[Code of Federal Regulations]
[Title 49, Volume 4]
[Revised as of October 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR384.401]

[Page 997-998]
 
                        TITLE 49--TRANSPORTATION
 
                      DEPARTMENT OF TRANSPORTATION
 
PART 384_STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM--Table 
of Contents
 
              Subpart D_Consequences of State Noncompliance
 
Sec. 384.401  Withholding of funds based on noncompliance.


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

[[Page 998]]

    (2) The Motor Carrier Safety Assistance Program (MCSAP) grant funds 
authorized under section 103(b)(1) of the Motor Carrier Safety 
Improvement Act of 1999 (Public Law 106-159, 113 Stat. 1753) shall be 
withheld from a State on the first day of the fiscal year following the 
fiscal year in which the FMCSA determined that the State had not 
returned to substantial compliance with subpart B of this part.

[67 FR 49763, July 31, 2002]