mexico as noted in the footnote to 49 CFR 383.23(b). 
These drivers are subject to all of the U.S. CDL requirements while 
operating in the U.S., including disqualification for convictions while 
operating a non-CMV in the U.S. The Department will initiate 
discussions with Mexico and Canada on the issue of non-CMV offenses by 
these drivers while operating in their home country. All other foreign 
CDL drivers must obtain a nonresident CDL to legally operate in the 
U.S. The issuance of the nonresident CDL subjects these drivers to the 
same requirements as other CDL holders while operating in the U.S.
    Thirteen comments challenge the accuracy of our cost data analysis. 
This issue is being addressed in the economic analysis area of this 
rulemaking.
    One commenter requests that the rule explicitly state that the 
disqualification action must be based on a conviction of the listed 
offenses. FMCSA has amended Table 1, 2, 3 and 4 to Sec. 383.51 to 
clarify this issue.
    One commenter asks if the two new disqualifying offenses being 
added to Table 1 to Sec. 383.51 are subject to the 10-year 
reinstatement provision of Sec. 383.51(a)(5). The answer is yes, and 
the text of this section has been amended to reflect this fact.
    A few additional comments point out typographical errors in the 
Tables. These errors have been corrected in the final rule.
    Four commenters noted that the FMCSA omitted certain qualifying 
language enacted by Sec. 201(a) of the MCSIA. Specifically, 49 U.S.C. 
31310(b)(1)(D) and (c)(1)(D) require a 1-year disqualification the 
first time a driver is convicted of driving a CMV when his/her CDL is 
revoked, suspended, or canceled, or when he/she is disqualified from 
driving a CMV, providing the revocation, suspension, cancellation or 
disqualification was ``based on the individual's operation of a 
commercial motor vehicle''. In other words, the 1-year disqualification 
is not required if the driver's CDL was revoked, suspended, or 
canceled, or he/she was disqualified, for violations that occurred in a 
non-CMV. The commenters are correct. Also, in the situation where more 
than one conviction is required to be disqualified, all convictions 
must have occurred while operating a CMV. The FMCSA has added this 
qualifying language to the final rule.
    One commenter proposed that the FMCSA establish standards for 
notifying drivers that their CDL had been suspended or revoked or that 
they had been disqualified from operating a CMV. The FMCSA believes 
that each State has laws or procedures addressing this issue. 
Establishing such standards for States to provide notice of the loss of 
a driving privilege is beyond the scope of this rulemaking.
    Thirteen comments raise issues related to the language in the NPRM 
used to describe the new disqualifying offense of causing a fatality 
through the negligent or criminal operation of a CMV. To address 
concerns raised in these comments, the FMCSA has added language to the 
final rule to clarify the type of offense of which a driver must be 
convicted to be subject to this disqualification.
    One of the proposed serious traffic violation disqualifications 
that received several comments was ``driving a CMV without a CDL in the 
driver's possession.'' Ten commenters expressed concern that a driver 
could be disqualified for not having a CDL with them on a particular 
day because they may have lost it or had their wallet stolen. The MCSIA 
addresses this situation in 49 U.S.C. 31301(12)(E): ``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.'' 
Although this language was included in the 49 CFR 383.5 definition of 
this new serious traffic violation, it was inadvertently omitted from 
Table 2 to Sec. 383.51. To clarify this issue, the FMCSA has added this 
language in a footnote to Table 2 to Sec. 383.51.

Section 383.52--Disqualification of Drivers Determined To Constitute an 
Imminent Hazard.

    Section 383.52 establishes FMCSA authority for imposing an 
emergency disqualification of CDL drivers posing an imminent hazard 
required by Section 201(b) of the MCSIA (49 U.S.C. 31310(f)).
    Seven commenters raised questions concerning proposed procedures 
for imposing an emergency disqualification, many requesting the agency 
to provide greater detail on how the disqualification determination 
would be made and asking that various procedural safeguards be included 
in the rule. The FMCSA believes that the statutory mandate, as 
reflected in this regulation, together with existing agency 
administrative procedures, provide sufficient guidance for the agency 
to make this determination in accordance with accepted due process 
standards.
    Eight comments questioned the proposed criteria to be used by the 
FMCSA in making a determination of whether or not an emergency 
disqualification should be imposed on a driver. Based on a review of 
the comments, the FMCSA has decided not to include in the final rule 
the six factors proposed in the NPRM to be considered by the agency in 
making its determination of whether a driver constitutes an imminent 
hazard. The agency believes that the definition of ``imminent hazard'' 
which the MCSIA requires the Department to use in making this 
determination provides

[[Page 49747]]

sufficient guidance for making this decision.
    Although no comments were received on the issue, the agency has 
decided to delegate the authority for making the imminent hazard 
determination to the Assistant Administrator, who is also the Chief 
Safety Officer, rather than the Associate Administrator for 
Enforcement. This delegation is consistent with current practice, since 
the authority to impose civil penalties, hear ratings appeals, and make 
other similar decisions is already delegated to that officer.
    One commenter noted that the MCSIA requires the disqualification of 
a driver determined to constitute an imminent hazard. The FMCSA agrees 
with this statement, and has accordingly amended the final rule to 
state that a driver must be disqualified where the Assistant 
Administrator finds the driver's continued operation of a CMV poses an 
imminent hazard.
    Nine comments focus on the question of who should be notified that 
a driver has received an emergency disqualification. The statute does 
not require the FMCSA to notify a driver's State of licensure of an 
emergency disqualification, and one State objects to being required to 
maintain this information on a driver's record. Nonetheless, the FMCSA 
believes requiring a notification to the State of licensure of a 
driver's emergency disqualification and requiring such information to 
become a part of the driver's permanent record is a logical extension 
of imposing the emergency disqualification.
    Three commenters requested the FMCSA to specifically describe how 
this information will be transmitted to the driver's home State. The 
FMCSA does not believe such details should be included in this 
rulemaking. The agency is working closely with AAMVAnet to develop a 
new code to identify a Federal CDL disqualification. Once such a code 
has been developed, it should facilitate the electronic transmission of 
this information to the State where the disqualified driver is 
licensed, and make this information readily available to State law 
enforcement and licensing agencies checking the CDLIS on a CDL driver's 
status.

Section 383.71--Driver Application Procedures.

    Section 383.71 is being amended to require applicants for an 
initial CDL, and those transferring or renewing a 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 the applicant's complete driving record in accordance with 
Section 202(a) of the MCSIA (49 U.S.C. 31311(a)(6)). Section 
383.71(a)(6) is also being amended to clarify that the term 
``disqualification'' applies only to sanctions under Sec. 383.51 and 
that the other licensing sanctions are based on actions taken under 
State law. The comments received addressing this new requirement, which 
falls mainly on the States, will be discussed in the commentary to the 
next section and Sec. 384.206.

Section 383.73--State Procedures.

    Section 383.73 is being 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. Eight comments 
strongly support the expanded driver records check, while an additional 
11 point out potential problems and propose a few changes. Comments on 
the time period that driver records must be retained by a State are 
discussed in the commentary for Sec. 384.206.
    One commenter asked why the new driver license check of all States 
in which a driver held any type of driver's license had to be performed 
on drivers who had already received a CDL. The FMCSA believes that 
Congress expanded the record check to all CDL drivers, both those 
already licensed as well as new CDL applicants, to be sure that the 
issuing State obtains a complete driving record for every CDL driver it 
licenses. In analyzing the comments received in response to this 
provision, the FMCSA agrees that once this record check of all States 
where a driver held any type of driver's license has been conducted for 
every CDL driver, and in light of the fact that the Federal regulations 
require all future convictions to be forwarded to and recorded on the 
driver record of the State where a CDL driver is licensed, requiring 
the States to conduct this expanded State record check after the 
initial CDL renewal would serve no useful purpose. Accordingly, the 
FMCSA is amending Sec. 383.73(a)(3)(iv) of the final rule to limit this 
record check to CDL drivers renewing their license for the first time 
after the effective date of this rulemaking, provided that a notation 
is made on the driver's record that this expanded driver record check 
has been made and the date it was done.

Section 383.93--Endorsements.

    Section 383.93 is being amended to add a new paragraph for the 
school bus endorsement mandated by Section 214 of the MCSIA and 
specifying that applicants must pass both a knowledge and a skills test 
to obtain this endorsement. Comments related to the proposed school bus 
endorsement are discussed in the next section.

Section 383.123--Requirements for a 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 has added definitions of 
``school bus'' and ``fatality'' to 49 CFR 383.5; amended other 
provisions of part 383 to recognize the new school bus endorsement; 
added a license code for the endorsement; and specified that applicants 
must pass both a knowledge and a skills test to obtain the endorsement. 
This section establishes the minimum knowledge and skills test 
requirements for this new endorsement.
    Seven of the comments support, while two oppose, the new school bus 
endorsement. An issue raised by three commenters is whether States such 
as California, which already have a comprehensive school bus licensing 
or certification program in place, need to comply with the requirements 
of this rulemaking. As with other CDL requirements found in 49 CFR part 
383, the new school bus testing standards are intended to establish a 
minimum standard. States are free to establish more stringent standards 
for CDL drivers they license. States with a school bus licensing 
program that meets or exceeds the FMCSA requirements in 49 CFR 
383.123(a) may, therefore, continue to license school bus drivers in 
accordance with that program. For the sake of national uniformity and 
consistency, they must, however, comply with the school bus endorsement 
requirements of 49 CFR 383.153(a)(9)(vi).
    Nine commenters, primarily those representing school transportation 
agencies and affiliated associations, expressed their belief that the 
school bus endorsement should be a stand-alone endorsement, 
encompassing all current requirements of a passenger vehicle 
endorsement. The practical effect of adopting this recommendation would 
be to restrict those drivers who obtain a school bus endorsement from 
operating any other type of passenger-carrying CMV without taking 
additional knowledge and skills tests. The argument in support of this 
proposition is that companies and government entities hiring school bus 
drivers often pay the cost of training drivers, only to have them leave 
for other employment

[[Page 49748]]

after receiving this training and obtaining their passenger 
endorsement. While this may be a practical economic issue, the FMCSA 
believes that Congress established the school bus endorsement to 
promote the safe operation of school buses, not to restrict a driver's 
future employment opportunities. Issues related to restricting the 
future employment of such drivers should be addressed through 
agreements between the parties. Based upon this analysis, the FMCSA 
declines to incorporate the passenger endorsement requirements into the 
school bus endorsement.
    In the July 22 NPRM, the FMCSA proposed including a provision in 
Sec. 383.123 giving States the option of not requiring applicants for 
the school bus endorsement to take the skills test where the applicant 
had past experience driving a school bus and met the safety criteria 
established in that section. The agency believes that such a 
``grandfather clause,'' which proved successful during the 
implementation of the CMVSA, incorporates appropriate experience and 
safety requirements to accomplish the objective of the MCSIA without 
imposing an undue burden on the States.
    Thirteen comments received expressed strong support for 
grandfathering experienced drivers, although there were a few 
suggestions for changes to these proposed requirements. Based on the 
comments, the FMCSA has amended the text to clarify these criteria in 
the final rule.

Section 383.153--Information on the Document and Application.

    Section 383.153 adds a license code for the proposed school bus 
endorsement. One State and the American Association of Motor Vehicle 
Administrators express concern that some States already use an ``S'' 
endorsement and asked the FMCSA to select another designation for the 
new school bus endorsement. Based on the fact that only two commenters 
raised this issue, the FMCSA does not believe adopting an ``S'' 
endorsement will impose an undue burden on those few States that may 
already use it for some other purpose. Since States use a wide variety 
of letters for various other non-Federal endorsements or purposes, 
there is also a likelihood that any alternative letter designation 
proposed by the FMCSA for the school bus endorsement would already be 
used by one or more States. For these reasons, the FMCSA will include 
the ``S'' endorsement for school bus drivers in the final rule.

Section 384.107--Matter Incorporated by Reference.

    The FMCSA is incorporating by reference the AAMVAnet publication 
CDLIS State Procedures Manual cited in 49 CFR 384.231(d) Recordkeeping 
requirements. A discussion of the analysis for this action, a complete 
description of the document, and the reasons for its incorporation can 
be found in the commentary to Sec. 384.231.
    One comment seeks clarification on whether the reference to CDLIS 
in the May 4 NPRM preamble discussion of the ``Number of CDL 
citations'' means the central site or the overall system. The reference 
to CDLIS in the NPRM is to the overall system.
    Another comment asks whether the FMCSA would consider comments on 
the AAMVAnet State Procedures Manual, which is being incorporated by 
reference into the Code of Federal Regulations. The FMCSA received no 
comments on the Manual, but would not have considered comments on this 
document because no changes to it were being proposed.

Section 384.203--Driving While Under the Influence.

    The FMCSA has removed a provision titled ``Substantial Compliance 
by States,'' from 49 CFR 383.51(f) and added it to this section, where 
it more appropriately belongs. It is designated 49 CFR 384.203(b) and 
(c).

Section 384.206--State Record Checks.

    As previously discussed in the commentary to 49 CFR 383.73, Section 
202(a) of the MCSIA requires States to request the applicant's driving 
record from each State that issued him or her any kind of driver's 
license [49 U.S.C. 31311(a)(6)] before issuing or renewing a CDL. The 
FMCSA is amending Secs. 383.71, 383.73 and 384.206 to incorporate these 
new requirements.
    Five commenters asked how far back this record check should extend. 
After reviewing the issue and noting that National Driver Register 
(NDR) guidelines require numerous offenses to remain on a driver's 
record for a period of 10 years, the FMCSA has amended Sec. 384.206 to 
limit this expanded record check to the 10 years preceding the date of 
the driver's license application.

Section 384.208--Notification of Disqualification.

    Section 384.208 has been amended to comply with Section 202(b) of 
the MCSIA, which amended 49 U.S.C. 31311(a)(8) to require 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 were previously required 
to make under this statutory provision. This notification must be made 
no later than 10 days after the driver is disqualified.
    Because the only comment addressing this issue was favorable, the 
FMCSA is incorporating it into the final rule as proposed.

Section 384.209--Notification of Traffic Violations.

    Section 202(c) of the MCSIA clarifies a State's responsibility for 
notifying the State where an out-of-state CDL driver is licensed 
whenever such a driver is convicted of violating 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 the 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. This section implements these requirements.
    Eighteen commenters expressed their views on this provision, with 
industry and safety groups generally supporting the proposed 10-day 
conviction reporting period and States raising numerous concerns 
associated with implementing this requirement. Much of the States' 
concerns focused on the fact that driver licensing and law enforcement 
agencies are held accountable for actions of the State courts to meet 
the 10-day conviction-reporting requirement.
    The FMCSA first notes that this 10-day reporting requirement is not 
new. Its origins are rooted in the CMVSA itself. In the final rule 
establishing the standards States must meet to be in compliance with 
that Act, published in the Federal Register on May 18, 1994 at 59 FR 
26029, the FHWA recognized that it would be difficult for many States 
to meet this 10-day reporting standard, and accordingly delayed 
implementation of the requirement. The agency cautioned in that 
rulemaking, however, that this important issue would be the subject of 
future rulemaking.
    Three other commenters object to the proposed extended 
implementation period for States to comply with the conviction 
reporting requirements of this section. As the agency stated in the 
July 27 NPRM, based on its current knowledge of State capabilities to 
obtain and transmit driver conviction information, the FMCSA believes 
that to

[[Page 49749]]

immediately impose a ten-day time period would place an unreasonable 
burden on the States. Accordingly, the NPRM proposed that this 10-day 
time limitation be phased in over six years according to the following 
time schedule. Within three years of the effective date of the final 
rule, notification would be required within 30 days of the conviction. 
Within six years, notification would be required within ten days. 
States are encouraged to move as quickly as possible to meet the 10-day 
requirement and should seek to do so wherever possible. After 
considering the comments, the FMCSA has decided to adopt the phase-in 
proposal.
    In light of the importance of States obtaining timely conviction 
information on CDL drivers who are convicted of offenses while driving 
in other States, it is critical that States make every effort to meet 
the compliance schedule established in this rulemaking. The FMCSA urges 
all State agencies to work together to accomplish this objective.
    One commenter also asked whether the 10-day notification period 
began when the verdict was rendered or at the time the conviction 
became final. The FMCSA defers to State law and procedure to determine 
this issue. If, as is the case in many jurisdictions, a trial court 
verdict does not become a final conviction for a stated period after 
the verdict to allow a defendant time to appeal, the conviction 
information must be transmitted 10 days after the appeal window closes, 
or if an appeal is filed, after the conviction is upheld.

Section 384.210--Limitation on Licensing-Prohibition on State Issuing 
Hardship Licenses.

    Section 384.210 is being amended in accordance with provisions of 
Section 202(d) of the MCSIA (49 U.S.C. 31311(a)(10)(B)) 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.
    Of the ten comments addressing this issue, a few State licensing 
and law enforcement agencies point out the difficulty of getting any 
legislation passed and the fact that they do not control court actions 
in issuing such licenses. While cognizant of the need for coordination 
between judicial, executive, and legislative branches that implementing 
and complying with this provision may impose on the States, the FMCSA 
notes that this action is required by the MCSIA and urges all States to 
take appropriate action to bring their laws, regulations and 
ajudicatory procedures into compliance with this new requirement for 
identifying and removing drivers whose violations warrant such action. 
The statute anticipates and FMCSA believes that the branches of 
government can work cooperatively to address this public safety issue.

Section 384.225--Record of 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 including 
the Secretary of Transportation, States, drivers, employing motor 
carrier and prospective employing motor carriers, 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 included in this 
rule to promote uniformity among the States. Although Section 
31311(a)(18) requires a driver history record only for CDL drivers, 
Section 31311(a)(9) goes beyond that. When an out-of-State driver 
commits a violation, paragraph (a)(9) requires the State where the 
violation occurred to notify the State that issued his/her driver's 
license. This rule applies both to CDL holders and to drivers operating 
a CMV (illegally) without a CDL. Because a State could not provide 
notification of a violation by a CMV driver who did not have a CDL 
without first entering the conviction in the driver information system, 
the FMCSA has concluded that this requirement is implicit in paragraph 
(a)(9) despite the fact that no such requirement is included in 
paragraph (a)(18). Stated alternatively, Sec. 384.225(a) (``CDL 
holders'') is based on 49 U.S.C. 31311(a)(18), while Sec. 384.225(b) 
(``Non-CDL holders'') is based on 49 U.S.C. 31311(a)(9).
    Seven comments support the requirement for States to enter all 
traffic convictions on driver records; however, three States questioned 
which driving records should be maintained and proposed alternative 
retention periods. Paragraph (d) of Sec. 384.231 requires States to 
maintain driver records for CDL drivers on the CDLIS for the time 
periods the FMCSA finds necessary to enforce the disqualifications 
called for in Secs. 384.215 through 384.219 and Secs. 384.221 through 
384.224. These time periods range from a minimum of 3 years for serious 
traffic violations and railroad-highway grade crossing violations to 
life for major alcohol, drug and felony offenses. Since the minimum 
retention period for a disqualifying offense is currently set at 3 
years, the FMCSA believes that a minimum record retention period of 3 
years for all other offenses in a CMV and non-CMV is reasonable. It is 
a good balance between allowing authorized users to see the current 
driving record of a CDL driver without placing an undue burden on the 
States to carry convictions on a driving record that will not affect 
any future driver disqualification action. The more serious the 
offense, the longer the conviction will remain on the driving record 
for review by authorized users of CDLIS. Based upon the fact that the 
CDLIS driver record retention standards are well known and adhered to 
by all States, the FMCSA does not believe any additional record 
retention period needs to be included in this rulemaking.
    Another issue raised in four of the comments was that the 
authorized agents of people and entities designated in the MCSIA as 
having access to driver record information should also be allowed to 
obtain this information. The FMCSA agrees that the MCSIA permits access 
to these records by agents, and has amended the final rule to reflect 
this fact.
    One State asked whether they will be allowed to charge motor 
carriers for providing driver history information. The FMCSA believes 
this is a decision for each State to make consistent with the object of 
this rulemaking. Accordingly, it has not been addressed in this 
rulemaking.

Section 384.226--Prohibition on Masking Convictions.

    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 
(145 Cong. Rec. H12870-12874 (daily ed. Nov. 18, 1999; 145 Cong. Rec. 
S15207-15211 (daily ed. Nov. 19, 1999)) 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 also requires that records of such 
conviction information be made available to all authorized parties and 
government entities. The FMCSA urges State Executive Branch agencies to 
work with the State Judicial Branch to eliminate the practice of

[[Page 49750]]

masking. This practice allows unsafe drivers to continue to pose a risk 
to other motorists by allowing their continued operation on the 
nation's highways.

Section 384.231--Satisfaction of State Disqualification Requirements.

    All paragraphs are amended to replace the word ``shall'' with the 
word ``must.''
    The FMCSA is amending paragraph (a) to include cross references to 
the disqualifications resulting from railroad-highway grade crossing 
violations added as 49 CFR 384.223 by a final rule published on 
September 2, 1999 (64 FR 48104), and new Secs. 384.222 and 384.224 
promulgated by this final rule.
    Paragraph (b)(2) is being amended to remove the May 18, 1997, 
compliance date from the heading of the paragraph because that date has 
passed and the rule now applies to all non-CDL holders. The FMCSA is 
also replacing the undefined term ``non-CDL holder'' with ``a person 
required to have a CDL'' within the heading and body of paragraph 
(b)(2) because the term ``non-CDL holder'' could include a person who 
is not even required to have a CDL. The intent of this paragraph is to 
require each State to disqualify any person required to have a CDL who 
was convicted of a disqualifying offense in a CMV under Sec. 383.51.
    Paragraph (d) is being amended to incorporate by reference the 
current version of the AAMVAnet State Procedures Manual. Each State-
licensing agency has a copy of the most recent version of the CDLIS 
State Procedures Manual. A copy of this CDLIS State Procedures Manual 
is also in the public docket.

Section 384.401--Withholding of Funds Based on Noncompliance.

    In order to avoid the withholding of certain Federal aid highway 
funds, States must be in substantial compliance, as defined in 49 CFR 
384.301, with the standards set forth in Subpart B of part 384. Section 
103(e) of the MCSIA also requires the FMCSA to withhold Motor Carrier 
Safety Assistance Program (MCSAP) funds from States that fail to be in 
substantial compliance with these standards. This section incorporates 
this new sanctioning requirement. A discussion of the comments on this 
requirement can be found in the commentary to Sec. 350.217.

Section 384.405--Decertification of State CDL Program.

    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 
requirements of Section 31311 of title 49 U.S.C. (49 CFR part 384, 
subpart B). Because of the severity of this new sanction and the 
potential effect on drivers and motor carriers located in States found 
to be in noncompliance, it is envisioned that this penalty will be used 
only after other attempts to bring the State into substantial 
compliance with CDL requirements have failed. As noted in the 
commentary to Sec. 383.23, the FMCSA envisions this sanction being 
invoked only in rare situations.
    To mitigate the impact on drivers and motor carriers in States that 
have been decertified, the MCSIA is adding a provision to 49 CFR 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 has also included 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.
    In response to one comment raised concerning how other States will 
know that a State has been decertified, the FMCSA will notify all 
States whenever a State has been decertified or recertified.

Section 384.407--Emergency CDL Grants.

    Section 384.407 implements Section 103(d) of the MCSIA (49 U.S.C. 
31107(c)) by authorizing 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.
    Two comments to the NPRM addressed this issue. One proposed that 
only States making a good faith effort to comply with the CDL 
requirements be eligible to receive these grant funds and the other 
proposed that the traditional 20% State grant-matching requirement be 
waived. The FMCSA agrees with the first of these suggestions and has 
added language to the final rule clarifying that only States making a 
good faith effort to comply with the CDL requirements are eligible to 
receive these grants. As for the second comment, these discretionary 
grants do not require a State matching contribution and Sec. 384.407 
includes no such implication.

Rulemaking Analyses and Notices

Executive Order 12866 (Regulatory Planning and Review) and DOT 
Regulatory Policies and Procedures

    The FMCSA has determined that this action is not a significant 
regulatory action within the meaning of Executive Order 12866, and is 
not significant within the meaning of Department of Transportation 
regulatory policies and procedures (44 FR 11034, February 26, 1979). It 
has not been reviewed by the Office of Management and Budget. 
Nonetheless, the FMCSA prepared a regulatory evaluation of this rule. 
This section summarizes the regulatory evaluation. A copy of the 
complete regulatory evaluation is available in the docket described 
above under ADDRESSES.
    The regulatory evaluation addresses seven of the provisions 
contained in this rule, primarily those provisions that FMCSA expected 
would have economic costs to State government agencies and the motor 
carrier industry. These provisions include:
     Section 201(a) of MCSIA--Disqualification for Driving 
While Suspended, Disqualified and Causing a Fatality. This provision 
creates two new Federal disqualifying offenses: (1) Driving a CMV while 
revoked, suspended, or cancelled, or while the driver is disqualified 
based upon the driver's operation of a CMV; and (2) causing a fatality 
through the negligent or criminal operation of a CMV. *
     Section 201(b) of MCSIA--Emergency Disqualification of 
Drivers Posing an Imminent Hazard.
     Sections 201(b) and 202(h) of MCSIA--Disqualification for 
Violations Committed while Driving a Non-CMV.
     Section 201(c) of MCSIA--Expanded Definition of Serious 
Traffic Violations.
     Section 202(a) of MCSIA--Expanded State Driver Record 
Check.
     Section 202(c) of MCSIA--New Notification Requirements. 
This section requires States to notify CDLIS and the State that issued 
the CDL no later than 10 days after disqualifying a CDL holder from 
operating a CMV (or revoking, suspending, or canceling a CDL) for at 
least 60 days and the reason for the action.
     Section 202(g) of MCSIA--Masking Prohibition. This section 
of MCSIA prohibits the practice of masking convictions and thereby 
requires the record to be maintained or transmitted to the State where 
the driver is licensed.
    As stated, the regulatory evaluation addresses seven ``major'' 
provisions of the rule. Although the remaining nine provisions were 
initially examined,

[[Page 49751]]

FMCSA determined through a preliminary evaluation that these nine would 
not impose significant economic costs on State government agencies or 
the motor carrier industry.
    FMCSA derived benefits estimates for this rule by examining the 
number of truck-related crashes, using average costs for various types 
(e.g. fatal, injury, and property-damage-only) that must be avoided 
during the analysis period (2003-2011) for this rule to be cost 
effective. Note that no crash reduction is assumed to occur during the 
first year of implementation (2002). Results of this analysis are 
contained in Table 1 below.

    Table 1.--Summary of Final Rule Costs and Other Relevant Factors
------------------------------------------------------------------------
 
------------------------------------------------------------------------
Net Present Value of Costs, 2002-
 2011.............................               $373 million
Net Present Value of Benefits if
 700 Truck-Related Crashes are
 Avoided Annually between 2003-
 2011.............................               $404 million
------------------------------------------------------------------------
    Type of truck-related crash      Average cost per   Annual Reduction
                                         crash\1\         Required \2\
Fatal Crashes involving 7 ``Large          $3,419,202                  7
 Trucks''.........................
Injury-Related ``Large Truck''                217,000                147
 Crashes..........................
Property-Damage-Only ``Large                   11,300               546
 Truck'' Crashes..................
------------------------------------------------------------------------
\1\ From ``Cost of Large-Truck and Bus-Involved Crashes, Final Report
  for the Federal Motor Carrier Safety Administration, Zaloshnja,
  Miller, & Spicer, 2000.
\2\ For discounted benefits of the rule to exceed discounted costs, a
  total of 700 truck-related crashes (e.g., fatal, injury, & PDO
  combined) must be avoided annually during the last nine years of the
  analysis period (2003-2011). This reduction represents about 0.15
  percent of the total number of reported truck-related crashes
  annually. The reductions are proportional to the frequencies found by
  ``Trends in Motor Vehicle Crashes'' (FMCSA, December 2000).

Costs

    The total discounted costs from each provision's implementation are 
included in Table 2 below.

                          Table 2.--Total Discounted Costs, by MCSIA Section and Title
----------------------------------------------------------------------------------------------------------------
                                                                                                Total discounted
                                                                                                costs (millions
              MCSIA section                             Final rule section title                 of discounted
                                                                                                    dollars)
----------------------------------------------------------------------------------------------------------------
201(a)..................................  ``* * * Driving While Suspended * * *..............              $89.1
201(b)..................................  ``* * * Imminent Hazard''..........................                8.3
201(b) & 202(h).........................  ``Disqualifications for non-CMV Offenses''.........              169.7
201(c)..................................  ``Expanded Definition of Serious Traffic                          43.3
                                           Violations''.
202(a)..................................  ``Expanded Driver Record Check''...................               42.5
202(c)..................................  ``New Notification Requirements''..................                3.8
202(g)..................................  ``Masking Prohibition''............................               16.3
                                         -----------------------------------------------------------------------
    Total...............................  All Seven Provisions...............................                373
----------------------------------------------------------------------------------------------------------------

    While the costs associated with each provision are somewhat unique, 
the types of costs generally fall into one of two categories: start-up 
costs (Table 3) or ongoing costs (Table 4).

                 Table 3.--Total ``First-Year'' Costs of Final Rule Provisions, by MCSIA Section
----------------------------------------------------------------------------------------------------------------
                                                                                                Total first-year
                                                                                                costs (millions
              MCSIA section                             Final rule section title                 of discounted
                                                                                                    dollars)
----------------------------------------------------------------------------------------------------------------
201(a)..................................  ``* * *Driving While Suspended* * *''..............              $1.61
201(b)..................................  ``* * *Imminent Hazard''...........................               2.15
201(b) & 202(h).........................  ``Disqualifications for non-CMV Offenses''.........               1.73
201(c)..................................  ``Expanded Definition of Serious Traffic                          1.41
                                           Violations''.
202(a)..................................  ``Expanded Driver Record Check''...................            1.46\1\
202(c)..................................  ``New Notification Requirements''..................            0.58\1\
202(g)..................................  ``Masking Prohibition''............................               2.42
                                         -----------------------------------------------------------------------
    Total...............................  ...................................................              11.4
----------------------------------------------------------------------------------------------------------------
\1\ Information system implementation costs were spread over three calendar years.


                      Table 4.--Total ``Later-Year'' Costs of Final Rule, by MCSIA Section
----------------------------------------------------------------------------------------------------------------
                                                                                                Total later-year
                                                                                                costs (millions
              MCSIA section                             Final rule section title                 of discounted
                                                                                                    dollars)
----------------------------------------------------------------------------------------------------------------
201(a)..................................  ``* * *Driving While Suspended * * *''.............              $87.5
201(b)..................................  ``* * *Imminent Hazard''...........................                6.2

[[Page 49752]]

 
201(b) & 202(h).........................  ``Disqualifications for non-CMV Offenses''.........              168.0
201(c)..................................  ``Expanded Definition of Serious Traffic                          41.9
                                           Violations''.
202(a)..................................  ``Expanded Driver Record Check''...................               41.0
202(c)..................................  ``New Notification Requirements''..................                3.2
202(g)..................................  ``Masking Prohibition''............................               13.9
                                         -----------------------------------------------------------------------
    Total...............................  ...................................................              361.7
----------------------------------------------------------------------------------------------------------------

    Each of the seven major provisions examined is analyzed separately 
here, since many of the annual or ongoing costs of the provisions are 
somewhat unique (e.g., effects on driver suspensions and 
disqualifications).
    Section 201(a) of MCSIA--Disqualification for Driving While 
Suspended, Disqualified and Causing a Fatality--creates two new 
disqualifying offenses under the FMCSRs. They are: (1) Driving a CMV 
while revoked, suspended, or cancelled, or while the driver is 
disqualified based upon the driver's operation of a CMV; and (2) 
causing a fatality through the negligent or criminal operation of a 
CMV. First-year information system development and implementation costs 
average $36,234 per State. Extrapolating to all fifty States and the 
District of Columbia results in total system development and 
implementation costs of $1.61 million when discounted to the year 2002. 
Annual costs thereafter include additional data entry by State 
government staff and new driver disqualifications resulting from new 
FMCSR offenses. The FMCSA assumes 10 percent of CDL drivers with 
suspended licenses (or 3,864) will violate the new provision and will 
subsequently receive disqualifications of one year on average (or 2,080 
working hours) and that these drivers will secure alternative 
employment at a 10 percent wage reduction.
    We expect 4,296 new CDL drivers to be disqualified annually either 
for being convicted of driving while suspended or for causing a 
fatality through negligent or criminal operation of a CMV, for an 
average of one year each, and that each accepts alternative employment 
at a 10 percent wage reduction. Additionally, the FMCSA included the 
costs for data entry and for each CDL driver's record to be checked by 
a patrolman, costing about $450,000 (undiscounted, combined) annually 
for the period 2005 through 2011. The present value of total costs for 
this section is $89.1 million.
    Section 201(b) of MCSIA--Emergency Disqualification of Drivers 
Posing an Imminent Hazard--authorizes the Secretary to impose an 
emergency disqualification on drivers whose continued operation of a 
CMV the Secretary determines would constitute an imminent hazard. In 
cases where the Secretary proposes emergency disqualification beyond 30 
days, the driver must be notified of the proposed action and provided 
the opportunity for a hearing. We assume that all such drivers would 
request a hearing and include: (a) Costs to review CDL drivers' records 
for IH designation; (b) costs to hold hearings for each driver when an 
IH designation is assigned to a CDL driver; (c) costs to CDL drivers 
who are given the IH designation; and (d) data entry costs for State 
employees where the IH designation is applied. These discounted ``later 
year'' costs (using OMB-prescribed seven percent discount rate) total 
$6.2 million, for the period 2004 through 2011. Therefore, with the 
$2.15 million set-up costs, the present value of costs of Section 
201(b) of MCSIA total $8.3 million.
    Sections 201(b) and 202(h) of MCSIA--Disqualification for non-CMV 
Violations'prohibits the holder of a CDL from operating a CMV if the 
CDL holder commits certain offenses while operating a non-CMV. First-
year costs for this rule should total approximately $1.73 million 
(present value); most of these are for information system developments 
and modifications by State agencies. Annual costs are estimated at 
$168.7 million (present value) and include wages lost by an average of 
9,661 CDL holders who would be suspended or disqualified because of 
this rule. FMCSA estimates that those CDL holders who would be 
disqualified because of this rule would find alternative work at a 10 
percent reduction in hourly wages, for an average of 317 days, over the 
10-year analysis period. The total cost of this provision is 
approximately $170.4 million (present value) over the ten-year analysis 
period for 2004 through 2013, using a discount rate of 7 percent.
    Section 201(c) of MCSIA--Expanded Definition of Serious Traffic 
Violations--adds three new offenses to the FMCSR definition of serious 
traffic violations. These new violations include: (1) Driving a CMV 
when the driver has not obtained a CDL; (2) driving a CMV without a CDL 
in the driver's possession; and (3) driving a CMV without the driver 
having met the minimum testing standards for the specific class of CMV 
being operated, or for the type of cargo being transported in the 
vehicle. This increases the total number of serious traffic violations, 
as defined in Part 383 of the FMCSRs, from five to eight. System 
development and implementation costs include hardware, software, and 
personnel costs to implement this provision and average $29,643 per 
State. Extrapolating these results to all fifty States and the District 
of Columbia results in a discounted cost of $1.41 million. Annual, or 
ongoing, costs for this provision include: (a) Costs to patrolmen to 
write the convictions for 3 new serious traffic violation offenses; (b) 
costs to input the new conviction data into CDL drivers' records and 
report disqualifying information to CDLIS; and (c) costs to CDL drivers 
who will be disqualified as a result of the 3 new serious traffic 
violations. The present value of these annual costs is $41.9 million. 
That brings the total cost for this section to $43.3 million.
    Section 202(a) of MCSIA--Expanded Driver Record Check--first-year 
costs equal approximately $1.46 million (present value) for all fifty 
States and Washington, DC. Discounted ``later year'' costs total $41.0 
million for the period 2004 through 2011. Therefore, present values 
costs of Section 202(a) of MCSIA total $42.5 million.
    Section 202(c) of MCSIA--New Notification Requirements--requires 
States to notify CDLIS and the State that issued the CDL no later than 
10 days after disqualifying a CDL holder from operating a CMV (or 
revoking, suspending, or canceling a CDL) for at least 60 days. 
Information system

[[Page 49753]]

development and implementation costs include hardware, software, and 
personnel costs and average $34,339 per State. Extrapolating these 
results to all fifty States and the District of Columbia results in 
total system development and implementation costs of Section 202(c) of 
MCSIA of $1.75 million. This regulation allows these costs to be spread 
over three years, so the first-year costs are just less than $0.6 
million. Annual, or ongoing, costs begin in 2005 and include the on-
going costs to State government agencies to ensure that CDL convictions 
are consistently transferred within the 10-day window and for States to 
transmit specific conviction information with each driver 
disqualification record. FMCSA assumes that this provision would not 
result in any new disqualifications, since it primarily addresses the 
amount of CDL holder information transmitted. Discounted later year 
costs total $3.2 million for the remaining two years of the 
implementation and the period 2005 through 2011 combined. Therefore, 
present value costs for Section 202(b) of MCSIA total $3.8 million.
    Section 202(g) of MCSIA--Masking Prohibition--prohibits the 
practice of masking convictions and thereby requires the CDL record to 
be maintained or transmitted to the State where the driver is licensed 
and be made available to all authorized parties and government 
entities. Information system development and implementation costs 
include hardware, software, and personnel costs and average $47,393 per 
State. Extrapolating these results to all fifty States and the District 
of Columbia results in total system development and implementation 
costs of $2.42 million. Annual, or ongoing, costs begin in 2002 and are 
primarily comprised of wage reduction costs to those CDL holders who 
will be disqualified because conviction information is being 
transmitted to their home State licensing agency. Assuming that States 
that mask convictions are similar to States that do not mask, and that 
States mask all convictions if they mask at all, the maximum number of 
FMCSR-required withdrawal convictions that could be unmasked would be 
5,173 as a result of this provision's implementation. That would result 
in wage reductions of approximately $4.3 million annually. Since it is 
unrealistic to assume that all convictions are masked or that no 
convictions are masked, we assume that half are masked. The present 
value of costs from the ``Masking Prohibition'' total $16.3.

Benefits: Crashes Avoided for the Final Rule To Be Cost Effective

    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 (mainly CDL holders) who will be suspended or 
disqualified for violations of the new disqualifying offenses and 
serious traffic violations. 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 has no data 
directly linking these specific FMCSR-defined offenses and truck-
related crashes. However, FMCSA 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 
(during the analysis period) for this rule to be cost effective (i.e. 
for discounted benefits to equal/exceed discounted costs). Those 
benefits are found in Tables 1 through 4 above.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), as amended by the Small 
Business Regulatory Enforcement and Fairness Act (SBREFA), requires 
Federal agencies to analyze the impact of rulemakings on small 
entities, unless the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities. 
We do not believe that these proposals meet the threshold values for 
requiring an RFA analysis, since the anticipated impact is fairly 
small. Nonetheless, because of the public interest in these proposals, 
the FMCSA has prepared this RFA analysis.
    (1) A description of the reasons why action by the agency is being 
considered. The CDL program has been in operation since 1986. Since 
that time, potential process improvements to enhance car safety have 
been identified. This rule implements some of those changes.
    (2) A succinct statement of the objectives of, and the legal basis 
for, the proposed rule. In 1999, Congress passed the Motor Carrier 
Safety Improvement Act (MCSIA). Sections of that Act direct changes in 
the CDL program. The changes in procedures are a direct response to 
this legislation. FMCSA hopes that these changes will make the CDL 
program more effective in preventing dangerous drivers from continuing 
to drive and will result in improved safety by improving the 
performance of drivers and removing unsafe drivers from the road.
    (3) A description and, where feasible, an estimate of the number of 
small entities to which the rule will apply. In the trucking industry, 
there are a few large firms with many employees and many very small 
firms with only a handful of employees. To the extent which the rule 
imposes costs on firms, these small firms will endure the largest 
portion of that burden. The incidence of driver disqualification is not 
likely to be different among firms, however large firms are better able 
to spread the risk of having a driver disqualified.
    (4) A description of the proposed reporting, recordkeeping and 
other compliance requirements of the proposed rule, including an 
estimate of the classes of small entities which will be subject to the 
requirement and the type of professional skills necessary for 
preparation of the report or record. Although these small entities will 
have to keep records on all of their employees' status regarding the 
CDL, there is no additional administrative cost borne by them because 
they already have to maintain those records under the current system. 
The avenue through which these small businesses might be adversely 
affected is a reduction in the number of available drivers who can 
qualify under the stricter rules. If that number is significantly 
reduced, employers may find that they have to pay drivers a premium 
wage in order to continue to provide their level of service.
    (5) Identification, to the extent practicable, of all relevant 
Federal rules which may duplicate, overlap or conflict with the 
proposed rule. The FMCSA is not aware of any other rules or procedures 
that duplicate or conflict with this rule.
    (6) Significant Alternatives Available. Allowing differences in 
compliance or reporting for small entities would be contrary to the 
intent of Congress in issuing this mandate. The purpose of MCSIA is to 
strengthen and standardize the CDL program. Another key component of 
the CDL program is national uniformity and consistency in its 
administration. This promotes effective enforcement.
    We certify that the rule will not have a significant impact on a 
substantial number of small entities.

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,

[[Page 49754]]

eliminate ambiguity, and reduce burden.

Executive Order 13045 (Protection of Children)

    We have analyzed this rule under E.O. 13045, ``Protection of 
Children from Environmental Health Risks and Safety Risks.'' This rule 
is not economically significant and does not involve an environmental 
risk to health or safety that would 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 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 this action does not have substantial 
direct Federalism implications that would limit the policymaking 
discretion of the States. This action will not have a significant 
effect on the States' ability to execute traditional State governmental 
functions, and any additional administrative cost borne by the States 
should be negligible.

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.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501-
3520), a Federal agency must obtain approval from the Office of 
Management and Budget (OMB) for each collection of information it 
conducts, sponsors, or requires through regulations. An analysis of 
this rule has been made by the FMCSA, and it has been determined that 
it will affect the information collection burden associated with the 
currently-approved information collection covered by OMB Control No. 
2126-0011, titled ``Commercial Driver Licensing and Test Standards.'' 
The OMB approved the most recent update of this information collection 
on October 3, 2001, at 620,802 burden hours. The approval period runs 
through October 31, 2004.
    The implementation of this final rule will require the State DMVs 
to enter additional information into CDLIS--whether the CDL holder 
committed the violation in a CMV or a non-CMV. We estimate the time 
required to complete this additional information in CDLIS to be 
approximately 2 seconds per applicant. The currently-approved estimate 
for completing a CDLIS entry is 2 minutes. We believe the 2 additional 
seconds can be folded into the 2 minutes and that the 2-minute estimate 
is still accurate. Therefore, there is no increase in burden hours from 
this provision.
    The currently-approved estimate of the number of violations is 1 
violation every 3 years for the 10,000,000 CDL holders. We estimate 
that with the additional violations, approximately one-quarter of the 
10,000,000 CDL holders (2,500,000) will receive an additional violation 
over the 3-year period. This would be 833,333 additional violations. 
The currently-approved estimate of staff time to input the new 
violations into State systems and transfer to CDLIS is 2 minutes. 
Therefore, the additional burden created by this final rule is 27,778 
burden hours [833,333 x 2 minutes/60 minutes].
    Start-up costs include information system, or computer, costs 
incurred by State government agencies to implement the new CDL program 
provisions under MCSIA. Specific examples include costs required to 
establish or modify computer systems within each State to log, review, 
and transfer the new serious traffic violations identified under MCSIA. 
Additionally, these costs include information systems costs to 
implement the new notification requirements for States under MCSIA. 
Such costs include hardware, software, and personnel costs to establish 
or modify computer systems within each State. Estimates of the combined 
start-up, or first-year, costs for the 50 States and the District of 
Columbia are shown below.

------------------------------------------------------------------------
                                                             Total first-
                                                              year costs
                  Final rule section title                       (in
                                                              millions)
------------------------------------------------------------------------
``* * * Driving While Suspended * * *''....................        $1.61
``* * * Imminent Hazard''..................................        $2.15
``Disqualifications for non-CMV Offenses''.................         1.73
``Expanded Definition of Serious Traffic Violations''......         1.41
``Expanded Driver Record Check''...........................         1.46
``New Notification Requirements''..........................         0.58
``Masking Prohibition''....................................         2.42
                                                            ------------
    Total..................................................        11.4
------------------------------------------------------------------------

    At NPRM stage, we requested comments on the information collection 
aspects of this rule. No comments regarding the information collection 
burden hours were received. You may submit any additional comments on 
the information collection burden addressed by this final rule to the 
Office of Management and Budget (OMB). The OMB must receive your 
comments by August 30, 2002. You must mail or hand deliver your 
comments to: Attention: Desk Officer for the Department of 
Transportation, Docket Library, Office of Information and Regulatory 
Affairs, Office of Management and Budget, Room 10102, 725 17th Street, 
NW., Washington, DC 20503.

National Environmental Policy Act

    The Federal Motor Carrier Safety Administration is a new 
administration within the Department of Transportation. We are striving 
to meet all of the statutory and executive branch requirements on 
rulemaking. The FMCSA is currently developing an agency order that will 
comply with all statutory and regulatory policies under the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). We expect 
the draft FMCSA Order to appear in the Federal Register for public 
comment in the near future. The framework of the FMCSA Order is 
consistent with and reflects the procedures for considering 
environmental impacts under DOT Order 5610.1C. The FMCSA analyzed this 
rule under the NEPA and DOT Order 5610.1C. We believe it would be among 
the type of regulations that would be categorically excluded from any 
environmental assessment.

Executive Order 13211 (Energy Supply, Distribution, or Use)

    We have analyzed this rule under Executive Order 13211, Actions 
Concerning Regulations that Significantly Affect Energy Supply, 
Distribution, or Use. This action is not a significant energy action 
within the meaning of section 4(b) of the Executive Order because it is 
not economically significant and not likely to have a significant 
adverse effect on the supply, distribution, or use of energy. 
Additionally, the Administrator of the Office of Information and 
Regulatory Affairs has not designated this rule as a

[[Page 49755]]

significant energy action. For these reasons, a Statement of Energy 
Effects under Executive Order 13211 is not required.

Unfunded Mandates Reform Act of 1995

    This rule does not impose a Federal mandate resulting in the 
expenditure by State, local, or 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.)

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, Alcohol abuse, Commercial 
driver's license, Commercial motor vehicles, Drug abuse, Highway 
safety, Motor carriers, Motor vehicle safety.

49 CFR Part 384

    Administrative practice and procedure, Alcohol abuse, Commercial 
driver's license, Commercial motor vehicles, Drug abuse, Highway 
safety, Incorporation by reference, Intergovernmental relations, Motor 
carriers, Motor vehicle safety, Reporting and recordkeeping 
requirements.

49 CFR Part 390

    Highway safety, Intermodal transportation, Motor carriers, Motor 
vehicle safety, Reporting and recordkeeping requirements.

    In consideration of the foregoing, the FMCSA amends title 49, Code 
of Federal Regulations, Chapter III, parts 350, 383, 384, and 390 as 
set forth below:

PART 350--COMMERCIAL MOTOR CARRIER SAFETY ASSISTANCE PROGRAM

    1. Revise the authority citation for 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 384, 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 sec. 103(b)(1) of the Motor 
Carrier Safety Improvement Act of 1999 [Pub. L. 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--COMMERCIAL DRIVER'S LICENSE STANDARDS; REQUIREMENTS AND 
PENALTIES

    3. Revise the authority citation for 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. 1766; and 49 CFR 1.73.


    4. Revise Sec. 383.3(f)(3)(i)(C) to read as follows:


Sec. 383.3  Applicability

* * * * *
    (f) * * *
    (3) * * *
    (i) * * *
    (C) Has not had any conviction for any type of motor vehicle for 
the disqualifying offenses contained in Sec. 383.51(b);
* * * * *

    5. Amend Sec. 383.5 to revise the definitions of the terms 
``disqualification,'' ``driving a commercial motor vehicle while under 
the influence of alcohol,'' ``non-resident CDL'' and ``serious traffic 
violation'' and to add the definitions of the terms ``fatality,'' 
``imminent hazard,'' ``non-CMV,'' and ``school bus'' in alphabetical 
order to read as follows:


Sec. 383.5  Definitions.

* * * * *
    Disqualification means any of the following three actions:
    (a) The suspension, revocation, or cancellation of a CDL by the 
State or jurisdiction of issuance.
    (b) Any withdrawal of a person's privileges to drive a CMV by a 
State or other jurisdiction as the result of a violation of State or 
local law relating to motor vehicle traffic control (other than 
parking, vehicle weight or vehicle defect violations).
    (c) A determination by the FMCSA that a person is not qualified to 
operate a commercial motor vehicle under part 391 of this chapter.
* * * * *
    Driving a commercial motor vehicle while under the influence of 
alcohol means committing any one or more of the following acts in a 
CMV--
    (a) Driving a CMV while the person's alcohol concentration is 0.04 
or more;
    (b) Driving under the influence of alcohol, as prescribed by State 
law; or
    (c) Refusal to undergo such testing as is required by any State or 
jurisdiction in the enforcement of Sec. 383.51(b) or Sec. 392.5(a)(2) 
of this subchapter.
* * * * *
    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).
* * * * *
    Non-CMV means a motor vehicle or combination of motor vehicles not 
defined by the term ``commercial motor vehicle (CMV)'' in this section.
* * * * *
    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.
    Serious traffic violation means conviction of any of the following 
offenses when operating a CMV, except weight, defect and parking 
violations:
    (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;
    (f) Driving a CMV without obtaining a CDL;

[[Page 49756]]

    (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.
* * * * *

    6. 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.

    7. 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.\1\
---------------------------------------------------------------------------

    \1\ Effective December 29, 1988, the Administrator determined 
that commercial drivers' licensees issued by Canadian Provinces and 
Territories in conformity with the Canadian National Safety Code are 
in accordance with the standards of this part. Effective November 
21, 1991, the Administrator determined that the new Licencias 
Federales de Conductor issued by the United Mexican States are in 
accordance with the standards of this part. Therefore, under the 
single license provision of Sec. 383.21, a driver holding a 
commercial driver's license issued under the Canadian National 
Safety Code or a new Licencia Federal de Conductor issued by Mexico 
is prohibited from obtaining nonresident CDL, or any other type of 
driver's license, from a State or other jurisdiction in the United 
States.
---------------------------------------------------------------------------

    (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 that elects to issue a Nonresident CDL and which 
complies with the testing and licensing standards contained in subparts 
F, G, and H of this part.
* * * * *

    8. Revise Sec. 383.51 to read as follows:


Sec. 383.51  Disqualification of drivers.

    (a) General. (1) A driver or holder of a CDL who is disqualified 
must not drive a CMV.
    (2) An employer must not knowingly allow, require, permit, or 
authorize a driver who is disqualified to drive a CMV.
    (3) A driver is subject to disqualification sanctions designated in 
paragraphs (b) and (c) of this section, if the holder of a CDL drives a 
CMV or non-CMV and is convicted of the violations.
    (4) Determining first and subsequent violations. For purposes of 
determining first and subsequent violations of the offenses specified 
in this subpart, each conviction for any offense listed in Tables 1 
through 4 to this section resulting from a separate incident, whether 
committed in a CMV or non-CMV, must be counted.
    (5) Reinstatement after lifetime disqualification. A State may 
reinstate any driver disqualified for life for offenses described in 
paragraphs (b)(1) through (b)(8) of this section (Table 1 to 
Sec. 383.51) after 10 years if that person has voluntarily entered and 
successfully completed an appropriate rehabilitation program approved 
by the State. Any person who has been reinstated in accordance with 
this provision and who is subsequently convicted of a disqualifying 
offense described in paragraphs (b)(1) through (b)(8) of this section 
(Table 1 to Sec. 383.51) must not be reinstated.
    (b) Disqualification for major offenses. Table 1 to Sec. 383.51 
contains a list of the offenses and periods for which a driver must be 
disqualified, depending upon the type of vehicle the driver is 
operating at the time of the violation, as follows:

                                                                 Table 1 to Sec.  383.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                  For a first conviction
                                                                                     or refusal to be
                                                                                  tested while operating       For a second
                                                                                    a CMV transporting     conviction or refusal       For a second
                                 For a first conviction                             hazardous materials      to be tested in a     conviction or refusal
                                or refusal to be tested   For a first conviction      required to be       separate incident of      to be tested in a
                                 while operating a CMV,  or refusal to be tested    placarded under the     any combination of     separate incident of
 If a driver operates a motor     a person required to    while operating a non-    Hazardous Materials   offenses in this Table    any combination of
 vehicle and is convicted of:     have a CDL and a CDL    CMV, a CDL holder must    Regulations (49 CFR   while operating a CMV,  offenses in this Table
                                     holder must be        be disqualified from    part 172, subpart F),   a person required to   while operating a non-
                                   disqualified from     operating a CMV for . .   a person required to    have a CDL and a CDL   CMV, a CDL holder must
                                operating a CMV for . .             .               have a CDL and CDL        holder must be       be disqualified from
                                           .                                          holder must be         disqualified from     operating a CMV for .
                                                                                     disqualified from     operating a CMV for .            . .
                                                                                   operating a CMV for .            . .
                                                                                            . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Being under the influence   1 year.................  1 year.................  3 years...............  Life..................  Life.
 of alcohol as prescribed by
 State law * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(2) Being under the influence   1 year.................  1 year.................  3 years...............  Life..................  Life.
 of a controlled substance * *
 *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 49757]]

 
(3) Having an alcohol           1 year.................  Not applicable.........  3 years...............  Life..................  Not applicable.
 concentration of 0.04 or
 greater while operating a CMV
 * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(4) Refusing to take an         1 year.................  1 year.................  3 years...............  Life..................  Life.
 alcohol test as required by a
 State or jurisdiction under
 its implied consent laws or
 regulations as defined in
 Sec.  383.72 of this part * *
 *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(5) Leaving the scene of an     1 year.................  1 year.................  3 years...............  Life..................  Life.
 accident * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(6) Using the vehicle to        1 year.................  1 year.................  3 years...............  Life..................  Life.
 commit a felony, other than a
 felony described in paragraph
 (b)(9) of this table * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(7) Driving a CMV when, as a    1 year.................  Not applicable.........  3 years...............  Life..................  Not applicable.
 result of prior violations
 committed operating a CMV,
 the driver's CDL is revoked,
 suspended, or canceled, or
 the driver is disqualified
 from operating a CMV.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(8) Causing a fatality through  1 year.................  Not applicable.........  3 years...............  Life..................  Not applicable.
 the negligent operation of a
 CMV, including but not
 limited to the crimes of
 motor vehicle manslaughter,
 homicide by motor vehicle and
 negligent homicide.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(9) Using the vehicle in the    Life-not eligible for    Life-not eligible for    Life-not eligible for   Life-not eligible for   Life-not eligible for
 commission of a felony          10-year reinstatement.   10-year reinstatement.   10-year reinstatement.  10-year reinstatement.  10-year reinstatement
 involving manufacturing,
 distributing, or dispensing a
 controlled substance * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (c) Disqualification for serious traffic violations. Table 2 to 
Sec. 383.51 contains a list of the offenses and the periods for which a 
driver must be disqualified, depending upon the type of vehicle the 
driver is operating at the time of the violation, as follows:

                                                                 Table 2 to Sec.  383.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                For a third or subsequent
                                   For a second conviction of    For a second conviction of         conviction of any         For a third or subsequent
                                  any combination of offenses    any combination of offenses   combination of offenses in         conviction of any
                                  in this Table in a separate    in this Table in a separate    this Table in a separate     combination of offenses in
 If the driver operates a motor     incident within a 3-year      incident within a 3-year      incident within a 3-year      this Table in a separate
      and is convicted of:       period while operating a CMV,  period while operating a non-   period while operating a      incident within a 3-year
                                  a person required to have a     CMV, a CDL holder must be     CMV, a person required to   period while operating a non-
                                  CDL and a CDL holder must be   disqualified from operating   have a CDL and a CDL holder    CMV, a CDL holder must be
                                 disqualified from operating a          a CMV for...            must be disqualified from    disqualified from operating
                                           CMV for...                                            operating a CMV for...             a CMV for...
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Speeding excessively,        60 days......................  60 days.....................  120 days....................  120 days.
 involving any speed of 24.1
 kmph (15 mph) or more above
 the posted speed limit * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 49758]]

 
(2) Driving recklessly, as       60 days......................  60 days.....................  120 days....................  120 days.
 defined by State or local law
 or regulation, including but,
 not limited to, offenses of
 driving a motor vehicle in
 willful or wanton disregard
 for the safety of persons or
 property * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(3) Making improper or erratic   60 days......................  60 days.....................  120 days....................  120 days.
 traffic lane changes * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(4) Following the vehicle ahead  60 days......................  60 days.....................  120 days....................  120 days.
 too closely * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(5) Violating State or local     60 days......................  60 days.....................  120 days....................  120 days.
 law relating to motor vehicle
 traffic control (other than a
 parking violation) arising in
 connection with a fatal
 accident * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(6) Driving a CMV without        60 days......................  Not applicable..............  120 days....................  Not applicable.
 obtaining a CDL.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(7) Driving a CMV without a CDL  60 days......................  Not applicable..............  120 days....................  Not applicable.
 in the driver's possession \1\.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(8) Driving a CMV without the    60 days......................  Not applicable..............  120 days....................  Not applicable.
 proper class of CDL and/or
 endorsements for the specific
 vehicle group being operated
 or for the passengers or type
 of cargo being transported.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ 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.

    (d) Disqualification for railroad-highway grade crossing offenses. 
Table 3 to Sec. 383.51 contains a list of the offenses and the periods 
for which a driver must be disqualified, when the driver is operating a 
CMV at the time of the violation, as follows:

                                                                 Table 3 to Sec.  383.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                For a second conviction of any      For a third or subsequent conviction
                                                                            combination of offenses in this Table    of any combination of offenses in
   If the driver is convicted of        For a first conviction a person       in a separate incident within a 3-     this Table in a separate incident
 operating a CMV in violation of a      required to have a CDL and a CDL      year period, a person required to       within a 3-year period, a person
Federal, State or local law because     holder must be disqualified from     have a CDL and a CDL holder must be      required to have a CDL and a CDL
               . . .                       operating a CMV for . . .        disqualified from operating a CMV for     holder must be disqualified from
                                                                                            . . .                        operating a CMV for . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) The driver is not required to    No less than 60 days.................  No less than 120 days................  No less than 1 year.
 always stop, but fails to slow
 down and check that tracks are
 clear of an approaching train * *
 *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(2) The driver is not required to    No less than 60 days.................  No less than 120 days................  No less than 1 year.
 always stop, but fails to stop
 before reaching the crossing, if
 the tracks are not clear * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(3) The driver is always required    No less than 60 days.................  No less than 120 days................  No less than 1 year.
 to stop, but fails to stop before
 driving onto the crossing * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(4) The driver fails to have         No less than 60 days.................  No less than 120 days................  No less than 1 year.
 sufficient space to drive
 completely through the crossing
 without stopping * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 49759]]

 
(5) The driver fails to obey a       No less than 60 days.................  No less than 120 days................  No less than 1 year.
 traffic control device or the
 directions of an enforcement
 official at the crossing * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------
(6) The driver fails to negotiate a  No less than 60 days.................  No less than 120 days................  No less than 1 year.
 crossing because of insufficient
 undercarriage clearance * * *.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    (e) Disqualification for violating out-of-service orders. Table 4 
to Sec. 383.51 contains a list of the offenses and periods for which a 
driver must be disqualified when the driver is operating a CMV at the 
time of the violation, as follows:

                                                                 Table 4 to Sec.  383.51
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                            For a second conviction in a separate   For a third or subsequent conviction
                                          For a first conviction while         incident within a 10-year period     in a separate incident within a 10-
If the driver operates a CMV and is  operating a CMV, a person required to     while operating a CMV, a person      year period while operating a CMV, a
         convicted of . . .           have a CDL and a CDL holder must be      required to have a CDL and a CDL     person required to have a CDL and a
                                     disqualified from operating a CMV for     holder must be disqualified from     CDL holder must be disqualified from
                                                     . . .                        operating a CMV for . . .              operating a CMV for . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
(1) Violating a driver or vehicle    No less than 90 days or more than 1    No less than 1 year or more than 5     No less than 3 years or more than 5
 out-of-service order while           year.                                  years.                                 years.
 transporting nonhazardous
 materials . . .
--------------------------------------------------------------------------------------------------------------------------------------------------------
(2) Violating a driver or vehicle    No less than 180 days or more than 2   No less than 3 years or more than 5    No less than 3 years or more than 5
 out-of-service order while           years.                                 years.                                 years.
 transporting hazardous materials
 required to be placarded under
 part 172, subpart F of this title,
 or while operating a vehicle
 designed to transport 16 or more
 passengers, including the driver .
 . .
--------------------------------------------------------------------------------------------------------------------------------------------------------


    9. Add Sec. 383.52 to read as follows:


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

    (a) The Assistant Administrator or his/her designee must disqualify 
from operating a CMV any driver whose driving is determined to 
constitute an imminent hazard, as defined in Sec. 383.5.
    (b) The period of the disqualification may not exceed 30 days 
unless the FMCSA complies with the provisions of paragraph (c) of this 
section.
    (c) The Assistant Administrator or his/her delegate may provide the 
driver an opportunity for a hearing after issuing a disqualification 
for a period of 30 days or less. The Assistant Administrator or his/her 
delegate must provide the driver notice of a proposed disqualification 
period of more than 30 days and an opportunity for a hearing to present 
a defense to the proposed disqualification. A disqualification imposed 
under this paragraph may not exceed one year in duration. The driver, 
or a representative on his/her behalf, may file an appeal of the 
disqualification issued by the Assistant Administrator's delegate with 
the Assistant Administrator, Adjudications Counsel, Federal Motor 
Carrier Safety Administration (Room 8217), 400 Seventh Street, SW., 
Washington, DC 20590.
    (d) Any disqualification imposed in accordance with the provisions 
of this section must be transmitted by the FMCSA to the jurisdiction 
where the driver is licensed and must become a part of the driver's 
record maintained by that jurisdiction.
    (e) A driver who is simultaneously disqualified under this section 
and under other provisions of this subpart, or under State law or 
regulation, shall serve those disqualification periods concurrently.
    10. Revise Sec. 383.53(b)(1) to read as follows:


Sec. 383.53  Penalties.

* * * * *
    (b) Special penalties pertaining to violation of out-of-service 
orders--(1) Driver violations. A driver who is convicted of violating 
an out-of-service order shall be subject to a civil penalty of not less 
than $1,100 nor more than $2,750, in addition to disqualification under 
Sec. 383.51(e).
* * * * *

    11. Amend Sec. 383.71 to revise paragraphs (a)(6), (a)(7), (b)(3), 
(b)(4), and (c)(3); and to add new paragraphs (a)(8), (b)(5), and 
(c)(4) to read as follows:


Sec. 383.71  Driver application procedures.

    (a) * * *
    (6) Certify that he/she is not subject to any disqualification 
under Sec. 383.51, or any license suspension, revocation, or 
cancellation under State law, and that he/she does not have a driver's 
license from more than one State or jurisdiction;
    (7) Surrender the applicant's non-CDL driver's licenses to the 
State; and
    (8) Provide the names of all States where the applicant has 
previously been licensed to drive any type of motor vehicle during the 
previous 10 years.
    (b) * * *
    (3) If the applicant wishes to retain a hazardous materials 
endorsement, comply with State requirements as specified in 
Sec. 383.73(b)(4);

[[Page 49760]]

    (4) Surrender the CDL from the old State of domicile to the new 
State of domicile; and
    (5) Provide the names of all States where the applicant has 
previously been licensed to drive any type of motor vehicle during the 
previous 10 years.
    (c) * * *
    (3) If a person wishes to retain a hazardous materials endorsement, 
pass the test for such endorsement as specified in Sec. 383.121; and
    (4) Provide the names of all States where the applicant has 
previously been licensed to drive any type of motor vehicle during the 
previous 10 years.
* * * * *

    12. Revise Sec. 383.73(a)(3) to read as follows:


Sec. 383.73  State procedures.

    (a) * * *
    (3) Initiate and complete a check of the applicant's driving record 
to ensure that the person is not subject to any disqualification under 
Sec. 383.51, or any license suspension, revocation, or cancellation 
under State law, and that the person does not have a driver's license 
from more than one State or jurisdiction. The record check must 
include, but is not limited to, the following:
    (i) A check of the applicant's driving record as maintained by his/
her current State of licensure, if any;
    (ii) A check with the CDLIS to determine whether the driver 
applicant already has been issued 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:
    (A) Been disqualified from operating a motor vehicle (other than a 
commercial motor vehicle);
    (B) Had a license (other than CDL) suspended, revoked, or canceled 
for cause in the 3-year period ending on the date of application; or
    (C) Been convicted of any offenses contained in section 205(a)(3) 
of the National Driver Register Act of 1982 (23 U.S.C. 401 note); and
    (iv) A request for the applicant's complete driving record from all 
States where the applicant was previously licensed over the last 10 
years to drive any type of motor vehicle. Exception: A State is only 
required to make the driving record check specified in this paragraph 
(a)(3) for drivers renewing a CDL for the first time after September 
30, 2002, provided a notation is made on the driver's record confirming 
that the driver record check required by this paragraph (a)(3) has been 
made and noting the date it was done; and
* * * * *

    13. Revise Sec. 383.77(a)(3) to read follows:


Sec. 383.77  Substitute for driving skills tests.

* * * * *
    (a) * * *
    (3) Has not had any convictions for any type of motor vehicle for 
the disqualifying offenses contained in Sec. 383.51(b);
* * * * *

    14. Amend Sec. 383.93 to revise paragraphs (b)(3), (b)(4), (c)(3), 
and (c)(4); and to add new paragraphs (b)(5) and (c)(5) 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--a knowledge test;
    (4) Hazardous Materials--a knowledge test; and
    (5) School bus--a knowledge and a skills test.

    15. 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)(2) of this section.
    (2) 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) while operating a CMV 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 not been convicted of any motor vehicle traffic violation 
that resulted in an accident; and
    (vii) Has been regularly employed as a school bus driver, has 
operated a school bus representative of the group the applicant seeks 
to drive, and provides evidence of such employment.
    (3) After September 30, 2005 the provisions in paragraph (b) of 
this section do not apply.

    16. Amend Sec. 383.153 to revise paragraph (a)(9)(v), redesignate 
paragraph (a)(9)(vi) as paragraph (a)(9)(vii) 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
    (vii) At the discretion of the State, additional codes for 
additional groupings of endorsements, as long as each such 
discretionary code is fully explained on the front or back of the CDL 
document.
* * * * *

[[Page 49761]]

PART 384--STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM

    17. Revise the authority citation for 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. 1753; and 49 CFR 1.73.


    18. Add Sec. 384.107 to subpart A to read as follows:


Sec. 384.107  Matter incorporated by reference.

    (a) Incorporation by reference. This part includes references to 
certain matter or materials. The text of the materials is not included 
in the regulations contained in this part. The materials are hereby 
made a part of the regulations in this part. The Director of the Office 
of the Federal Register has approved the materials incorporated by 
reference in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. For 
materials subject to change, only the specific version approved by the 
Director of the Office of the Federal Register and specified in the 
regulation are incorporated. Material is incorporated as it exists on 
the date of the approval and a notice of any change in these materials 
will be published in the Federal Register.
    (b) Materials incorporated. The AAMVAnet, Inc.'s ``Commercial 
Driver License Information System (CDLIS) State Procedures,'' Version 
2.0, October 1998, IBR approved for Sec. 384.231(d).
    (c) Addresses. (1) All of the materials incorporated by reference 
are available for inspection at:
    (i) The Department of Transportation Library, 400 Seventh Street, 
SW, Washington, DC 20590 in Room 2200. These documents are also 
available for inspection and copying as provided in 49 CFR part 7.
    (ii) The Office of the Federal Register, 800 North Capitol Street, 
NW, Suite 700, Washington, DC.
    (2) Information and copies of all of the materials incorporated by 
reference may be obtained by writing to: American Association of Motor 
Vehicle Administrators, Inc., 4301 Wilson Blvd, Suite 400, Arlington, 
VA 22203.
    19. Revise Sec. 384.203 to read as follows:


Sec. 384.203  Driving while under the influence.

    (a) The State must have in effect and enforce through licensing 
sanctions the disqualifications prescribed in Sec. 383.51(b) of this 
subchapter for driving a CMV with a 0.04 alcohol concentration.
    (b) Nothing in this section shall be construed to require a State 
to apply its criminal or other sanctions for driving under the 
influence to a person found to have operated a CMV with an alcohol 
concentration of 0.04, except licensing sanctions including suspension, 
revocation, or cancellation.
    (c) A State that enacts and enforces through licensing sanctions 
the disqualifications prescribed in Sec. 383.51(b) of this subchapter 
for driving a CMV with a 0.04 alcohol concentration and gives full 
faith and credit to the disqualification of CMV drivers by other States 
shall be deemed in substantial compliance with section 12009(a)(3) of 
the Commercial Motor Vehicle Safety Act of 1986 (49 U.S.C. 
31311(a)(3)).

    20. 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 
licensed within the previous 10 years 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.
* * * * *

    21. 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.

    22. 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. (1) 
Beginning on September 30, 2005, the notification must be made within 
30 days of the conviction.
    (2) Beginning on September 30, 2008, the notification must be made 
within 10 days of the conviction.

    23. 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) or Sec. 384.231(b)(2) of this 
subchapter;
    (b) The CDL holder's noncommercial driving privilege has been 
revoked, suspended, or canceled; 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).

    24. 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

[[Page 49762]]

penalties prescribed under part 383, subpart D, of this subchapter.

    25. Revise Sec. 384.215(a) to read as follows:


Sec. 384.215  First offenses.

    (a) General rule. The State must disqualify from operating a CMV 
each person who is convicted, as defined in Sec. 383.5 of this 
subchapter, in any State or jurisdiction, of a disqualifying offense 
specified in items (1) through (8) of Table 1 to Sec. 383.51 of this 
subchapter, for no less than one year.
* * * * *

    26. Revise Sec. 384.216 to read as follows:


Sec. 384.216  Second offenses.

    (a) General rule. The State must disqualify for life from operating 
a CMV each person who is convicted, as defined in Sec. 383.5 of this 
subchapter, in any State or jurisdiction, of a subsequent offense as 
described in Table 1 to Sec. 383.51 of this subchapter.
    (b) Special rule for certain lifetime disqualifications. A driver 
disqualified for life under Table 1 to Sec. 383.51 may be reinstated 
after 10 years by the driver's State of residence if the requirements 
of Sec. 383.51(a)(5) have been met.

    27. Revise Sec. 384.217 to read as follows:


Sec. 384.217  Drug offenses.

    The State must disqualify from operating a CMV for life each person 
who is convicted, as defined in Sec. 383.5 of this subchapter, in any 
State or jurisdiction of a first offense, of using a CMV in the 
commission of a felony described in item (9) of Table 1 to Sec. 383.51 
of this subchapter. The State shall not apply the special rule in 
Sec. 384.216(b) to lifetime disqualifications imposed for controlled 
substance felonies as detailed in item (9) of Table 1 to Sec. 383.51 of 
this subchapter.

    28. Revise Sec. 384.218 to read as follows:


Sec. 384.218  Second serious traffic violation.

    The State must disqualify from operating a CMV for a period of not 
less than 60 days each person who, in a three-year period, is 
convicted, as defined in Sec. 383.5 of this subchapter, in any State(s) 
or jurisdiction(s), of two serious traffic violations as specified in 
Table 2 to Sec. 383.51.

    29. Revise Sec. 384.219 to read as follows:


Sec. 384.219  Third serious traffic violation.

    The State must disqualify from operating a CMV for a period of not 
less than 120 days each person who, in a three-year period, is 
convicted, as defined in Sec. 383.5 of this subchapter, in any State(s) 
or jurisdiction(s), of three serious traffic violations as specified in 
Table 2 to Sec. 383.51. This disqualification period must be in 
addition to any other previous period of disqualification.

    30. Add Sec. 384.222 to read as follows:


Sec. 384.222  Violation of out-of-service orders.

    The State must have and enforce laws and/or regulations applicable 
to drivers of CMVs and their employers, as defined in Sec. 383.5 of 
this subchapter, which meet the minimum requirements of 
Secs. 383.37(c), Table 4 to 383.51, and 383.53(b) of this subchapter.

    31. Revise Sec. 384.223 to read as follows:


Sec. 384.223  Railroad-highway grade crossing violation.

    The State must have and enforce laws and/or regulations applicable 
to CMV drivers and their employers, as defined in Sec. 383.5 of this 
subchapter, which meet the minimum requirements of Secs. 383.37(d), 
Table 3 to 383.51, and 383.53(c) of this subchapter.

    32. Add Sec. 384.224 to read as follows:


Sec. 384.224  Noncommercial motor vehicle violations.

    The State must have and enforce laws and/or regulations applicable 
to drivers of non-CMVs, as defined in Sec. 383.5 of this subchapter, 
which meet the minimum requirements of Tables 1 and 2 to Sec. 383.51 of 
this subchapter.

    33. 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) A person required to have a CDL. 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 users designated in paragraph (e) of this section, or 
to their authorized agent, 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 users or their authorized agents may receive 
the designated information:
    (1) States--All information on all driver records.
    (2) Secretary of Transportation--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.

    34. 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.

    35. Revise Sec. 384.231 to read as follows:


Sec. 384.231  Satisfaction of State disqualification requirement.

    (a) Applicability. The provisions of Secs. 384.203, 384.206(b), 
384.210, 384.213, 384.215 through 384.219, 384.221 through 384.224, and 
384.231 of this part apply to the State of licensure of the person 
affected by the provision. The provisions of Sec. 384.210 of this part 
also apply to any State to which a person makes application for a 
transfer CDL.
    (b) Required action. (1) CDL holders. A State must satisfy the 
requirement of this part that the State disqualify a person who holds a 
CDL by, at a minimum, suspending, revoking, or canceling the person's 
CDL for the applicable period of disqualification.
    (2) A person required to have a CDL. A State must satisfy the 
requirement of this subpart that the State disqualify a person required 
to have a CDL who is convicted of an offense or offenses necessitating 
disqualification under Sec. 383.51 of this subchapter. At a minimum, 
the State must implement the

[[Page 49763]]

limitation on licensing provisions of Sec. 384.210 and the timing and 
recordkeeping requirements of paragraphs (c) and (d) of this section so 
as to prevent such a person from legally obtaining a CDL from any State 
during the applicable disqualification period(s) specified in this 
subpart.
    (c) Required timing. The State must disqualify a driver as 
expeditiously as possible.
    (d) Recordkeeping requirements. The State must conform to the 
requirements of the October 1998 edition of the AAMVAnet, Inc.'s 
``Commercial Driver License Information System (CDLIS) State 
Procedures,'' Version 2.0. (Incorporated by reference, see 
Sec. 384.107.) These requirements include the maintenance of such 
driver records and driver identification data on the CDLIS as the FMCSA 
finds are necessary to the implementation and enforcement of the 
disqualifications called for in Secs. 384.215 through 384.219, and 
384.221 through 384.224 of this part.

    36. 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 September 30, 
2002 as soon as practical, but, unless otherwise specifically provided 
in this part, not later than three years after September 30, 2002.

    37. 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 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.

    38. Revise Sec. 384.401 to read as follows:


Sec. 384.401  Withholding of funds based on noncompliance.

    (a) Following the 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), (b)(3), and (b)(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.
    (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), (b)(3), and (b)(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. 1753) 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.
    39. Revise Sec. 384.403 to read as follows.


Sec. 384.403  Availability of funds withheld for noncompliance.

    (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 or her 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.

    40. 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

[[Page 49764]]

program of a State in substantial noncompliance should be decertified:
    (1) The State computer system does not check the Commercial 
Driver's 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/or 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 State where the driver is licensed.
    (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 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.

    41. 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, but which are determined by the FMCSA to be making a good 
faith effort to comply with these requirements.

PART 390--FEDERAL MOTOR CARRIER SAFETY REGULATIONS; GENERAL

    42. The authority citation for part 390 is revised to read as 
follows:

    Authority: 49 U.S.C. 13301, 13902, 31132, 31133, 31136, 31502, 
and 31504; sec. 204, Pub. L. 104-88, 109 Stat. 803, 941 (49 U.S.C. 
701 note); sec. 217, Pub. L. 106-159, 113 Stat. 1748, 1767; and 49 
CFR 1.73.

    43. Amend Sec. 390.5 to revise the definition for ``Driving a 
commercial motor vehicle while under the influence of alcohol'' to read 
as follows:


Sec. 390.5  Definitions.

* * * * *
    Driving a commercial motor vehicle while under the influence of 
alcohol means committing any one or more of the following acts in a 
CMV: Driving a CMV while the person's alcohol concentration is 0.04 or 
more; driving under the influence of alcohol, as prescribed by State 
law; or refusal to undergo such testing as is required by any State or 
jurisdiction in the enforcement of Table 1 to Sec. 383.51 or 
Sec. 392.5(a)(2) of this subchapter.
* * * * *

    Issued on: June 30, 2002.
Joseph M. Clapp,
Administrator.
[FR Doc. 02-18457 Filed 7-30-02; 8:45 am]
BILLING CODE 4910-EX-P