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obligation for payment of the Government’s share of costs 
incurred in carrying out the objectives of the grant. 
SEC. 4102. MOTOR CARRIER SAFETY GRANTS. 
(a) STATE PLAN CONTENTS.—Section 31102(b)(1) 
of title 49, United States Code, is amended—
(1) by striking subparagraph (A) and inserting 
the following: 
‘‘(A) implements performance-based activities, 
including deployment of technology to enhance the 
efficiency and effectiveness of commercial motor ve-
hicle safety programs;’’; 
(2) by striking subparagraph (Q) and inserting 
the following: 
‘‘(Q) provides that the State has established a 
program to ensure accurate, complete, and timely 
motor carrier safety data is collected and reported to 
the Secretary and that the State will participate in 
a national motor carrier safety data correction sys-
tem prescribed by the Secretary;’’; 
(3) by aligning subparagraph (R) with subpara-
graph (S); 
(4) by striking ‘‘and’’ at the end of subpara-
graph (S); 
(5) by striking the period at the end of sub-
paragraph (T) and inserting a semicolon; and
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(6) by adding at the end the following: 
‘‘(U) provides that the State will include in the 
training manual for the licensing examination to 
drive a noncommercial motor vehicle and a commer-
cial motor vehicle, information on best practices for 
driving safely in the vicinity of commercial motor ve-
hicles and in the vicinity of noncommercial motor ve-
hicles, respectively; 
‘‘(V) provides that the State will enforce the 
registration requirements of section 13902 by pro-
hibiting the operation of any vehicle discovered to be 
operated by a motor carrier without a registration 
issued under such section or to be operating beyond 
the scope of such registration; and 
‘‘(W) provides that the State will conduct com-
prehensive and highly visible traffic enforcement and 
commercial motor vehicle safety inspection programs 
in high-risk locations and corridors.’’. 
(b) USE OF GRANTS TO ENFORCE OTHER LAWS.—
Section 31102 of such title is amended—
(1) by striking subsection (c) and inserting the 
following: 
‘‘(c) USE OF GRANTS TO ENFORCE OTHER LAWS.—
A State may use amounts received under a grant under 
subsection (a)—
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‘‘(1) for the following activities if the activities 
are carried out in conjunction with an appropriate 
inspection of the commercial motor vehicle to enforce 
Government or State commercial motor vehicle safe-
ty regulations: 
‘‘(A) enforcement of commercial motor ve-
hicle size and weight limitations at locations 
other than fixed weight facilities, at specific lo-
cations such as steep grades or mountainous 
terrains where the weight of a commercial 
motor vehicle can significantly affect the safe 
operation of the vehicle, or at ports where inter-
modal shipping containers enter and leave the 
United States; and 
‘‘(B) detection of the unlawful presence of 
a controlled substance (as defined under section 
102 of the Comprehensive Drug Abuse Preven-
tion and Control Act of 1970 (21 U.S.C. 802)) 
in a commercial motor vehicle or on the person 
of any occupant (including the operator) of the 
vehicle; and 
‘‘(2) for documented enforcement of State traf-
fic laws and regulations designed to promote the 
safe operation of commercial motor vehicles, includ-
ing documented enforcement of such laws and regu-
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lations relating to noncommercial motor vehicles 
when necessary to promote the safe operation of 
commercial motor vehicles if the number of roadside 
safety inspections conducted in the State is main-
tained at a level at least equal to the average num-
ber conducted in the State in fiscal years 2001, 
2002, and 2003; except that the State may not use 
more than 5 percent of the aggregate amount the 
State receives under the grant under subsection (a) 
for enforcement activities relating to noncommercial 
motor vehicles described in this paragraph.’’; and 
(2) by adding at the end the following: 
‘‘(e) ANNUAL REPORT.—The Secretary shall submit 
to the Committee on Transportation and Infrastructure 
of the House of Representatives and the Committee on 
Commerce, Science and Transportation of the Senate an 
annual report that describes the effect of activities carried 
out with funds from grants made under this section on 
commercial motor vehicle safety.’’. 
(c) AUTHORIZATION OF APPROPRIATIONS.—Section 
31104(a) of such title is amended to read as follows: 
‘‘(a) IN GENERAL.—Subject to subsection (f), there 
are authorized to be appropriated from the Highway Trust 
Fund (other than the Mass Transit Account) to carry out 
section 31102—
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‘‘(1) $188,852,000 for fiscal year 2004; 
‘‘(2) $188,480,000 for fiscal year 2005; 
‘‘(3) $188,000,000 for fiscal year 2006; 
‘‘(4) $197,000,000 for fiscal year 2007; 
‘‘(5) $202,000,000 for fiscal year 2008; and 
‘‘(6) $209,000,000 for fiscal year 2009.’’. 
(d) NEW ENTRANT AUDITS.—Section 31104(f) of 
such title is amended—
(1) in paragraph (1) by striking ‘‘deduction 
under subsection (e)’’ and inserting ‘‘deductions 
under subsection (e) and paragraphs (2) and (3)’’; 
(2) the first sentence of paragraph (2)(A)—
(A) by striking ‘‘or’’; and 
(B) by inserting after ‘‘technologies’’ the 
following: ‘‘, or improve the quality and accu-
racy of data provided by the State’’; 
(3) in paragraph (2)—
(A) by striking ‘‘and border activities.—’’ 
and all that follows through ‘‘5 percent’’ and 
inserting ‘‘activities.—The Secretary may des-
ignate up to 10 percent’’; and 
(B) by striking subparagraph (B); and 
(4) by adding at the end the following: 
‘‘(3) NEW
ENTRANT
AUDITS.—The Secretary 
may deduct up to $15,000,000 of the amounts avail-
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able under subsection (a) for a fiscal year for audits 
of new entrant motor carriers under section 
31144(g).’’. 
(e) 
TECHNICAL
AMENDMENTS.—Sections 
31102(b)(3) and 31103(a) of such title are amended by 
striking ‘‘(1)(D)’’ and inserting ‘‘(1)(E)’’. 
SEC. 4103. BORDER ENFORCEMENT GRANTS. 
(a) IN GENERAL.—Chapter 311 of title 49, United 
States Code, is amended—
(1) by striking the heading for subchapter I 
and inserting the following: 
‘‘SUBCHAPTER I—GENERAL AUTHORITY AND 
STATE GRANTS’’; and 
(2) by striking section 31107 and inserting the 
following: 
‘‘§ 31107. Border enforcement grants 
‘‘(a) GENERAL
AUTHORITY.—The Secretary of 
Transportation may make a grant in a fiscal year to a 
State that shares a land border with another country for 
carrying out border commercial motor vehicle safety pro-
grams and related enforcement activities and projects. 
‘‘(b) MAINTENANCE OF EXPENDITURES.—The Sec-
retary may make a grant to a State under this section 
only if the State agrees that the total expenditure of 
amounts of the State and political subdivisions of the
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State, exclusive of amounts from the United States, for 
carrying out border commercial motor vehicle safety pro-
grams and related enforcement activities and projects will 
be maintained at a level at least equal to the average level 
of that expenditure by the State and political subdivisions 
of the State for the last 2 fiscal years of the State ending 
before the date of enactment of the Transportation Equity 
Act: A Legacy for Users. 
‘‘(c) GOVERNMENTS SHARE OF COSTS.—The Sec-
retary shall reimburse a State under a grant made under 
this section an amount that is not more than 100 percent 
of the costs incurred by the State in a fiscal year for car-
rying out border commercial motor vehicle safety pro-
grams and related enforcement activities and projects. 
‘‘(d) 
AVAILABILITY
AND
REALLOCATION
OF 
AMOUNTS.—Allocations to a State remain available for ex-
penditure in the State for the fiscal year in which they 
are allocated and for the next fiscal year. Amounts not 
expended by a State during those 2 fiscal years are avail-
able to the Secretary for reallocation under this section.’’. 
(b) CONFORMING AMENDMENTS.—
(1) ITEM RELATING TO SUBCHAPTER I.—The 
analysis for such chapter is amended by striking the 
item relating to subchapter I and inserting the fol-
lowing:
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‘‘SUBCHAPTER I—GENERAL AUTHORITY AND STATE GRANTS’’.
(2) ITEM RELATING TO SECTION 31107.—The 
analysis for such chapter is amended by striking the 
item relating to section 31107 and inserting the fol-
lowing:
‘‘31107. Border enforcement grants.’’.
SEC. 4104. COMMERCIAL DRIVER’S LICENSE IMPROVE-
MENTS. 
(a) STATE GRANTS.—Chapter 313 of title 49, United 
States Code, is amended by inserting after section 31312 
the following: 
‘‘§ 31313. Grants for commercial driver’s license pro-
gram improvements 
‘‘(a) GRANTS FOR COMMERCIAL DRIVER’S LICENSE 
PROGRAM IMPROVEMENTS.—
‘‘(1) GENERAL AUTHORITY.—The Secretary of 
Transportation may make a grant to a State in a 
fiscal year—
‘‘(A) to comply with the requirements of 
section 31311; and 
‘‘(B) in the case of a State that is in sub-
stantial compliance with the requirements of 
section 31311 and this section, to improve its 
implementation of its commercial driver’s li-
cense program.
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‘‘(2) PURPOSES FOR WHICH GRANTS MAY BE 
USED.—A State may use grants under paragraphs 
(1)(A) and (1)(B) only for expenses directly related 
to its compliance with section 31311; except that a 
grant under paragraph (1)(B) may be used for im-
proving implementation of the State’s commercial 
driver’s license program, including expenses for com-
puter hardware and software, publications, testing, 
personnel, training, and quality control. The grant 
may not be used to rent, lease, or buy land or build-
ings. 
‘‘(3) APPLICATION.—In order to receive a grant 
under this section, a State must submit an applica-
tion for such grant that is in such form, and con-
tains such information, as the Secretary may re-
quire. The application shall include the State’s as-
sessment of its commercial drivers license program. 
‘‘(4) MAINTENANCE OF EXPENDITURES.—The 
Secretary may make a grant to a State under this 
subsection only if the State agrees that the total ex-
penditure of amounts of the State and political sub-
divisions of the State, exclusive of amounts from the 
United States, for the State’s commercial driver’s li-
cense program will be maintained at a level at least 
equal to the average level of that expenditure by the
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State and political subdivisions of the State for the 
last 2 fiscal years of the State ending before the 
date of enactment of the Transportation Equity Act: 
A Legacy for Users. 
‘‘(5) GOVERNMENT
SHARE.—The Secretary 
shall reimburse a State under a grant made under 
this subsection an amount that is not more than 80 
percent of the costs incurred by the State in a fiscal 
year in complying with section 31311 and improving 
its implementation of its commercial driver’s license 
program. In determining such costs, the Secretary 
shall include in-kind contributions by the State. 
Amounts required to be expended by the State under 
paragraph (4) may not be included as part of the 
non-Federal share of such costs. 
‘‘(b) HIGH-PRIORITY ACTIVITIES.—
‘‘(1) GRANTS FOR NATIONAL CONCERNS.—The 
Secretary may make a grant to a State agency, local 
government, or other person for 100 percent of the 
costs 
of 
research, 
development, 
demonstration 
projects, public education, and other special activi-
ties and projects relating to commercial driver li-
censing and motor vehicle safety that are of benefit 
to all jurisdictions of the United States or are de-
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signed to address national safety concerns and cir-
cumstances. 
‘‘(2) FUNDING.—The Secretary may deduct up 
to 10 percent of the amounts made available to 
carry out this section for a fiscal year to make 
grants under this subsection.’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
such chapter is amended by inserting after the item relat-
ing to section 31312 the following:
‘‘31313. Grants for commercial driver’s license program improvements.’’.
(c) AMOUNTS WITHHELD.—Subsections (a) and (b) 
of section 31314 of such title are each amended by insert-
ing ‘‘up to’’ after ‘‘withhold’’. 
SEC. 4105. HOBBS ACT. 
(a) JURISDICTION
OF COURT
OF APPEALS OVER 
COMMERCIAL MOTOR VEHICLE SAFETY REGULATION 
AND OPERATORS AND MOTOR CARRIER SAFETY.—Section 
2342(3)(A) of title 28, United States Code, is amended 
by inserting before ‘‘of title 49’’ the following: ‘‘, sub-
chapter III of chapter 311, chapter 313, or chapter 315’’. 
(b) JUDICIAL REVIEW.—Section 351(a) of title 49, 
United States Code, is amended by striking ‘‘Federal 
Highway Administration’’ and inserting ‘‘Federal Motor 
Carrier Safety Administration’’. 
(c) AUTHORITY TO CARRY OUT CERTAIN TRANS-
FERRED DUTIES AND POWERS.—Section 352 of title 49,
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United States Code, is amended by striking ‘‘Federal 
Highway Administration’’ and inserting ‘‘Federal Motor 
Carrier Safety Administration’’. 
SEC. 4106. PENALTY FOR DENIAL OF ACCESS TO RECORDS. 
Section 521(b) of title 49, United States Code, is 
amended—
(1) by striking ‘‘(b)(1)(A) If the Secretary’’ and 
inserting the following: 
‘‘(b) 
VIOLATIONS
RELATING
TO
COMMERCIAL 
MOTOR VEHICLE SAFETY REGULATION
AND OPERA-
TORS.—
‘‘(1) NOTICE.—
‘‘(A) IN GENERAL.—If the Secretary’’; and 
(2) by adding at the end of paragraph (2) the 
following: 
‘‘(E) COPYING OF RECORDS AND ACCESS 
TO
EQUIPMENT, LANDS, AND
BUILDINGS.—A 
person subject to chapter 51 or part B of sub-
title VI who fails to allow the Secretary, or an 
employee designated by the Secretary, promptly 
upon demand to inspect and copy any record or 
inspect and examine equipment, lands, build-
ings, and other property in accordance with sec-
tion 504(c), 5121(c), or 14122(b) shall be liable 
to the United States for a civil penalty not to
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exceed $1,000 for each offense. Each day the 
Secretary is denied the right to inspect and 
copy any record or inspect and examine equip-
ment, lands, buildings, and other property shall 
constitute a separate offense; except that the 
total of all civil penalties against any violator 
for all offenses related to a single violation shall 
not exceed $10,000. It shall be a defense to 
such penalty that the records did not exist at 
the time of the Secretary’s request or could not 
be timely produced without unreasonable ex-
pense or effort. Nothing in this subparagraph 
shall be construed as amending or superseding 
any remedy available to the Secretary under 
section 502(d), section 507(c), or any other 
provision of this title.’’. 
SEC. 4107. MEDICAL REVIEW BOARD. 
Section 113 of title 49, United States Code, is 
amended by adding at the end the following: 
‘‘(j) MEDICAL REVIEW BOARD.—
‘‘(1) ESTABLISHMENT
AND
FUNCTION.—The 
Administrator shall establish a Medical Review 
Board as an advisory committee to provide the Ad-
ministration with medical advice and recommenda-
tions on driver qualification medical standards and
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guidelines, medical examiner education, and medical 
research. 
‘‘(2) 
COMPOSITION.—The 
Medical 
Review 
Board shall consist of 5 members appointed for a 
term not to exceed 3 years by the Secretary from 
medical institutions and private medical practice. 
The membership shall reflect expertise in a variety 
of medical specialties relevant to the functions of the 
Administration.’’. 
SEC. 4108. INCREASED PENALTIES FOR OUT-OF-SERVICE 
VIOLATIONS AND FALSE RECORDS. 
(a) RECORDKEEPING
AND
REPORTING
VIOLA-
TIONS.—Section 521(b)(2)(B) of title 49, United States 
Code, is amended—
(1) in clause (i) by striking ‘‘$500’’ and insert-
ing ‘‘$1,000’’; and 
(2) by striking ‘‘$5,000’’ each place it appears 
and inserting ‘‘$10,000’’. 
(b) VIOLATIONS OF OUT-OF-SERVICE ORDERS.—Sec-
tion 31310(i)(2) of title 49, United States Code, is amend-
ed—
(1) by striking ‘‘Not later than December 18, 
1992, the’’ and inserting ‘‘The’’; 
(2) in subparagraph (A)—
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(A) by striking ‘‘90 days’’ and inserting 
‘‘180 days’’; and 
(B) by striking ‘‘$1,000’’ and inserting 
‘‘$2,500’’; 
(3) in subparagraph (B)—
(A) by striking ‘‘one year’’ and inserting 
‘‘2 years’’; and 
(B) by striking ‘‘$1,000; and’’ and insert-
ing ‘‘$5,000;’’; and 
(4) in subparagraph (C) by striking ‘‘$10,000.’’ 
and inserting ‘‘$25,000; and’’. 
SEC. 4109. COMMERCIAL VEHICLE INFORMATION SYSTEMS 
AND NETWORKS DEPLOYMENT. 
(a) IN GENERAL.—The Secretary shall carry out a 
commercial vehicle information systems and networks pro-
gram to—
(1) improve the safety and productivity of com-
mercial vehicles and drivers; and 
(2) reduce costs associated with commercial ve-
hicle operations and Federal and State commercial 
vehicle regulatory requirements. 
(b) PURPOSE.—The program shall advance the tech-
nological capability and promote the deployment of intel-
ligent transportation system applications for commercial
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motor vehicle operations, commercial driver, and carrier-
specific information systems and networks. 
(c) CORE DEPLOYMENT GRANTS.—
(1) IN GENERAL.—The Secretary shall make 
grants to eligible States for the core deployment of 
commercial vehicle information systems and net-
works. 
(2) AMOUNT OF GRANTS.—The maximum ag-
gregate amount the Secretary may grant to a State 
for the core deployment of commercial vehicle infor-
mation systems and networks under this subsection 
and sections 5001(a)(5) and 5001(a)(6) of the 
Transportation Equity Act for the 21st Century 
(112 Stat. 420) may not exceed $2,500,000. 
(3) USE
OF
FUNDS.—Funds from a grant 
under this subsection may only be used for the core 
deployment of commercial vehicle information sys-
tems and networks. An eligible State that has either 
completed the core deployment of commercial vehicle 
information systems and networks or completed such 
deployment before grant funds are expended under 
this subsection may use the grant funds for the ex-
panded deployment of commercial vehicle informa-
tion systems and networks in the State. 
(d) EXPANDED DEPLOYMENT GRANTS.—
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(1) IN GENERAL.—For each fiscal year, from 
the funds remaining after the Secretary has made 
grants under subsection (c), the Secretary may make 
grants to each eligible State, upon request, for the 
expanded deployment of commercial vehicle informa-
tion systems and networks. 
(2) ELIGIBILITY.—Each State that has com-
pleted the core deployment of commercial vehicle in-
formation systems and networks in such State is eli-
gible for an expanded deployment grant under this 
subsection. 
(3) AMOUNT OF GRANTS.—Each fiscal year, the 
Secretary may distribute funds available for ex-
panded deployment grants equally among the eligible 
States, but not to exceed $1,000,000 per State. 
(4) USE OF FUNDS.—A State may use funds 
from a grant under this subsection only for the ex-
panded deployment of commercial vehicle informa-
tion systems and networks. 
(e) ELIGIBILITY.—To be eligible for a grant under 
this section, a State—
(1) shall have a commercial vehicle information 
systems and networks program plan approved by the 
Secretary that describes the various systems and 
networks at the State level that need to be refined,
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revised, upgraded, or built to accomplish deployment 
of core capabilities; 
(2) shall certify to the Secretary that its com-
mercial vehicle information systems and networks 
deployment activities, including hardware procure-
ment, software and system development, and infra-
structure modifications—
(A) are consistent with the national intel-
ligent transportation systems and commercial 
vehicle information systems and networks archi-
tectures and available standards; and 
(B) promote interoperability and efficiency 
to the extent practicable; and 
(3) shall agree to execute interoperability tests 
developed by the Federal Motor Carrier Safety Ad-
ministration to verify that its systems conform with 
the national intelligent transportation systems archi-
tecture, applicable standards, and protocols for com-
mercial vehicle information systems and networks. 
(f) FEDERAL SHARE.—The Federal share of the cost 
of a project payable from funds made available to carry 
out this section shall not exceed 50 percent. The total Fed-
eral share of the cost of a project payable from all eligible 
sources shall not exceed 80 percent.
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(g) DEFINITIONS.—In this section, the following defi-
nitions apply: 
(1) COMMERCIAL VEHICLE INFORMATION SYS-
TEMS AND NETWORKS.—The term ‘‘commercial ve-
hicle information systems and networks’’ means the 
information systems and communications networks 
that provide the capability to—
(A) improve the safety of commercial 
motor vehicle operations; 
(B) increase the efficiency of regulatory in-
spection processes to reduce administrative bur-
dens by advancing technology to facilitate in-
spections and increase the effectiveness of en-
forcement efforts; 
(C) advance electronic processing of reg-
istration information, driver licensing informa-
tion, fuel tax information, inspection and crash 
data, and other safety information; 
(D) enhance the safe passage of commer-
cial motor vehicles across the United States and 
across international borders; and 
(E) promote the communication of infor-
mation among the States and encourage 
multistate cooperation and corridor develop-
ment.
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(2) 
COMMERCIAL
MOTOR
VEHICLE
OPER-
ATIONS.—The term ‘‘commercial motor vehicle oper-
ations’’—
(A) means motor carrier operations and 
motor vehicle regulatory activities associated 
with the commercial motor vehicle movement of 
goods, including hazardous materials, and pas-
sengers; and 
(B) with respect to the public sector, in-
cludes the issuance of operating credentials, the 
administration of motor vehicle and fuel taxes, 
and roadside safety and border crossing inspec-
tion and regulatory compliance operations. 
(3) CORE DEPLOYMENT.—The term ‘‘core de-
ployment’’ means the deployment of systems in a 
State necessary to provide the State with the fol-
lowing capabilities: 
(A) Safety information exchange to—
(i) electronically collect and transmit 
commercial motor vehicle and driver in-
spection data at a majority of inspection 
sites in the State; 
(ii) connect to the safety and fitness 
electronic records system for access to 
interstate carrier and commercial motor
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vehicle data, summaries of past safety per-
formance, and commercial motor vehicle 
credentials information; and 
(iii) exchange carrier data and com-
mercial motor vehicle safety and creden-
tials information within the State and con-
nect to such system for access to interstate 
carrier and commercial motor vehicle data. 
(B) Interstate credentials administration 
to—
(i) perform end-to-end processing, in-
cluding carrier application, jurisdiction ap-
plication 
processing, 
and 
credential 
issuance, of at least the international reg-
istration plan and international fuel tax 
agreement credentials and extend this 
processing to other credentials, including 
intrastate registration, vehicle titling, over-
size vehicle permits, overweight vehicle per-
mits, carrier registration, and hazardous 
materials permits; 
(ii) connect to such plan and agree-
ment clearinghouses; and 
(iii) have at least 10 percent of the 
credentialing transaction volume in the
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State handled electronically and have the 
capability to add more carriers and to ex-
tend to branch offices where applicable. 
(C) Roadside electronic screening to elec-
tronically screen transponder-equipped commer-
cial vehicles at a minimum of one fixed or mo-
bile inspection site in the State and to replicate 
this screening at other sites in the State. 
(4) EXPANDED DEPLOYMENT.—The term ‘‘ex-
panded deployment’’ means the deployment of sys-
tems in a State that exceed the requirements of a 
core deployment of commercial vehicle information 
systems and networks, improve safety and the pro-
ductivity of commercial motor vehicle operations, 
and enhance transportation security. 
(h) REPEAL.—Section 5209 of the Transportation 
Equity Act for the 21st Century (23 U.S.C. 502 note; 112 
Stat. 460–461) is repealed. 
SEC. 4110. SAFETY FITNESS. 
(a) IN GENERAL.—Section 31144(a) of title 49, 
United States Code, is amended to read as follows: 
‘‘(a) IN GENERAL.—The Secretary shall—
‘‘(1) determine whether an owner or operator is 
fit to operate safely commercial motor vehicles, uti-
lizing among other things the accident and safety in-
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spection record of an owner or operator during oper-
ations—
‘‘(A) in interstate commerce in the United 
States; 
‘‘(B) in a State that affects interstate com-
merce in the United States; and 
‘‘(C) in Canada or Mexico if the owner or 
operator also conducts operations in the United 
States; 
‘‘(2) periodically update such safety fitness de-
terminations; 
‘‘(3) make such final safety fitness determina-
tions readily available to the public; and 
‘‘(4) prescribe by regulation penalties for viola-
tions of this section consistent with section 521.’’. 
(b) PROHIBITED TRANSPORTATION.—The first sub-
section (c) of such section 31144 is amended by adding 
at the end the following: 
‘‘(5) 
TRANSPORTATION
AFFECTING
INTER-
STATE COMMERCE.—Owners or operators of com-
mercial motor vehicles prohibited from operating in 
interstate commerce pursuant to paragraphs (1) 
through (3) may not operate any commercial motor 
vehicle that affects interstate commerce until the
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Secretary determines that such owner or operator is 
fit.’’. 
(c) DETERMINATION OF UNFITNESS BY A STATE.—
Such section 31144 is further amended—
(1) by redesignating subsections (d), (e), and 
the second subsection (c) as subsections (e), (f), and 
(g), respectively; 
(2) by inserting after the first subsection (c) 
the following: 
‘‘(d) DETERMINATION OF UNFITNESS BY A STATE.—
If a State that receives a grant under section 31102 deter-
mines, by applying the standards prescribed by the Sec-
retary under subsection (b), that an owner or operator of 
commercial motor vehicles that has its principal place of 
business in that State and operates in intrastate com-
merce is unfit under such standards and prohibits the 
owner or operator from operating such vehicles in the 
State, the Secretary shall prohibit the owner or operator 
from operating such vehicles in interstate commerce until 
the State determines that the owner or operator is fit.’’; 
and 
(3) in subsection (g) (as redesignated by para-
graph (1) of this subsection) by adding at the end 
the following:
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‘‘(5) GRANTS FOR AUDITS.—From amounts de-
ducted under section 31104(f)(3), the Secretary may 
make grants to States and local governments for 
new entrant motor carrier audits under this sub-
section without requiring a matching contribution 
from such States or local governments. 
‘‘(6) DOT AUDITS.—If the Secretary deter-
mines that a State or local government is unable to 
use government employees to conduct new entrant 
motor carrier audits, the Secretary may utilize the 
funds deducted under section 31104(f)(3) to conduct 
such audits in areas under the jurisdiction of such 
State or local government.’’. 
SEC. 4111. PATTERN OF SAFETY VIOLATIONS BY MOTOR 
CARRIER MANAGEMENT. 
(a) DUTIES OF EMPLOYERS AND EMPLOYEES.—Sec-
tion 31135 of title 49, United States Code, is amended—
(1) by inserting ‘‘(a) IN GENERAL.—’’ before 
‘‘Each’’; and 
(2) by adding at the end the following: 
‘‘(b) PATTERN OF NONCOMPLIANCE.—If the Sec-
retary finds that an officer of a motor carrier engages or 
has engaged in a pattern or practice of avoiding compli-
ance, or masking or otherwise concealing noncompliance, 
with regulations on commercial motor vehicle safety pre-
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scribed under this subchapter, while serving as an officer 
of any motor carrier, the Secretary may suspend, amend, 
or revoke any part of the motor carrier’s registration 
under section 13905. 
‘‘(c) REGULATIONS.—The Secretary shall by regula-
tion establish standards to implement subsection (b). 
‘‘(d) DEFINITIONS.—In this section, the following 
definitions apply: 
‘‘(1) MOTOR CARRIER.—The term ‘motor car-
rier’ has the meaning such term has under section 
13102. 
‘‘(2) OFFICER.—The term ‘officer’ means an 
owner, director, chief executive officer, chief oper-
ating officer, chief financial officer, safety director, 
vehicle maintenance supervisor, and driver super-
visor of a motor carrier, regardless of the title at-
tached to those functions, and any person, however 
designated, exercising controlling influence over the 
operations of a motor carrier.’’. 
(b) CROSS REFERENCE.—Section 13902(a)(1)(B) of 
title 49, United States Code, is amended to read as fol-
lows: 
‘‘(B)(i) any safety regulations imposed by 
the Secretary;
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‘‘(ii) the duties of employers and employees 
established by the Secretary under section 
31135; and 
‘‘(iii) the safety fitness requirements estab-
lished by the Secretary under section 31144; 
and’’. 
SEC. 4112. MOTOR CARRIER RESEARCH AND TECHNOLOGY 
PROGRAM. 
(a) IN GENERAL.—Section 31108 of title 49, United 
States Code, is amended to read as follows: 
‘‘§ 31108. Motor carrier research and technology pro-
gram 
‘‘(a) RESEARCH, TECHNOLOGY, AND TECHNOLOGY 
TRANSFER ACTIVITIES.—
‘‘(1) 
ESTABLISHMENT.—The 
Secretary 
of 
Transportation shall establish and carry out a motor 
carrier research and technology program. 
‘‘(2) MULTIYEAR PLAN.—The program must in-
clude a multi-year research plan that focuses on 
nonredundant innovative research. 
‘‘(3) RESEARCH, DEVELOPMENT, AND
TECH-
NOLOGY TRANSFER ACTIVITIES.—The Secretary may 
carry out under the program research, development, 
technology, and technology transfer activities with 
respect to—
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‘‘(A) the causes of accidents, injuries, and 
fatalities involving commercial motor vehicles; 
‘‘(B) means of reducing the number and 
severity of accidents, injuries, and fatalities in-
volving commercial motor vehicles; 
‘‘(C) improving commercial motor vehicle 
and motor carrier safety, and industry effi-
ciency, through technological improvement; 
‘‘(D) improving technology used by en-
forcement officers when conducting roadside in-
spections and compliance reviews to increase ef-
ficiency and information transfers; and 
‘‘(E) increasing the safety and security of 
hazardous materials transportation. 
‘‘(4) TESTS
AND
DEVELOPMENT.—The Sec-
retary may test, develop, or assist in testing and de-
veloping any material, invention, patented article, or 
process related to the research and technology pro-
gram. 
‘‘(5) TRAINING.—The Secretary may use the 
funds made available to carry out this section for 
training or education of commercial motor vehicle 
safety personnel, including training in accident re-
construction and detection of controlled substances 
or other contraband and stolen cargo or vehicles.
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‘‘(6) PROCEDURES.—The Secretary may carry 
out this section—
‘‘(A) independently; 
‘‘(B) in cooperation with other Federal de-
partments, agencies, and instrumentalities and 
Federal laboratories; or 
‘‘(C) by making grants to, or entering into 
contracts, cooperative agreements, and other 
transactions with, any Federal laboratory, State 
agency, authority, association, institution, for-
profit or nonprofit corporation, organization, 
foreign country, or person. 
‘‘(7) DEVELOPMENT AND PROMOTION OF USE 
OF PRODUCTS.—The Secretary shall use funds made 
available to carry out this section to develop, admin-
ister, communicate, and promote the use of products 
of research, technology, and technology transfer pro-
grams under this section. 
‘‘(b) COLLABORATIVE RESEARCH
AND DEVELOP-
MENT.—
‘‘(1) IN GENERAL.—To advance innovative solu-
tions to problems involving commercial motor vehicle 
and motor carrier safety, security, and efficiency, 
and to stimulate the deployment of emerging tech-
nology, the Secretary may carry out, on a cost-
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shared basis, collaborative research and development 
with—
‘‘(A) non-Federal entities, including State 
and local governments, foreign governments, 
colleges and universities, corporations, institu-
tions, partnerships, and sole proprietorships 
that are incorporated or established under the 
laws of any State; and 
‘‘(B) Federal laboratories. 
‘‘(2) COOPERATIVE AGREEMENTS.—In carrying 
out this subsection, the Secretary may enter into co-
operative research and development agreements (as 
defined in section 12 of the Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3710a)). 
‘‘(3) COST SHARING.—
‘‘(A) 
FEDERAL
SHARE.—The 
Federal 
share of the cost of activities carried out under 
a cooperative research and development agree-
ment entered into under this subsection shall 
not exceed 50 percent; except that, if there is 
substantial public interest or benefit associated 
with any such activity, the Secretary may ap-
prove a greater Federal share. 
‘‘(B) TREATMENT OF DIRECTLY INCURRED 
NON-FEDERAL
COSTS.—All costs directly in-
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curred by the non-Federal partners, including 
personnel, travel, and hardware or software de-
velopment costs, shall be credited toward the 
non-Federal share of the cost of the activities 
described in subparagraph (A). 
‘‘(4) USE OF TECHNOLOGY.—The research, de-
velopment, or use of a technology under a coopera-
tive research and development agreement entered 
into under this subsection, including the terms 
under which the technology may be licensed and the 
resulting royalties may be distributed, shall be sub-
ject to the Stevenson-Wydler Technology Innovation 
Act of 1980 (15 U.S.C. 3701 et seq.).’’. 
(b) CONFORMING AMENDMENT.—The analysis for 
chapter 311 of such title is amended by striking the item 
relating to section 31108 and inserting the following:
‘‘31108. Motor carrier research and technology program.’’.
SEC. 4113. INTERNATIONAL COOPERATION. 
(a) IN GENERAL.—Chapter 311 of title 49, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘SUBCHAPTER IV—MISCELLANEOUS 
‘‘§ 31161. International cooperation 
‘‘The Secretary of Transportation is authorized to 
use funds made available by section 31104(i) to partici-
pate and cooperate in international activities to enhance
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motor carrier, driver, and highway safety by such means 
as exchanging information, conducting research, and ex-
amining needs, best practices, and new technology. 
‘‘§ 31162. Operators registered in Mexico and Canada 
‘‘No operator of a commercial motor vehicle (as de-
fined in section 31101) licensed in Mexico or Canada may 
operate in the United States a commercial motor vehicle 
transporting hazardous material until the operator has un-
dergone a background records check similar to the back-
ground records check required of operators of commercial 
motor vehicles licensed in the United States to transport 
hazardous materials.’’. 
(b) CLERICAL AMENDMENT.—The analysis for such 
chapter is amended by adding at the end the following:
‘‘SUBCHAPTER IV—MISCELLANEOUS 
‘‘31161. International cooperation. 
‘‘31162. Operators registered in Mexico and Canada.’’.
SEC. 4114. PERFORMANCE AND REGISTRATION INFORMA-
TION SYSTEM MANAGEMENT. 
(a) DESIGN AND CONDITIONS FOR PARTICIPATION.—
Section 31106(b) of title 49, United States Code, is 
amended by striking paragraphs (2), (3), and (4) and in-
serting the following: 
‘‘(2) DESIGN.—The program shall link Federal 
motor carrier safety information systems with State
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commercial vehicle registration and licensing systems 
and shall be designed to enable a State to—
‘‘(A) determine the safety fitness of a 
motor carrier or registrant when licensing or 
registering the registrant or motor carrier or 
while the license or registration is in effect; and 
‘‘(B) deny, suspend, or revoke the commer-
cial motor vehicle registrations of a motor car-
rier or registrant that has been issued an oper-
ations out-of-service order by the Secretary. 
‘‘(3) CONDITIONS
FOR
PARTICIPATION.—The 
Secretary shall require States, as a condition of par-
ticipation in the program, to—
‘‘(A) comply with the uniform policies, pro-
cedures, and technical and operational stand-
ards prescribed by the Secretary under sub-
section (a)(4); and 
‘‘(B) possess or seek the authority to deny, 
suspend, or revoke commercial motor vehicle 
registrations based on the issuance of an oper-
ations out-of-service order by the Secretary.’’. 
(b) PERFORMANCE
AND REGISTRATION INFORMA-
TION SYSTEM MANAGEMENT GRANTS.—