[Code of Federal Regulations]
[Title 49, Volume 5]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 49CFR350.313]

[Page 27-28]
 
                        TITLE 49--TRANSPORTATION
 
                      DEPARTMENT OF TRANSPORTATION
 
PART 350_COMMERCIAL MOTOR CARRIER SAFETY ASSISTANCE PROGRAM--Table of 
Contents
 
                            Subpart C_Funding
 
Sec.  350.313  How are MCSAP funds allocated?

    (a) After deducting administrative expenses authorized in 49 U.S.C. 
31104(e), the MCSAP funds are allocated as follows:
    (1) An amount of the MCSAP funds appropriated for each fiscal year 
up to the maximum allowed by law may be distributed for High Priority 
Activities and Projects at the discretion of the Administrator.
    (2) An amount of the MCSAP funds appropriated for each fiscal year 
up to the maximum allowed by law may be distributed for safety audits of 
New Entrant motor carriers under the New Entrant Safety Assurance 
Program at the discretion of the Administrator.
    (3) The remaining funds will be allocated among qualifying States in 
two ways:
    (i) As Basic Program Funds in accordance with Sec.  350.323 of this 
part,
    (ii) As Incentive Funds in accordance with Sec.  350.327 of this 
part.
    (b) The funding provided in paragraphs (a)(1) and (a)(2) of this 
section may be awarded through contract, cooperative agreement, or 
grant. The FMCSA will notify States if it intends to solicit State grant 
proposals for any portion of this funding.
    (c) The funding provided under paragraph (a)(1) of this section may 
be made available to State agencies, local governments, and 
organizations representing government agencies or officials that use and 
train qualified officers and employees in coordination with State motor 
vehicle safety agencies. At least 90 percent of the amount set aside in 
a fiscal year shall be awarded in grants to State agencies and local 
government agencies.
    (d) The funding provided under paragraph (a)(2) of this section may 
be

[[Page 28]]

made available to State and local governments. If the Administrator 
determines that a State or local government is not able to use 
government employees to conduct New Entrant motor carrier audits, the 
Administrator may use the funds under paragraph (a)(2) to conduct audits 
for such State or local governments.

[65 FR 15102, Mar. 21, 2000, as amended at 72 FR 36770, July 5, 2007]