motor carrier’s negligence or willful misconduct caused the 
condition requiring repair under subsection (b).’’. 
SEC. 6. SAFETY COMPLIANCE. 
Chapter 59 of title 49, United States Code, is further 
amended by adding at the end the following: 
‘‘§ 5912. Compliance with safety regulations 
‘‘(a) EQUIPMENT CONTROLLER LIABILITY.—Not-
withstanding any provision in an equipment interchange 
agreement to the contrary, the equipment controller shall 
be liable for all violations of the Federal Motor Carrier 
Safety Regulations attributable to the controller’s equip-
ment and shall pay any applicable fines, penalties, and 
damages resulting from the equipment’s violation of such 
regulations; except that the equipment controller shall not 
be liable for violations of such regulations attributable to 
the controller’s equipment that are proximately caused by 
the motor carrier’s or motor carrier’s agent’s negligence 
or willful misconduct. 
‘‘(b) MOTOR CARRIER’S LIMITED LIABILITY.—Ex-
cept as provided in subsection (a), a motor carrier and 
any motor carrier agent who receives equipment through 
interchange shall not be liable for any violation of the Fed-
eral Motor Carrier Safety Regulations attributable to that 
equipment.
‘‘(c) LIMITATION ON EFFECT.—No record or report 
of a violation of the Federal Motor Carrier Safety Regula-
tions, whether issued by a Federal, State, or local law en-
forcement authority, attributable to equipment inter-
changed shall have any effect on a motor carrier’s overall 
safety rating or safety status measurement system score, 
as determined by the Federal Motor Carrier Safety Ad-
ministration, or on a motor carrier’s agent’s driving record 
unless such violation was proximately caused by the motor 
carrier’s or motor carrier’s agent’s negligence or willful 
misconduct. 
‘‘(d) PROCEDURE
FOR RECORDS CORRECTIONS.—
The Secretary of Transportation shall establish, within 6 
months of the date of enactment of this section, an expe-
dited procedure to correct records or reports of violations 
that should not have impacted a motor carrier or a motor 
carrier agent under subsection (c).’’. 
SEC. 7. AUTHORITY TO INSPECT. 
Chapter 59 of title 49, United States Code, is further 
amended by adding at the end the following: 
‘‘§ 5913. Authority to inspect 
‘‘(a) ENTRY INTO FACILITY.—The Secretary of 
Transportation is authorized to enter into the facility of 
an equipment controller to inspect and determine if equip-
ment intended to be interchanged for use on a public high-
way complies with all applicable Federal Motor Carrier 
Safety Regulations. 
‘‘(b) INSPECTION AND AUDIT PROGRAM.—The Sec-
retary shall establish and implement with appropriate 
staffing an inspection and audit program at facilities of 
equipment controllers to determine the compliance of 
equipment intended to be interchanged for use on a public 
highway with the Federal Motor Carrier Safety Regula-
tions. Inspection of equipment and the equipment’s cor-
responding maintenance records shall take place no less 
than once every 3 months. 
‘‘(c) 
OUT-OF-SERVICE
EQUIPMENT.—Equipment 
that fails to comply with the Federal Motor Carrier Safety 
Regulations during the inspection in subsection (b) shall 
be placed out of service and shall not be used on a public 
highway until such time as repairs have been completed. 
Repairs of equipment placed out of service shall be docu-
mented in the equipment’s corresponding maintenance 
records. 
‘‘(d) FINES.—The Secretary may establish fines 
against equipment controllers for violations of section 
5911.’’. 
SEC. 8. PENALTIES FOR RETALIATION. 
Chapter 59 of title 49, United States Code, is further 
amended by adding at the end the following:
‘‘§ 5914. Penalties for retaliation 
‘‘(a) IN GENERAL.—An equipment controller shall 
not take any action to threaten, coerce, discipline, dis-
criminate, or otherwise retaliate against a motor carrier 
or motor carrier agent who requests maintenance or repair 
of equipment intended for interchange in order to comply 
with the Federal Motor Carrier Safety Regulations. 
‘‘(b) RETALIATION DEFINED.—For purposes of this 
section, the term ‘retaliation’ includes failing to provide 
compliant equipment within 60 minutes from the time an 
agent for a motor carrier that has been requested to pick 
up equipment arrives to pick up such equipment. 
‘‘(c) CIVIL PENALTY.—An equipment controller who 
violates subsection (a) shall be liable to the United States 
Government for a civil penalty of up to $10,000 for each 
violation.’’. 
SEC. 9. DELEGATION OF MAINTENANCE RESPONSIBILITY. 
Chapter 59 of title 49, United States Code, is further 
amended by adding at the end the following: 
‘‘§ 5915. Maintenance responsibility 
‘‘An equipment controller is prohibited from dele-
gating its responsibility to systematically maintain and re-
pair equipment intended for interchange to a motor car-
rier or motor carrier agent in an equipment interchange 
agreement.’’.
SEC. 10. COMPATIBILITY OF STATE LAWS. 
(a) IN GENERAL.—Chapter 59 of title 49, United 
States Code, is further amended by adding at the end the 
following: 
‘‘§ 5916. Compatibility of State laws 
‘‘(a) PREEMPTION.—Except as provided in sub-
section (b) and unless authorized by another law of the 
United States, a law, regulation, order, or other require-
ment of a State, political subdivision of a State, or Indian 
tribe is preempted if complying with a requirement of the 
State, political subdivision, or tribe and a requirement of 
this chapter or a regulation prescribed under this chapter 
is not possible. 
‘‘(b) COMPATIBLE LAWS.—A law, regulation, order, 
or other requirement of a State, political subdivision of 
a State, or Indian tribe shall remain in effect if compatible 
with this chapter or any regulations prescribed under this 
chapter but more stringent.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by adding at the end the fol-
lowing:
‘‘5910. Jurisdiction over equipment controller. 
‘‘5911. Equipment inspection, repair, and maintenance. 
‘‘5912. Compliance with safety regulations. 
‘‘5913. Authority to inspect. 
‘‘5914. Penalties for retaliation. 
‘‘5915. Maintenance responsibility. 
‘‘5916. Compatibility of State laws.’’.
SEC. 11. IMPLEMENTING REGULATIONS. 
(a) FEDERAL
REGULATIONS.—The Secretary of 
Transportation, after notice and opportunity for comment, 
shall issue regulations, as appropriate, implementing the 
provisions of this Act. The regulations shall be issued as 
part of the Federal Motor Carrier Safety Regulations. The 
implementing regulations shall include provisions to—
(1) identify controllers of equipment inter-
changed or intended for interchange; 
(2) match such equipment readily to its con-
troller through a unique identifying number; 
(3) ensure that each equipment controller main-
tains a system of maintenance and repair records; 
(4) evaluate equipment controllers’ compliance 
with the Federal Motor Carrier Safety Regulations; 
(5) prohibit equipment controllers who fail to 
attain satisfactory compliance with such regulations 
from authorizing the placement of equipment on the 
public highways; 
(6) consider the effect that adequate mainte-
nance facilities may have on the resulting safe condi-
tion of equipment; 
(7) provide for a process by which motor car-
riers and agents may anonymously petition the Fed-
eral Motor Carrier Safety Administration to under-
take an investigation of a noncompliant equipment 
controller; 
(8) establish administrative procedures to re-
solve disputes arising under this Act, including the 
amendments made by this Act; and 
(9) establish the inspection and audit program 
5913(b) of title 49, United States Code. 
(b) DEADLINES.—The regulations required under 
subsection (a) shall be developed pursuant to a rulemaking 
proceeding initiated within 120 days after the date of en-
actment of this Act and shall be issued not later than one 
year after such date of enactment. Effective on the date 
of enactment of this Act, and until such time as final regu-
lations are issued, no motor carrier or motor carrier agent 
may be issued a citation for violations on equipment inter-
changed (as defined in section 5901 of title 49, United 
States Code) to them except by the provisions of this Act. 
SEC. 12. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated $7,000,000 
for each of fiscal years 2005, 2006, 2007, 2008, and 2009 
to the Federal Motor Carrier Safety Administration for 
the establishment and implementation of the inspection 
program under section 5913 of title 49, United States 
Code.
SEC. 13. EFFECTIVE DATE. 
Sections 3, 4, 5, 6, 7, 8, 9, and 10 of this Act shall 
be effective 30 days after the date of enactment of this 
Act.
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