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[Senate Report 107-241]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 550
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-241
_______________________________________________________________________

                  HAZMAT ENDORSEMENT REQUIREMENTS ACT

                               __________

                              R E P O R T

                                 OF THE

           COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION

                                   on

                                S. 1750

                                     

                 August 1, 2002.--Ordered to be printed
                               __________

                    U.S. GOVERNMENT PRINTING OFFICE
99-010                    WASHINGTON : 2002

       SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
                      one hundred seventh congress
                             second session

              ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii             JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West         TED STEVENS, Alaska
    Virginia                         CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts         TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana            KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota        OLYMPIA J. SNOWE, Maine
RON WYDEN, Oregon                    SAM BROWNBACK, Kansas
MAX CLELAND, Georgia                 GORDON SMITH, Oregon
BARBARA BOXER, California            PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina         JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri              GEORGE ALLEN, Virginia
BILL NELSON, Florida
                     Kevin D. Kayes, Staff Director
                       Moses Boyd, Chief Counsel
                      Gregg Elias, General Counsel
      Jeanne Bumpus, Republican Staff Director and General Counsel
             Ann Begeman, Republican Deputy Staff Director

                                                       Calendar No. 550
107th Congress                                                   Report
                                 SENATE
 2d Session                                                     107-241

======================================================================

 
                  HAZMAT ENDORSEMENT REQUIREMENTS ACT

                                _______
                                

                 August 1, 2002.--Ordered to be printed

                                _______
                                

      Mr. Hollings, from the Committee on Commerce, Science, and 
                Transportation, submitted the following

                              R E P O R T

                         [To accompany S. 1750]

    The Committee on Commerce, Science, and Transportation, to 
which was referred the bill (S. 1750) to make technical 
corrections to the HAZMAT provisions of the USA PATRIOT Act, 
having considered the same, reports favorably thereon with an 
amendment in the nature of a substitute and recommends that the 
bill, as amended, do pass.

                          Purpose of the Bill

  S. 1750 would amend section 1012 of the USA PATRIOT Act of 
2001 (Public Law 107-56) to ensure that the Department of 
Transportation (DOT), the States, and the drivers of commercial 
vehicles are provided a clear statutory direction with respect 
to the requirements associated with hazardous materials 
endorsements and background checks. S. 1750 assumes 
continuation of the basic framework of section 1012 requiring 
that: (1) States request security checks from the United States 
Attorney General (AG) for driver's license applicants who will 
transport hazardous materials; (2) the AG conducts checks of 
relevant information systems and provides the results to the 
United States Department of Transportation (DOT); and (3) the 
DOT notifies requesting States whether applicants pose a 
security threat.

                          Background and Needs

  The terrorist attacks on September 11, 2001, have changed the 
paradigm for what constitutes safety in transportation. 
Attention has shifted from accident prevention to also 
protecting people and cargo from deliberate acts of terrorism. 
Since the attacks on the World Trade Center and the Pentagon, a 
new White House Office of Homeland Security has been created, 
supplemental appropriations have been approved to fight the war 
on terrorism, and security at United States border points of 
entry has been increased. Congress is also currently 
considering a number of measures to improve cargo security, as 
well as to creating a new departmental agency dedicated to 
Homeland Security.
  In October 2001, the Congress passed legislation entitled the 
Uniting and Strengthening America by Providing Appropriate 
Tools Required to Intercept and Obstruct Terrorism (USA 
PATRIOT) Act of 2001 (Public Law 107-56). The USA PATRIOT Act 
consists of ten titles which, among other things, give Federal 
law enforcement and intelligence officers greater authority (at 
least temporarily) to gather and share evidence with respect to 
wire and electronic communications; amend Federal money 
laundering laws involving overseas financial activities; create 
new Federal crimes, increase the penalties for existing Federal 
crimes, and adjust existing Federal criminal procedure with 
respect to acts of terrorism; modify immigration law, 
increasing the ability of Federal authorities to prevent 
suspected foreign terrorists from entering the United States, 
detain foreign terrorist suspects, deport foreign terrorists, 
and mitigate the adverse immigration consequences for the 
foreign victims of September 11; and authorize appropriations 
to enhance the capacity of immigration, law enforcement, and 
intelligence agencies to more effectively respond to the 
threats of terrorism.
  Section 1012 of the USA PATRIOT Act requires background 
checks for drivers of commercial trucks carrying hazardous 
materials. Authored by Senator Orrin Hatch, this section was 
added to the legislation without thorough review by the Senate 
Commerce, Science, and Transportation Committee (Committee). 
The issue of background checks, however, was discussed by the 
Subcommittee on Surface Transportation and Merchant Marine 
(Subcommittee) at a hearing on October 10, 2001. During the 
hearing, many options for increasing the security of hazardous 
materials shipments were discussed, including requiring 
background checks for drivers of commercial vehicles carrying 
hazardous materials. Committee members expressed concerns about 
reports that terrorists may have been seeking licenses to drive 
trucks carrying hazardous materials. For example, on October 4, 
2001, a Federal grand jury in Pittsburgh, PA, indicted 16 
people on charges of fraudulently obtaining commercial driver's 
licenses, including licenses to haul hazardous materials. In 
September 2001, the Federal Bureau of Investigation (FBI) 
arrested Nabil Al-Marabh, linked to an associate of Osama bin 
Laden, who possessed a commercial driver's license with a 
hazardous material endorsement issued by the State of Michigan. 
That license, issued on September 11, 2000, allowed Mr. Al-
Marabh to operate vehicles weighing 10,000 pounds or more.
  While the Committee generally supports the intent of section 
1012, there are many concerns about its interpretation and 
implementation. For example, the provisions of section 1012 
should amend chapter 313 of title 49 of the United States Code 
rather than chapter 51. Chapter 313 sets forth Federal 
requirements for State issuance of Commercial Driver's Licenses 
(CDLs), while chapter 51 sets forth hazardous materials 
transportation requirementsacross the modes. In addition, 
section 1012 does not identify the type or quantity of hazardous 
materials being transported that would require the driver to submit to 
a background check. The Committee believes the requirement should be 
limited to drivers carrying substances for which DOT requires 
placarding or which are on the Centers for Disease Control list of 
select agents. Because of the ambiguities of section 1012, the DOT 
initiated a rulemaking to clarify the requirements for background 
checks; however, at the time this report was filed, the rulemaking had 
not yet been finalized.
  Background check requirements are not uncommon in the 
transportation industry. Passed on November 16, 1990, the 
Aviation Security Improvement Act of 1990, Public Law 101-604, 
required the Administrator of the Federal Aviation 
Administration to issue regulations for employment screening 
and, if deemed necessary, background checks for positions with 
access to security-sensitive areas of airports or airplanes. 
Further, on November 19, 2001, the Aviation Security Act, 
Public Law 107-71, mandated background checks for all airline 
and airport employees, including contract employees, who have 
access to secure areas of airports. S. 1214, the Port and 
Maritime Security Act, which was unanimously approved by the 
Senate on December 20, 2001, also would require background 
checks for port employees with access to secure areas.

                   HAZARDOUS MATERIALS TRANSPORTATION

  Railroads, highways, and marine vessels carry 800,000 
shipments of hazardous materials each day and more than 4 
billion tons per year. Experts note that transportation of 
hazardous materials presents significant safety and security 
risks. The extent of these systems, consisting of millions of 
miles of rail, highway, coastal and inland maritime, and oil 
and gas pipeline networks, make these systems difficult to 
fully safeguard.
  Trucks transport the majority of hazardous materials 
shipments, although the tonnage transported is equally divided 
between truck and rail. The trucking industry employs more than 
9 million commercial drivers, one-third of whom have CDLs with 
hazardous materials endorsements. The types of vehicles 
carrying hazardous materials on the nation's highways range 
from cargo tank trucks to conventional tractor-trailers and 
flatbeds that carry large portable tank containers.
  The DOT's Research and Special Programs Administration (RSPA) 
sets regulations for commercially-transported hazardous 
materials. The Secretary of Transportation determines what 
substances are considered to be hazardous, and classifies them 
according to the different dangers they present. However, the 
1,000 pages of Federal Hazardous Materials Transportation 
Regulations were designed primarily to promote safety during 
transportation--not to ensure security and reduce risks from 
terrorist attacks.
  Companies transporting hazardous materials must register with 
the DOT annually. The registration process involves a simple 
registration form and the payment of a fee, and does not 
require any licensing or approvals. Companies transporting 
hazardous materials are responsible for knowing and following 
the law, including the proper labeling, storage, and securing 
of hazardous materials. Companies transporting explosives are 
required to provide additional information, including 
submitting shipping routes for materials after they have been 
transported. Nuclear waste transport triggers additional United 
States Department of Energy safety requirements.
  In 2000, there were 17,347 hazardous materials incidents 
related to transportation in the United States: 1,419 via air 
transportation; 14,861 via highway transportation; 1,052 via 
railway transportation; and 15 via water transportation. These 
incidents mostly involved minor releases of chemicals; 244 
incidents caused injuries, and 13 caused fatalities (12 via 
highway transportation and 1 via railway transportation).

                 COMMERCIAL DRIVER'S LICENSE STANDARDS

  The Commercial Motor Vehicle Safety Act of 1986, Public Law 
99-570, established minimum national standards that States must 
meet when licensing commercial motor vehicle (CMV) drivers, and 
penalizes those States that do not adhere to the minimum 
standards by withholding Federal highway funds. The Act made it 
illegal for a commercial motor vehicle operator to hold more 
than one driver's license and required States to adopt testing 
and licensing standards for truck and bus drivers to check a 
person's ability to operate the intended type of vehicle. It is 
important to note that the Act does not require operators to 
obtain a separate Federal license; it required States to 
upgrade their existing testing and licensing programs where 
necessary to conform with the Federal minimum standards. The 
Federal Motor Carrier Safety Administration (FMCSA) is 
responsible for monitoring State compliance with the Federal 
CDL requirements and to take enforcement action when a State is 
found to be not in compliance.
  Under the Federal minimum standards, a CDL applicant must 
pass a 50-question general knowledge test on operating a 
commercial motor vehicle and pass a three-part skills test that 
includes pre-trip inspection, off-road vehicle control 
maneuvers, such as alley docking and parallel parking, and road 
maneuvers in actual traffic conditions. An applicant who wishes 
to haul radioactive and other hazardous materials also must 
pass a specialized knowledge test to obtain a hazardous 
materials endorsement.
  Until the passage of the USA PATRIOT Act, there were no 
Federal employment or criminal background checks required of 
drivers seeking a license and endorsement to transport 
hazardous materials. The drivers of hazardous materials are 
required to know what type of substances they are hauling and 
to properly placard their CMV.

         FEDERAL ACTIONS TO HEIGHTEN SECURITY OF MOTOR CARRIERS

  To address ground transportation vulnerabilities following 
September 11, numerous Federal efforts have been initiated. DOT 
has asked the domestic transportation industry to remain at a 
heightened state of alert and to implement security measures 
commensurate with this level of security. As reported by 
Admiral James W. Underwood who testified at the Subcommittee 
hearing on railroad and maritime security on October 2, 2001, 
DOT's Office of Intelligence and Security is monitoring threats 
to transportation. TheFBI has warned representatives at 
industrial facilities, particularly those that manufacture, distribute, 
transport or store hazardous materials, that they should be especially 
vigilant. The FBI is coordinating a formal threat assessment with the 
DOT.
  On September 26, 2001, the FMSCA ordered State directors to 
visit carriers that transport hazardous materials. According to 
an FMSCA memo to State directors dated September 26, 2001, 
these ``security sensitivity visits'' were intended to 
``heighten the sensitivity of carriers to be alert for 
suspicious behaviors from drivers, shippers, consignees, or the 
public and to report threats to proper authorities.'' The State 
directors also were directed to contact State trucking 
associations involved in the transport of hazardous materials 
to emphasize the ``need to heighten security awareness.''

                             BORDER ISSUES

  Federal and State agents at Mexican and Canadian border 
crossings are responsible for monitoring hazardous materials 
on, and the safety of, motor vehicles entering the United 
States. Law enforcement, intelligence, customs, truck safety, 
and immigration functions all converge at these border 
crossings. To stop hazardous materials that could be used as 
weapons to commit acts of terrorism, border agents not only 
need information from United States law enforcement and 
intelligence agencies about specific threats, but also 
immigration and intelligence information regarding unsafe and 
potentially dangerous drivers, whether they have poor driving 
records or a background of criminal or terrorist activities. A 
coordinated sharing of information and responsibilities at the 
border is one of the keys to both stopping terrorism and making 
sure foreign trucks are safe for American roads.
  The Committee believes it is important to apply standards 
equally to all CMV drivers carrying hazardous materials in the 
United States. Therefore, drivers licensed in Canada or Mexico 
who carry hazardous materials into and through the United 
States would be required to submit to similar background 
checks.

                          Legislative History

  On October 10, 2001, the Subcommittee held a hearing on bus 
and truck safety and hazardous materials licensing. The hearing 
was chaired by Senator Breaux. The following witnesses 
testified: Joseph Clapp, Administrator, FMCSA; Ellen Engleman, 
Administrator, RSPA; Duane W. Acklie, Chairman of the Board, 
American Trucking Associations; Peter Pantuso, President and 
CEO, American Bus Associations; Keith Gleason, Director, 
Tankhaul Division, International Brotherhood of Teamsters; 
Lieutenant Paul Sullivan, Massachusetts State Police, 
Commercial Vehicle Enforcement Division; and Joan Claybrook, 
President, Public Citizen, and Program Co-chair, Advocates for 
Highway and Auto Safety.
  On October 26, 2001, the USA PATRIOT Act (P.L. 107-56) was 
signed into law. Section 1012 enacts 49 U.S.C. 5103a, which 
limits the issuance of hazardous materials endorsements to 
instances where the Secretary of Transportation has certified 
that the applicant is not a security risk. It requires the 
States to request a background check from the AG, which 
consists of a check of the relevant criminal history databases; 
in the case of an alien, the status of the alien under the 
immigration laws of the United States; and as appropriate, a 
check of the relevant international databaes through Interpol-
United States National Central Bureau. It expands the 
definition of hazardous materials to include chemical and 
biological materials and agents, and authorizes the Secretary 
of the Transportation to require the States to report relevant 
related information. Section 1012 also amends 49 U.S.C. 31305 
with respect to the minimum standards for commercial motor 
vehicle operator fitness to include a determination under 
section 5103a that the applicant does not pose a security risk.
  On November 30, 2001, Senators Ernest Hollings, John McCain, 
John Breaux, and Gordon Smith introduced S. 1750 to help 
improve upon the implementation requirements of the USA PATRIOT 
Act with respect to background checks for commercial truck 
drivers transporting hazardous materials. S. 1750 assumes 
continuation of the basic framework of section 1012, but 
provides additional direction to the DOT regarding standards, 
requirements, and rulemakings.
  On April 18, 2002, the Committee met in executive session and 
ordered S. 1750 reported with an amendment in the nature of a 
substitute. This amendment provided technical changes to 
clarify the intent of the USA PATRIOT Act, including provisions 
maintaining the confidentiality of records, provisions 
delineating the authority of the Secretary of Transportation to 
issue an interim final rule on conducting background checks for 
commercial drivers, and provisions authorizing DOT to assess 
the risks associated with motor carrier transportation and to 
carry out research and testing of devices to increase security 
of hazardous shipments.

                            Estimated Costs

  
  In accordance with paragraph 11(a) of rule XXVI of the 
Standing Rules of the Senate and section 403 of the 
Congressional Budget Act of 1974, the Committee provides the 
following cost estimate, prepared by the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, May 20, 2002.
Hon. Ernest F. Hollings,
Chairman, Committee on Commerce, Science, and Transportation,
U.S. Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1750, Hazmat 
Endorsement Requirements Act.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contacts are Julie 
Middleton (for federal costs) and Susan Sieg Tompkins (for the 
state and local impact).
            Sincerely,
                                          Barry B. Anderson
                                    (For Dan L. Crippen, Director).
    Enclosure.

               Congressional Budget Office Cost Estimate

S. 1750--Hazmat Endorsement Requirements Act

    S. 1750 would authorize the Secretary of Transportation to 
assess security risks associated with motor carrier 
transportation of hazardous materials and to research the 
feasibility of requiring hazardous materials transporters to 
install security devices. Based on information from the 
Department of Transportation, CBO estimates that implementing 
S. 1750 would cost $2 million over the 2002-2007 period, 
assuming appropriation of the necessary funds.
    In addition, S. 1750 would clarify provisions of the USA 
PATRIOT Act (Public Law 107-56) that prohibits states from 
issuing licenses for the transportation of hazardous materials 
unless the Department of Transportation determines that the 
applicant does not pose a security risk. S. 1750 would 
establish specific criteria to judge who may be a security risk 
and it would define hazardous materials under the USA PATRIOT 
Act. CBO estimates that these clarifications to current law 
would have no significant impact on the federal budget.
    CBO estimates that implementing S. 1750 would increase 
revenues and direct spending by less than $500,000 a year 
because the act would establish new criminal penalties for 
obtaining fraudulent commercial driver's licenses. Criminal 
fines are recorded in the federal budget as governmental 
receipts (revenues). Criminal fines are then deposited in the 
Crime Victims Funds and are available to be spent without 
further appropriations in the following year. Because the bill 
could affect revenues and direct spending, pay-as-you-go 
procedures would apply; but CBO expects that any additional 
receipts and direct spending resulting from this bill would be 
negligible because of the small number of cases involved.
    S. 1750 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA). 
The hazardous materials provisions of the USA PATRIOT Act could 
impose significant costs on states to upgrade their information 
management systems to track the results of criminal background 
checks. Based on information from state motor vehicle 
administrators, initial costs for all states could range from 
$25 million to $60 million, depending on how the final 
regulations are written by the Department of Transportation. 
While S. 1750 would provide more detail about how the original 
USA PATRIOT Act requirements would be carried out, it would not 
place any additional requirements on states. Any costs states 
incur are the result of enactment of the USA PATRIOT Act, not 
S. 1750.
    The CBO staff contacts for this estimate are Julie 
Middleton (for federal costs) and Susan Sieg Tompkins (for the 
state and local impact). This estimate was approved by Peter H. 
Fontaine, Deputy Assistant Director for Budget Analysis.

                      Regulatory Impact Statement

  In accordance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee provides the 
following evaluation of the regulatory impact of the 
legislation, as reported:
  Because S. 1750 does not create any new programs in addition 
to section 1012 of the USA PATRIOT Act, the legislation would 
have no additional regulatory impact, and would result in no 
additional reporting requirements. The legislation would have 
no further effect on the number or types of individuals and 
businesses regulated, the economic impact of such regulation, 
the personal privacy of affected individuals, or the paperwork 
required from such individuals and businesses.

                      Summary of Major Provisions

  S. 1750 would set forth Federal requirements for State 
issuance of CDLs with hazardous materials endorsements; 
establish offenses that would disqualify drivers, similar to 
those for aviation employees; clarify the definition of 
hazardous materials; authorize the Secretary of Transportation 
to provide a waiver for State compliance if a background check 
for renewal of a hazardous materials endorsement cannot be 
completed in a timely manner through no fault of the applicant; 
provide for due process in the event that a driver is denied an 
endorsement; require that Canadian and Mexican commercial 
drivers carrying hazardous materials in the United States be 
subjected to a similar background check; establish penalties 
for issuing fraudulent CDLs or endorsements; and require the 
Secretary of Transportation to assess the security risks 
associated with the transportation of hazardous materials and 
various security and technological means to reduce the risks of 
transporting such materials.

                      Section-by-Section Analysis

Section 1. Short title

  This section provides that the bill may be cited as the 
``Hazmat Endorsement Requirements Act.''

Section 2. Limitation on Issuance of Hazardous Materials Endorsements

  Section 2 would correct the Commercial Driver's License (CDL) 
provisions of section 1012 of the USA PATRIOT Act which amended 
chapter 51 of title 49, United States Code, which sets forth 
hazardous materials transport requirements for all modes of 
transportation. The section would instead amend chapter 313 of 
title 49, United States Code, which sets forth Federal 
requirements for State issuance of CDLs, to establish a new 
section 31318 captioned ``Issuance, renewal, upgrade, transfer, 
periodic check of hazardous materials licenses.''
  This section would set State requirements for the issuance of 
hazardous materials endorsements, as follows: (1) a State may 
not issue, renew, upgrade, or transfer a hazardous materials 
endorsement for a CDL unless the Secretary of Transportation 
has determined that the individual does not pose a security 
risk warranting denial of the endorsement; (2) each State is to 
implement a program under which a background records check is 
requested whenever a CDL with a hazardous materials endorsement 
is to be issued, renewed, upgraded or transferred; and (3) 
under regulations to be prescribed by the Secretary, States 
would also be required to periodically conduct background 
checks on other holders of CDLs with a hazardous materials 
endorsement.
  This section would establish conditions for a driver's 
disqualification. Under this section, an individual may not be 
denied a hazardous materials endorsement for a commercial 
driver's license unless the Secretary determines that, during 
the past 10 years, the applicant was convicted, or found not 
guilty by reason of insanity, of an offense described in 
section 44936 (b)(1)(B) of title 49 United States Code, (which 
are the same offenses that would disqualify aviation 
employees), offenses described in 18 U.S.C. 175b(b)(2), or 
denied admission to the United States or removed from the 
United States under clauses of the Immigration and Nationality 
Act. Under this section, the Secretary would be required to 
consider circumstances or other factors of any disqualifying 
act or offense that may indicate an applicant does not pose a 
security risk by holding a hazardous materials endorsement. 
This section would further direct the Secretary to establish an 
appeals process for applicants who are denied a hazardous 
materials endorsement. The appeals process would include notice 
of the reason for denial and the opportunity for a hearing.
  To issue a hazardous materials endorsement, the States would 
be required to request that the AG conduct a background check 
on the applicant. Under this section, the AG would conduct the 
background check, and, upon completion, notify the Secretary of 
Transportation of the results. The Secretary of Transportation 
would make a determination regarding disqualifying acts and 
offenses as described above and notify the State. The AG would 
be authorized to take appropriate criminal enforcement action 
based on information developed or obtained while conducting the 
background check. The background checks would involve review of 
relevant criminal, immigration, and international databases. If 
a background check for renewal of a hazardous materials 
endorsement cannot be completed in a timely manner through no 
fault of the applicant, the Secretary would be permitted to 
provide a waiver for State compliance and the individual could 
continue to hold a hazardous materials endorsement until the 
new background check is completed.
  Under this section, States would be required to provide 
timely information to the Secretary of Transportation about 
individuals holding hazardous materials endorsements. 
Information collected about individuals must remain 
confidential and may not be made available through the Freedom 
of Information Act.
  This section would define ``hazardous materials'' as 
substances or materials designated as hazardous by DOT under 49 
U.S.C. 5103 or as those which require placarding. Hazardous 
materials would also include substances or materials designated 
by the Secretary for purposes of this Act, including a 
substance or material on the CDC list of select agents. 
Security checks would be performed only on drivers of trucks 
hauling hazardous materials.
  States failing to comply with the provisions of this Act 
would be subject to withholding of Federal highway funds. 
However, no enforcement action would be taken against a State 
for noncompliance with this Act prior to the effective date of 
the interim final rule prescribed by the Secretary of 
Transportation. The Secretary of Transportation would be 
directed to issue an interim final rule within 90 days after 
the date of enactment of this legislation.

Section 3. Prohibition on Operating Without Proper Hazardous Materials 
        Endorsement or License

  Section 3 would provide that no individual may operate a 
commercial motor vehicle transporting a hazardous material in 
commerce in the United States without a hazardous materials 
endorsement issued by a State. Under this section, a hazardous 
materials endorsement or license issued by the government of 
Canada or Mexico, or a political subdivision, must provide for 
a background check that is the same as, or substantially 
similar to, the background check required under the terms of 
this Act. The Secretary of Transportation would be directed, by 
regulation, to prescribe penalties for violation of this 
section.

Section 4. Penalties For Issuing Fraudulent CDLs or Endorsements

  Section 4 would provide that any person who knowingly issues, 
obtains, or facilitates the issuance, renewal, upgrade, 
transfer, or acquisition of a commercial driver's license or a 
hazardous materials endorsement, or attempts to do so, is 
guilty of a Class E felony punishable by a fine, imprisonment, 
or both as provided in Title 18 of the United States Code.

Section 5. Motor Carrier Security Report

  Section 5 would provide that the Secretary of Transportation 
is to assess the security risks associated with motor carrier 
transportation, the transportation of hazardous materials, and 
various security and technological means to reduce the risks of 
its transport. The assessment is to include a review of any 
actions taken by the public and private sectors to address 
hazardous materials security issues. The Secretary would be 
required to consult with operators, drivers, safety advocates, 
public safety officials, and the Transportation Research Board 
of the National Academy of Sciences. Further, the Secretary 
would be required, within 180 days of enactment of this Act, to 
submit a report to Congress, in both classified and redacted 
forms, with its assessment and proposals for providing Federal 
financial or technical support to assist carriers and shippers 
in addressing the risks of terrorism.

Section 6. Study

  Section 6 would direct that the Secretary of Transportation 
to conduct a study using FY 2003 funds appropriated pursuant to 
the authority of section 5001(a)(5) of the Transportation 
Equity Act for the 21st Century, Public Law 105-178, to 
determine the effectiveness of installing ignition- or engine-
locking devices, silent alarms, or satellite technology in 
vehicles transporting hazardous materials. The Secretary would 
be authorized to conduct a pilot program to assess such 
devices.

                        Changes in Existing Law

  In compliance with paragraph 12 of rule XXVI of the Standing 
Rules of the Senate, changes in existing law made by the bill, 
as reported, are shown as follows (existing law proposed to be 
omitted is enclosed in black brackets, new material is printed 
in italic, existing law in which no change is proposed is shown 
in roman):

                        TITLE 49. TRANSPORTATION

             SUBTITLE III. GENERAL AND INTERMODAL PROGRAMS

            CHAPTER 51. TRANSPORTATION OF HAZARDOUS MATERIAL

[Sec. 5103a. Limitation on issuance of hazardous materials licenses

  [(a) Limitation.--
          [(1) Issuance of licenses.--A State may not issue to 
        any individual a license to operate a motor vehicle 
        transporting in commerce a hazardous material unless 
        the Secretary of Transportation has first determined, 
        upon receipt of a notification under subsection 
        (c)(1)(B), that the individual does not pose a security 
        risk warranting denial of the license.
          [(2) Renewals included.--For the purposes of this 
        section, the term ``issue'', with respect to a license, 
        includes renewal of the license.
  [(b) Hazardous Materials Described.--The limitation in 
subsection (a) shall apply with respect to--
          [(1) any material defined as a hazardous material by 
        the Secretary of Transportation; and
          [(2) any chemical or biological material or agent 
        determined by the Secretary of Health and Human 
        Services or the Attorney General as being a threat to 
        the national security of the United States.
  [(c) Background Records Check.--
          [(1) In general. Upon the request of a State 
        regarding issuance of a license described in subsection 
        (a)(1) to an individual, the Attorney General--
                  [(A) shall carry out a background records 
                check regarding the individual; and
                  [(B) upon completing the background records 
                check, shall notify the Secretary of 
                Transportation of the completion and results of 
                the background records check.
          [(2) Scope.--A background records check regarding an 
        individual under this subsection shall consist of the 
        following:
                  [(A) A check of the relevant criminal history 
                data bases.
                  [(B) In the case of an alien, a check of the 
                relevant data bases to determine the status of 
                the alien under the immigration laws of the 
                United States.
                  [(C) As appropriate, a check of the relevant 
                international data bases through Interpol-U.S. 
                National Central Bureau or other appropriate 
                means.
  [(d) Reporting Requirement.--Each State shall submit to the 
Secretary of Transportation, at such time and in such manner as 
the Secretary may prescribe, the name, address, and such other 
information as the Secretary may require, concerning--
          [(1) each alien to whom the State issues a license 
        described in subsection (a); and
          [(2) each other individual to whom such a license is 
        issued, as the Secretary may require.
  [(e) Alien Defined.--In this section, the term ``alien'' has 
the meaning given the term in section 101(a)(3) of the 
Immigration and Nationality Act.]

           *       *       *       *       *       *       *

                        TITLE 49. TRANSPORTATION

             SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS

                           PART B. COMMERCIAL

            CHAPTER 313. COMMERCIAL MOTOR VEHICLE OPERATORS

Sec. 31305. General driver fitness and testing

  (a) Minimum Standards for Testing and Fitness.--The Secretary 
of Transportation shall prescribe regulations on minimum 
standards for testing and ensuring the fitness of an individual 
operating a commercial motor vehicle. The regulations--
          (1) shall prescribe minimum standards for written and 
        driving tests of an individual operating a commercial 
        motor vehicle;
          (2) shall require an individual who operates or will 
        operate a commercial motor vehicle to take a driving 
        test in a vehicle representative of the type of vehicle 
        the individual operates or will operate;
          (3) shall prescribe minimum testing standards for the 
        operation of a commercial motor vehicle and may 
        prescribe different minimum testing standards for 
        different classes of commercial motor vehicles;
          (4) shall ensure that an individual taking the tests 
        has a working knowledge of--
                  (A) regulations on the safe operation of a 
                commercial motor vehicle prescribed by the 
                Secretary and contained in title 49, Code of 
                Federal Regulations; and
                  (B) safety systems of the vehicle;
          (5) shall ensure that an individual who operates or 
        will operate a commercial motor vehicle carrying a 
        hazardous material--
                  (A) is qualified to operate the vehicle under 
                regulations on motor vehicle transportation of 
                hazardous material prescribed under chapter 51 
                of this title;
                  (B) has a working knowledge of--
                          (i) those regulations;
                          (ii) the handling of hazardous 
                        material;
                          (iii) the operation of emergency 
                        equipment used in response to 
                        emergencies arising out of the 
                        transportation of hazardous material; 
                        and
                          (iv) appropriate response procedures 
                        to follow in those emergencies; and
                  (C) is licensed by a State to operate the 
                vehicle after having first been determined 
                under [section 5103a] section 31318 of this 
                title as not posing a security risk warranting 
                denial of the license.
          (6) shall establish minimum scores for passing the 
        tests;
          (7) shall ensure that an individual taking the tests 
        is qualified to operate a commercial motor vehicle 
        under regulations prescribed by the Secretary and 
        contained in title 49, Code of Federal Regulations, to 
        the extent the regulations apply to the individual; and
          (8) may require--
                  (A) issuance of a certification of fitness to 
                operate a commercial motor vehicle to an 
                individual passing the tests; and
                  (B) the individual to have a copy of the 
                certification in the individual's possession 
                when the individual is operating a commercial 
                motor vehicle.
  (b) Requirements for Operating Vehicles.--
          (1) Except as provided in paragraph (2) of this 
        subsection, an individual may operate a commercial 
        motor vehicle only if the individual has passed written 
        and driving tests that meet the minimum standards 
        prescribed by the Secretary under subsection (a) of 
        this section to operate the vehicle and has a 
        commercial driver's license to operate the vehicle.
          (2) The Secretary may prescribe regulations providing 
        that an individual may operate a commercial motor 
        vehicle for not more than 90 days if the individual--
                  (A) passes a driving test for operating a 
                commercial motor vehicle that meets the minimum 
                standards prescribed under subsection (a) of 
                this section; and
                  (B) has a driver's license that is not 
                suspended, revoked, or canceled.

                        TITLE 49. TRANSPORTATION

             SUBTITLE VI. MOTOR VEHICLE AND DRIVER PROGRAMS

                           PART B. COMMERCIAL

            CHAPTER 313. COMMERCIAL MOTOR VEHICLE OPERATORS

Sec. 31311. Requirements for State participation

  (a) General.--To avoid having amounts withheld from 
apportionment under section 31314 of this title, a State shall 
comply with the following requirements:
          (1) The State shall adopt and carry out a program for 
        testing and ensuring the fitness of individuals to 
        operate commercial motor vehicles consistent with the 
        minimum standards prescribed by the Secretary of 
        Transportation under section 31305(a) of this title.
          (2) The State may issue a commercial driver's license 
        to an individual only if the individual passes written 
        and driving tests for the operation of a commercial 
        motor vehicle that comply with the minimum standards.
          (3) The State shall have in effect and enforce a law 
        providing that an individual with a blood alcohol 
        concentration level at or above the level established 
        by section 31310(a) of this title when operating a 
        commercial motor vehicle is deemed to be driving under 
        the influence of alcohol.
          (4) The State shall authorize an individual to 
        operate a commercial motor vehicle only by issuing a 
        commercial driver's license containing the information 
        described in section 31308(3) of this title.
          (5) At least 60 days before issuing a commercial 
        driver's license (or a shorter period the Secretary 
        prescribes by regulation), the State shall notify the 
        Secretary or the operator of the information system 
        under section 31309 of this title, as the case may be, 
        of the proposed issuance of the license and other 
        information the Secretary may require to ensure 
        identification of the individual applying for the 
        license.
          (6) Before issuing a commercial driver's license to 
        an individual or renewing such a license, the State 
        shall request from any other State that has issued a 
        driver's license to the individual all information 
        about the driving record of the individual.
          (7) Not later than 30 days after issuing a commercial 
        driver's license, the State shall notify the Secretary 
        or the operator of the information system under section 
        31309 of this title, as the case may be, of the 
        issuance.
          (8) Not later than 10 days after disqualifying the 
        holder of a commercial driver's license from operating 
        a commercial motor vehicle (or after revoking, 
        suspending, or canceling the license) for at least 60 
        days, the State shall notify the Secretary or the 
        operator of the information system under section 31309 
        of this title, as the case may be, and the State that 
        issued the license, of the disqualification, 
        revocation, suspension, or cancellation, and the 
        violation that resulted in the disqualification, 
        revocation, suspension, or cancellation shall be 
        recorded.
          (9) If an individual violates a State or local law on 
        motor vehicle traffic control (except a parking 
        violation) and the individual--
                  (A) has a commercial driver's license issued 
                by another State; or
                  (B) is operating a commercial vehicle without 
                a commercial driver's license and has a 
                driver's license issued by another State, the 
                State in which the violation occurred shall 
                notify a State official designated by the 
                issuing State of the violations not later than 
                10 days after the date the individual is found 
                to have committed the violation.
          (10)(A) The State may not issue a commercial driver's 
        license to an individual during a period in which the 
        individual is disqualified from operating a commercial 
        motor vehicle or the individual's driver's license is 
        revoked, suspended, or canceled.
          (B) The State may not issue a special license or 
        permit (including a provisional or temporary license) 
        to an individual who holds a commercial driver's 
        license that permits the individual to drive a 
        commercial motor vehicle during a period in which--
        
                  (i) the individual is disqualified from 
                operating a commercial motor vehicle; or
                  (ii) the individual's driver's license is 
                revoked, suspended, or canceled.
          (11) The State may issue a commercial driver's 
        license to an individual who has a commercial driver's 
        license issued by another State only if the individual 
        first returns the driver's license issued by the other 
        State.
          (12) The State may issue a commercial driver's 
        license only to an individual who operates or will 
        operate a commercial motor vehicle and is domiciled in 
        the State, except that, under regulations the Secretary 
        shall prescribe, the State may issue a commercial 
        driver's license to an individual who operates or will 
        operate a commercial motor vehicle and is not domiciled 
        in a State that issues commercial drivers' licenses.
          (13) The State shall impose penalties consistent with 
        this chapter that the State considers appropriate and 
        the Secretary approves for an individual operating a 
        commercial motor vehicle.
          (14) The State shall allow an individual to operate a 
        commercial motor vehicle in the State if--
                  (A) the individual has a commercial driver's 
                license issued by another State under the 
                minimum standards prescribed by the Secretary 
                under section 31305(a) of this title;
                  (B) the license is not revoked, suspended, or 
                canceled; and
                  (C) the individual is not disqualified from 
                operating a commercial motor vehicle.
          (15) The State shall disqualify an individual from 
        operating a commercial motor vehicle for the same 
        reasons and time periods for which the Secretary shall 
        disqualify the individual under subsections (b)-(e), 
        (g)(1)(A), and (g)(2) of section 31310.
          (16)(A) Before issuing a commercial driver's license 
        to an individual, the State shall request the Secretary 
        for information from the National Driver Register 
        maintained under chapter 303 of this title (after the 
        Secretary decides the Register is operational) on 
        whether the individual--
                  (i) has been disqualified from operating a 
                motor vehicle (except a commercial motor 
                vehicle);
                  (ii) has had a license (except a license 
                authorizing the individual to operate a 
                commercial motor vehicle) revoked, suspended, 
                or canceled for cause in the 3-year period 
                ending on the date of application for the 
                commercial driver's license; or
                  (iii) has been convicted of an offense 
                specified in section 30304(a)(3) of this title.
          (B) The State shall give full weight and 
        consideration to that information in deciding whether 
        to issue the individual a commercial driver's license.
          (17) The State shall adopt and enforce regulations 
        prescribed by the Secretary under section 31310(h) of 
        this title.
          (18) The State shall maintain, as part of its driver 
        information system, a record of each violation of a 
        State or local motor vehicle traffic control law while 
        operating a motor vehicle (except a parking violation) 
        for each individual who holds a commercial driver's 
        license. The record shall be available upon request to 
        the individual, the Secretary, employers, prospective 
        employers, State licensing and law enforcement 
        agencies, and their authorized agents.
          (19) The State shall--
                  (A) record in the driving record of an 
                individual who has a commercial driver's 
                license issued by the State; and
                  (B) make available to all authorized persons 
                and governmental entities having access to such 
                record, all information the State receives 
                under paragraph (9) with respect to the 
                individual and every violation by the 
                individual involving a motor vehicle (including 
                a commercial motor vehicle) of a State or local 
                law on traffic control (except a parking 
                violation), not later than 10 days after the 
                date of receipt of such information or the date 
                of such violation, as the case may be. The 
                State may not allow information regarding such 
                violations to be withheld or masked in any way 
                from the record of an individual possessing a 
                commercial driver's license.
          (20) The State shall revoke, suspend, or cancel the 
        commercial driver's license of an individual in 
        accordance with regulations issued by the Secretary to 
        carry out section 31310(g).
          (21) The State shall comply with the requirements of 
        section 31318.
  (b) State Satisfaction of Requirements.--A State may satisfy 
the requirements of subsection (a) of this section that the 
State disqualify an individual from operating a commercial 
motor vehicle by revoking, suspending, or canceling the 
driver's license issued to the individual.
  (c) Notification.--Not later than 30 days after being 
notified by a State of the proposed issuance of a commercial 
driver's license to an individual, the Secretary or the 
operator of the information system under section 31309 of this 
title, as the case may be, shall notify the State whether the 
individual has a commercial driver's license issued by another 
State or has been disqualified from operating a commercial 
motor vehicle by another State or the Secretary.

Sec. 31318. Issuance, renewal, upgrade, transfer, and periodic check of 
                    hazardous materials endorsements

  (a) In General.--A State may not issue, renew, upgrade, or 
transfer a hazardous materials endorsement for a commercial 
driver's license to any individual authorizing that individual 
to operate a commercial motor vehicle transporting a hazardous 
material in commerce unless the Secretary of Transportation has 
determined that the individual does not pose a security risk 
warranting denial of the endorsement. Each State shall 
implement a program under which a background records check is 
requested--
          (1) whenever a commercial driver's license with a 
        hazardous materials endorsement is to be issued, 
        renewed, upgraded, or transferred; and
          (2) periodically (as prescribed by the Secretary by 
        regulations) for all other individuals holding a 
        commercial driver's license with a hazardous materials 
        endorsement.
  (b) Determination of Security Risk.--
          (1) In general.--An otherwise qualified individual 
        may not be denied a hazardous materials endorsement for 
        a commercial driver's license under subsection (a) 
        unless the Secretary determines that individual--
                  (A) in the 10-year period ending on the date 
                of the application for a background 
                investigation, was convicted (or found not 
                guilty by reason of insanity) of an offense 
                described in section 44936(b)(1)(B) of this 
                title (disregarding the matter in clause 
                (xiv)(IX) after ``1 year,'');
                  (B) is described in section 175b(b)(2) of 
                title 18, United States Code; or
                  (C) may be denied admission to the United 
                States or removed from the United States under 
                subclause (IV), (VI), or (VII) of section 
                212(a)(3)(B)(i) of the Immigration and 
                Nationality Act (8 U.S.C. 1182(a)(3)).
          (2) Mitigating circumstances.--In making a 
        determination under paragraph (1), the Secretary shall 
        give consideration to the circumstances of any 
        disqualifying act or offense, restitution made by the 
        individual, Federal and State mitigation remedies, and 
        other factors from which it may be reasonably concluded 
        that the individual does not pose a security risk 
        warranting denial of the endorsement.
          (3) Appeals process.--The Secretary shall establish 
        an appeals process under this section for individuals 
        found to be ineligible for a hazardous materials 
        endorsement for a commercial driver's license that 
        includes notice and an opportunity for a hearing.
  (c) Background Records Check.--
          (1) In general.--Upon the request of a State 
        regarding issuance of a hazardous materials endorsement 
        for a commercial driver's license to an individual, the 
        Attorney General shall--
                  (A) conduct a background records check 
                regarding the individual;
                  (B) take appropriate criminal enforcement 
                action required by information developed or 
                obtained in the course of the background check; 
                and
                  (C) upon completing the background records 
                check, notify the Secretary of Transportation 
                of the completion and results of the background 
                records check.
          (2) Scope.--A background records check regarding an 
        individual under this subsection shall consist of the 
        following:
                  (A) A check of the relevant criminal history 
                data bases.
                  (B) In the case of an alien, a check of the 
                relevant data bases to determine the status of 
                the alien under the immigration laws of the 
                United States.
                  (C) As appropriate, a check of the relevant 
                international data bases through Interpol-U.S. 
                National Central Bureau or other appropriate 
                means.
                  (D) Review of any other national security-
                related information or data base identified by 
                the Attorney General for purposes of such a 
                background records check.
          (3) Secretary to notify State.--After making the 
        determination required by subsection (b)(1), the 
        Secretary of Transportation shall promptly notify the 
        State of the determination.
  (d) Reporting Requirement.--Each State shall submit to the 
Secretary of Transportation, at such time and in such manner as 
the Secretary may prescribe, such information as the Secretary 
may require, concerning each individual to whom the State 
issues a hazardous materials endorsement for a commercial 
driver's license.
  (e) Restrictions on Use and Maintenance of Information.--
          (1) FOIA not to apply.--Information obtained by the 
        Attorney General or the Secretary of Transportation 
        under this section may not be made available to the 
        public under section 552 of title 5, United States 
        Code.
          (2) Confidentiality.--Any information obtained by the 
        Secretary of Transportation under this section shall be 
        maintained confidentially by the Secretary and may be 
        used only for making determinations under this section.
  (f) Renewal Waiver for Background Check Delays.--The 
Secretary may, in accordance with procedures prescribed by the 
Secretary, provide a waiver for State compliance with the 
requirements of subsection (a) for renewals to the extent 
necessary to avoid the interruption of service by a license 
holder while a background check is being completed. The 
Secretary may not grant a waiver under this subsection to avoid 
interruption of service if the interruption of service would be 
due to the license holder's failure to comply with the 
licensing renewal requirements or to furnish necessary 
documentation in a timely manner.
  (g) Definitions.--In this section:
          (1) Hazardous materials.--The term ``hazardous 
        material'' means--
                  (A) a substance or material designated by the 
                Secretary under section 5103(a) of this title 
                for which the Secretary requires placarding of 
                a commercial motor vehicle transporting it in 
                commerce; and
                  (B) a substance or material, including a 
                substance or material on the Centers for 
                Disease Control's list of select agents, 
                designated as a hazardous material by the 
                Secretary under procedures to be established by 
                the Secretary for the purposes of this section.
          (2) Alien.--The term ``alien'' has the meaning given 
        the term in section 101(a)(3) of the Immigration and 
        Nationality Act (8 U.S.C. 1101(a)(3)).

Sec. 31319. Prohibition on unauthorized transportation of hazardous 
                    materials

  (a) In General.--Notwithstanding any provision of law, 
treaty, or international agreement to the contrary, after the 
effective date of the interim final rule promulgated by the 
Secretary of Transportation under section 2(d)(3) of the Hazmat 
Endorsement Requirements Act, no individual may operate a 
commercial motor vehicle transporting a hazardous material (as 
defined in section 31318(g)) in commerce in the United States 
without a hazardous materials endorsement or a license 
authorizing that individual to operate a commercial motor 
vehicle transporting a hazardous material in commerce--
          (1) issued by a State in accordance with the 
        requirements of section 31318 of this title; or
          (2) issued by the government of Canada or Mexico, or 
        a political subdivision thereof, after a background 
        check that is the same as, or substantially similar to, 
        the background check required by section 31318.
  (b) Penalty.--The Secretary shall by regulation prescribe the 
penalty for violation of subsection (a).

Sec. 31320. Penalty for fraudulent issuance, renewal, upgrade, or 
                    transfer of commercial driver's license

  Any person who knowingly issues, obtains, or facilitates the 
issuance, renewal, upgrade, transfer, or obtaining of, a 
commercial driver's license or an endorsement for a commercial 
driver's license, or attempts to do so, knowing the license or 
endorsement to have been wrongfully issued or obtained, or 
issued, renewed, upgraded, transferred, or obtained through the 
submission of false information or the intentional withholding 
of required information is guilty of a Class E felony 
punishable by a fine, imprisonment, or both as provided in 
title 18, United States Code.

                            USA PATRIOT ACT

SEC. 1012. LIMITATION ON ISSUANCE OF HAZMAT LICENSES.

           *       *       *       *       *       *       *

  (c) Authorization of Appropriations.--There is authorized to 
be appropriated for the Department of Transportation and the 
Department of Justice such amounts as may be necessary to carry 
out [section 5103a] section 31318 of title 49, United States 
Code, as added by subsection (a).

                                  
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