SEC. 4107. HIGH PRIORITY ACTIVITIES AND NEW ENTRANTS AUDITS

    (a) High Priority Activities.--Section 31104 of title 49, United States Code (as amended by section 4101 of this Act), is amended by adding at the end the following:

    ``(k) High-Priority Activities.--

    ``(1) CRITERIA.--The Secretary shall establish safety performance criteria to be used to distribute high priority program funds under this subsection.

    ``(2) SET ASIDE.--The Secretary may set aside from amounts made available by subsection (a) up to $15,000,000 for each of fiscal years 2006 through 2009 for States, local governments, and organizations representing government agencies or officials described in paragraph (3) for carrying out high priority activities and projects that improve commercial motor vehicle safety and compliance with commercial motor vehicle safety regulations (including activities and projects that are national in scope), increase public awareness and education, demonstrate new technologies, and reduce the number and rate of accidents involving commercial motor vehicles.

    ``(3) DESCRIPTION OF RECIPIENTS.--Amounts set aside under this subsection shall be allocated by the Secretary only 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.

    ``(4) LIMITATION.--At least 90 percent of the amounts set aside for a fiscal year under this subsection shall be awarded in grants to State agencies and local government agencies.''.

    (b) New Entrant Audits.--Section 31104 of such title is amended--

    (1) by redesignating the second subsection as subsection (f); and

    (2) by adding at the end of such subsection the following:

    ``(5) NEW ENTRANT AUDITS.--

    ``(A) GRANTS.--The Secretary may make grants to States and local governments for new

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entrant motor carrier audits under this subsection without requiring a matching contribution from such States and local governments.

    ``(B) SET ASIDE.--The Secretary shall set aside from amounts made available by section 31104(a) up to $29,000,000 per fiscal year for audits of new entrant motor carriers conducted pursuant to this paragraph.

    ``(C) DETERMINATION.--If the Secretary determines that a State or local government is not able to use government employees to conduct new entrant motor carrier audits, the Secretary may use the funds set aside under this paragraph to conduct audits for such States or local governments.''.

   SEC. 4108. DATA QUALITY IMPROVEMENT.

    (a) In General.--Section 31106(a)(3) of title 49, United States Code, is amended--

    (1) by striking ``and'' at the end of subparagraph (D);

    (2) by striking the period at the end of subparagraph (E) and inserting a semicolon; and

    (3) by adding at the end the following:

    ``(F) ensure, to the maximum extent practical, all the data is complete, timely, and accurate across all information systems and initiatives; and

    ``(G) establish and implement a national motor carrier safety data correction system.''.

    (b) Report on Status of Safety Fitness Rating System Revision.--Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the Committee on Commerce, Science, and Transportation of the Senate and the Committee on Transportation and Infrastructure of the House of Representatives a report on the status of revision of the safety fitness rating system of motor carriers.

   SEC. 4109. PERFORMANCE AND REGISTRATION INFORMATION 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 inserting the following:

    ``(2) DESIGN.--The program shall link Federal motor carrier safety information systems with State 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 commercial motor vehicle registrations of a motor carrier or registrant that has been issued an operations out-of-service order by the Secretary.

    ``(3) CONDITIONS FOR PARTICIPATION.--The Secretary shall require States, as a condition of participation in the program, to--

    ``(A) comply with the uniform policies, procedures, and technical and operational standards prescribed by the Secretary under subsection (a)(4);

    ``(B) possess or seek the authority to possess for a time period no longer than determined reasonable by the Secretary, to impose sanctions relating to commercial motor vehicle registration on the basis of a Federal safety fitness determination; and

    ``(C) establish and implement a process to cancel the motor vehicle registration and seize the registration plates of a vehicle when an employer is found liable under section 31310(i)(2)(C) for knowingly allowing or requiring an employee to operate such a commercial motor vehicle in violation of an out-of-service order.

    ``(4) GRANTS.--From the funds authorized by section 31104(i), the Secretary may make a grant in a fiscal year to a State to implement the performance and registration information system management requirements of this subsection.''.

    (b) Performance and Registration Information System Management Grants.--

    (1) IN GENERAL.--Subchapter I of chapter 311 of title 49, United States Code, is further amended by adding at the end the following:``§31109. Performance and registration information System management

    ``The Secretary of Transportation may make a grant to a State to implement the performance and registration information system management requirements of section 31106(b).''.

    (2) CONFORMING AMENDMENT.--The analysis for such subchapter is amended by adding at the end the following:

   ``31109..Performance and registration information system management.''.

   SEC. 4110. 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 an entity or State that shares a land border with another country for carrying out border commercial motor vehicle safety programs and related enforcement activities and projects.

    ``(b) Maintenance of Expenditures.--The Secretary 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 State, exclusive of amounts from the United States, for carrying out border commercial motor vehicle safety programs 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 or the Federal Government ending before October 1, 2005, whichever the State designates.

    ``(c) Governments Share of Costs.--The Secretary 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 carrying out border commercial motor vehicle safety programs and related enforcement activities and projects.

    ``(d) Availability and Reallocation of Amounts.--Allocations to a State remain available for expenditure 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 available to the Secretary for reallocation under this section.''.

    (b) Clerical 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 following:

   ``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 following:

   ``31107..Border enforcement grants.''.

   SEC. 4111. 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 program

    ``(a) Research, Technology, and Technology Transfer Activities.--

    ``(1) ESTABLISHMENT.--The Secretary of Transportation shall establish and carry out a motor carrier and motor coach research and technology program.

    ``(2) MULTIYEAR PLAN.--The program must include a multi-year research plan that focuses on nonredundant innovative research and shall be coordinated with other research programs or projects ongoing or planned within the Department of Transportation, as appropriate.

    ``(3) RESEARCH, DEVELOPMENT, AND TECHNOLOGY TRANSFER ACTIVITIES.--The Secretary may carry out under the program research, development, technology, and technology transfer activities with respect to--

    ``(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 involving commercial motor vehicles;

    ``(C) improving the safety and efficiency of commercial motor vehicles through technological innovation and improvement;

    ``(D) improving technology used by enforcement officers when conducting roadside inspections and compliance reviews to increase efficiency and information transfers; and

    ``(E) increasing the safety and security of hazardous materials transportation.

    ``(4) TESTS AND DEVELOPMENT.--The Secretary may test, develop, or assist in testing and developing any material, invention, patented article, or process related to the research and technology program.

    ``(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 reconstruction and detection of controlled substances or other contraband and stolen cargo or vehicles.

    ``(6) PROCEDURES.--The Secretary may carry out this section--

    ``(A) independently;

    ``(B) in cooperation with other Federal departments, agencies, and instrumentalities and Federal laboratories; or

    ``(C) by making grants to, or entering into contracts and cooperative agreements 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, administer, communicate, and promote the use of products of research, technology, and technology transfer programs under this section.

    ``(b) Collaborative Research and Development.--

    ``(1) IN GENERAL.--To advance innovative solutions to problems involving commercial motor vehicle and motor carrier safety, security, and efficiency, and to stimulate the deployment of emerging technology, the Secretary may carry out, on a cost-shared basis, collaborative research and development with--

    ``(A) non-Federal entities, including State and local governments, foreign governments, colleges and universities, corporations, institutions, 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 cooperative research and development agreements (as defined in section 12 of the Stevenson-Wydler Technology 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 agreement 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 approve a greater Federal share.

    ``(B) TREATMENT OF DIRECTLY INCURRED NON-FEDERAL COSTS.--All costs directly incurred by the non-Federal partners, including personnel, travel, and hardware or software development

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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, development, or use of a technology under a cooperative 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 subject to the Stevenson-Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 et seq.).''.

    (b) Clerical 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. 4112. NEBRASKA CUSTOM HARVESTERS LENGTH EXEMPTION.

    (a) In General.--Section 31112(c) of title 49, United States Code, is amended by adding at the end the following:

    ``(5) Nebraska may allow the operation of a truck tractor and 2 trailers or semitrailers not in actual lawful operation on a regular or periodic basis on June 1, 1991, if the length of the property-carrying units does not exceed 81 feet 6 inches and such combination is used only to transport equipment utilized by custom harvesters under contract to agricultural producers to harvest one or more of wheat, soybeans, and milo during the harvest months for such crops, as defined by the State of Nebraska.''.

    (b) Conforming Amendment.--Such section 31112(c) is amended by striking the subsection designation and heading and inserting the following:

    ``(c) Special Rules for Wyoming, Ohio, Alaska, Iowa, and Nebraska.--''.

   SEC. 4113. PATTERN OF SAFETY VIOLATIONS BY MOTOR CARRIER MANAGEMENT.

    (a) Duties of Employers and Employees.--Section 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 Secretary finds that an officer of a motor carrier engages or has engaged in a pattern or practice of avoiding compliance, or masking or otherwise concealing noncompliance, with regulations on commercial motor vehicle safety prescribed 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.--Not later than 1 year after the date of enactment of this subsection, the Secretary shall by regulation establish standards to implement subsection (b).

    ``(d) Definitions.--In this section, the following definitions apply:

    ``(1) MOTOR CARRIER.--The term `motor carrier' has the meaning such term has under section 13102.

    ``(2) OFFICER.--The term `officer' means an owner, director, chief executive officer, chief operating officer, chief financial officer, safety director, vehicle maintenance supervisor, and driver supervisor of a motor carrier, regardless of the title attached 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 such title is amended to read as follows:

    ``(B)(i) any safety regulations imposed by the Secretary;

    ``(ii) the duties of employers and employees established by the Secretary under section 31135; and

    ``(iii) the safety fitness requirements established by the Secretary under section 31144; and''.

   SEC. 4114. INTRASTATE OPERATIONS OF INTERSTATE MOTOR CARRIERS.

    (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, utilizing among other things the accident record of an owner or operator operating in interstate commerce and the accident record and safety inspection record of such owner or operator--

    ``(A) in operations that affect interstate commerce within the United States; and

    ``(B) in operations in Canada and Mexico if the owner or operator also conducts operations within the United States;

    ``(2) periodically update such safety fitness determinations;

    ``(3) make such final safety fitness determinations readily available to the public; and

    ``(4) prescribe by regulation penalties for violations of this section consistent with section 521.''.

    (b) Prohibited Transportation.--The first subsection (c) of section 31144 of such title is amended by adding at the end the following:

    ``(5) TRANSPORTATION AFFECTING INTERSTATE COMMERCE.--Owners or operators of commercial motor vehicles prohibited from operating in interstate commerce pursuant to paragraphs (1) through (3) of this section may not operate any commercial motor vehicle that affects interstate commerce until the Secretary determines that such owner or operator is fit.''.

    (c) Determination of Unfitness by State.--Section 31144 of such title is amended--

    (1) by redesignating subsections (d), (e), and the second subsection (c) as subsections (e), (f), and (g), respectively; and

    (2) by inserting after subsection (c) the following:

    ``(d) Determination of Unfitness by State.--If a State that receives motor carrier safety assistance program funds under section 31102 determines, by applying the standards prescribed by the Secretary under subsection (b), that an owner or operator of a commercial motor vehicle that has its principal place of business in that State and operates in intrastate commerce is unfit under such standards and prohibits the owner or operator from operating such vehicle in the State, the Secretary shall prohibit the owner or operator from operating such vehicle in interstate commerce until the State determines that the owner or operator is fit.''.

   SEC. 4115. TRANSFER PROVISION.

    (a) In General.--Title II of the Motor Carrier Safety Improvement Act of 1999 (113 Stat. 1748-1773) is amended by inserting after section 228--

    (1) the following:

   ``SEC. 229. CERTAIN EXEMPTIONS.''; and

    (2) the text of section 345 of the National Highway System Designation Act of 1995 (49 U.S.C. 31136 note).

    (b) Clerical Amendment.--The table of contents for such Act is amended by inserting after the item relating to section 228 the following:

   ``Sec..229..Certain exemptions.''.

    (c) Conforming Amendment.--Section 229 of such Act (as added by this section) is amended by striking subsection (f).

    (d) Conforming Repeal.--Section 345 of the National Highway System Designation Act of 1995 (49 U.S.C. 31136 note; 109 Stat. 613) is repealed.

   SEC. 4116. MEDICAL PROGRAM.

    (a) In General.--Subchapter III of chapter 311 of title 49, United States Code, is amended by adding at the end the following:``§31149. Medical program

    ``(a) Medical Review Board.--

    ``(1) ESTABLISHMENT AND FUNCTION.--The Secretary of Transportation shall establish a Medical Review Board to provide the Federal Motor Carrier Safety Administration with medical advice and recommendations on medical standards and guidelines for the physical qualifications of operators of commercial motor vehicles, medical examiner education, and medical research.

    ``(2) COMPOSITION.--The Medical Review Board shall be appointed by the Secretary and shall consist of 5 members selected from medical institutions and private practice. The membership shall reflect expertise in a variety of medical specialties relevant to the driver fitness requirements of the Federal Motor Carrier Safety Administration.

    ``(b) Chief Medical Examiner.--The Secretary shall appoint a chief medical examiner who shall be an employee of the Federal Motor Carrier Safety Administration and who shall hold a position under section 3104 of title 5, United States Code, relating to employment of specially qualified scientific and professional personnel, and shall be paid under section 5376 of title 5, United States Code, relating to pay for certain senior-level positions.

    ``(c) Medical Standards and Requirements.--

    ``(1) IN GENERAL.--The Secretary, with the advice of the Medical Review Board and the chief medical examiner, shall--

    ``(A) establish, review, and revise--

    ``(i) medical standards for operators of commercial motor vehicles that will ensure that the physical condition of operators of commercial motor vehicles is adequate to enable them to operate the vehicles safely;

    ``(ii) requirements for periodic physical examinations of such operators performed by medical examiners who have, at a minimum, self-certified that they have completed training in physical and medical examination standards and are listed on a national registry maintained by the Department of Transportation; and

    ``(B) require each such operator to have a current valid medical certificate;

    ``(C) conduct periodic reviews of a select number of medical examiners on the national registry to ensure that proper examinations of such operators are being conducted;

    ``(D) develop, as appropriate, specific courses and materials for medical examiners listed in the national registry established under this section, and require those medical examiners to, at a minimum, self-certify that they have completed specific training, including refresher courses, to be listed in the registry;

    ``(E) require medical examiners to transmit the name of the applicant and numerical identifier, as determined by the Administrator of the Federal Motor Carrier Safety Administration, for any completed medical examination report required under section 391.43 of title 49, Code of Federal Regulations, electronically to the chief medical examiner on monthly basis; and

    ``(F) periodically review a representative sample of the medical examination reports associated with the name and numerical identifiers of applicants transmitted under subparagraph (E) for errors, omissions, or other indications of improper certification.

    ``(2)