[Federal Register: April 6, 2004 (Volume 69, Number 66)]
[Rules and Regulations]               
[Page 17969-17973]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr06ap04-31]                         

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DEPARTMENT OF HOMELAND SECURITY

Transportation Security Administration

49 CFR Part 1572

[Docket No. TSA-2003-14610; Amendment No. 1572-3]
RIN 1652-AA17

 
Security Threat Assessment for Individuals Applying for a 
Hazardous Materials Endorsement for a Commercial Drivers License; Final 
Rule

AGENCY: Transportation Security Administration (TSA), Department of 
Homeland Security (DHS).

ACTION: Final rule.

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SUMMARY: The Transportation Security Administration (TSA) is issuing 
this final rule, which amends its Interim Final Rule (IFR) establishing 
security threat assessment standards for commercial drivers authorized 
to transport hazardous materials. TSA is changing the date on which 
fingerprint-based background checks must begin in all States to January 
31, 2005. TSA is making this change so that the States will have enough 
time to make changes to their existing commercial driver safety and 
testing programs to facilitate implementation.

DATES: Effective April 6, 2004.

FOR FURTHER INFORMATION CONTACT: For technical questions: John Berry, 
Credentialing Program Office, Transportation Security Administration 
Headquarters, East Building, Floor 8, 601 12th Street, telephone: (571) 
227-1757, e-mail: John.Berry1@dhs.gov. Steve Sprague, Maritime and 
Land, Transportation Security Administration Headquarters, West 
Building, Floor 9, 701 12th Street, Arlington, VA, telephone: (571) 
227-1468, e-mail Steve.Sprague@dhs.gov.
    For legal questions: Christine Beyer, Office of Chief Counsel, 
Transportation Security Administration Headquarters, West Building, 
Floor 8, TSA-2, 601 South 12th Street, Arlington, VA 22202-4220; 
telephone: (571) 227-2657; e-mail: Christine.Beyer@dhs.gov.

SUPPLEMENTARY INFORMATION:
    Comments: TSA is not requesting comments to this final rule.

Availability of Rulemaking Document

    You can get an electronic copy of this final rule using the 
Internet by:
    (1) Searching the Department of Transportation's electronic Docket 
Management System (DMS) web page (http://dms.dot.gov/search);    (2) Accessing the Government Printing Office's web page at http://

http://www.access.gpo.gov/su_docs/aces/aces140.html; or

    (3) Visiting TSA's Laws and Regulations web page at http://www.tsa.gov/laws_regs/gov_index.shtm
.

    In addition, copies are available by writing or calling the 
individuals in the FOR FURTHER INFORMATION CONTACT section. Please be 
sure to identify the docket number when making requests.

Small Entity Inquiries

    The Small Business Regulatory Enforcement Fairness Act (SBREFA) of 
1996 requires TSA to comply with small entity requests for information 
or advice about compliance with statutes and regulations within TSA's 
jurisdiction. Any small entity that has a question regarding this 
document may contact the persons listed in the FOR FURTHER INFORMATION 
CONTACT section for information or advice. You can get further 
information regarding SBREFA on the Small Business Administration's Web 
page at http://www.sba.gov/advo/laws/law_lib.html.


Background

    On May 5, 2003, TSA published an interim final rule (IFR) that 
requires a security threat assessment of commercial drivers who are 
authorized to transport hazardous materials.\1\ The IFR implements 
several statutory mandates, discussed below, including a check of 
relevant criminal and international databases, and appeal and waiver 
procedures. In the IFR, TSA also stated that it would provide guidance 
on how fingerprints would be collected and adjudicated.
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    \1\ 68 FR 23852, May 5, 2003.
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    TSA requested and received comments from the States, labor 
organizations, and trucking industry associations. In addition, TSA 
held working group sessions with the States to discuss potential 
fingerprinting systems that would achieve the statutory requirements, 
but would not adversely impact the States.
    Based on the comments received and the working sessions with the 
States, on November 7, 2003, TSA amended the IFR to delay the date on 
which fingerprint collection would begin.\2\ The amended IFR provided 
that the States must begin to collect fingerprints and the accompanying 
identification information as of April 1, 2004. Any State unable to 
meet this deadline was required to submit a fingerprint collection plan 
to TSA and request an extension of time (waiver) to submit the 
biographical information. The amended IFR required all States to be in 
compliance with the rule by December 1, 2004.
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    \2\ 68 FR 63033, November 7, 2003.
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    As a result of comments and correspondence received since November 
2003, TSA has determined to eliminate the April 1, 2004 deadline. At 
present, more than thirty-five States have requested an extension of 
time to establish a fingerprint collection program. In addition, 
several States, in their requests for an extension of time, expressed 
concern over their ability to meet the December 1, 2004 deadline for 
all States to be in compliance with the rule. For this reason, 
discussed in greater detail below, fingerprinting will begin no later 
than January 31, 2005.
    Under legislation passed in late 2003,\3\ DHS must charge a fee for 
the cost of any credential and background check provided through the 
Department for workers in the field of transportation. DHS, through 
TSA, is in the process of preparing rulemaking documents to establish 
reasonable fees for this and other similar credentialing programs. With 
the proposed deadline extension, TSA will work to coordinate the timing 
of fee assessments with the fingerprint-based portion of the background 
records check.
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    \3\ Pub. L. 108-90, October 1, 2003, 117 Stat. 1137, Section 
520.
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USA PATRIOT Act

    The Uniting and Strengthening America by Providing Appropriate 
Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act 
was enacted on October 25, 2001.\4\ Section 1012 of the USA PATRIOT Act 
amended 49 U.S.C. Chapter 51 by

[[Page 17970]]

adding a new section 5103a titled ``Limitation on issuance of hazmat 
licenses.'' Section 5103a(a)(1) provides:
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    \4\ Pub. L. 107-56, October 25, 2001, 115 Stat. 272.

    A State may not issue to any individual a license to operate a 
motor vehicle transporting in commerce a hazardous material unless 
the Secretary of Transportation has first determined, upon receipt 
of a notification under subsection (c)(1)(B), that the individual 
does not pose a security risk warranting denial of the license.\5\
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    \5\ The Secretary of Transportation delegated the authority to 
carry out the provisions of this section to the Under Secretary of 
Transportation for Security/Administrator of TSA. 68 FR 10988, March 
7, 2003.

Section 5103a(a)(2) subjects license renewals to the same requirements.
    Section 5103a(c) requires the Attorney General, upon the request of 
a State in connection with issuance of a hazardous materials 
endorsement (HME), to carry out a background records check of the 
individual applying for the endorsement and, upon completing the check, 
to notify the Secretary (as delegated to the Administrator of TSA) of 
the results. The Secretary then determines whether the individual poses 
a security risk warranting denial of the endorsement. The background 
records check must consist of: (1) a check of the relevant criminal 
history databases; (2) in the case of an alien, a check of the relevant 
databases to determine the status of the alien under U.S. immigration 
laws; and (3) as appropriate, a check of the relevant international 
databases through Interpol-U.S. National Central Bureau or other 
appropriate means.

Safe Explosives Act

    Congress enacted the Safe Explosives Act (SEA) on November 25, 
2002.\6\ Sections 1121-1123 of the SEA amended section 842(i) of Title 
18 of the U.S. Code by adding several categories to the list of persons 
who may not lawfully ``ship or transport any explosive in or affecting 
interstate or foreign commerce'' or ``receive or possess any explosive 
which has been shipped or transported in or affecting interstate or 
foreign commerce.'' Prior to the amendment, 18 U.S.C. 842(i) 
prohibited, among other things, the transportation of explosives by any 
person under indictment for or convicted of a felony, a fugitive from 
justice, an unlawful user or addict of any controlled substance, and 
any person who had been adjudicated as a mental defective or committed 
to a mental institution. The amendment added three new categories to 
the list of prohibited persons: aliens (with certain limited 
exceptions), persons dishonorably discharged from the armed forces, and 
former U.S. citizens who have renounced their citizenship. Individuals 
who violate 18 U.S.C. 842(i) are subject to criminal prosecution.\7\ 
These incidents are investigated by the Bureau of Alcohol, Tobacco, 
Firearms, and Explosives (ATF) of the Department of Justice and 
referred, as appropriate, to United States Attorneys.
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    \6\ Pub. L. 107-296, November 25, 2002, 116 Stat. 2280.
    \7\ The penalty for violation of 18 U.S.C. 842(i) is up to ten 
years imprisonment and a fine of up to $250,000.
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    However, 18 U.S.C. 845(a)(1) provides an exception to section 
842(i) for ``any aspect of the transportation of explosive materials 
via railroad, water, highway, or air which are regulated by the United 
States Department of Transportation (DOT) and agencies thereof, and 
which pertain to safety.'' Under this exception, if DOT regulations 
address the transportation security issues of persons engaged in a 
particular aspect of the safe transportation of explosive materials, 
then those persons are not subject to prosecution under 18 U.S.C. 
842(i) while they are engaged in the transportation of explosives in 
commerce. TSA issued the interim final rule in coordination with 
agencies within DOT, the Federal Motor Carrier Safety Administration 
and Research and Special Programs Administration, and triggered this 
exception. The action TSA takes now to move the date on which 
fingerprinting must begin does not affect the application of the 
exception.

The Interim Final Rule

    To comply with the mandates of the USA PATRIOT Act, and to trigger 
the exception in 18 U.S.C. 845(a)(1) for the transportation of 
explosives, TSA issued the May 2003 IFR. Under the IFR, TSA determines 
that an individual poses a security threat if he or she: (1) is an 
alien (subject to certain exceptions) or a U.S. citizen who has 
renounced his or her U.S. citizenship; (2) is wanted or under 
indictment for certain felonies; (3) has a conviction in military or 
civilian court for certain felonies; (4) has been adjudicated as a 
mental defective or involuntarily committed to a mental institution; or 
(5) is considered to pose a security threat based on a review of 
pertinent databases.
    The IFR also establishes conditions under which individuals who 
have been determined to be security threats can appeal the 
determination, and a waiver process for those individuals who otherwise 
could not obtain an HME because they have disqualifying felonies, or 
were adjudicated as mental defectives or involuntarily committed to a 
mental institution. Finally, the IFR prohibits an individual from 
holding, and a State from issuing, renewing, or transferring, an HME 
for a driver unless the individual has met the TSA security threat 
assessment standards.
    Based on the comments received following publication of the IFR and 
the working sessions with the States, TSA amended the IFR on November 
7, 2003, to delay the date on which fingerprint collection would begin. 
The amended IFR provided that the States must begin collecting 
fingerprints and the accompanying identification information as of 
April 1, 2004. Any State unable to meet this deadline was required to 
submit a fingerprint collection plan to TSA and request an extension of 
time to submit the biographical information. Under the amended IFR, all 
States were required to be in compliance with the rule by December 1, 
2004.

Summary of the Final Rule

    TSA believes that the fingerprint collection date should be delayed 
so that TSA and each State may develop a threat assessment program 
within the existing fiscal, procurement, and legal constraints each 
entity faces. By issuing the rule now, TSA hopes to prevent unnecessary 
expenditures the States may make in the short term and to provide the 
States the time needed to develop the program in an organized fashion. 
This final rule provides that fingerprint collection must begin no 
later than January 31, 2005. However, TSA will work with States to 
begin fingerprint collection and submission before that date using 
pilot programs.
    Many States must initiate rulemaking or enact new legislation to 
authorize the collection of fees to cover any State costs associated 
with the new program. Some State legislatures meet biannually and many 
meet for just a few months of the year. Also, many States operate under 
fiscal and procurement schedules that do not permit the purchase of 
necessary equipment and software improvements before April 1, 2004.
    At the Federal level, TSA will complete the rulemaking proceeding 
to establish a fee for the security threat assessment.
    Prior to January 31, 2005, TSA will conduct name-based, terrorist-
focused checks on drivers who are currently authorized to transport 
hazardous materials. If TSA discovers during the course of these name-
based checks that an individual is suspected of posing or poses a 
security threat, TSA will initiate action to revoke the individual's 
HME, in accordance with the procedures in 49 CFR 1572.141. The 
individual will be

[[Page 17971]]

provided with an opportunity to correct underlying records or cases of 
mistaken identity by submitting fingerprints or corrected court 
records.
    With an estimated population of 3.5 million drivers, the government 
will prioritize the background check process by searching terrorist-
related databases first. TSA believes that this name-based check of all 
drivers who are currently authorized to transport hazmat will enable 
the agency to focus on individuals who may pose a more immediate threat 
of terrorist or other dangerous activity. Following that check, TSA 
will then search criminal databases that include outstanding criminal 
wants and warrants, and immigration records to determine citizenship 
status.
    TSA has assessed the risks associated with the transportation of 
hazardous materials via commercial vehicle and has determined that in 
conducting name-based checks prior to January 2005, and initiating 
fingerprint-based criminal history checks as of January 31, 2005, the 
risks are effectively addressed. The terrorist-related information that 
TSA will search prior to January 2005, is the best indication of an 
individual's predisposition to commit or conspire to commit terrorist 
acts. TSA has determined that the more imminent threat is an individual 
whose background includes terrorism-related activity. This approach is 
consistent with the USA PATRIOT Act and meets the needs of the States.
    Also, it is important to note that TSA is not delaying the 
September 2, 2003, compliance date set forth in Sec.  1572.5(b) for 
surrendering an HME. This section requires any HME holder who does not 
meet the security threat assessment standards in part 1572 to surrender 
the endorsement beginning on September 2, 2003. For instance, an 
individual who knows that he or she has committed a disqualifying 
offense within the prescribed time periods is required to relinquish 
his or her HME beginning September 2, 2003. Nothing in this final rule 
alters this surrender requirement.
    In the context of this rulemaking, the surrender requirement 
buttresses TSA's determination that we should attempt to identify 
potential terrorist threats from terrorism-related information 
databases before analyzing criminal history records. As of September 2, 
2003, all HME drivers are required to self-report any disqualifying 
offenses that would appear on a fingerprint-based criminal history 
records check. TSA will work closely with the State Departments of 
Motor Vehicles, labor organizations, and the trucking industry to 
communicate this surrender provision widely and to inform affected 
drivers of the existing waiver process.
    Based on the foregoing, the exception found in 18 U.S.C. 845(a)(1) 
continues to apply, and persons otherwise prohibited from lawfully 
possessing explosives who are transporting explosives in commerce would 
not be subject to criminal prosecution under section 842(i).
    This final rule amends the November 2003 IFR by changing the 
fingerprint start date and the date on which the States may issue, 
renew, or transfer HMEs only after the threat assessment is complete. 
In view of the fact that many of the States cannot begin collecting 
fingerprints or gathering pertinent identification data from drivers by 
April 1, 2004, and that TSA will not have regulatory authority to 
charge fees to cover the costs of the security threat assessments 
before late 2004 when the fee collection rulemaking is complete, TSA is 
changing the date that all States must begin collecting fingerprints 
and gathering identification data from hazmat drivers to January 31, 
2005. This change accommodates the fiscal and legal tasks that must be 
completed first.
    TSA will complete a rulemaking proceeding to collect fees to cover 
the cost of each security threat assessment. In the near future, TSA 
will issue a rule that establishes reasonable fees (Fee Rule) to cover 
the cost of the hazmat driver security threat assessment.

Section-by-Section Analysis

    TSA is adding a definition of ``Pilot State'' to Sec.  1572.3. A 
``Pilot State'' is a State that volunteers to begin the security threat 
assessment process prior to January 31, 2005. TSA also is making 
changes to Sec.  1572.5 concerning the date on which TSA's threat 
assessment based on fingerprint-based criminal history record checks 
must be underway. The new dates in paragraph 1572.5(c)(2), and the 
deletion of the dates in paragraph 1572.5(b)(2), reflect TSA's decision 
to delay the date on which the collection of fingerprints and 
accompanying biographical data must begin from April 1, 2004, to 
January 31, 2005.
    TSA is revising paragraph (c)(3) with requirements for States that 
volunteer to be Pilot States. Pilot States will be required to collect 
the identifying information required in 49 CFR 1572.5(e) and collect 
and submit fingerprints in accordance with procedures approved by TSA. 
TSA will work with Pilot States on procedures for the collection and 
submission of fingerprints.
    TSA is removing the requirement in paragraph 1572.5(c)(4) that 
States must submit fingerprints and information, or request an 
extension as of April 1, 2004. The requirement that is now in paragraph 
1572.5(c)(4) was in paragraph 1572.5(c)(3)(i) in the original IFR. This 
paragraph permits the States, in the first 6 months of implementation 
of the rule, to extend the expiration date of an individual's HME until 
the State receives from TSA a final notification of the individual's 
threat assessment. This provision is necessary because in the first 180 
days of the program, individuals may not have been given sufficient 
notice of the TSA threat assessment requirements. Allowing States to 
extend the expiration date of such an individual's HME will provide TSA 
with enough time to conduct a security threat assessment without unduly 
delaying the individual's receipt of a renewed or transferred HME.

Future Rulemaking

    TSA plans to publish a document to discuss all comments received in 
this proceeding and to improve the clarity and organization of the rule 
text. This should be done in conjunction with the aforementioned 
rulemaking to establish fees. In addition, TSA may make changes to the 
existing standards, such as the disqualifying criminal offenses and 
immigration status and provide more information. TSA will rely heavily 
on comments that the States and industry have provided and will provide 
to ensure that no State is forced to adhere to a rigid form of program 
implementation.

Rulemaking Analyses and Notices

Justification for Immediate Adoption

    TSA is issuing this final rule in response to comments received 
following publication of the May 5, 2003 IFR and subsequent amendment 
issued on November 3, 2003. TSA has received requests for an extension 
of time from many States that are not able to establish a fingerprint 
collection program by April 1, 2004. Many of these States do not wish 
to file an extension of time and submit a fingerprint collection 
program, because the fees and fingerprint collection system have not 
yet been determined and it is difficult to predict how fingerprints 
will be collected and what portion of the cost, if any, the States must 
bear.
    Eliminating the April 1, 2004 deadline will provide the States more 
time to devote to developing a cost-effective program through 
appropriate fiscal and operational planning.

[[Page 17972]]

Regulatory Evaluation

    Executive Order 12866, ``Regulatory Planning and Review'' (58 FR 
51735, October 4, 1993), provides for making determinations whether a 
regulatory action is ``significant'' and therefore subject to Office of 
Management and Budget (OMB) review and to the requirements of the 
Executive Order.
    TSA has determined that this action is a significant regulatory 
action within the meaning of Executive Order 12866 because there is 
significant public interest in security issues since the events of 
September 11, 2001. The IFR and this final rule implements section 1012 
of the USA PATRIOT Act by establishing the criteria that will be used 
in determining whether an individual applying for, transferring, or 
renewing an HME poses a security risk warranting denial of the 
endorsement.
    This final rule will not impose costs or other economic impacts 
additional to those that were imposed by the original IFR. This rule 
simply eliminates the April 1, 2004 date, establishing January 31, 2005 
as the date on which fingerprint collection will begin in all States 
and the Federal government will conduct criminal history background 
checks, both in accordance with the original rule. Thus, there is no 
adverse economic impact resulting from the issuance of this final rule, 
and there may be an economic benefit since the final rule will relieve 
States of the costs of complying with the fingerprint collection 
requirements until January 31, 2005. This action is expected to reduce 
the burden on the States by providing additional time to the States to 
implement this program. TSA believes it is advisable to publish the 
rule now so that States do not make expenditures to meet the April 1 
date that may subsequently be unnecessary or minimized.

Initial Regulatory Flexibility Determination

    The Regulatory Flexibility Act of 1980, as amended, (RFA) was 
enacted by Congress to ensure that small entities (small businesses, 
small not-for-profit organizations, and small governmental 
jurisdictions) are not unnecessarily or disproportionately burdened by 
Federal regulations. The RFA requires agencies to review rules to 
determine if they have ``a significant economic impact on a substantial 
number of small entities.'' TSA has determined that this final rule 
will not have a significant economic impact on a substantial number of 
small entities. This action only extends the date on which fingerprint 
collection must begin, which should not impose any costs on small 
entities. Any costs associated with the security threat assessment 
program stem from the interim final rule that was published on May 5, 
2003.
    TSA conducted the required review of this rule and, accordingly, 
pursuant to the Regulatory Flexibility Act, 5 U.S.C. 605(b), certifies 
that this rule will not have a significant impact on a substantial 
number of small entities.

Paperwork Reduction Act

    Under the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3501, et 
seq.), a Federal agency must obtain approval from the Office of 
Management and Budget (OMB) for each collection of information it 
conducts, sponsors, or requires through regulations. This final rule 
contains information collection activities subject to the PRA. 
Accordingly, the information requirements have been submitted to OMB 
for its review (68 FR 63033, November 7, 2003). The comment period 
closed on January 6, 2004.
    As protection provided by the Paperwork Reduction Act, as amended, 
an agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a currently 
valid OMB control number. The OMB control number for this information 
collection will be published in the Federal Register after OMB approves 
it.

Executive Order 13132 (Federalism)

    Executive Order 13132 requires TSA to develop an accountable 
process to ensure ``meaningful and timely input by State and local 
officials in the development of regulatory policies that have 
federalism implications.'' ``Policies that have federalism 
implications'' are defined in the Executive Order to include 
regulations that have ``substantial direct effects on the States, on 
the relationship between the national government and the States, or on 
the distribution of power and responsibilities among the various levels 
of government.'' Under the Executive Order, TSA may construe a Federal 
statute to preempt State law only where, among other things, the 
exercise of State authority conflicts with the exercise of Federal 
authority under the Federal statute.
    This action has been analyzed in accordance with the principles and 
criteria in the Executive Order, and it has been determined that this 
final rule does have Federalism implications or a substantial direct 
effect on the States. This final rule changes the date on which the 
States may issue, renew or transfer a hazardous materials endorsement 
based on a security threat assessment. This action should reduce 
burdens on the State by providing additional time to the States to 
obtain necessary funding and legal authority to implement this program. 
TSA will continue to consult extensively with the States to ensure that 
any burdens are minimized to the extent possible.

Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) 
requires Federal agencies to prepare a written assessment of the costs, 
benefits, and other effects of proposed or final rules that include a 
Federal mandate likely to result in the expenditure by State, local, or 
tribal governments, in the aggregate, or by the private sector, of more 
than $100 million in any one year (adjusted for inflation with base 
year of 1995). Before promulgating a rule for which a written statement 
is needed, section 205 of the UMRA generally requires TSA to identify 
and consider a reasonable number of regulatory alternatives and adopt 
the least costly, most cost-effective, or least burdensome alternative 
that achieves the objective of the rule. The provisions of section 205 
do not apply when they are inconsistent with applicable law. In 
addition, section 205 allows TSA to adopt an alternative other than the 
least costly, most cost-effective, or least burdensome alternative if 
the agency publishes with the final rule an explanation why that 
alternative was not adopted.
    This final rule will not result in the expenditure by State, local, 
or tribal governments, in the aggregate, or by the private sector, of 
more than $100 million annually. Thus, TSA has not prepared a written 
assessment under the UMRA.

Environmental Analysis

    TSA has analyzed this rulemaking action for the purposes of the 
National Environmental Policy Act. The agency has determined that 
implementation of this final rule will not have any significant impact 
on the quality of the human environment.

Energy Impact

    TSA has assessed the energy impact of this rule in accordance with 
the Energy Policy and Conservation Act (EPCA), Public Law 94-163, as 
amended (42 U.S.C. 6362). TSA has determined that this rule is not a 
major regulatory action under the provisions of the EPCA.

Trade Impact Assessment

    The Trade Agreement Act of 1979 prohibits Federal agencies from

[[Page 17973]]

engaging in any standards or related activities that create unnecessary 
obstacles to the foreign commerce of the United States. Legitimate 
domestic objectives, such as safety, are not considered unnecessary 
obstacles. This rule applies only to individuals applying for a State-
issued hazardous materials endorsement for a commercial drivers 
license. Thus, TSA has determined that this rule will have no impact on 
trade.

List of Subjects in 49 CFR Part 1572

    Commercial drivers license, Criminal history background checks, 
Explosives, Hazardous materials, Motor carriers, Motor vehicle 
carriers, Security measures, Security threat assessment.

The Amendments

0
For the reasons set forth in the preamble, the Transportation Security 
Administration amends 49 CFR chapter XII, subchapter D as follows:

PART 1572--CREDENTIALING AND BACKGROUND CHECKS FOR LAND 
TRANSPORTATION SECURITY

0
1. The authority citation for part 1572 continues to read as follows:

    Authority: 49 U.S.C. 114, 5103a, 40113, 46105.

0
2. In Sec.  1572.3 add the following definition:


Sec.  1572.3  Terms used in this part.

* * * * *
    Pilot State means a State that volunteers to begin the security 
threat assessment process prior to January 31, 2005.
* * * * *

0
3. In Sec.  1572.5, revise paragraphs (b)(2), (c)(1), (c)(2), (c)(3), 
and (c)(4) to read as follows:


Sec.  1572.5  Security threat assessment for commercial drivers' 
licenses with a hazardous materials endorsement.

* * * * *
    (b) * * *
    (2) Submission of fingerprints. (i) If TSA determines that an 
individual does not meet the security threat assessment standards 
described in paragraph (d) of this section prior to completing a 
fingerprint-based criminal history records check and directs the State 
to revoke the individual's hazardous materials endorsement, the 
individual may submit fingerprints in a form and manner specified by 
TSA if he or she believes that the determination is based on mistaken 
identity.
    (ii) When so notified by the State, an individual must submit 
fingerprints in a form and manner specified by the State and TSA when 
the individual applies to obtain, renew, or transfer a hazardous 
materials endorsement for a CDL, or when requested by TSA.
    (c) States. (1) Each State must revoke an individual's hazardous 
materials endorsement if TSA informs the State that the individual does 
not meet the standards for security threat assessment in paragraph (d) 
of this section.
    (2) Beginning January 31, 2005:
    (i) No State may issue, renew, or transfer a hazardous materials 
endorsement for a CDL unless the State receives a Notification of No 
Security Threat from TSA.
    (ii) Each State must notify each individual holding a hazardous 
materials endorsement issued by that State that he or she will be 
subject to the security threat assessment described in this section as 
part of any application for renewal of the endorsement, at least 180 
days prior to the expiration date of the individual's endorsement. The 
notice must inform the individual that he or she may initiate the 
security threat assessment required by this section at any time after 
receiving the notice, but no later than 90 days before the expiration 
date of the individual's endorsement.
    (3) Prior to January 31, 2005, as approved by TSA, a Pilot State 
may not issue, renew or transfer a hazardous materials endorsement for 
a CDL unless the Pilot State--
    (i) Collects the information required in Sec.  1572.5(e);
    (ii) Collects and submits fingerprints in accordance with 
procedures approved by TSA; and
    (iii) Receives a Notification of No Security Threat from TSA.
    (4) From January 31, 2005 to June 28, 2005, while TSA is conducting 
a security threat assessment on an individual applying to renew or 
transfer a hazardous materials endorsement, the State that issued the 
endorsement may extend the expiration date of the individual's 
endorsement until the State receives a Final Notification of Threat 
Assessment or Notification of No Security Threat from TSA.
* * * * *

    Issued in Arlington, VA, on April 1, 2004.
David M. Stone,
Acting Administrator.
[FR Doc. 04-7801 Filed 4-1-04; 2:37 pm]

BILLING CODE 4910-62-P