81_FR_70832 81 FR 70634 - Commercial Driver's License Requirements of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and the Military Commercial Driver's License Act of 2012

81 FR 70634 - Commercial Driver's License Requirements of the Moving Ahead for Progress in the 21st Century Act (MAP-21) and the Military Commercial Driver's License Act of 2012

DEPARTMENT OF TRANSPORTATION
Federal Motor Carrier Safety Administration

Federal Register Volume 81, Issue 198 (October 13, 2016)

Page Range70634-70646
FR Document2016-24749

FMCSA amends its commercial driver's license (CDL) regulations to ease the transition of military personnel into civilian careers driving commercial motor vehicles (CMVs) by simplifying the process of obtaining a commercial learner's permit (CLP) or CDL. This final rule extends the period of time for applying for a skills test waiver from 90 days to 1 year after leaving a military position requiring the operation of a CMV. This final rule also allows a State to accept applications from active duty military personnel who are stationed in that State as well as administer the written and skills tests for a CLP or CDL. States that choose to accept such applications are required to transmit the test results electronically to the State of domicile of the military personnel. The State of domicile may issue the CLP or CDL on the basis of those results.

Federal Register, Volume 81 Issue 198 (Thursday, October 13, 2016)
[Federal Register Volume 81, Number 198 (Thursday, October 13, 2016)]
[Rules and Regulations]
[Pages 70634-70646]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-24749]


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DEPARTMENT OF TRANSPORTATION

Federal Motor Carrier Safety Administration

49 CFR Parts 383 and 384

[Docket No. FMCSA-2016-0051]
RIN 2126-AB68


Commercial Driver's License Requirements of the Moving Ahead for 
Progress in the 21st Century Act (MAP-21) and the Military Commercial 
Driver's License Act of 2012

AGENCY: Federal Motor Carrier Safety Administration (FMCSA), DOT.

ACTION: Final rule.

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SUMMARY: FMCSA amends its commercial driver's license (CDL) regulations 
to ease the transition of military personnel into civilian careers 
driving commercial motor vehicles (CMVs) by simplifying the process of 
obtaining a commercial learner's permit (CLP) or CDL. This final rule 
extends the period of time for applying for a skills test waiver from 
90 days to 1 year after leaving a military position requiring the 
operation of a CMV. This final rule also allows a State to accept 
applications from active duty military personnel who are stationed in 
that State as well as administer the written and skills tests for a CLP 
or CDL. States that choose to accept such applications are required to 
transmit the test results electronically to the State of domicile of 
the military personnel. The State of domicile may issue the CLP or CDL 
on the basis of those results.

DATES: This final rule is effective December 12, 2016.

ADDRESSES: Petitions for reconsideration this final rule must be 
submitted in accordance with 49 CFR 389.35 to: FMCSA Administrator, 
Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue 
SE., Washington, DC 20590- 0001 no later than November 14, 2016.

FOR FURTHER INFORMATION CONTACT: Mr. Selden Fritschner, CDL Division, 
Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue 
SE., Washington, DC 20590-0001, by email at [email protected], 
or by telephone at 202-366-0677. If you have questions on viewing or 
submitting material to the docket, contact Docket Services, telephone 
(202) 366-9826.

SUPPLEMENTARY INFORMATION: This Final Rule is organized as follows:

I. Rulemaking Documents
    A. Availability of Rulemaking Documents
    B. Privacy Act
II. Executive Summary
III. Legal Basis
IV. Background
V. Proposed Rule
VI. Discussion of Comments and Responses
VII. Changes from the NPRM
VIII. Today's Final Rule
IX. International Impacts
X. Section-by-Section
XI. Regulatory Analyses
    A. E.O. 12866 (Regulatory Planning and Review, E.O. 13563, DOT 
Regulatory Policies and Procedures
    B. Regulatory Flexibility Act
    C. Assistance for Small Entities
    D. Unfunded Mandates Reform Act of 1995
    E. Paperwork Reduction Act
    F. E.O. 13132 (Federalism)
    G. E.O. 12988 (Civil Justice Reform)
    H. E.O. 13045 (Protection of Children)
    I. E.O. 12630 (Taking of Private Property)
    J. Privacy
    K. E.O. 12372 (Intergovermental Review)
    L. E.O. 13211 (Energy Supply, Distribution, or Use)
    M. E.O. 13175 (Indian Tribal Governments)
    N. National Technology Transfer and Advancement Act (Technical 
Standards)
    O. Environment (NEPA, CAA, E.O.12898 Environmental Justice)

I. Rulemaking Documents

A. Availability of Rulemaking Documents

    For access to docket FMCSA-2016-0051 to read background documents 
and comments received, go to http://www.regulations.gov at any time, or 
to Docket Services at U.S. Department of Transportation, Room W12-140, 
1200 New Jersey Avenue SE., Washington, DC 20590, between 9 a.m. and 5 
p.m., Monday through Friday, except Federal holidays.

B. Privacy Act

    In accordance with 5 U.S.C. 553(c), DOT solicits comments from the 
public to better inform its rulemaking process. DOT posts these 
comments, without edit, including any personal information the 
commenter provides, to www.regulations.gov, as described in the system 
of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
www.dot.gov/privacy.

II. Executive Summary

    Section 32308 of the Moving Ahead for Progress in the 21st Century 
Act (MAP-21) [Pub. L. 112-141, 126 Stat. 405, 794, July 6, 2012] 
required FMCSA to undertake a study to assess Federal and State 
regulatory, economic, and administrative challenges faced by current 
and former members of the armed forces, who operated qualifying motor 
vehicles during their service, in obtaining CDLs. As a result of this 
study, FMCSA provided a report to Congress titled ``Program to Assist 
Veterans to Acquire Commercial Driver's Licenses'' (November 2013) 
(available in the docket for this

[[Page 70635]]

rulemaking). The report contained six recommended actions, and two 
elements of the report comprise the main parts of this rulemaking. 
These actions are: (1) Revise 49 CFR 383.77(b)(1) governing the 
military skills test waiver to extend the time period to apply for a 
waiver from 90 days to 1 year within which service members were 
regularly employed in a position requiring operation of a CMV; and (2) 
Revise the definitions of CLP and CDL in 49 CFR 383.5 and 384.301 and 
related provisions governing the domicile requirement, in order to 
implement the statutory waiver enacted by the Military Commercial 
Driver's License Act of 2012 (Pub. L. 112-196, 126 Stat. 1459, Oct. 19, 
2012).
    This rule eases the current burdens on military personnel applying 
for CLPs and CDLs issued by a State Driver Licensing Agency (SDLA) in 
two ways. First, it extends the time in which States are allowed (but 
not required) by 49 CFR 383.77 to waive the skills test for certain 
military personnel from 90 days to 1 year. On July 8, 2014, FMCSA 
issued a temporary exemption under 49 CFR part 381 that extended the 
skills test waiver to 1 year [79 FR 38659].\1\ On June 29, 2016, FMCSA 
extended the temporary exemption for another two years, through July 8, 
2018 (81 FR 42391). This final rule makes the waiver extension 
permanent. Second, this rule allows States to accept applications and 
administer all necessary tests for a CLP or CDL from active duty 
service members stationed in that State who are operating in a Military 
Occupational Specialty as full-time CMV drivers. States that choose to 
exercise this option are required to transmit the application and test 
results electronically to the SDLA in the service member's State of 
domicile, which would then issue the CLP or CDL. This enables service 
members to complete their licensing requirements without incurring the 
time and expense of returning to their State of domicile. FMCSA 
encourages, but does not require, the State of domicile to issue the 
CLP or CDL on the basis of this information in accordance with 
otherwise applicable procedures.
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    \1\ Available in the docket for this rulemaking.
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    FMCSA evaluated potential costs and benefits associated with this 
rulemaking and estimates that these changes could result in net 
benefits between $3.2 million and $7.7 million over 10 years, 
discounted at 7%.

III. Legal Basis

    This rulemaking rests on the authority of the Commercial Motor 
Vehicle Safety Act of 1986 (CMVSA), as amended, codified at 49 U.S.C. 
chapter 313 and implemented by 49 CFR parts 382, 383, and 384. It 
responds to section 5401(b) of the Fixing America's Surface 
Transportation Act (FAST Act) [Pub. L. 114-94, 129 Stat. 1312, 1547, 
December 4, 2015], which requires FMCSA to implement the 
recommendations included in the report submitted pursuant to section 
32308 of MAP-21, discussed above. Section 5401(c) of the FAST Act also 
requires FMCSA to implement the Military Commercial Driver's License 
Act of 2012 [49 U.S.C. 31311(a)(12)(C)]. As explained later in the 
preamble, this rule will give military personnel all of the benefits of 
the Military CDL Act, while providing options.
    The CMVSA provides broadly that ``[t]he Secretary of Transportation 
shall prescribe regulations on minimum standards for testing and 
ensuring the fitness of an individual operating a commercial motor 
vehicle'' (49 U.S.C. 31305(a)). Those regulations shall ensure that 
``(1) an individual issued a commercial driver's license [must] pass 
written and driving tests for the operation of a commercial motor 
vehicle that comply with the minimum standards prescribed by the 
Secretary under section 31305(a) of this title'' (49 U.S.C. 31308(1)). 
To avoid the withholding of certain Federal-aid funds, States must 
adopt a testing program ``consistent with the minimum standards 
prescribed by the Secretary of Transportation under section 31305(a) of 
this title'' (49 U.S.C. 31311(a)(1)).
    Potential CMV drivers often obtain CDL training outside their State 
of domicile. Driver training schools typically provide their students 
with a ``representative'' vehicle to use for the required skills test 
(see 49 U.S.C. 31305(a)(2)), as well as a CDL holder to accompany the 
applicant to the test site. Until 2012, however, the CMVSA provided 
that a CDL could be issued only by the driver's State of domicile (49 
U.S.C. 31311(a)(12)(A)). The cost to applicants trained out-of-State of 
traveling to their State of domicile to be skills tested can be 
substantial in terms of both personal time and financial expense. 
Therefore, on the basis of the authority cited in the previous 
paragraph, FMCSA's final rule on ``Commercial Driver's License Testing 
and Commercial Learner's Permit Standards'' (76 FR 26854, May 9, 2011) 
required States where a driver is domiciled to accept the result of 
skills tests administered by a different State where the driver 
completed training (49 CFR 383.79).
    Legal residence or ``domicile'' is the State that individuals 
consider their permanent home, where they pay taxes, vote, and get a 
driver's license. Military personnel are frequently stationed outside 
their State of domicile. The Military CDL Act allows a State to issue 
CDLs to certain military personnel not domiciled in the State, if their 
temporary or permanent duty stations are located in that State (49 
U.S.C. 31312(a)(12)(C)). However, this procedure creates problems for 
service members trying to maintain legal domicile in another State. 
Because drivers' licenses are often treated as proof of domicile, 
obtaining a CDL from the State where they are stationed could result in 
the loss of domicile and corresponding benefits (e.g., tax breaks) in 
what they consider their ``home'' State.
    This final rule therefore utilizes the CMVSA's broader authority to 
allow the State where military personnel are stationed to accept CLP or 
CDL applications and to administer written and skills tests for the 
CDL. The rule requires a State that utilizes this procedure to transmit 
the application and test results electronically to the State of 
domicile, which is permitted, but is not required, to issue the CLP or 
CDL. This maintains the link between the issuing State and the driver's 
State of domicile that was mandated by the CMVSA [49 U.S.C. 
31311(a)(12)] until the Military CDL Act authorized an exception (with 
problematical implications) for military personnel.
    Section 5401(a) of the FAST Act added to 49 U.S.C. 31305 a new 
paragraph (d), which requires FMCSA to (1) exempt certain ex-military 
personnel from the CDL skills test if they had military experience 
driving heavy military vehicles; (2) extend the skills test waiver to 
one year; and (3) credit the CMV training military drivers receive in 
the armed forces toward applicable CDL training and knowledge 
requirements. This rule addresses the first and second of these 
requirements in considerable detail; the third, however, will require 
subsequent rulemaking.
    Section 5302 of the FAST Act requires FMCSA to give priority to 
statutorily required rules before beginning other rulemakings, unless 
it determines that there is a significant need for the other rulemaking 
and so notifies Congress. This rule is required by the provisions of 
section 5401. Even in the absence of those mandates, however, FMCSA 
believes the need to improve employment opportunities for military 
personnel returning to civilian life justifies the publication of this 
rule.

[[Page 70636]]

IV. Background

    States are allowed to waive the skills test for current or former 
military personnel who meet certain conditions and are or were 
regularly employed in the preceding 90 days in a military position 
requiring the operation of a CMV (49 CFR 383.77(b)(1)). Between May 
2011 and February 2015, more than 10,100 separated military personnel 
took advantage of the skills test waiver. In the November 2013 Report 
to Congress titled, ``Program to Assist Veterans to Acquire Commercial 
Driver's Licenses,'' FMCSA concluded that lengthening that 90-day 
period would ease the transition of service members and veterans \2\ to 
civilian life with no impact to safety. FMCSA recommended an extension 
of the period of availability to 1 year.
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    \2\ Veteran: A person who served on active duty in the Army, 
Navy, Air Force, Marine Corps, or Coast Guard and who was discharged 
or released therefrom under conditions other than dishonorable.
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    The Virginia Department of Motor Vehicles (DMV) subsequently 
requested an exemption from Sec.  383.77(b)(1) to allow a 1-year waiver 
period for military personnel (available in docket FMCSA-2014-0096). On 
April 7, 2014, FMCSA published a Federal Register notice announcing the 
request (79 FR 19170). Five comments were received; all supported the 
application, agreeing that extending the waiver period to 1 year would 
enable more military personnel to obtain CDLs. In addition, the New 
York Department of Motor Vehicles (DMV) suggested ``broader application 
of this exemption to all jurisdictions.'' The American Association of 
Motor Vehicle Administrators (AAMVA), which represents State and 
Provincial officials in the United States and Canada who administer and 
enforce motor vehicle laws, also requested that FMCSA consider a 
blanket exemption for all U.S. jurisdictions.
    FMCSA determined that the exemption requested by the Virginia DMV 
would maintain a level of safety equivalent to, or greater than, the 
level that would be achieved without the exemption, as required by 49 
CFR 381.305(a). The Agency, therefore, approved the exemption and made 
it available to all SDLAs (79 FR 38645, July 8, 2014). That nationwide 
exemption was extended for an additional 2 years by a notice published 
June 29, 2016 (81 FR 42391). However, neither exemption changed the 
language of Sec.  383.77(b)(1) and the current exemption remains 
effective only until July 8, 2018.

V. Proposed Rule

    On March 16, 2016, FMCSA published a notice of proposed rulemaking 
(NPRM) titled ``Commercial Driver's License Requirements of the Moving 
Ahead for Progress in the 21st Century Act and the Military Commercial 
Driver's License Act of 2012'' (81 FR 14052). The proposed changes in 
49 CFR parts 383 and 384 were intended to ease the process of getting a 
CLP or CDL for both active duty and recently separated military 
personnel.

VI. Discussion of Comments and Responses

General Comments on the Rule
    The NPRM elicited 16 comments, the majority from SDLAs. Several 
SDLAs and individuals suggested changes to the proposal, but no 
commenters opposed the rule.

A. Section 383.5: New Definition of ``Military Services''

    Issue: The NPRM proposed adding a definition in Sec.  383.5 of 
``military services'' to the list of definitions in that section. A 
definition for ``military services'' is needed in order to interpret 
the new requirements in part 383 in this rulemaking.
    Comments: The Virginia DMV requested guidance on the meaning of the 
term ``auxiliary units,'' and suggested mirroring United States Code 
language.
    FMCSA Response: FMCSA has removed the reference to ``auxiliary 
units.'' It was used to cover the Coast Guard Auxiliary, but should not 
have been included because the Auxiliary is a non-military organization 
[see 14 U.S.C. 821(a)] and its members are civilians. The definition of 
``military services'' proposed in the NPRM follows the relevant 
definitions in the Armed Forces title of the United States Code (10 
U.S.C. 101). Those definitions do not use the term ``auxiliary units.''

B. Section 383.77: Allowing States To Extend Their Waiver of the Skills 
Test for Separated Military Personnel From 90 Days to 1 Year

    Issue: The NPRM would have amended Sec.  383.77(b)(1) to allow 
States to accept skills test waiver applications from military 
personnel for up to 1 year after they were regularly employed in a 
military position requiring operation of a CMV.
    Comments: The Virginia DMV and AAMVA reaffirmed their support for 
the proposal. The American Bus Association (ABA) stated that the 
proposal would ``ease the administrative burden on state licensing 
agencies in no longer having to periodically apply for these 
extensions, but it would have a practical benefit to transitioning 
military CMV drivers looking for a new civilian CMV driving career.'' 
The New York DMV favored the extension because it would alleviate some 
of the problems identified by FMCSA in its 2013 Report to Congress. The 
Montana Department of Justice, Motor Vehicle Division (DOJ/MVD), 
supported codifying the regulatory exemption. The Minnesota Department 
of Public Safety, Driver and Vehicles (DPS/DV), favored the extension, 
as it mirrors Minnesota law. The Michigan Department of State (DOS), 
the Arizona Department of Transportation (DOT), and the American 
Trucking Associations (ATA) supported the proposal.
    One individual commenter agreed with the concept but suggested an 
eight month timeframe instead of one year.
    FMCSA Response: FMCSA adopts the proposal as drafted. FMCSA will 
extend the 90-day skills test waiver period to 1 year from the date the 
driver was last employed in a military position regularly requiring the 
operation of a CMV. This does not otherwise change the eligibility 
criteria for the exemption.
Training for Military Drivers, How the Entry-Level Driver Training Rule 
Would Affect These Drivers (Sec.  383.77)
    Issue: Section 383.77 implies that a military or ex-military 
applicant would need a certain level of experience, but the proposal 
did not mandate any training.
    Comments: One individual commenter stated that, although she 
supported the rulemaking and easing the transition for returning 
veterans, CDL schools have a value. She stated that many veterans 
currently use the GI Bill to attend a CDL school. She also stated that 
the CDL curriculum is only 20 days.
    The New York DMV asked if proof of CMV driving would replace the 
Entry-Level Driver Training requirements, and if it could, how much 
would be required.
    ATA favored allowing non-military drivers, in addition to military 
personnel, to take the written and skills tests outside their State of 
domicile, and requested that FMCSA issue a supplemental NPRM on that 
subject.
    FMCSA Response: FMCSA agrees that driver training is important, and 
recently published an NPRM that would require training for entry-level 
drivers (81 FR 11944, March 7, 2016). Under that proposal, entry-level 
driver training would not be required for ``Veterans with military CMV 
experience who

[[Page 70637]]

meet all the requirements and conditions of Sec.  383.77 of this 
chapter'' (49 CFR 380.603(a)(3)). Today's final rule extends the waiver 
period allowed by Sec.  383.77, but does not address substantive 
training issues. Giving non-military drivers the same testing 
flexibility granted to military personnel is beyond the scope of this 
rule, and FMCSA declines to consider the ATA request at this time.

C. Section 383.79: Allow the State Where the Person Is Stationed and 
the State of Domicile To Coordinate CLP and CDL Testing and CDL 
Issuance

    The NPRM would have allowed a State where active-duty military 
personnel are stationed to accept applications and administer CLP 
knowledge and CDL skills tests. That State would then have been 
required to transmit the application and test results to the driver's 
State of domicile, which would have been required to accept these 
documents and issue the CLP or CDL.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): Licensing Variations
    Issue: The proposal did not account for licensing variations among 
the States, relying on the 2011 CDL rulemaking that standardized the 
elements of a license.
    Comments: Several commenters pointed out that States have different 
procedures for issuing CLPs and CDLs. AAMVA requested a list of data 
elements that needed to be transferred, as many States have variations. 
The Missouri Department of Revenue (DOR) asked which SDLA (the State 
where the driver is stationed or the State of domicile) would handle 
the verification processes. The California DMV asked how to convert a 
CLP to a CDL under Sec. Sec.  383.25 and 383.153, and did not address a 
non-domiciled variation. ATA supported allowing jurisdictions to test 
on behalf of each other, and stated that the knowledge and skills test 
should be standardized, per FMCSA's statements in the NPRM. Because of 
the standardization, ATA did not believe there would be any change or 
reduction in safety, and pointed out that costs for service members who 
want to obtain a CLP or CDL would likely decrease.
    FMCSA Response: The 2011 CLP/CDL rule (89 FR 26853) required States 
to adopt new minimum Federal standards for the CDL knowledge and skills 
tests and established new minimum procedures for States to issue the 
CLP. FMCSA has confirmed that all States meet those minimum standards. 
In addition, some States have adopted more stringent standards. While 
that is allowed by part 383, it does create variations among States.
    As proposed in the NPRM, the State of domicile will issue the CLP 
or CDL; this has always been a fundamental principle of the program. 
However, in response to comments, the NPRM requirement that the State 
of domicile must accept and act on information transmitted by the State 
where the driver is stationed has been removed. The final rule is 
entirely permissive. In other words, the State where the military 
driver is stationed may (but is not required to) administer the written 
and skills tests for the CLP and CDL--as proposed in the NPRM--and the 
State of domicile may (but is not required to) accept the testing 
information and documentation provided by the State where the driver is 
stationed and issue the CLP or CDL on that basis. This permissive 
approach will require coordination between two States, and among many 
pairs of States. At a minimum, the State where the driver is stationed 
will have to use administrative procedures, forms, etc., that are 
acceptable to the State of domicile, since that State would ultimately 
issue (or refuse to issue) the CLP or CDL. The Agency recognizes that 
States will have to harmonize different practices. If two SDLAs find 
that their licensing standards are incompatible, they will not reach 
agreement and military drivers will not be able to use the application 
and testing alternatives allowed by this rule. However, we are 
confident that most States will work out their mutual differences in 
order to help military personnel transition to civilian careers in the 
motor carrier industry.
    This final rule does not change the requirements for converting a 
CLP to a CDL. If eligible military CLP holders want to apply for a CDL, 
they could do so where they are stationed (assuming that State uses the 
option granted by this rule), but the CDL itself must still be issued 
by the State of domicile.
    Participating States have a 3 year period to adopt the framework of 
the rule. FMCSA, AAMVA, and the States will work together to reach 
agreement to implement the procedures after this time.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): Fees
    Issue: The proposal was silent on the topic of fees charged by 
SDLAs for services rendered under proposed Sec.  383.79.
    Comments: The New York DMV asked how the State of domicile will 
collect fees if the process is entirely electronic. The Oregon DMV 
voiced concern that drivers might be forced to pay both the State where 
the driver's application is filed and processed and the State of 
domicile, and stated that it was required by statute to collect fees 
before issuing CLPs and CDLs. The Michigan DOS asked for clarify 
concerning fees, and said there was an assumption of shared cost 
between the State of domicile and State of station. North Dakota stated 
that its fee has to be paid in person. The Minnesota DPS/DV wanted the 
issue of fees to be addressed explicitly. The California DMV stated 
that fees were not addressed in the proposal.
    FMCSA Response: Driver licensing fees are left to the discretion of 
the States, and FMCSA believes that States are best equipped to 
determine such fees. Some SDLAs currently waive fees for active-duty 
military personnel and may well continue to do so while utilizing this 
rule. On the other hand, it is possible that both States involved in 
the new testing and licensing procedures allowed by this rule may 
charge for their services. Even in that worst-case scenario, however, 
the driver is likely to find the new procedures cheaper than returning 
to his/her State of domicile to complete the necessary applications and 
tests. In cases where one State has to transmit all or part of a fee to 
another State, FMCSA is confident that current financial systems will 
be able to provide solutions. The reciprocal transfers among States 
required by the International Registration Plan and the International 
Fuel Tax Agreement suggest that options may be readily available.
    As discussed below in connection with Executive Order 12866, 
military drivers will retain the options: (1) To return to their State 
of domicile to apply for a CLP or CDL; and (2) to change their State of 
domicile to the State where they are stationed. If the distance between 
two States is small enough, and cost of returning to the State of 
domicile is cheaper than the fees charged, then the military driver may 
wish to apply for the CLP or CDL in person in the State of domicile. 
This rulemaking does not alter that ability.
    FMCSA believes the rule offers significant flexibility that will 
reduce the cost to most military drivers of obtaining a CDL. 
Nonetheless, each driver will have to balance application fees versus 
travel costs, and the advantages of maintaining and switching State of 
domicile.
Procedural Inconsistences Among States Issuing CLPs and CDLs (Sec.  
383.79): Forms and Applications
    Issue: The NPRM was silent on which State (State of domicile or 
State of

[[Page 70638]]

station) would supply the application for a CLP or a CDL.
    Comments: Several SDLAs had concerns about issuing or processing 
CLPs and CDLs on behalf of another State. Several mentioned that 
different States require different information.
    The Arizona DOT said that it could not enforce another State's 
standard. The Oregon DMV stated that CLP and CDL applications are not 
uniform, and neither are the skills and knowledge tests. The Oregon DMV 
is prohibited by statute from using another State's application to 
issue an Oregon license. Oregon also stated that any expectation of 
enforcing another State's applications and forms is unreasonable. The 
New York DMV stated that the applications are too varied, and requested 
guidelines to ensure each State receives the data it needs. The Arizona 
DOT argued that requiring States to handle other States' applications 
infringes upon State laws, and it is not realistic for personnel to 
handle forms from other SDLAs, as they would require different 
information. Arizona also noted that States might require legislative 
changes in order to implement the regulatory revisions adopted here. 
Minnesota DPS/DV pointed out that each SDLA has a different form; 
Minnesota does not use an electronic form. The Michigan DOS and 
Virginia DMV suggested national forms and applications as possible 
solutions for consistency. The Michigan DOS also asked how the State 
where the driver is stationed would verify a credential in the State of 
domicile. Virginia requested AAMVA's involvement in developing a 
national application, if one were to be developed. AAMVA asked for 
clarification about which elements needed standardization.
    The Nebraska DMV requested clarification of what parts of the 
application would be mandatory for transmission. North Dakota said that 
the process in the NPRM did not provide enough information for a State 
of station to adequately maintain records and process records for the 
State of domicile. North Dakota said that its own application must be 
used.
    FMCSA Response: The Agency agrees that clarification would be 
needed if FMCSA were adopting forms, applications, and procedures. 
However, FMCSA is not adopting national forms that States must use when 
implementing this final rule. The outlines of a national standard are 
already specified in considerable detail in Sec. Sec.  383.25 
Commercial learner's permit (CLP) and 383.71 Driver application and 
certification procedures. As indicated above, the Agency is allowing 
any two States involved in the issuance of a CLP or CDL to military 
personnel stationed outside their State of domicile to work out between 
themselves any remaining differences in their respective procedures and 
requirements. The most obvious solution would be for the State where 
the driver is stationed to use the forms and follow the procedures 
required by the State of domicile. FMCSA will work with the SDLAs and 
AAMVA during the implementation period to assist in determining common 
data points that meet the needs of the States that wish to participate.
    Some States may decide not to process or accept CLP and/or CDL 
applications transmitted by another State. The rule does not require 
any State to enforce another State's standard. The State of station 
will collect applications on behalf of the State of domicile. It will 
be the applicant's responsibility to ensure both that the State where 
he/she is stationed will entertain an application and that his/her 
State of domicile will accept and process the application and test 
results provided by the former and issue a CLP or CDL.
    Again, the final rule is entirely permissive. Each pair of States 
potentially involved in the licensing procedures allowed by this rule 
can opt out if the involved States are unable to reach agreement. The 
Agency believes that many States will find ways to harmonize their 
forms, procedures, and other requirements--but we recognize that some 
States will not be able to do so. FMCSA has expanded the description of 
the requirements in today's final rule, including making it clear that 
States have the option--but are not required--to process applications 
and test results on behalf of other States and to accept those 
applications and test results collected by other States.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): License Used for Non-Driving Purposes
    Issue: The NPRM was silent on the topic of licenses being used for 
purposes other than driving.
    Comments: The Montana DOJ/MVD asked how this proposed rule would 
impact voting. The New York DMV asked if there would be an impact on 
drivers who no longer have current addresses within the State of 
domicile. The Oregon DMV stated that each SDLA has its own standards 
for domicile, and it will be impossible for another State's SDLA to 
verify them.
    FMCSA Response: The Agency notes the concerns about voting rights, 
as well as the domicile status and addresses of applicants, but 
believes that most States will be able to resolve such questions in 
cooperation with other States. Drivers who obtain a CLP or CDL through 
this process will retain their State of domicile, and will therefore 
never be entered into the pool of voters in the State where they are 
stationed, or need to update their addresses. From the perspective of 
the SDLA in the driver's State of domicile, nothing has changed.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): In-Person Requirements
    Issue: FMCSA did not address photo or other in-person licensing 
requirements.
    Comments: Several SDLAs pointed to inconsistencies in procedures 
between States for parts of the license that must be done in person, 
such as facial recognition and signature.
    AAMVA asked for clarification on which jurisdiction would be 
responsible for the photography element; it also mentioned the REAL ID 
Act provision that requires digital pictures on a driver's license, as 
well as tracking of denied REAL ID applications. AAMVA said that all 
SDLAs are not following the REAL ID requirements, and that if the 
driver's picture is taken in the State where he/she is stationed, this 
could have an additional cost. When a license is issued, the Oregon DMV 
takes a photograph which is digitized and compared to a database with 
facial recognition software. The New York DMV mentioned other in-person 
requirements in addition to a photograph, including a Social Security 
Number and other State-specific identity confirmation.
    The Virginia DMV stated its concern about a driver using the new 
provisions of Sec.  383.79 if he or she did not have an existing 
license; Virginia mentioned that this might be a concern for issuing a 
photograph of the driver on the license. The Montana DOJ/MVD mentioned 
that the initial issuance of a license can only take place in person; 
an in-person signature may also be required from those drivers who are 
domiciled in Montana, but have not provided a digital signature 
recently, and this would require a data base modification.
    North Dakota stated that many of its requirements, like digital 
photo processing, eye exams, and fees, must be done in person; not 
allowing the State of domicile to insist on these requirements is 
``unacceptable.'' The Michigan DOS mentioned that facial recognition, 
fingerprinting, and retinal scanning often occur in the State of 
domicile when a new CLP or CDL is

[[Page 70639]]

issued. The California DMV asked whether a State that requires facial 
recognition would process a CLP or CDL application without the 
applicant appearing in person. The Arizona DOT listed a number of in-
person-only requirements. These included facial recognition, original 
documents for citizenship verification, and digital signatures.
    FMCSA Response: As explained above, this final rule is permissive, 
not mandatory. If a State of domicile concludes that another SDLA 
cannot properly administer its processing procedures, it can decline to 
issue CLPs/CDLs to military personnel stationed in that State. And a 
State that knows its processing standards are inconsistent with those 
of another State can decline even to accept CLP/CDL applications from 
military personnel domiciled in that State.
    It is worth noting, however, that there is no Federal requirement 
on where a photograph is taken. That factor alone should not impede a 
State of domicile from accepting a CLP/CDL application from a State 
where a military driver is stationed.
    FMCSA disagrees with the Virginia DMV's comment concerning drivers 
who do not have existing licenses; only drivers who have an existing 
license are eligible for relief under Sec.  383.79. As for Montana's 
comment, today's final rule applies only to a driver with an existing 
license from his/her State of domicile. An initial license would never 
be issued by the State where the individual is stationed.
    Other in-person procedures would be left to the discretion of the 
two SDLAs; they could determine whether it would be possible to meet 
criteria for facial recognition, digital signatures, REAL ID Act 
requirements, and other processes normally done in-person. The Agency 
declines to add these provisions to a final rule, as it believes that 
the best practices will be implemented at the State level. If our 
assistance is sought, FMCSA will work with AAMVA to create best 
practices.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): Verification of Military Station or Military Status
    Issue: The proposed rule did not address how to verify the military 
station or status of applicants.
    Comments: AAMVA pointed out that proof of State of station should 
be provided, and asked FMCSA to issue guidance on this topic. The New 
York DMV and the Nebraska DMV asked for clarification on how to prove 
the State of station.
    FMCSA Response: The applicant must provide proof of his or her 
active duty status in the form of a valid active duty military 
identification card. In addition, the applicant must show the driver 
licensing agency either a copy of his or her current orders or a 
current Military Leave and Earning Statement (Jan 2002) to prove where 
he or she is stationed.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): Credentialing, License Issuance
    Issue: Due to the issuance of the 2011 CDL and CLP rule referenced 
previously, FMCSA believed that all States met the same minimum 
standard when issuing CLPs and CDLs.
    Comments: Several SDLAs mentioned credentialing concerns. The 
California DMV asked how to destroy another State's license in 
accordance with Sec.  383.73(c)(6). AAMVA stated that it was concerned 
there was no mechanism to issue a new CLP or CDL. AAMVA stated that 
some SDLAs mail licenses to the applicants, but there is no 
standardized process. AAMVA also expressed concerns about multiple-
document retention, and gave an example where an applicant ended up 
with several licenses at the same time; AAMVA said that the rule should 
address the surrendering of licenses. The Minnesota DPS/DV wanted a 
clear explanation of which State should destroy the old credentials. 
The Arizona DOT pointed to Sec.  384.211 and stated that it requires 
the destruction of old credentials before the issuance of new 
credentials; that process would leave drivers not present in that State 
without a license in the interim.
    ATA stated that if there was a lag time in issuing new credentials, 
the driver should be given an alternate document (coordinated by the 
two States involved) for proof of licensure during that time. ATA 
suggested allowing the State where the driver is stationed to issue 
CLPs and CDLs on behalf of the State of domicile.
    FMCSA Response: The application and testing procedures allowed by 
this rule are available only to military drivers who already have a 
non-CDL license from their State of domicile. That State is responsible 
for issuing the new CLP or CDL. Although this rule leaves the 
repossession of the previous license (usually a standard automobile 
license) to the discretion of the States involved, there would seem to 
be two basic alternatives. Either the State of domicile would send the 
CDL document to the State where the driver is stationed, which in turn 
would demand and destroy the previous license when it delivered the CDL 
to the driver; or the State of domicile would require the driver to 
mail his/her previous license to that SDLA, which would destroy it and 
then mail the CDL back to the driver. The second procedure would leave 
the driver without a driver's license for a few days. FMCSA believes 
that participating States will be able to utilize these or other 
agreed-upon procedures without incurring any serious risk that a driver 
could hold multiple driving credentials or would be without any 
credentials for an interim period.
Procedural Differences Among States Issuing CLPs and CDLs (Sec.  
383.79): Citizenship
    Issue: The proposed rule did not address citizenship.
    Comments: The Montana DOJ/MVD and the New York DMV asked which 
State would verify citizenship or lawful permanent residency, since not 
all holders of automobile licenses will be United States citizens. New 
York asked how a processing State would send citizenship information to 
a domicile State, if that was the procedure chosen. New York DMV 
pointed out that checking this information is required under Sec. Sec.  
383.71 and 383.73. The Virginia DMV asked for clarification of ``legal 
presence'' as well. Referring to Sec.  383.71, the Arizona DOT said 
that its policy was to require original documents to verify 
citizenship, and that this could not be done through the mail.
    FMCSA Response: Proof of citizenship or lawful permanent residency 
will necessarily be included in the application process. Ultimately, 
the responsibility for verifying the driver's status rests with the 
State of domicile, since it will issue the CLP or CDL, but the State 
where the applicant is stationed can verify these matters on behalf of 
the State of domicile. The two States involved will have to work out 
the necessary administrative steps between themselves. It must be noted 
that Sec.  383.71(a)(2)(v) and Sec.  383.73(a)(2)(vi) both require 
proof of citizenship or lawful permanent residency. This rule does not 
change either of these requirements, and the CLP/CDL remains available 
only to citizens and lawful permanent residents.
Electronic Transfer of the Skills Test (Sec.  383.79): Mandatory Use of 
Systems
    Issue: The results of the completed knowledge and skills test would 
be transmitted the same way the skills test scores are transmitted 
today for out of state testers--electronically. Only passing results 
would be transmitted.

[[Page 70640]]

    Comments: Several SDLAs voiced concern about variances in data 
between States and asked the Agency to identify the system to be used 
for data transfer. The California DMV mentioned that the system used 
would have to protect personally identifiable information (PII), and 
should have standardized data elements. AAMVA stated that the systems 
developed to transmit skills test results pursuant to the 2011 CLP/CDL 
rule would have to be modified to accommodate the knowledge test 
results and the application itself. The New York DMV echoed this point 
and asked what format would be used to transfer applications and test 
results, as the current systems do not do this. The Virginia DMV stated 
that transmittal must be done electronically for security, and 
requested the enhancement and explicit requirement for use of the 
Commercial Skills Test Information Management System (CSTIMS) and the 
Report Out-Of-State Test Results (ROOSTR) system. The Nebraska DMV also 
requested an explicit CSTIMS and ROOSTR transmission requirement.
    The Montana DOJ/MVD stated that current information transmission 
systems were inadequate and that there would be technical, procedural, 
and legal issues. It referred to several AAMVA-run systems, and stated 
that digital image access would need to be added, as would a method of 
transferring knowledge test scores. The Missouri DOR mentioned that it 
did not use REAL ID, or any of the AAMVA systems. ABA supports the use 
of data systems to speed up the licensing process, but has concerns 
about the systems' infrastructure.
    FMCSA Response: FMCSA will not require the use of any specific 
system for transferring licensing information between States. However, 
the AAMVA-maintained CSTIMS and ROOSTR systems could be appropriate 
methods of electronic transfer. FMCSA agrees with the need to protect 
PII, but does not establish any new procedures for doing so. In any 
case, no Federal records are created by this rule. The information 
transferred by the State where the military driver is stationed to his 
or her State of domicile will be entered into the Commercial Driver's 
License Information System (CDLIS). That system, however, involves 
records created and maintained by the States. This rule does not result 
in a new or revised Privacy Act System of Records for FMCSA.
Electronic Transfer of the Skills Test (Sec.  383.79): Cost of Systems
    Issue: The NPRM concluded that there would be a cost for using 
AAMVA-run systems, but that the cost would be included in the existing 
arrangements for States to maintain and use these systems.
    Comments: Both the Missouri DOR and AAMVA stated that using AAMVA 
systems to transfer skills tests electronically would involve a cost. 
AAMVA also mentioned that the CLP/CDL application and the electronic-
transfer requirement would have a cost as well. The Missouri DOR stated 
that several SDLAs have opted not to use an electronic system; 
reversing that policy would generate costs, including training for the 
system. The Montana DOJ/MVD mentioned that the cost to upgrade the 
systems would be substantial.
    FMCSA Response: Today's final rule requires electronic transfer of 
test results, but does not specify the methods of that transfer. There 
is no requirement to procure and use a data system not already in 
place. States are currently required to transmit the results of skills 
test electronically, and FMCSA assumes that the States will use the 
same method of transfer for the knowledge test results. Forty-seven 
SDLAs use the AAMVA-owned and -operated CSTIMs and/or ROOSTR systems to 
transfer skills test results. FMCSA anticipates that AAMVA will update 
these systems to allow for transmission of knowledge test results 
during a routine IT upgrade cycle, with minimal additional cost. In the 
regulatory analyses section below, FMCSA estimates that drivers 
affected by this rule will pay a processing fee to their State of 
station that will cover the costs of information transfer between the 
State of station and the State of domicile.
Electronic Transfer of the Skills Test (Sec.  383.79): Fraud
    Issue: FMCSA did not discuss fraud in the NPRM, as the proposal 
relied upon existing systems that have built-in protection against 
fraud.
    Comments: Several SDLAs thought that the proposal did not 
adequately address concerns over fraud. Oregon took issue with the fact 
that it would have to rely upon other SDLAs to verify information. The 
Montana DOJ/MVD thought the NPRM downplayed the risk of fraud, 
especially due to the photography and documentation requirements, and 
argued that the rule would need fine-tuning.
    FMCSA Response: FMCSA believes that States will take appropriate 
steps to protect against attempted fraud by applicants. FMCSA takes 
fraudulent behaviors seriously, has conducted yearly audits of all 
States for the past three years, and will continue to be vigilant in 
this regard.
Electronic Transfer of the Skills Test (Sec.  383.79): Other Forms
    Issue: The proposal did not address the transfer of additional 
certifications between States.
    Comments: The New York DMV asked how the processing State would 
collect a driver's medical certification and self-certification and 
submit it to the State of domicile.
    FMCSA Response: FMCSA expects SDLAs to coordinate the transfer of 
certifications, presumably in the same way that they transfer the CLP/
CDL applications and test results.

D. Legal Concerns

    Issues: The Oregon DMV suggested that the proposal overstepped the 
requirements of the Military CDL Act, which should be followed instead. 
Oregon felt that the NPRM was unnecessarily complex and should more 
closely track with the statutory language.
    The New York DMV believes that the proposal contradicted the recent 
CDL rulemaking, and undermined the work States have done to meet its 
requirements.
    The Minnesota DPS/DV raised a concern that the requirement to 
accept applications on behalf of other States violated State laws. The 
Montana DOJ/MVD referenced a Montana State law that requires 
``verification through the Federal Systematic Alien Verification for 
Entitlements program (SAVE).''
    FMCSA Response: The Military CDL Act of 2012 does indeed allow 
States to issue CDLs to military personnel who are stationed, but not 
domiciled, there. As discussed in this rule, however, obtaining a CDL 
where he or she is stationed may void the driver's domicile in his/her 
``home'' State and with it certain benefits, e.g., lower taxes, in-
State tuition, etc. The Agency determined in the 2011 final rule that 
the general CDL statute--the Commercial Motor Vehicle Safety Act of 
1986, as amended--is sufficiently broad to authorize a rule requiring 
States to accept the results of skills tests administered outside the 
driver's State of domicile. The NPRM in this rulemaking expanded that 
analysis and conclusion to require States of domicile to accept the 
results of CDL written and skills tests administered to military 
personnel by States where these personnel are stationed but not 
domiciled. That approach allowed the State of domicile to issue the CLP 
and CDL, thus eliminating any inadvertent transfer of domicile that 
might occur if

[[Page 70641]]

a military driver received a CDL from the State where he/she was 
stationed. However, in view of the comments submitted to the docket, 
the Agency has decided--as described above--not to require the State of 
domicile to accept the test results recorded by another State, but 
rather to allow the State of domicile to do so. With this change, the 
argument that the NPRM requires the violation of certain State laws 
simply disappears. The success of this final rule will depend on the 
willingness and ability of the State of domicile and the State where 
the driver is stationed to work out mutual differences in their forms, 
procedures, and other requirements. We are confident that most States 
will manage that task effectively. This final rule provides relief for 
a very limited population of military service members who want to 
become commercial drivers. Additionally, the rule relies heavily on the 
standardization of licensing and other requirements put into place by 
the 2011 CDL rule.

E. Other

Alternative Processes Suggested
    Issue: FMCSA did not suggest any regulatory alternatives to this 
proposal.
    Comments: The New York DMV suggested an FMCSA-Department of Defense 
(DOD) partnership using an AAMVA CDL test model, or allowing transfer 
of current, non-CDL licenses to their State of station as a non-
domiciled driver. The second alternative process suggested would allow 
military drivers to transfer domicile to any State after leaving the 
service. New York thought that these would provide sufficient relief as 
well as not impose additional burdens on the SDLAs.
    FMCSA Response: New York's suggestions are beyond the scope of the 
NPRM. The Agency believes the relief provided by this final rule will 
be substantial. FMCSA, AAMVA, and the States will work together to 
reach agreement to implement the procedures during the implementation 
period.
Military Occupational Codes Eligible
    Issue: The executive summary in the NPRM included the following 
proposal: ``Revise 49 CFR 383.77(b)(3) to add the option to qualify for 
a CDL based on training and experience in an MOC [Military Occupational 
Specialty] dedicated to military CMV operation.'' However, this 
proposal was not in the regulatory language or discussed at any level 
in the preamble. Additionally, the MOC was incorrectly referenced in 
proposed Sec.  383.79.
    Comments: ABA requested either guidance or a list of which MOCs 
would be able to take advantage of relief from the regulation, 
referring to a proposal in Sec.  383.77(b)(3).
    The Virginia DMV asked for clarification on how to confirm the MOC 
of the applicants under Sec.  383.79. The New York DMV also asked why 
proof of a military CMV status would be necessary for the provisions of 
Sec.  383.79. The Michigan DOS/MVD stated that if military testing 
meets or exceeds CDL requirements, a CDL should be issued without 
testing. The California DMV understood the Sec.  383.79 proposal to 
include a requirement that drivers wishing to seek a CDL in their State 
of domicile via a State where they are stationed would need to be 
operating in a CMV-driving MOC, and asked for clarification of which 
MOCs would be included.
    FMCSA Response: The Sec.  383.77(b)(3) proposal was inadvertently 
left in the executive summary for the NPRM; it was not intended to be a 
part of this rulemaking, was not in the proposed regulatory language, 
and is not included in today's final rule. FMCSA will consider this as 
a potential topic for a future rulemaking.
    The provisions under Sec.  383.79 pertain to anyone in the 
military; they do not waive any of the requirements for obtaining a CLP 
or CDL. This section simply allows drivers to seek CDLs in the State of 
station rather than the State of domicile.
Procedural Concerns
    Comments: The ATA requested an extension of the proposal in Sec.  
383.79 to non-military personnel as well, and requested that CDL 
schools outside the State of licensure be allowed to teach drivers.
    The Nebraska DMV asked several questions about service members who 
pass the knowledge test in their States of station returning to their 
State of domicile, and about passing the knowledge tests in other 
States. AAMVA asked a similar question, about applicants who begin the 
testing process in one State and then are transferred to another State.
    FMCSA Response: FMCSA declines ATA's request for a Supplemental 
NPRM. The comments to this rulemaking docket identified challenges to 
out-of-State testing which persuaded the Agency to adopt a more modest, 
permissive approach. ATA's request would significantly exacerbate the 
difficulties outlined by State commenters. Training schools routinely 
enroll students from other States, but allowing large numbers of 
civilian students to be knowledge-tested outside their State of 
domicile is well beyond the scope of this rulemaking. Military drivers 
are a special class being accommodated in this rule because of the 
Military CDL Act of 2012, which was intended to ease their transition 
to civilian life.
    The rulemaking did not discuss the knowledge test requirements. 
FMCSA's intent was to make the licensing process easier for service 
members. Ultimately, however, the SDLAs control their own processes. 
While it is possible, though not likely, that a service member may be 
transferred from one duty station to another between the time he/she 
applies for the CLP and wants to take the skills test, the national 
uniformity of skills test procedures should make no difference to the 
acceptability of the results to the State of domicile.

VII. Changes From the NRPM

    Section 383.5. Definitions. A new definition of ``military service 
member'' was added, along with a revised definition of ``military 
services,'' where the phrase ``auxiliary units'' was removed.
    Section 383.77 Substitute for driving skills tests for drivers with 
military CMV experience, is adopted as proposed in the NPRM.
    Section 383.79 Skills testing of out-of-State students; Knowledge 
and skills testing of military personnel. The title of this section has 
been revised to differentiate the two concepts addressed within it. The 
discussion of electronic transmission of documents has been somewhat 
expanded.
    Section 384.301 Substantial compliance general requirements. This 
section is adopted as proposed.

VIII. Today's Final Rule

Section 383.77: Extension of the Skills Test Waiver

    Eligible Military Personnel. The first part of the rule addresses 
military personnel recently separated from active duty. These veterans 
must have been operating in a position where they regularly drove a 
military CMV.
    Current Procedures. Currently, the standard at Sec.  383.77 
authorizes States to allow these drivers up to 90 days following 
separation from a military position requiring operation of a CMV to 
apply to waive the skills test. In 2015 the Agency granted relief 
through an exemption that allowed a 1-year waiver period, without 
changing the regulation.
    Changes today. Today's regulation would codify that extension, 
meaning that States would be authorized to accept applications for a 
skills test

[[Page 70642]]

waiver for up to 1 year rather than 90 days.
    Requirements for States. All States currently waive the skills test 
for this population of applicants; this rule changes neither the 
eligible population nor State procedures. Only the duration of the 
allowable waiver period is changed.

Section 383.79: CLP and CDL

    Eligible military personnel. The second part of the rule addresses 
active duty military service members who are stationed in a State 
different from the State in which they claim domicile. These members 
would need to verify with the State of station and the State of 
domicile that both States plan to participate in the licensing 
procedures allowed by this rule.
    Current procedures. Currently, if active duty service members wish 
to obtain a CLP or CDL, they must either (1) apply for a CLP or CDL in 
person in their State of domicile, or (2) transfer their existing 
license, and thereby State of domicile, to the State where they now 
live or are stationed.
    Changes today. Today's final rule enables States to allow eligible 
military personnel to apply and be tested for a CLP or CDL in the State 
where they are stationed, without having to travel to or change their 
State of domicile.
    Requirements for States. Today's final rule is permissive. SDLAs 
are permitted (but not required) to accept CLP/CDL applications from 
eligible military personnel stationed there. However, the information, 
forms, and procedures used by the State where the driver is stationed 
would have to be acceptable to the State of domicile. If either State 
in this pair decided not to cooperate with the other State, the 
licensing alternative allowed by this rule would not be possible with 
respect to those two States.
    Description of the procedure for exchanging a CLP or CDL. As noted 
elsewhere in this rule, FMCSA is allowing flexibility for individual 
States to reach agreements on the most efficient means of allowing a 
military member stationed outside his or her domicile State to obtain a 
CDL without physically returning to that State. FMCSA recognizes that 
States might have unique CDL licensing requirements or processes and is 
therefore not establishing a single process that all States must 
follow. One possible scenario for how this could work is presented 
below, but other alternatives may also work. FMCSA encourages the 
States to find the most efficient process that minimizes variations in 
their individual licensing procedures to support the affected military 
members.
    Example: An active duty member of the armed forces is stationed at 
State 1 (State of station) but domiciled in State 2 (State of domicile 
or home State). The driver has a current non-CDL driver's license in 
the State of domicile, and wants to get a CDL while maintaining his or 
her current State of domicile.
    Step One: The service member contacts both State 1 and State 2 
SDLAs to determine if State 1 will give the knowledge and skills tests, 
and if State 2 will accept the results of those tests administered by 
State 1 and issue a CDL.
    If both States do not agree to the process, then the service member 
cannot use this exemption, and must either change his or her State of 
domicile, or return to the State of domicile for issuance of a CLP or 
CDL.
    Step Two: If both SDLAs agree to the licensing alternative allowed 
by this rule, the service member fills out State 2's CLP application 
which can be on line or hard copy, whichever is State 2's preference.
    If State 2 charges a fee, the service member pays State 2.
    Step Three: The service member goes to State 1's SDLA with his/her 
military ID and proof of being stationed in State 1 and shows either 
his/her paper application from State 2 or proof of filling out State 
2's application electronically.
    If State 1 charges a fee, the service member pays State 1.
    If the service member seeks a CDL, State 1 validates his/her 
identity at the counter, as well as proof of citizenship or lawful 
permanent residency; valid CDL medical certification; and expected 
interstate or intrastate operation.
    Step Four: For a CLP, State 1 gives the knowledge test, and 
transmits passing results to State 2 electronically.
    Step Five (a): State 2 sends a CLP document to State 1; or Step 
Five (b): State 2 sends a CLP document directly to the service member.
    Step Six: If following Step Five (a), the service member goes to 
State 1's SDLA where he or she took the knowledge test and receives the 
CLP document.
    Step Seven: The service member trains and practices driving, and 
presents himself/herself to State 1 to take the skills test, where his/
her identity and citizenship are again verified by the State 1 SDLA. If 
the driver passes the skills test, the result is transmitted to State 2 
electronically.
    Step Eight: Either
    a. State 2 SDLA sends a CDL to State 1's SDLA. or
    b. The service member mails his/her CLP and non-CDL license issued 
by State 2, to State 2, and State 2 sends the new State 2-issued CDL by 
mail to the applicant.
    Step Nine: If option a. is followed, the service member goes to the 
State 1 SDLA where he or she took the skills test, and surrenders his/
her CLP and non-CDL license issued by State 2 (which State 1 then 
destroys), and receives the State 2-issued CDL.

IX. International Impacts

    The FMCSRs, and any exceptions to the FMCSRs, apply only within the 
United States (and, in some cases, United States territories). Motor 
carriers and drivers are subject to the laws and regulations of the 
countries that they operate in, unless an international agreement 
states otherwise. Drivers and carriers should be aware of the 
regulatory differences amongst nations.

X. Section-by-Section

    Section 383.5 adds definitions of ``military service member'' and 
``military services'' in alphabetical order.
    Section 383.77 extends the period during which States may waive the 
skills test of certain former military drivers from 90 days to 1 year 
in Sec.  383.77(b)(1).
    Section 383.79 is slightly revised. The title of this section is 
changed to reflect the expanded content: ``Skills testing of out-of-
State students; Knowledge and skills testing of military personnel.''
    Section 383.79(a)(1) and (2) contain the material previously 
designated as Sec.  383.79(a) and (b), concerning CDL applicants 
trained out-of-State.
    New Sec.  383.79(b), Military service member applicants for a CLP 
or CDL, includes the licensing options described above. Paragraph 
(b)(1), State of duty station, along with its three subparagraphs, 
authorize (but do not require) States where active-duty military 
personnel are stationed, but not domiciled, to accept and process CLP 
and CDL applications from such personnel, to administer the required 
tests for these licenses, and to destroy existing licenses. Paragraph 
(b)(2), Electronic transmission of the application and test results, 
details the process for the State where these military personnel are 
stationed to transmit the necessary forms and test results to the 
applicant's State of domicile. Paragraph (b)(3), State of domicile, 
along with its two subparagraphs, explains that the State of domicile 
may (but is not required to) accept such forms and test results; if it

[[Page 70643]]

does so, it will issue the appropriate CLP or CDL.
    Section 384.301 is amended by adding new paragraph (j) to require 
substantial compliance by States three years from the effective date of 
the final rule.

XI. Regulatory Analyses

A. Executive Order (E.O.) 12866 (Regulatory Planning and Review), E.O. 
13563 (Improving Regulation and Regulatory Review), and DOT Regulatory 
Policies and Procedures

    FMCSA determined that this final rule is not a significant 
regulatory action under section 3(f) of E.O. 12866 or significant 
within the meaning of Department of Transportation regulatory policies 
and procedures (DOT Order 2100.5 dated May 22, 1980; 44 FR 11034, 
February 26, 1979) and does not require an assessment of potential 
costs and benefits under section 6(a)(3) of that Order. However, FMCSA 
did evaluate the costs and benefits of this rulemaking. This rulemaking 
will not result in an annual effect on the economy of $100 million or 
more, lead to a major increase in costs or prices, or have significant 
adverse effects on the United States economy. This rule amends existing 
procedures and practices governing administrative licensing actions.
Costs and Benefits
    FMCSA evaluated potential costs and benefits associated with this 
rulemaking and estimates that these changes could result in net 
benefits between $3.2 million and $7.7 million over 10 years, 
discounted at 7%. The following sections provide an overview of this 
analysis.
Section 383.77
    The final rule will extend the time States are allowed to accept 
applications for a skills test waiver from certain former service 
members from 90 days to 1 year. This action codifies an existing 
exemption published on July 8, 2014 (79 FR 38645). That notice granted 
immediate relief from 49 CFR 383.77(b)(1) to certain military service 
members separating from active duty. The exemption did not change the 
CFR language and is effective for only 2 years, although it could be 
extended.
    As the final rule will codify an existing practice, FMCSA does not 
expect this revision to have any significant economic impact. However, 
the Agency believes that permanently granting military personnel with 
CMV driving experience more time to apply for a CDL after separation 
from service will be beneficial to both service members and prospective 
employers by creating more employment opportunities.
Section 383.79(b)
    This rule will allow States to accept CLP and CDL applications from 
certain military drivers stationed in that State; to test their 
knowledge and skills; and to submit the results of both tests to the 
drivers' State of domicile for issuance of the CLP and CDL. This 
information can be transmitted using the same electronic system that 
was previously established for the skills test. The rule will not 
require States to use either the CSTIMS or ROOSTR. Both of these 
systems are currently managed by AAMVA, and States that are already 
using them would incur minimal costs to use them to transmit CLP/CDL 
test results. While some software modifications and updates may be 
required to allow transmission of the knowledge test results (as only 
skills test results are presently transmitted via these systems), FMCSA 
anticipates that AAMVA will update CSTIMS and ROOSTR to allow for 
transmission of knowledge test results during a routine IT upgrade 
cycle, with minimal additional cost. However, the final rule does not 
require use of either of these systems. States may incur costs for 
working out the details of application transmission between States. 
FMCSA expects that States will take advantage of the flexibilities 
allowed in the final rule, and participate when it is cost effective to 
do so. Additionally, the State of station can charge a processing fee 
to recoup the cost of providing this service.
    FMCSA expects that this rule will ultimately result in a cost 
savings for drivers, but some of the cost savings will be offset by the 
additional processing fee. Based on comments received on the NPRM, 
FMCSA anticipates that drivers will continue to pay the CDL licensing 
and application fee to their State of domicile, and will pay an 
additional processing fee to the State of station. FMCSA estimates that 
the processing fee will be similar to the State CDL application fee. 
Many States do not publish their application fee separately, but bundle 
it with the license fees. The average CDL application and license fee 
for all 50 States and the District of Columbia is $50. However, the CDL 
term for States ranges from 4 to 8 years. On an annual basis, the cost 
of the average CDL application for all 50 States and the District of 
Columbia is $10. Therefore, FMCSA estimates that the one-time 
processing fee will range from $10 to $50 per driver, and 
conservatively estimates a fee of $50 for the purposes of this 
analysis. Both States utilizing the alternative licensing procedures 
allowed by this rule might charge fees, but some currently waive their 
normal fees for veterans or active-duty military personnel and may 
continue to do so. Because FMCSA cannot predict the number of military 
drivers who would have their additional processing fee waived by the 
State of Station, we have based our calculations on each military 
driver paying an extra fee.
    To estimate how many drivers might take advantage of this 
provision, FMCSA started with the number of drivers who have used the 
military skills test waiver. Between May 2011 and February 2015, more 
than 10,100 skills test waivers were granted for military drivers, or 
an average of approximately 2,460 per year.\3\ For purposes of this 
analysis, FMCSA assumed that number would remain constant in future 
years. To estimate the number of drivers who may be stationed in a 
State other than their State of domicile and who, thus, could 
potentially take advantage of this provision, FMCSA used an estimate of 
the number of drivers who attend training outside their State of 
domicile from the Regulatory Evaluation conducted for the 2011 
``Commercial Driver's License Testing and Commercial Learner's Permit 
Standards'' final rule.\4\ According to this evaluation, approximately 
25 percent of drivers obtained training outside their State of 
domicile. It is likely that more than 25 percent of military personnel 
are stationed outside their State of domicile. However, for purposes of 
this analysis FMCSA used the 25 percent estimate to calculate the 
population of drivers who may apply for a CLP/CDL outside their State 
of domicile. Based on these assumptions, this provision affects 
approximately 660 drivers each year.
---------------------------------------------------------------------------

    \3\ Estimated based on information from an assessment of SDLAs, 
conducted by FMCSA in February 2015.
    \4\ Final Rule Regulatory Evaluation. Commercial Driver's 
License Testing and Commercial Learner's Permit Standards. 76 FR 
26853. May 9, 2011. Docket No. FMCSA-2007-27659. https://www.federalregister.gov/articles/2011/05/09/2011-10510/commercial-drivers-license-testing-and-commercial-learners-permit-standards.
---------------------------------------------------------------------------

    FMCSA estimated the processing fee by multiplying the 660 drivers 
by the per-driver processing fee of $50. The 10-year costs for the 
additional processing fee total $330,000 undiscounted, $290,000 
discounted at 3%, and $248,000 discounted at 7%.
    This rule will also result in cost savings, or benefits, for 
drivers in the

[[Page 70644]]

form of reduced travel costs. The rule will allow States where active-
duty military personnel are stationed to accept CLP or CDL applications 
and administer knowledge and skills tests for those personnel. The rule 
will allow any such State to transmit copies of the application and 
test results for military personnel to the driver's State of domicile, 
which in turn may--but is not required to--issue a CLP or CDL on the 
basis of that information. Absent this rule, drivers would be required 
to travel to the State of domicile in order to apply for a CLP or CDL. 
For example, if the driver is stationed in Virginia but his/her State 
of domicile is Texas (and both States use the licensing alternative 
allowed by this rule), Texas will be able to issue the driver a CLP and 
CDL based on an application and successful testing conducted in 
Virginia. The driver would be spared the travel costs of returning to 
Texas in order to file an application for a CLP or CDL.
    FMCSA does not have information on the States where these drivers 
are domiciled or stationed. To estimate the potential costs savings, 
FMCSA used the scenario of a driver who is stationed in Virginia but 
domiciled in Texas. To present an upper and lower bound estimate of the 
potential cost savings, FMCSA evaluated two scenarios in which the 
driver travels between Norfolk, Virginia, and Houston, Texas. In the 
first scenario, the driver takes a commercial flight. FMCSA estimates 
that a typical roundtrip flight between Norfolk and Houston costs 
approximately $700.\5\ In the second scenario, the driver drives a 
private vehicle between these locations. The current private vehicle 
mileage rate from the General Services Administration (GSA) is $0.575 
per mile \6\ and the distance between Norfolk and Houston is 
approximately 2,800 miles, roundtrip. FMCSA estimates that it would 
cost the driver approximately $1,610 to drive between Virginia and 
Texas for CDL testing.
---------------------------------------------------------------------------

    \5\ The flight price $700 was estimated using the General 
Service Administration Airline City Pairs Search Tool for flights 
between Norfolk, Virginia and Houston, Texas. http://cpsearch.fas.gsa.gov/.
    \6\ U.S. General Services Administration. Privately Owned 
Vehicle (POV) Mileage Reimbursement Rates, as of January 1, 2015. 
http://www.gsa.gov/portal/content/100715.
---------------------------------------------------------------------------

    To estimate the potential cost savings, FMCSA multiplied the round 
trip flight price by the annual affected driver population to calculate 
the lower-bound estimate, and multiplied the mileage cost by the annual 
affected driver population to calculate the upper-bound estimate. Based 
on the estimated participation rates, the total savings would be 
between $4.6 million and $10.6 million undiscounted, $4.1 million and 
$9.3 million discounted at 3%, $3.5 million and $8.0 million discounted 
at 7%. In addition, the driver might incur lodging costs and other 
expenses depending on the location of the testing; however, these 
potential cost savings were not included in this analysis.
    FMCSA calculated the net benefits of this rule by subtracting the 
processing fee cost from the travel cost savings. As shown in Table 1, 
the per driver benefits range from $650 to $1,560. The total 10-year 
net benefits range from $3.2 million to $7.7 million, discounted at 7%.

                   Table 1--Estimated Annual and 10-Year Net Benefits for Out of State Drivers
----------------------------------------------------------------------------------------------------------------
                                                                     Total net     10-year total   10-year total
            Scenario                Drivers per    Net benefits    benefits per    (3% discount    (7% discount
                                       year         per driver         year            rate)           rate)
----------------------------------------------------------------------------------------------------------------
Lower-Bound (flight)............             660            $650        $429,000      $3,769,241      $3,224,035
Upper-Bound (car travel)........             660           1,560       1,029,600       9,046,178       7,737,683
----------------------------------------------------------------------------------------------------------------

    In addition to the cost savings described above, there may be other 
non-quantified benefits associated with these provisions. For example, 
this proposal also allows military personnel to enter the job market 
more quickly after separation from service. This rulemaking may also 
increase the availability of drivers qualified to work for motor 
carriers, since military personnel would be able to complete their 
testing and licensing during their separation process. Finally, 
reducing unemployment for former military personnel may also reduce the 
amount of unemployment compensation paid by the Department of Defense 
to former service members.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act of 1980 (5 U.S.C. 601-612) requires 
Federal agencies to consider the effects of the regulatory action on 
small business and other small entities and to minimize any significant 
economic impact. The term ``small entities'' comprises small businesses 
and not-for-profit organizations that are independently owned and 
operated and are not dominant in their fields, and governmental 
jurisdictions with populations of less than 50,000. Accordingly, DOT 
policy requires an analysis of the impact of all regulations on small 
entities, and mandates that agencies strive to lessen any adverse 
effects on these businesses.
    Under the standards of the RFA, as amended by the Small Business 
Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121, 110 Stat. 
857) (SBREFA), this rule will not impose a significant economic impact 
on a substantial number of small entities because the revisions would 
either codify an existing practice or allow States to provide more 
flexibility for military personnel seeking to obtain a CDL. FMCSA does 
not expect the changes to impose any new or increased costs on small 
entities. Consequently, I certify that this action will not have a 
significant economic impact on a substantial number of small entities.

C. Assistance for Small Entities

    In accordance with section 213(a) of the Small Business Regulatory 
Enforcement Fairness Act of 1996, FMCSA wants to assist small entities 
in understanding this final rule so that they can better evaluate its 
effects on themselves and participate in the rulemaking initiative. If 
the final rule will affect your small business, organization, or 
governmental jurisdiction and you have questions concerning its 
provisions or options for compliance; please consult the FMCSA point of 
contact, Selden Fritschner, listed in the FOR FURTHER INFORMATION 
CONTACT section of this final rule.
    Small businesses may send comments on the actions of Federal 
employees who enforce or otherwise determine compliance with Federal 
regulations to the Small Business Administration's

[[Page 70645]]

Small Business and Agriculture Regulatory Enforcement Ombudsman and the 
Regional Small Business Regulatory Fairness Boards. The Ombudsman 
evaluates these actions annually and rates each agency's responsiveness 
to small business. If you wish to comment on actions by employees of 
FMCSA, call 1-888-REG-FAIR (1-888-734-3247). DOT has a policy regarding 
the rights of small entities to regulatory enforcement fairness and an 
explicit policy against retaliation for exercising these rights.

D. Unfunded Mandates Reform Act of 1995

    The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) 
requires Federal agencies to assess the effects of their discretionary 
regulatory actions. In particular, the Act addresses actions that may 
result in the expenditure by a State, local, or tribal government, 
taken together, or by the private sector of $155 million (which is the 
value of $100 million in 1995 after adjusting for inflation to 2014 
levels) or more in any 1 year. Though this final rule will not result 
in such an expenditure, the Agency does discuss the effects of this 
rule elsewhere in this preamble.

E. Paperwork Reduction Act

    This final rule calls for no new collection of information under 
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).

F. E.O. 13132 (Federalism)

    A rule has implications for Federalism under Section 1(a) of E.O. 
13132 if it has ``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.'' FMCSA has determined that this rule will not have 
substantial direct costs on or for States, nor will it limit the 
policymaking discretion of States. Nothing in this document preempts 
any State law or regulation. Therefore, this rule does not have 
sufficient federalism implications to warrant the preparation of a 
Federalism Impact Statement.

G. E.O. 12988 (Civil Justice Reform)

    This final rule meets applicable standards in sections 3(a) and 
3(b)(2) of E.O. 12988, Civil Justice Reform, to minimize litigation, 
eliminate ambiguity, and reduce burden.

H. E.O. 13045 (Protection of Children)

    E.O. 13045, Protection of Children from Environmental Health Risks 
and Safety Risks (62 FR 19885, April 23, 1997), requires agencies 
issuing ``economically significant'' rules, if the regulation also 
concerns an environmental health or safety risk that an agency has 
reason to believe may disproportionately affect children, to include an 
evaluation of the regulation's environmental health and safety effects 
on children. The Agency determined this final rule is not economically 
significant. Therefore, no analysis of the impacts on children is 
required. In any event, the Agency does not anticipate that this 
regulatory action could present an environmental or safety risk that 
could disproportionately affect children.

I. E.O. 12630 (Taking of Private Property)

    FMCSA reviewed this final rule in accordance with E.O. 12630, 
Governmental Actions and Interference with Constitutionally Protected 
Property Rights, and has determined it will not effect a taking of 
private property or otherwise have taking implications.

J. Privacy

    Section 522 of title I of division H of the Consolidated 
Appropriations Act, 2005, enacted December 8, 2004 (Pub. L. 108-447, 
118 Stat. 2809, 3268, 5 U.S.C. 552a note), requires the Agency to 
conduct a privacy impact assessment (PIA) of a regulation that will 
affect the privacy of individuals. This rule does not require the 
collection of PII.
    The Privacy Act (5 U.S.C. 552a) applies only to Federal agencies 
and any non-Federal agency which receives records contained in a system 
of records from a Federal agency for use in a matching program. All 
records associated with this rulemaking are State, not Federal, 
records.
    The E-Government Act of 2002, Public Law 107-347, 208, 116 Stat. 
2899, 2921 (Dec. 17, 2002), requires Federal agencies to conduct a PIA 
for new or substantially changed technology that collects, maintains, 
or disseminates information in an identifiable form. No new or 
substantially changed technology would collect, maintain, or 
disseminate information as a result of this rule. As a result, FMCSA 
has not conducted a privacy impact assessment.

K. E.O. 12372 (Intergovernmental Review)

    The regulations implementing E.O. 12372 regarding intergovernmental 
consultation on Federal programs and activities do not apply to this 
rule.

L. E.O. 13211 (Energy Supply, Distribution, or Use)

    FMCSA has analyzed this final rule under E.O. 13211, Actions 
Concerning Regulations That Significantly Affect Energy Supply, 
Distribution, or Use. The Agency has determined that it is not a 
``significant energy action'' under that order because it is not a 
``significant regulatory action'' likely to have a significant adverse 
effect on the supply, distribution, or use of energy. The Administrator 
of the Office of Information and Regulatory Affairs has not designated 
it a significant energy action. Therefore, it does not require a 
Statement of Energy Effects under Executive Order 13211.

M. E.O. 13175 (Indian Tribal Governments)

    This rule does not have tribal implications under E.O. 13175, 
Consultation and Coordination with Indian Tribal Governments, because 
it does not have a substantial direct effect on one or more Indian 
tribes, on the relationship between the Federal Government and Indian 
tribes, or on the distribution of power and responsibilities between 
the Federal Government and Indian tribes.

N. National Technology Transfer and Advancement Act (Technical 
Standards)

    The National Technology Transfer and Advancement Act (NTTAA) (15 
U.S.C. 272 note) directs agencies to use voluntary consensus standards 
in their regulatory activities unless the agency provides Congress, 
through OMB, with an explanation of why using these standards would be 
inconsistent with applicable law or otherwise impractical. Voluntary 
consensus standards (e.g., specifications of materials, performance, 
design, or operation; test methods; sampling procedures; and related 
management systems practices) are standards that are developed or 
adopted by voluntary consensus standards bodies. This rule does not use 
technical standards. Therefore, FMCSA did not consider the use of 
voluntary consensus standards.

O. Environment (NEPA, CAA, E.O. 12898 Environmental Justice)

    FMCSA analyzed this rule for the purpose of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) and 
determined this action is categorically excluded from further analysis 
and documentation in an environmental assessment or environmental 
impact statement under FMCSA Order 5610.1 (69 FR 9680, March 1, 2004), 
Appendix 2, paragraph

[[Page 70646]]

6.s.(6). The Categorical Exclusion (CE) in paragraph 6.s.(6) covers a 
requirement for States to give knowledge and skills tests to all 
qualified applicants for commercial drivers' licenses which meet the 
Federal standard. The content in this rule is covered by this CE and 
the final action does not have any effect on the quality of the 
environment. The CE determination is available for inspection or 
copying in the Regulations.gov Web site listed under I. Rulemaking 
Documents.
    FMCSA also analyzed this rule under the Clean Air Act, as amended 
(CAA), section 176(c) (42 U.S.C. 7401 et seq.), and implementing 
regulations promulgated by the Environmental Protection Agency. 
Approval of this action is exempt from the CAA's general conformity 
requirement since it does not affect direct or indirect emissions of 
criteria pollutants.
    Under E.O. 12898, each Federal agency must identify and address, as 
appropriate, ``disproportionately high and adverse human health or 
environmental effects of its programs, policies, and activities on 
minority populations and low-income populations'' in the United States, 
its possessions, and territories. FMCSA evaluated the environmental 
justice effects of this final rule in accordance with the E.O., and has 
determined that it has no environmental justice implications, nor is 
there any collective environmental impact that will result from its 
promulgation.

List of Subjects

49 CFR Part 383

    Administrative practice and procedure, Alcohol abuse, Drug abuse, 
Highway safety, Motor carriers.

49 CFR Part 384

    Administrative practice and procedure, Alcohol abuse, Drug abuse, 
Highway safety, Motor carriers.

    In consideration of the foregoing, FMCSA amends 49 CFR chapter III, 
parts 383 and 384 to read as follows:

PART 383--COMMERCIAL DRIVER'S LICENSE STANDARDS; REQUIREMENTS AND 
PENALTIES

0
1. The authority citation for part 383 continues to read as follows:

    Authority: Authority: 49 U.S.C. 521, 31136, 31301 et seq., and 
31502; secs. 214 and 215 of Pub. L. 106-159, 113 Stat. 1748, 1766, 
1767; sec. 1012(b) of Pub. L. 107-56, 115 Stat. 272, 297, sec. 4140 
of Pub. L. 109-59, 119 Stat. 1144, 1746; sec. 32934 of Pub. L. 112-
141, 126 Stat. 405, 830; sec. 7208 of Pub. L. 114-94, 129 Stat. 
1312, 1593; and 49 CFR 1.87.

0
2. Amend Sec.  383.5 by adding definitions of ``military service 
member'' and ``military services'' in alphabetical order to read as 
follows:


Sec.  383.5  Definitions.

* * * * *
    Military service member means a member of the United States Army, 
Navy, Marine Corps, Air Force, and Coast Guard, and their associated 
reserve, and National Guard units.
    Military services means the United States Army, Navy, Marine Corps, 
Air Force, and Coast Guard, and their associated reserve and National 
Guard units.
* * * * *

0
3. Amend Sec.  383.77 by revising paragraph (b)(1) to read as follows:


Sec.  383.77  Substitute for driving skills tests for drivers with 
military CMV experience.

* * * * *
    (b) * * *
    (1) Is regularly employed or was regularly employed within the last 
year in a military position requiring operation of a CMV;
* * * * *

0
4. Revise Sec.  383.79 to read as follows:


Sec.  383.79  Skills testing of out-of-State students; Knowledge and 
skills testing of military personnel.

    (a) CDL applicants trained out-of-State--(1) State that administers 
the skills test. A State may administer its skills test, in accordance 
with subparts F, G, and H of this part, to a person who has taken 
training in that State and is to be licensed in another United States 
jurisdiction (i.e., his or her State of domicile). Such test results 
must be transmitted electronically directly from the testing State to 
the licensing State in an efficient and secure manner.
    (2) The State of domicile. The State of domicile of a CDL applicant 
must accept the results of a skills test administered to the applicant 
by any other State, in accordance with subparts F, G, and H of this 
part, in fulfillment of the applicant's testing requirements under 
Sec.  383.71, and the State's test administration requirements under 
Sec.  383.73.
    (b) Military service member applicants for a CLP or CDL--(1) State 
of duty station. A State where active duty military service members are 
stationed, but not domiciled, may:
    (i) Accept an application for a CLP or CDL from such a military 
service member who has
    (A) A valid driver's license from his or her State of domicile,
    (B) A valid active duty military identification card, and
    (C) A current copy of either the service member's military leave 
and earnings statement or his or her orders;
    (ii) Administer the knowledge and skills tests to the military 
service member, as appropriate, in accordance with subparts F, G, and H 
of this part, or waive the skills test in accordance with Sec.  383.77; 
and
    (iii) Destroy a driver's license on behalf of the State of 
domicile, unless the latter requires the license to be surrendered to 
its own driver licensing agency.
    (2) Electronic transmission of the application and test results. 
The State of duty station must transmit the completed application, the 
results of knowledge and skills tests, and any supporting documents, by 
a direct, secure, and efficient electronic system.
    (3) State of domicile. Upon completion of the applicant's 
application and testing requirements under Sec.  383.71, and the 
State's test administration requirements under Sec.  383.73, the State 
of domicile of the military service member applying for a CLP or CDL 
may
    (i) Accept the completed application; the results of knowledge and 
skills tests administered to the applicant by the State where he or she 
is currently stationed, or the notice of the waiver of the skills test, 
as authorized by paragraph (b)(1)(ii) of this section; and any 
supporting documents; and
    (ii) Issue the applicant a CLP or CDL.

PART 384--STATE COMPLIANCE WITH COMMERCIAL DRIVER'S LICENSE PROGRAM

0
5. The authority citation for part 384 continues to read as follows:

    Authority: 49 U.S.C. 31136, 31301 et seq., and 31502; secs. 103 
and 215 of Pub. L. 106-59, 113 Stat. 1753, 1767; and 49 CFR 1.87.


0
6. Add paragraph (j) to Sec.  384.301 to read as follows:


Sec.  384.301  Substantial compliance general requirements.

* * * * *
    (j) A State must come into substantial compliance with the 
requirements of subpart B of this part and part 383 of this chapter in 
effect as of December 12, 2016 as soon as practicable, but, unless 
otherwise specifically provided in this part, not later than December 
12, 2019.

    Issued under authority delegated in 49 CFR 1.87 on: October 4, 
2016.
T.F. Scott Darling, III,
Administrator.
[FR Doc. 2016-24749 Filed 10-12-16; 8:45 am]
BILLING CODE 4910-EX-P



                                           70634            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                                                                                              VERMONT NON-REGULATORY
                                                    Name of                           Applicable                          State submittal                 EPA approved
                                                nonregulatory SIP                   geographic or                          date/effective                                                 Explanations
                                                                                                                                                              date
                                                    provision                     nonattainment area                           date


                                                    *                        *                         *                        *                       *                      *                    *
                                           Transport SIP for the 2008        Statewide ..........................   Submitted 11/2/2015 .........   10/13/2016 , [Insert Fed-      State submitted a trans-
                                             Ozone Standard.                                                                                          eral Register citation].       port SIP for the 2008
                                                                                                                                                                                     ozone standard which
                                                                                                                                                                                     shows it does not signifi-
                                                                                                                                                                                     cantly contribute to
                                                                                                                                                                                     ozone nonattainment or
                                                                                                                                                                                     maintenance in any
                                                                                                                                                                                     other state. EPA ap-
                                                                                                                                                                                     proved this submittal as
                                                                                                                                                                                     meeting the require-
                                                                                                                                                                                     ments of Clean Air Act
                                                                                                                                                                                     Section
                                                                                                                                                                                     110(a)(2)(D)(i)(I).



                                           [FR Doc. 2016–24491 Filed 10–12–16; 8:45 am]               ADDRESSES:    Petitions for reconsideration               N. National Technology Transfer and
                                           BILLING CODE 6560–50–P                                     this final rule must be submitted in                        Advancement Act (Technical Standards)
                                                                                                      accordance with 49 CFR 389.35 to:                         O. Environment (NEPA, CAA, E.O.12898
                                                                                                                                                                  Environmental Justice)
                                                                                                      FMCSA Administrator, Federal Motor
                                           DEPARTMENT OF TRANSPORTATION                               Carrier Safety Administration, 1200                     I. Rulemaking Documents
                                                                                                      New Jersey Avenue SE., Washington,
                                           Federal Motor Carrier Safety                               DC 20590– 0001 no later than November                   A. Availability of Rulemaking
                                           Administration                                             14, 2016.                                               Documents
                                                                                                      FOR FURTHER INFORMATION CONTACT: Mr.                      For access to docket FMCSA–2016–
                                           49 CFR Parts 383 and 384                                   Selden Fritschner, CDL Division,                        0051 to read background documents and
                                           [Docket No. FMCSA–2016–0051]                               Federal Motor Carrier Safety                            comments received, go to http://
                                                                                                      Administration, 1200 New Jersey                         www.regulations.gov at any time, or to
                                           RIN 2126–AB68
                                                                                                      Avenue SE., Washington, DC 20590–                       Docket Services at U.S. Department of
                                           Commercial Driver’s License                                0001, by email at selden.fritschner@                    Transportation, Room W12–140, 1200
                                           Requirements of the Moving Ahead for                       dot.gov, or by telephone at 202–366–                    New Jersey Avenue SE., Washington,
                                           Progress in the 21st Century Act                           0677. If you have questions on viewing                  DC 20590, between 9 a.m. and 5 p.m.,
                                           (MAP–21) and the Military Commercial                       or submitting material to the docket,                   Monday through Friday, except Federal
                                           Driver’s License Act of 2012                               contact Docket Services, telephone (202)                holidays.
                                                                                                      366–9826.                                               B. Privacy Act
                                           AGENCY:  Federal Motor Carrier Safety
                                           Administration (FMCSA), DOT.                               SUPPLEMENTARY INFORMATION: This Final                     In accordance with 5 U.S.C. 553(c),
                                                                                                      Rule is organized as follows:                           DOT solicits comments from the public
                                           ACTION: Final rule.
                                                                                                      I. Rulemaking Documents                                 to better inform its rulemaking process.
                                           SUMMARY:    FMCSA amends its                                  A. Availability of Rulemaking Documents              DOT posts these comments, without
                                           commercial driver’s license (CDL)                             B. Privacy Act                                       edit, including any personal information
                                           regulations to ease the transition of                      II. Executive Summary                                   the commenter provides, to
                                           military personnel into civilian careers                   III. Legal Basis
                                                                                                      IV. Background                                          www.regulations.gov, as described in
                                           driving commercial motor vehicles                                                                                  the system of records notice (DOT/ALL–
                                                                                                      V. Proposed Rule
                                           (CMVs) by simplifying the process of                       VI. Discussion of Comments and Responses                14 FDMS), which can be reviewed at
                                           obtaining a commercial learner’s permit                    VII. Changes from the NPRM                              www.dot.gov/privacy.
                                           (CLP) or CDL. This final rule extends                      VIII. Today’s Final Rule
                                           the period of time for applying for a                      IX. International Impacts                               II. Executive Summary
                                           skills test waiver from 90 days to 1 year                  X. Section-by-Section                                      Section 32308 of the Moving Ahead
                                           after leaving a military position                          XI. Regulatory Analyses                                 for Progress in the 21st Century Act
                                           requiring the operation of a CMV. This                        A. E.O. 12866 (Regulatory Planning and               (MAP–21) [Pub. L. 112–141, 126 Stat.
                                           final rule also allows a State to accept                         Review, E.O. 13563, DOT Regulatory
                                                                                                            Policies and Procedures
                                                                                                                                                              405, 794, July 6, 2012] required FMCSA
                                           applications from active duty military                        B. Regulatory Flexibility Act                        to undertake a study to assess Federal
                                           personnel who are stationed in that                           C. Assistance for Small Entities                     and State regulatory, economic, and
                                           State as well as administer the written                       D. Unfunded Mandates Reform Act of 1995              administrative challenges faced by
                                           and skills tests for a CLP or CDL. States                     E. Paperwork Reduction Act                           current and former members of the
                                           that choose to accept such applications                       F. E.O. 13132 (Federalism)                           armed forces, who operated qualifying
                                           are required to transmit the test results                     G. E.O. 12988 (Civil Justice Reform)                 motor vehicles during their service, in
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                                           electronically to the State of domicile of                    H. E.O. 13045 (Protection of Children)               obtaining CDLs. As a result of this
                                           the military personnel. The State of                          I. E.O. 12630 (Taking of Private Property)
                                                                                                         J. Privacy
                                                                                                                                                              study, FMCSA provided a report to
                                           domicile may issue the CLP or CDL on                          K. E.O. 12372 (Intergovermental Review)              Congress titled ‘‘Program to Assist
                                           the basis of those results.                                   L. E.O. 13211 (Energy Supply, Distribution,          Veterans to Acquire Commercial
                                           DATES: This final rule is effective                              or Use)                                           Driver’s Licenses’’ (November 2013)
                                           December 12, 2016.                                            M. E.O. 13175 (Indian Tribal Governments)            (available in the docket for this


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                                                              Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations                                       70635

                                           rulemaking). The report contained six                     codified at 49 U.S.C. chapter 313 and                 permanent home, where they pay taxes,
                                           recommended actions, and two                              implemented by 49 CFR parts 382, 383,                 vote, and get a driver’s license. Military
                                           elements of the report comprise the                       and 384. It responds to section 5401(b)               personnel are frequently stationed
                                           main parts of this rulemaking. These                      of the Fixing America’s Surface                       outside their State of domicile. The
                                           actions are: (1) Revise 49 CFR                            Transportation Act (FAST Act) [Pub. L.                Military CDL Act allows a State to issue
                                           383.77(b)(1) governing the military                       114–94, 129 Stat. 1312, 1547, December                CDLs to certain military personnel not
                                           skills test waiver to extend the time                     4, 2015], which requires FMCSA to                     domiciled in the State, if their
                                           period to apply for a waiver from 90                      implement the recommendations                         temporary or permanent duty stations
                                           days to 1 year within which service                       included in the report submitted                      are located in that State (49 U.S.C.
                                           members were regularly employed in a                      pursuant to section 32308 of MAP–21,                  31312(a)(12)(C)). However, this
                                           position requiring operation of a CMV;                    discussed above. Section 5401(c) of the               procedure creates problems for service
                                           and (2) Revise the definitions of CLP                     FAST Act also requires FMCSA to                       members trying to maintain legal
                                           and CDL in 49 CFR 383.5 and 384.301                       implement the Military Commercial                     domicile in another State. Because
                                           and related provisions governing the                      Driver’s License Act of 2012 [49 U.S.C.               drivers’ licenses are often treated as
                                           domicile requirement, in order to                         31311(a)(12)(C)]. As explained later in               proof of domicile, obtaining a CDL from
                                           implement the statutory waiver enacted                    the preamble, this rule will give military            the State where they are stationed could
                                           by the Military Commercial Driver’s                       personnel all of the benefits of the                  result in the loss of domicile and
                                           License Act of 2012 (Pub. L. 112–196,                     Military CDL Act, while providing                     corresponding benefits (e.g., tax breaks)
                                           126 Stat. 1459, Oct. 19, 2012).                           options.                                              in what they consider their ‘‘home’’
                                              This rule eases the current burdens on                    The CMVSA provides broadly that                    State.
                                           military personnel applying for CLPs                      ‘‘[t]he Secretary of Transportation shall
                                           and CDLs issued by a State Driver                         prescribe regulations on minimum                         This final rule therefore utilizes the
                                           Licensing Agency (SDLA) in two ways.                      standards for testing and ensuring the                CMVSA’s broader authority to allow the
                                           First, it extends the time in which States                fitness of an individual operating a                  State where military personnel are
                                           are allowed (but not required) by 49                      commercial motor vehicle’’ (49 U.S.C.                 stationed to accept CLP or CDL
                                           CFR 383.77 to waive the skills test for                   31305(a)). Those regulations shall                    applications and to administer written
                                           certain military personnel from 90 days                   ensure that ‘‘(1) an individual issued a              and skills tests for the CDL. The rule
                                           to 1 year. On July 8, 2014, FMCSA                         commercial driver’s license [must] pass               requires a State that utilizes this
                                           issued a temporary exemption under 49                     written and driving tests for the                     procedure to transmit the application
                                           CFR part 381 that extended the skills                     operation of a commercial motor vehicle               and test results electronically to the
                                           test waiver to 1 year [79 FR 38659].1 On                  that comply with the minimum                          State of domicile, which is permitted,
                                           June 29, 2016, FMCSA extended the                         standards prescribed by the Secretary                 but is not required, to issue the CLP or
                                           temporary exemption for another two                       under section 31305(a) of this title’’ (49            CDL. This maintains the link between
                                           years, through July 8, 2018 (81 FR                        U.S.C. 31308(1)). To avoid the                        the issuing State and the driver’s State
                                           42391). This final rule makes the waiver                  withholding of certain Federal-aid                    of domicile that was mandated by the
                                           extension permanent. Second, this rule                    funds, States must adopt a testing                    CMVSA [49 U.S.C. 31311(a)(12)] until
                                           allows States to accept applications and                  program ‘‘consistent with the minimum                 the Military CDL Act authorized an
                                           administer all necessary tests for a CLP                  standards prescribed by the Secretary of              exception (with problematical
                                           or CDL from active duty service                           Transportation under section 31305(a)                 implications) for military personnel.
                                           members stationed in that State who are                   of this title’’ (49 U.S.C. 31311(a)(1)).                 Section 5401(a) of the FAST Act
                                           operating in a Military Occupational                         Potential CMV drivers often obtain                 added to 49 U.S.C. 31305 a new
                                           Specialty as full-time CMV drivers.                       CDL training outside their State of                   paragraph (d), which requires FMCSA to
                                           States that choose to exercise this option                domicile. Driver training schools                     (1) exempt certain ex-military personnel
                                           are required to transmit the application                  typically provide their students with a               from the CDL skills test if they had
                                           and test results electronically to the                    ‘‘representative’’ vehicle to use for the
                                                                                                                                                           military experience driving heavy
                                           SDLA in the service member’s State of                     required skills test (see 49 U.S.C.
                                                                                                                                                           military vehicles; (2) extend the skills
                                           domicile, which would then issue the                      31305(a)(2)), as well as a CDL holder to
                                                                                                                                                           test waiver to one year; and (3) credit
                                           CLP or CDL. This enables service                          accompany the applicant to the test site.
                                                                                                                                                           the CMV training military drivers
                                           members to complete their licensing                       Until 2012, however, the CMVSA
                                                                                                                                                           receive in the armed forces toward
                                           requirements without incurring the time                   provided that a CDL could be issued
                                                                                                                                                           applicable CDL training and knowledge
                                           and expense of returning to their State                   only by the driver’s State of domicile
                                                                                                                                                           requirements. This rule addresses the
                                           of domicile. FMCSA encourages, but                        (49 U.S.C. 31311(a)(12)(A)). The cost to
                                                                                                                                                           first and second of these requirements
                                           does not require, the State of domicile                   applicants trained out-of-State of
                                                                                                                                                           in considerable detail; the third,
                                           to issue the CLP or CDL on the basis of                   traveling to their State of domicile to be
                                                                                                     skills tested can be substantial in terms             however, will require subsequent
                                           this information in accordance with                                                                             rulemaking.
                                           otherwise applicable procedures.                          of both personal time and financial
                                              FMCSA evaluated potential costs and                    expense. Therefore, on the basis of the                  Section 5302 of the FAST Act requires
                                           benefits associated with this rulemaking                  authority cited in the previous                       FMCSA to give priority to statutorily
                                           and estimates that these changes could                    paragraph, FMCSA’s final rule on                      required rules before beginning other
                                           result in net benefits between $3.2                       ‘‘Commercial Driver’s License Testing                 rulemakings, unless it determines that
                                           million and $7.7 million over 10 years,                   and Commercial Learner’s Permit                       there is a significant need for the other
                                           discounted at 7%.                                         Standards’’ (76 FR 26854, May 9, 2011)                rulemaking and so notifies Congress.
                                                                                                     required States where a driver is                     This rule is required by the provisions
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                                           III. Legal Basis                                          domiciled to accept the result of skills              of section 5401. Even in the absence of
                                              This rulemaking rests on the authority                 tests administered by a different State               those mandates, however, FMCSA
                                           of the Commercial Motor Vehicle Safety                    where the driver completed training (49               believes the need to improve
                                           Act of 1986 (CMVSA), as amended,                          CFR 383.79).                                          employment opportunities for military
                                                                                                        Legal residence or ‘‘domicile’’ is the             personnel returning to civilian life
                                             1 Available   in the docket for this rulemaking.        State that individuals consider their                 justifies the publication of this rule.


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                                           70636            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                           IV. Background                                          V. Proposed Rule                                      burden on state licensing agencies in no
                                                                                                     On March 16, 2016, FMCSA                            longer having to periodically apply for
                                              States are allowed to waive the skills                                                                     these extensions, but it would have a
                                           test for current or former military                     published a notice of proposed
                                                                                                   rulemaking (NPRM) titled ‘‘Commercial                 practical benefit to transitioning
                                           personnel who meet certain conditions                                                                         military CMV drivers looking for a new
                                           and are or were regularly employed in                   Driver’s License Requirements of the
                                                                                                   Moving Ahead for Progress in the 21st                 civilian CMV driving career.’’ The New
                                           the preceding 90 days in a military                                                                           York DMV favored the extension
                                           position requiring the operation of a                   Century Act and the Military
                                                                                                   Commercial Driver’s License Act of                    because it would alleviate some of the
                                           CMV (49 CFR 383.77(b)(1)). Between                                                                            problems identified by FMCSA in its
                                           May 2011 and February 2015, more than                   2012’’ (81 FR 14052). The proposed
                                                                                                   changes in 49 CFR parts 383 and 384                   2013 Report to Congress. The Montana
                                           10,100 separated military personnel                                                                           Department of Justice, Motor Vehicle
                                           took advantage of the skills test waiver.               were intended to ease the process of
                                                                                                                                                         Division (DOJ/MVD), supported
                                           In the November 2013 Report to                          getting a CLP or CDL for both active
                                                                                                                                                         codifying the regulatory exemption. The
                                           Congress titled, ‘‘Program to Assist                    duty and recently separated military
                                                                                                                                                         Minnesota Department of Public Safety,
                                           Veterans to Acquire Commercial                          personnel.
                                                                                                                                                         Driver and Vehicles (DPS/DV), favored
                                           Driver’s Licenses,’’ FMCSA concluded                    VI. Discussion of Comments and                        the extension, as it mirrors Minnesota
                                           that lengthening that 90-day period                     Responses                                             law. The Michigan Department of State
                                           would ease the transition of service                                                                          (DOS), the Arizona Department of
                                           members and veterans 2 to civilian life                 General Comments on the Rule
                                                                                                                                                         Transportation (DOT), and the
                                           with no impact to safety. FMCSA                           The NPRM elicited 16 comments, the                  American Trucking Associations (ATA)
                                           recommended an extension of the                         majority from SDLAs. Several SDLAs                    supported the proposal.
                                           period of availability to 1 year.                       and individuals suggested changes to                    One individual commenter agreed
                                              The Virginia Department of Motor                     the proposal, but no commenters                       with the concept but suggested an eight
                                           Vehicles (DMV) subsequently requested                   opposed the rule.                                     month timeframe instead of one year.
                                           an exemption from § 383.77(b)(1) to                                                                             FMCSA Response: FMCSA adopts the
                                                                                                   A. Section 383.5: New Definition of
                                           allow a 1-year waiver period for military                                                                     proposal as drafted. FMCSA will extend
                                                                                                   ‘‘Military Services’’
                                           personnel (available in docket FMCSA–                                                                         the 90-day skills test waiver period to 1
                                           2014–0096). On April 7, 2014, FMCSA                       Issue: The NPRM proposed adding a                   year from the date the driver was last
                                           published a Federal Register notice                     definition in § 383.5 of ‘‘military                   employed in a military position
                                           announcing the request (79 FR 19170).                   services’’ to the list of definitions in that         regularly requiring the operation of a
                                           Five comments were received; all                        section. A definition for ‘‘military                  CMV. This does not otherwise change
                                           supported the application, agreeing that                services’’ is needed in order to interpret            the eligibility criteria for the exemption.
                                           extending the waiver period to 1 year                   the new requirements in part 383 in this
                                                                                                   rulemaking.                                           Training for Military Drivers, How the
                                           would enable more military personnel                                                                          Entry-Level Driver Training Rule Would
                                           to obtain CDLs. In addition, the New                      Comments: The Virginia DMV
                                                                                                   requested guidance on the meaning of                  Affect These Drivers (§ 383.77)
                                           York Department of Motor Vehicles
                                           (DMV) suggested ‘‘broader application                   the term ‘‘auxiliary units,’’ and                        Issue: Section 383.77 implies that a
                                           of this exemption to all jurisdictions.’’               suggested mirroring United States Code                military or ex-military applicant would
                                           The American Association of Motor                       language.                                             need a certain level of experience, but
                                           Vehicle Administrators (AAMVA),                           FMCSA Response: FMCSA has                           the proposal did not mandate any
                                           which represents State and Provincial                   removed the reference to ‘‘auxiliary                  training.
                                           officials in the United States and                      units.’’ It was used to cover the Coast                  Comments: One individual
                                           Canada who administer and enforce                       Guard Auxiliary, but should not have                  commenter stated that, although she
                                           motor vehicle laws, also requested that                 been included because the Auxiliary is                supported the rulemaking and easing
                                           FMCSA consider a blanket exemption                      a non-military organization [see 14                   the transition for returning veterans,
                                           for all U.S. jurisdictions.                             U.S.C. 821(a)] and its members are                    CDL schools have a value. She stated
                                                                                                   civilians. The definition of ‘‘military               that many veterans currently use the GI
                                              FMCSA determined that the
                                                                                                   services’’ proposed in the NPRM follows               Bill to attend a CDL school. She also
                                           exemption requested by the Virginia
                                                                                                   the relevant definitions in the Armed                 stated that the CDL curriculum is only
                                           DMV would maintain a level of safety
                                                                                                   Forces title of the United States Code                20 days.
                                           equivalent to, or greater than, the level                                                                        The New York DMV asked if proof of
                                                                                                   (10 U.S.C. 101). Those definitions do
                                           that would be achieved without the                                                                            CMV driving would replace the Entry-
                                                                                                   not use the term ‘‘auxiliary units.’’
                                           exemption, as required by 49 CFR                                                                              Level Driver Training requirements, and
                                           381.305(a). The Agency, therefore,                      B. Section 383.77: Allowing States To
                                                                                                                                                         if it could, how much would be
                                           approved the exemption and made it                      Extend Their Waiver of the Skills Test
                                                                                                                                                         required.
                                           available to all SDLAs (79 FR 38645,                    for Separated Military Personnel From                    ATA favored allowing non-military
                                           July 8, 2014). That nationwide                          90 Days to 1 Year                                     drivers, in addition to military
                                           exemption was extended for an                              Issue: The NPRM would have                         personnel, to take the written and skills
                                           additional 2 years by a notice published                amended § 383.77(b)(1) to allow States                tests outside their State of domicile, and
                                           June 29, 2016 (81 FR 42391). However,                   to accept skills test waiver applications             requested that FMCSA issue a
                                           neither exemption changed the language                  from military personnel for up to 1 year              supplemental NPRM on that subject.
                                           of § 383.77(b)(1) and the current                       after they were regularly employed in a                  FMCSA Response: FMCSA agrees that
                                           exemption remains effective only until                  military position requiring operation of              driver training is important, and
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                                           July 8, 2018.                                           a CMV.                                                recently published an NPRM that would
                                                                                                      Comments: The Virginia DMV and                     require training for entry-level drivers
                                             2 Veteran: A person who served on active duty in
                                                                                                   AAMVA reaffirmed their support for the                (81 FR 11944, March 7, 2016). Under
                                           the Army, Navy, Air Force, Marine Corps, or Coast
                                           Guard and who was discharged or released
                                                                                                   proposal. The American Bus                            that proposal, entry-level driver training
                                           therefrom under conditions other than                   Association (ABA) stated that the                     would not be required for ‘‘Veterans
                                           dishonorable.                                           proposal would ‘‘ease the administrative              with military CMV experience who


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                                                            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations                                       70637

                                           meet all the requirements and                           more stringent standards. While that is               drivers might be forced to pay both the
                                           conditions of § 383.77 of this chapter’’                allowed by part 383, it does create                   State where the driver’s application is
                                           (49 CFR 380.603(a)(3)). Today’s final                   variations among States.                              filed and processed and the State of
                                           rule extends the waiver period allowed                     As proposed in the NPRM, the State                 domicile, and stated that it was required
                                           by § 383.77, but does not address                       of domicile will issue the CLP or CDL;                by statute to collect fees before issuing
                                           substantive training issues. Giving non-                this has always been a fundamental                    CLPs and CDLs. The Michigan DOS
                                           military drivers the same testing                       principle of the program. However, in                 asked for clarify concerning fees, and
                                           flexibility granted to military personnel               response to comments, the NPRM                        said there was an assumption of shared
                                           is beyond the scope of this rule, and                   requirement that the State of domicile                cost between the State of domicile and
                                           FMCSA declines to consider the ATA                      must accept and act on information                    State of station. North Dakota stated that
                                           request at this time.                                   transmitted by the State where the                    its fee has to be paid in person. The
                                                                                                   driver is stationed has been removed.                 Minnesota DPS/DV wanted the issue of
                                           C. Section 383.79: Allow the State                      The final rule is entirely permissive. In             fees to be addressed explicitly. The
                                           Where the Person Is Stationed and the                   other words, the State where the                      California DMV stated that fees were not
                                           State of Domicile To Coordinate CLP                     military driver is stationed may (but is              addressed in the proposal.
                                           and CDL Testing and CDL Issuance                        not required to) administer the written                  FMCSA Response: Driver licensing
                                              The NPRM would have allowed a                        and skills tests for the CLP and CDL—                 fees are left to the discretion of the
                                           State where active-duty military                        as proposed in the NPRM—and the                       States, and FMCSA believes that States
                                           personnel are stationed to accept                       State of domicile may (but is not                     are best equipped to determine such
                                           applications and administer CLP                         required to) accept the testing                       fees. Some SDLAs currently waive fees
                                           knowledge and CDL skills tests. That                    information and documentation                         for active-duty military personnel and
                                           State would then have been required to                  provided by the State where the driver                may well continue to do so while
                                           transmit the application and test results               is stationed and issue the CLP or CDL                 utilizing this rule. On the other hand, it
                                           to the driver’s State of domicile, which                on that basis. This permissive approach               is possible that both States involved in
                                           would have been required to accept                      will require coordination between two                 the new testing and licensing
                                           these documents and issue the CLP or                    States, and among many pairs of States.               procedures allowed by this rule may
                                           CDL.                                                    At a minimum, the State where the                     charge for their services. Even in that
                                           Procedural Differences Among States                     driver is stationed will have to use                  worst-case scenario, however, the driver
                                           Issuing CLPs and CDLs (§ 383.79):                       administrative procedures, forms, etc.,               is likely to find the new procedures
                                           Licensing Variations                                    that are acceptable to the State of                   cheaper than returning to his/her State
                                                                                                   domicile, since that State would                      of domicile to complete the necessary
                                              Issue: The proposal did not account                  ultimately issue (or refuse to issue) the             applications and tests. In cases where
                                           for licensing variations among the                      CLP or CDL. The Agency recognizes that                one State has to transmit all or part of
                                           States, relying on the 2011 CDL                         States will have to harmonize different               a fee to another State, FMCSA is
                                           rulemaking that standardized the                        practices. If two SDLAs find that their               confident that current financial systems
                                           elements of a license.                                  licensing standards are incompatible,                 will be able to provide solutions. The
                                              Comments: Several commenters                         they will not reach agreement and                     reciprocal transfers among States
                                           pointed out that States have different                  military drivers will not be able to use              required by the International
                                           procedures for issuing CLPs and CDLs.                   the application and testing alternatives              Registration Plan and the International
                                           AAMVA requested a list of data                          allowed by this rule. However, we are                 Fuel Tax Agreement suggest that
                                           elements that needed to be transferred,                 confident that most States will work out              options may be readily available.
                                           as many States have variations. The                     their mutual differences in order to help                As discussed below in connection
                                           Missouri Department of Revenue (DOR)                    military personnel transition to civilian             with Executive Order 12866, military
                                           asked which SDLA (the State where the                   careers in the motor carrier industry.                drivers will retain the options: (1) To
                                           driver is stationed or the State of                        This final rule does not change the                return to their State of domicile to apply
                                           domicile) would handle the verification                 requirements for converting a CLP to a                for a CLP or CDL; and (2) to change their
                                           processes. The California DMV asked                     CDL. If eligible military CLP holders                 State of domicile to the State where they
                                           how to convert a CLP to a CDL under                     want to apply for a CDL, they could do                are stationed. If the distance between
                                           §§ 383.25 and 383.153, and did not                      so where they are stationed (assuming                 two States is small enough, and cost of
                                           address a non-domiciled variation. ATA                  that State uses the option granted by                 returning to the State of domicile is
                                           supported allowing jurisdictions to test                this rule), but the CDL itself must still             cheaper than the fees charged, then the
                                           on behalf of each other, and stated that                be issued by the State of domicile.                   military driver may wish to apply for
                                           the knowledge and skills test should be                    Participating States have a 3 year                 the CLP or CDL in person in the State
                                           standardized, per FMCSA’s statements                    period to adopt the framework of the                  of domicile. This rulemaking does not
                                           in the NPRM. Because of the                             rule. FMCSA, AAMVA, and the States                    alter that ability.
                                           standardization, ATA did not believe                    will work together to reach agreement to                 FMCSA believes the rule offers
                                           there would be any change or reduction                  implement the procedures after this                   significant flexibility that will reduce
                                           in safety, and pointed out that costs for               time.                                                 the cost to most military drivers of
                                           service members who want to obtain a                                                                          obtaining a CDL. Nonetheless, each
                                           CLP or CDL would likely decrease.                       Procedural Differences Among States                   driver will have to balance application
                                              FMCSA Response: The 2011 CLP/CDL                     Issuing CLPs and CDLs (§ 383.79): Fees                fees versus travel costs, and the
                                           rule (89 FR 26853) required States to                      Issue: The proposal was silent on the              advantages of maintaining and
                                           adopt new minimum Federal standards                     topic of fees charged by SDLAs for                    switching State of domicile.
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                                           for the CDL knowledge and skills tests                  services rendered under proposed
                                           and established new minimum                             § 383.79.                                             Procedural Inconsistences Among States
                                           procedures for States to issue the CLP.                    Comments: The New York DMV asked                   Issuing CLPs and CDLs (§ 383.79):
                                           FMCSA has confirmed that all States                     how the State of domicile will collect                Forms and Applications
                                           meet those minimum standards. In                        fees if the process is entirely electronic.              Issue: The NPRM was silent on which
                                           addition, some States have adopted                      The Oregon DMV voiced concern that                    State (State of domicile or State of


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                                           70638            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                           station) would supply the application                   Agency is allowing any two States                     as the domicile status and addresses of
                                           for a CLP or a CDL.                                     involved in the issuance of a CLP or                  applicants, but believes that most States
                                              Comments: Several SDLAs had                          CDL to military personnel stationed                   will be able to resolve such questions in
                                           concerns about issuing or processing                    outside their State of domicile to work               cooperation with other States. Drivers
                                           CLPs and CDLs on behalf of another                      out between themselves any remaining                  who obtain a CLP or CDL through this
                                           State. Several mentioned that different                 differences in their respective                       process will retain their State of
                                           States require different information.                   procedures and requirements. The most                 domicile, and will therefore never be
                                              The Arizona DOT said that it could                   obvious solution would be for the State               entered into the pool of voters in the
                                           not enforce another State’s standard.                   where the driver is stationed to use the              State where they are stationed, or need
                                           The Oregon DMV stated that CLP and                      forms and follow the procedures                       to update their addresses. From the
                                           CDL applications are not uniform, and                   required by the State of domicile.                    perspective of the SDLA in the driver’s
                                           neither are the skills and knowledge                    FMCSA will work with the SDLAs and                    State of domicile, nothing has changed.
                                           tests. The Oregon DMV is prohibited by                  AAMVA during the implementation
                                           statute from using another State’s                                                                            Procedural Differences Among States
                                                                                                   period to assist in determining common
                                           application to issue an Oregon license.                                                                       Issuing CLPs and CDLs (§ 383.79): In-
                                                                                                   data points that meet the needs of the
                                           Oregon also stated that any expectation                                                                       Person Requirements
                                                                                                   States that wish to participate.
                                           of enforcing another State’s applications                 Some States may decide not to                          Issue: FMCSA did not address photo
                                           and forms is unreasonable. The New                      process or accept CLP and/or CDL                      or other in-person licensing
                                           York DMV stated that the applications                   applications transmitted by another                   requirements.
                                           are too varied, and requested guidelines                State. The rule does not require any                     Comments: Several SDLAs pointed to
                                           to ensure each State receives the data it               State to enforce another State’s                      inconsistencies in procedures between
                                           needs. The Arizona DOT argued that                      standard. The State of station will                   States for parts of the license that must
                                           requiring States to handle other States’                collect applications on behalf of the                 be done in person, such as facial
                                           applications infringes upon State laws,                 State of domicile. It will be the                     recognition and signature.
                                           and it is not realistic for personnel to                applicant’s responsibility to ensure both                AAMVA asked for clarification on
                                           handle forms from other SDLAs, as they                  that the State where he/she is stationed              which jurisdiction would be responsible
                                           would require different information.                    will entertain an application and that                for the photography element; it also
                                           Arizona also noted that States might                    his/her State of domicile will accept and             mentioned the REAL ID Act provision
                                           require legislative changes in order to                 process the application and test results              that requires digital pictures on a
                                           implement the regulatory revisions                      provided by the former and issue a CLP                driver’s license, as well as tracking of
                                           adopted here. Minnesota DPS/DV                          or CDL.                                               denied REAL ID applications. AAMVA
                                           pointed out that each SDLA has a                          Again, the final rule is entirely                   said that all SDLAs are not following the
                                           different form; Minnesota does not use                  permissive. Each pair of States                       REAL ID requirements, and that if the
                                           an electronic form. The Michigan DOS                    potentially involved in the licensing                 driver’s picture is taken in the State
                                           and Virginia DMV suggested national                     procedures allowed by this rule can opt               where he/she is stationed, this could
                                           forms and applications as possible                      out if the involved States are unable to              have an additional cost. When a license
                                           solutions for consistency. The Michigan                 reach agreement. The Agency believes                  is issued, the Oregon DMV takes a
                                           DOS also asked how the State where the                  that many States will find ways to                    photograph which is digitized and
                                           driver is stationed would verify a                      harmonize their forms, procedures, and                compared to a database with facial
                                           credential in the State of domicile.                    other requirements—but we recognize                   recognition software. The New York
                                           Virginia requested AAMVA’s                              that some States will not be able to do               DMV mentioned other in-person
                                           involvement in developing a national                    so. FMCSA has expanded the                            requirements in addition to a
                                           application, if one were to be                          description of the requirements in                    photograph, including a Social Security
                                           developed. AAMVA asked for                              today’s final rule, including making it               Number and other State-specific
                                           clarification about which elements                      clear that States have the option—but                 identity confirmation.
                                           needed standardization.                                 are not required—to process                              The Virginia DMV stated its concern
                                              The Nebraska DMV requested                           applications and test results on behalf of            about a driver using the new provisions
                                           clarification of what parts of the                      other States and to accept those                      of § 383.79 if he or she did not have an
                                           application would be mandatory for                      applications and test results collected               existing license; Virginia mentioned that
                                           transmission. North Dakota said that the                by other States.                                      this might be a concern for issuing a
                                           process in the NPRM did not provide                                                                           photograph of the driver on the license.
                                           enough information for a State of station               Procedural Differences Among States                   The Montana DOJ/MVD mentioned that
                                           to adequately maintain records and                      Issuing CLPs and CDLs (§ 383.79):                     the initial issuance of a license can only
                                           process records for the State of                        License Used for Non-Driving Purposes                 take place in person; an in-person
                                           domicile. North Dakota said that its own                   Issue: The NPRM was silent on the                  signature may also be required from
                                           application must be used.                               topic of licenses being used for purposes             those drivers who are domiciled in
                                              FMCSA Response: The Agency agrees                    other than driving.                                   Montana, but have not provided a
                                           that clarification would be needed if                      Comments: The Montana DOJ/MVD                      digital signature recently, and this
                                           FMCSA were adopting forms,                              asked how this proposed rule would                    would require a data base modification.
                                           applications, and procedures. However,                  impact voting. The New York DMV                          North Dakota stated that many of its
                                           FMCSA is not adopting national forms                    asked if there would be an impact on                  requirements, like digital photo
                                           that States must use when                               drivers who no longer have current                    processing, eye exams, and fees, must be
                                           implementing this final rule. The                       addresses within the State of domicile.               done in person; not allowing the State
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                                           outlines of a national standard are                     The Oregon DMV stated that each SDLA                  of domicile to insist on these
                                           already specified in considerable detail                has its own standards for domicile, and               requirements is ‘‘unacceptable.’’ The
                                           in §§ 383.25 Commercial learner’s                       it will be impossible for another State’s             Michigan DOS mentioned that facial
                                           permit (CLP) and 383.71 Driver                          SDLA to verify them.                                  recognition, fingerprinting, and retinal
                                           application and certification                              FMCSA Response: The Agency notes                   scanning often occur in the State of
                                           procedures. As indicated above, the                     the concerns about voting rights, as well             domicile when a new CLP or CDL is


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                                                            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations                                      70639

                                           issued. The California DMV asked                           FMCSA Response: The applicant must                 driver to mail his/her previous license
                                           whether a State that requires facial                    provide proof of his or her active duty               to that SDLA, which would destroy it
                                           recognition would process a CLP or CDL                  status in the form of a valid active duty             and then mail the CDL back to the
                                           application without the applicant                       military identification card. In addition,            driver. The second procedure would
                                           appearing in person. The Arizona DOT                    the applicant must show the driver                    leave the driver without a driver’s
                                           listed a number of in-person-only                       licensing agency either a copy of his or              license for a few days. FMCSA believes
                                           requirements. These included facial                     her current orders or a current Military              that participating States will be able to
                                           recognition, original documents for                     Leave and Earning Statement (Jan 2002)                utilize these or other agreed-upon
                                           citizenship verification, and digital                   to prove where he or she is stationed.                procedures without incurring any
                                           signatures.                                                                                                   serious risk that a driver could hold
                                              FMCSA Response: As explained                         Procedural Differences Among States
                                                                                                   Issuing CLPs and CDLs (§ 383.79):                     multiple driving credentials or would be
                                           above, this final rule is permissive, not                                                                     without any credentials for an interim
                                           mandatory. If a State of domicile                       Credentialing, License Issuance
                                                                                                                                                         period.
                                           concludes that another SDLA cannot                         Issue: Due to the issuance of the 2011
                                           properly administer its processing                      CDL and CLP rule referenced                           Procedural Differences Among States
                                           procedures, it can decline to issue CLPs/               previously, FMCSA believed that all                   Issuing CLPs and CDLs (§ 383.79):
                                           CDLs to military personnel stationed in                 States met the same minimum standard                  Citizenship
                                           that State. And a State that knows its                  when issuing CLPs and CDLs.                              Issue: The proposed rule did not
                                           processing standards are inconsistent                      Comments: Several SDLAs mentioned                  address citizenship.
                                           with those of another State can decline                 credentialing concerns. The California
                                                                                                                                                            Comments: The Montana DOJ/MVD
                                           even to accept CLP/CDL applications                     DMV asked how to destroy another
                                                                                                                                                         and the New York DMV asked which
                                           from military personnel domiciled in                    State’s license in accordance with
                                                                                                   § 383.73(c)(6). AAMVA stated that it                  State would verify citizenship or lawful
                                           that State.                                                                                                   permanent residency, since not all
                                              It is worth noting, however, that there              was concerned there was no mechanism
                                                                                                   to issue a new CLP or CDL. AAMVA                      holders of automobile licenses will be
                                           is no Federal requirement on where a
                                                                                                   stated that some SDLAs mail licenses to               United States citizens. New York asked
                                           photograph is taken. That factor alone
                                                                                                   the applicants, but there is no                       how a processing State would send
                                           should not impede a State of domicile
                                                                                                   standardized process. AAMVA also                      citizenship information to a domicile
                                           from accepting a CLP/CDL application
                                                                                                   expressed concerns about multiple-                    State, if that was the procedure chosen.
                                           from a State where a military driver is
                                                                                                   document retention, and gave an                       New York DMV pointed out that
                                           stationed.
                                                                                                   example where an applicant ended up                   checking this information is required
                                              FMCSA disagrees with the Virginia
                                                                                                   with several licenses at the same time;               under §§ 383.71 and 383.73. The
                                           DMV’s comment concerning drivers
                                                                                                   AAMVA said that the rule should                       Virginia DMV asked for clarification of
                                           who do not have existing licenses; only
                                                                                                   address the surrendering of licenses.                 ‘‘legal presence’’ as well. Referring to
                                           drivers who have an existing license are
                                                                                                   The Minnesota DPS/DV wanted a clear                   § 383.71, the Arizona DOT said that its
                                           eligible for relief under § 383.79. As for
                                                                                                   explanation of which State should                     policy was to require original
                                           Montana’s comment, today’s final rule
                                                                                                   destroy the old credentials. The Arizona              documents to verify citizenship, and
                                           applies only to a driver with an existing
                                                                                                   DOT pointed to § 384.211 and stated                   that this could not be done through the
                                           license from his/her State of domicile.
                                                                                                   that it requires the destruction of old               mail.
                                           An initial license would never be issued
                                           by the State where the individual is                    credentials before the issuance of new                   FMCSA Response: Proof of citizenship
                                           stationed.                                              credentials; that process would leave                 or lawful permanent residency will
                                              Other in-person procedures would be                  drivers not present in that State without             necessarily be included in the
                                           left to the discretion of the two SDLAs;                a license in the interim.                             application process. Ultimately, the
                                           they could determine whether it would                      ATA stated that if there was a lag time            responsibility for verifying the driver’s
                                           be possible to meet criteria for facial                 in issuing new credentials, the driver                status rests with the State of domicile,
                                           recognition, digital signatures, REAL ID                should be given an alternate document                 since it will issue the CLP or CDL, but
                                           Act requirements, and other processes                   (coordinated by the two States involved)              the State where the applicant is
                                           normally done in-person. The Agency                     for proof of licensure during that time.              stationed can verify these matters on
                                           declines to add these provisions to a                   ATA suggested allowing the State where                behalf of the State of domicile. The two
                                           final rule, as it believes that the best                the driver is stationed to issue CLPs and             States involved will have to work out
                                           practices will be implemented at the                    CDLs on behalf of the State of domicile.              the necessary administrative steps
                                           State level. If our assistance is sought,                  FMCSA Response: The application                    between themselves. It must be noted
                                           FMCSA will work with AAMVA to                           and testing procedures allowed by this                that § 383.71(a)(2)(v) and
                                           create best practices.                                  rule are available only to military                   § 383.73(a)(2)(vi) both require proof of
                                                                                                   drivers who already have a non-CDL                    citizenship or lawful permanent
                                           Procedural Differences Among States                     license from their State of domicile.                 residency. This rule does not change
                                           Issuing CLPs and CDLs (§ 383.79):                       That State is responsible for issuing the             either of these requirements, and the
                                           Verification of Military Station or                     new CLP or CDL. Although this rule                    CLP/CDL remains available only to
                                           Military Status                                         leaves the repossession of the previous               citizens and lawful permanent
                                              Issue: The proposed rule did not                     license (usually a standard automobile                residents.
                                           address how to verify the military                      license) to the discretion of the States
                                                                                                                                                         Electronic Transfer of the Skills Test
                                           station or status of applicants.                        involved, there would seem to be two
                                                                                                                                                         (§ 383.79): Mandatory Use of Systems
                                              Comments: AAMVA pointed out that                     basic alternatives. Either the State of
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                                           proof of State of station should be                     domicile would send the CDL document                     Issue: The results of the completed
                                           provided, and asked FMCSA to issue                      to the State where the driver is                      knowledge and skills test would be
                                           guidance on this topic. The New York                    stationed, which in turn would demand                 transmitted the same way the skills test
                                           DMV and the Nebraska DMV asked for                      and destroy the previous license when                 scores are transmitted today for out of
                                           clarification on how to prove the State                 it delivered the CDL to the driver; or the            state testers—electronically. Only
                                           of station.                                             State of domicile would require the                   passing results would be transmitted.


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                                           70640            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                              Comments: Several SDLAs voiced                       AAMVA-run systems, but that the cost                  three years, and will continue to be
                                           concern about variances in data between                 would be included in the existing                     vigilant in this regard.
                                           States and asked the Agency to identify                 arrangements for States to maintain and
                                                                                                                                                         Electronic Transfer of the Skills Test
                                           the system to be used for data transfer.                use these systems.
                                                                                                                                                         (§ 383.79): Other Forms
                                           The California DMV mentioned that the                      Comments: Both the Missouri DOR
                                           system used would have to protect                       and AAMVA stated that using AAMVA                        Issue: The proposal did not address
                                           personally identifiable information (PII),              systems to transfer skills tests                      the transfer of additional certifications
                                           and should have standardized data                       electronically would involve a cost.                  between States.
                                           elements. AAMVA stated that the                         AAMVA also mentioned that the CLP/                       Comments: The New York DMV asked
                                           systems developed to transmit skills test               CDL application and the electronic-                   how the processing State would collect
                                           results pursuant to the 2011 CLP/CDL                    transfer requirement would have a cost                a driver’s medical certification and self-
                                           rule would have to be modified to                       as well. The Missouri DOR stated that                 certification and submit it to the State
                                           accommodate the knowledge test results                  several SDLAs have opted not to use an                of domicile.
                                           and the application itself. The New                     electronic system; reversing that policy                 FMCSA Response: FMCSA expects
                                           York DMV echoed this point and asked                    would generate costs, including training              SDLAs to coordinate the transfer of
                                           what format would be used to transfer                   for the system. The Montana DOJ/MVD                   certifications, presumably in the same
                                           applications and test results, as the                   mentioned that the cost to upgrade the                way that they transfer the CLP/CDL
                                           current systems do not do this. The                     systems would be substantial.                         applications and test results.
                                           Virginia DMV stated that transmittal                       FMCSA Response: Today’s final rule                 D. Legal Concerns
                                           must be done electronically for security,               requires electronic transfer of test
                                           and requested the enhancement and                                                                                Issues: The Oregon DMV suggested
                                                                                                   results, but does not specify the                     that the proposal overstepped the
                                           explicit requirement for use of the                     methods of that transfer. There is no
                                           Commercial Skills Test Information                                                                            requirements of the Military CDL Act,
                                                                                                   requirement to procure and use a data                 which should be followed instead.
                                           Management System (CSTIMS) and the                      system not already in place. States are
                                           Report Out-Of-State Test Results                                                                              Oregon felt that the NPRM was
                                                                                                   currently required to transmit the                    unnecessarily complex and should more
                                           (ROOSTR) system. The Nebraska DMV                       results of skills test electronically, and
                                           also requested an explicit CSTIMS and                                                                         closely track with the statutory
                                                                                                   FMCSA assumes that the States will use                language.
                                           ROOSTR transmission requirement.                        the same method of transfer for the
                                              The Montana DOJ/MVD stated that                                                                               The New York DMV believes that the
                                                                                                   knowledge test results. Forty-seven                   proposal contradicted the recent CDL
                                           current information transmission
                                                                                                   SDLAs use the AAMVA-owned and                         rulemaking, and undermined the work
                                           systems were inadequate and that there
                                                                                                   -operated CSTIMs and/or ROOSTR                        States have done to meet its
                                           would be technical, procedural, and
                                                                                                   systems to transfer skills test results.              requirements.
                                           legal issues. It referred to several
                                                                                                   FMCSA anticipates that AAMVA will                        The Minnesota DPS/DV raised a
                                           AAMVA-run systems, and stated that
                                                                                                   update these systems to allow for                     concern that the requirement to accept
                                           digital image access would need to be
                                                                                                   transmission of knowledge test results                applications on behalf of other States
                                           added, as would a method of
                                                                                                   during a routine IT upgrade cycle, with               violated State laws. The Montana DOJ/
                                           transferring knowledge test scores. The
                                           Missouri DOR mentioned that it did not                  minimal additional cost. In the                       MVD referenced a Montana State law
                                           use REAL ID, or any of the AAMVA                        regulatory analyses section below,                    that requires ‘‘verification through the
                                           systems. ABA supports the use of data                   FMCSA estimates that drivers affected                 Federal Systematic Alien Verification
                                           systems to speed up the licensing                       by this rule will pay a processing fee to             for Entitlements program (SAVE).’’
                                           process, but has concerns about the                     their State of station that will cover the               FMCSA Response: The Military CDL
                                           systems’ infrastructure.                                costs of information transfer between                 Act of 2012 does indeed allow States to
                                              FMCSA Response: FMCSA will not                       the State of station and the State of                 issue CDLs to military personnel who
                                           require the use of any specific system                  domicile.                                             are stationed, but not domiciled, there.
                                           for transferring licensing information                  Electronic Transfer of the Skills Test                As discussed in this rule, however,
                                           between States. However, the AAMVA-                     (§ 383.79): Fraud                                     obtaining a CDL where he or she is
                                           maintained CSTIMS and ROOSTR                                                                                  stationed may void the driver’s domicile
                                           systems could be appropriate methods                      Issue: FMCSA did not discuss fraud                  in his/her ‘‘home’’ State and with it
                                           of electronic transfer. FMCSA agrees                    in the NPRM, as the proposal relied                   certain benefits, e.g., lower taxes, in-
                                           with the need to protect PII, but does                  upon existing systems that have built-in              State tuition, etc. The Agency
                                           not establish any new procedures for                    protection against fraud.                             determined in the 2011 final rule that
                                           doing so. In any case, no Federal records                 Comments: Several SDLAs thought                     the general CDL statute—the
                                           are created by this rule. The information               that the proposal did not adequately                  Commercial Motor Vehicle Safety Act of
                                           transferred by the State where the                      address concerns over fraud. Oregon                   1986, as amended—is sufficiently broad
                                           military driver is stationed to his or her              took issue with the fact that it would                to authorize a rule requiring States to
                                           State of domicile will be entered into                  have to rely upon other SDLAs to verify               accept the results of skills tests
                                           the Commercial Driver’s License                         information. The Montana DOJ/MVD                      administered outside the driver’s State
                                           Information System (CDLIS). That                        thought the NPRM downplayed the risk                  of domicile. The NPRM in this
                                           system, however, involves records                       of fraud, especially due to the                       rulemaking expanded that analysis and
                                           created and maintained by the States.                   photography and documentation                         conclusion to require States of domicile
                                           This rule does not result in a new or                   requirements, and argued that the rule                to accept the results of CDL written and
                                           revised Privacy Act System of Records                   would need fine-tuning.                               skills tests administered to military
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                                           for FMCSA.                                                FMCSA Response: FMCSA believes                      personnel by States where these
                                                                                                   that States will take appropriate steps to            personnel are stationed but not
                                           Electronic Transfer of the Skills Test                  protect against attempted fraud by                    domiciled. That approach allowed the
                                           (§ 383.79): Cost of Systems                             applicants. FMCSA takes fraudulent                    State of domicile to issue the CLP and
                                              Issue: The NPRM concluded that                       behaviors seriously, has conducted                    CDL, thus eliminating any inadvertent
                                           there would be a cost for using                         yearly audits of all States for the past              transfer of domicile that might occur if


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                                                            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations                                         70641

                                           a military driver received a CDL from                     Comments: ABA requested either                      students to be knowledge-tested outside
                                           the State where he/she was stationed.                   guidance or a list of which MOCs would                their State of domicile is well beyond
                                           However, in view of the comments                        be able to take advantage of relief from              the scope of this rulemaking. Military
                                           submitted to the docket, the Agency has                 the regulation, referring to a proposal in            drivers are a special class being
                                           decided—as described above—not to                       § 383.77(b)(3).                                       accommodated in this rule because of
                                           require the State of domicile to accept                   The Virginia DMV asked for                          the Military CDL Act of 2012, which
                                           the test results recorded by another                    clarification on how to confirm the                   was intended to ease their transition to
                                           State, but rather to allow the State of                 MOC of the applicants under § 383.79.                 civilian life.
                                           domicile to do so. With this change, the                The New York DMV also asked why                          The rulemaking did not discuss the
                                           argument that the NPRM requires the                     proof of a military CMV status would be               knowledge test requirements. FMCSA’s
                                           violation of certain State laws simply                  necessary for the provisions of § 383.79.             intent was to make the licensing process
                                           disappears. The success of this final rule              The Michigan DOS/MVD stated that if                   easier for service members. Ultimately,
                                           will depend on the willingness and                      military testing meets or exceeds CDL                 however, the SDLAs control their own
                                           ability of the State of domicile and the                requirements, a CDL should be issued                  processes. While it is possible, though
                                           State where the driver is stationed to                  without testing. The California DMV                   not likely, that a service member may be
                                           work out mutual differences in their                    understood the § 383.79 proposal to                   transferred from one duty station to
                                           forms, procedures, and other                            include a requirement that drivers                    another between the time he/she applies
                                           requirements. We are confident that                     wishing to seek a CDL in their State of               for the CLP and wants to take the skills
                                           most States will manage that task                       domicile via a State where they are                   test, the national uniformity of skills test
                                           effectively. This final rule provides                   stationed would need to be operating in               procedures should make no difference
                                           relief for a very limited population of                 a CMV-driving MOC, and asked for                      to the acceptability of the results to the
                                           military service members who want to                    clarification of which MOCs would be                  State of domicile.
                                           become commercial drivers.                              included.
                                                                                                     FMCSA Response: The § 383.77(b)(3)                  VII. Changes From the NRPM
                                           Additionally, the rule relies heavily on
                                           the standardization of licensing and                    proposal was inadvertently left in the                   Section 383.5. Definitions. A new
                                           other requirements put into place by the                executive summary for the NPRM; it                    definition of ‘‘military service member’’
                                           2011 CDL rule.                                          was not intended to be a part of this                 was added, along with a revised
                                                                                                   rulemaking, was not in the proposed                   definition of ‘‘military services,’’ where
                                           E. Other                                                regulatory language, and is not included              the phrase ‘‘auxiliary units’’ was
                                           Alternative Processes Suggested                         in today’s final rule. FMCSA will                     removed.
                                                                                                   consider this as a potential topic for a                 Section 383.77 Substitute for driving
                                              Issue: FMCSA did not suggest any                     future rulemaking.                                    skills tests for drivers with military CMV
                                           regulatory alternatives to this proposal.                 The provisions under § 383.79 pertain               experience, is adopted as proposed in
                                              Comments: The New York DMV                           to anyone in the military; they do not                the NPRM.
                                           suggested an FMCSA-Department of                        waive any of the requirements for                        Section 383.79 Skills testing of out-of-
                                           Defense (DOD) partnership using an                      obtaining a CLP or CDL. This section                  State students; Knowledge and skills
                                           AAMVA CDL test model, or allowing                       simply allows drivers to seek CDLs in                 testing of military personnel. The title of
                                           transfer of current, non-CDL licenses to                the State of station rather than the State            this section has been revised to
                                           their State of station as a non-domiciled               of domicile.                                          differentiate the two concepts addressed
                                           driver. The second alternative process                  Procedural Concerns                                   within it. The discussion of electronic
                                           suggested would allow military drivers                                                                        transmission of documents has been
                                                                                                      Comments: The ATA requested an
                                           to transfer domicile to any State after                                                                       somewhat expanded.
                                                                                                   extension of the proposal in § 383.79 to
                                           leaving the service. New York thought                                                                            Section 384.301 Substantial
                                                                                                   non-military personnel as well, and
                                           that these would provide sufficient                                                                           compliance general requirements. This
                                                                                                   requested that CDL schools outside the
                                           relief as well as not impose additional                                                                       section is adopted as proposed.
                                                                                                   State of licensure be allowed to teach
                                           burdens on the SDLAs.
                                                                                                   drivers.                                              VIII. Today’s Final Rule
                                              FMCSA Response: New York’s                              The Nebraska DMV asked several
                                           suggestions are beyond the scope of the                                                                       Section 383.77: Extension of the Skills
                                                                                                   questions about service members who
                                           NPRM. The Agency believes the relief                                                                          Test Waiver
                                                                                                   pass the knowledge test in their States
                                           provided by this final rule will be                     of station returning to their State of                   Eligible Military Personnel. The first
                                           substantial. FMCSA, AAMVA, and the                      domicile, and about passing the                       part of the rule addresses military
                                           States will work together to reach                      knowledge tests in other States.                      personnel recently separated from active
                                           agreement to implement the procedures                   AAMVA asked a similar question, about                 duty. These veterans must have been
                                           during the implementation period.                       applicants who begin the testing process              operating in a position where they
                                           Military Occupational Codes Eligible                    in one State and then are transferred to              regularly drove a military CMV.
                                                                                                   another State.                                           Current Procedures. Currently, the
                                              Issue: The executive summary in the                     FMCSA Response: FMCSA declines                     standard at § 383.77 authorizes States to
                                           NPRM included the following proposal:                   ATA’s request for a Supplemental                      allow these drivers up to 90 days
                                           ‘‘Revise 49 CFR 383.77(b)(3) to add the                 NPRM. The comments to this                            following separation from a military
                                           option to qualify for a CDL based on                    rulemaking docket identified challenges               position requiring operation of a CMV to
                                           training and experience in an MOC                       to out-of-State testing which persuaded               apply to waive the skills test. In 2015
                                           [Military Occupational Specialty]                       the Agency to adopt a more modest,                    the Agency granted relief through an
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                                           dedicated to military CMV operation.’’                  permissive approach. ATA’s request                    exemption that allowed a 1-year waiver
                                           However, this proposal was not in the                   would significantly exacerbate the                    period, without changing the regulation.
                                           regulatory language or discussed at any                 difficulties outlined by State                           Changes today. Today’s regulation
                                           level in the preamble. Additionally, the                commenters. Training schools routinely                would codify that extension, meaning
                                           MOC was incorrectly referenced in                       enroll students from other States, but                that States would be authorized to
                                           proposed § 383.79.                                      allowing large numbers of civilian                    accept applications for a skills test


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                                           70642            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                           waiver for up to 1 year rather than 90                  procedures to support the affected                      b. The service member mails his/her
                                           days.                                                   military members.                                     CLP and non-CDL license issued by
                                             Requirements for States. All States                      Example: An active duty member of                  State 2, to State 2, and State 2 sends the
                                           currently waive the skills test for this                the armed forces is stationed at State 1              new State 2-issued CDL by mail to the
                                           population of applicants; this rule                     (State of station) but domiciled in State             applicant.
                                           changes neither the eligible population                 2 (State of domicile or home State). The                Step Nine: If option a. is followed, the
                                           nor State procedures. Only the duration                 driver has a current non-CDL driver’s                 service member goes to the State 1
                                           of the allowable waiver period is                       license in the State of domicile, and                 SDLA where he or she took the skills
                                           changed.                                                wants to get a CDL while maintaining                  test, and surrenders his/her CLP and
                                           Section 383.79: CLP and CDL                             his or her current State of domicile.                 non-CDL license issued by State 2
                                                                                                      Step One: The service member                       (which State 1 then destroys), and
                                              Eligible military personnel. The                     contacts both State 1 and State 2 SDLAs               receives the State 2-issued CDL.
                                           second part of the rule addresses active                to determine if State 1 will give the
                                           duty military service members who are                   knowledge and skills tests, and if State              IX. International Impacts
                                           stationed in a State different from the                 2 will accept the results of those tests                The FMCSRs, and any exceptions to
                                           State in which they claim domicile.                     administered by State 1 and issue a                   the FMCSRs, apply only within the
                                           These members would need to verify                      CDL.                                                  United States (and, in some cases,
                                           with the State of station and the State                    If both States do not agree to the                 United States territories). Motor carriers
                                           of domicile that both States plan to                    process, then the service member cannot               and drivers are subject to the laws and
                                           participate in the licensing procedures                 use this exemption, and must either                   regulations of the countries that they
                                           allowed by this rule.                                   change his or her State of domicile, or               operate in, unless an international
                                              Current procedures. Currently, if                    return to the State of domicile for                   agreement states otherwise. Drivers and
                                           active duty service members wish to                     issuance of a CLP or CDL.                             carriers should be aware of the
                                           obtain a CLP or CDL, they must either                      Step Two: If both SDLAs agree to the
                                           (1) apply for a CLP or CDL in person in                                                                       regulatory differences amongst nations.
                                                                                                   licensing alternative allowed by this
                                           their State of domicile, or (2) transfer                rule, the service member fills out State              X. Section-by-Section
                                           their existing license, and thereby State               2’s CLP application which can be on                      Section 383.5 adds definitions of
                                           of domicile, to the State where they now                line or hard copy, whichever is State 2’s             ‘‘military service member’’ and
                                           live or are stationed.                                  preference.
                                              Changes today. Today’s final rule                                                                          ‘‘military services’’ in alphabetical
                                                                                                      If State 2 charges a fee, the service              order.
                                           enables States to allow eligible military               member pays State 2.
                                           personnel to apply and be tested for a                                                                           Section 383.77 extends the period
                                                                                                      Step Three: The service member goes                during which States may waive the
                                           CLP or CDL in the State where they are                  to State 1’s SDLA with his/her military
                                           stationed, without having to travel to or                                                                     skills test of certain former military
                                                                                                   ID and proof of being stationed in State              drivers from 90 days to 1 year in
                                           change their State of domicile.                         1 and shows either his/her paper
                                              Requirements for States. Today’s final                                                                     § 383.77(b)(1).
                                                                                                   application from State 2 or proof of
                                           rule is permissive. SDLAs are permitted                                                                          Section 383.79 is slightly revised. The
                                                                                                   filling out State 2’s application
                                           (but not required) to accept CLP/CDL                                                                          title of this section is changed to reflect
                                                                                                   electronically.
                                           applications from eligible military                                                                           the expanded content: ‘‘Skills testing of
                                                                                                      If State 1 charges a fee, the service
                                           personnel stationed there. However, the                                                                       out-of-State students; Knowledge and
                                                                                                   member pays State 1.
                                           information, forms, and procedures                         If the service member seeks a CDL,                 skills testing of military personnel.’’
                                           used by the State where the driver is                   State 1 validates his/her identity at the                Section 383.79(a)(1) and (2) contain
                                           stationed would have to be acceptable to                counter, as well as proof of citizenship              the material previously designated as
                                           the State of domicile. If either State in               or lawful permanent residency; valid                  § 383.79(a) and (b), concerning CDL
                                           this pair decided not to cooperate with                 CDL medical certification; and expected               applicants trained out-of-State.
                                           the other State, the licensing alternative              interstate or intrastate operation.                      New § 383.79(b), Military service
                                           allowed by this rule would not be                          Step Four: For a CLP, State 1 gives the            member applicants for a CLP or CDL,
                                           possible with respect to those two                      knowledge test, and transmits passing                 includes the licensing options described
                                           States.                                                 results to State 2 electronically.                    above. Paragraph (b)(1), State of duty
                                              Description of the procedure for                        Step Five (a): State 2 sends a CLP                 station, along with its three
                                           exchanging a CLP or CDL. As noted                       document to State 1; or Step Five (b):                subparagraphs, authorize (but do not
                                           elsewhere in this rule, FMCSA is                        State 2 sends a CLP document directly                 require) States where active-duty
                                           allowing flexibility for individual States              to the service member.                                military personnel are stationed, but not
                                           to reach agreements on the most                            Step Six: If following Step Five (a),              domiciled, to accept and process CLP
                                           efficient means of allowing a military                  the service member goes to State 1’s                  and CDL applications from such
                                           member stationed outside his or her                     SDLA where he or she took the                         personnel, to administer the required
                                           domicile State to obtain a CDL without                  knowledge test and receives the CLP                   tests for these licenses, and to destroy
                                           physically returning to that State.                     document.                                             existing licenses. Paragraph (b)(2),
                                           FMCSA recognizes that States might                         Step Seven: The service member                     Electronic transmission of the
                                           have unique CDL licensing                               trains and practices driving, and                     application and test results, details the
                                           requirements or processes and is                        presents himself/herself to State 1 to                process for the State where these
                                           therefore not establishing a single                     take the skills test, where his/her                   military personnel are stationed to
                                           process that all States must follow. One                identity and citizenship are again                    transmit the necessary forms and test
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                                           possible scenario for how this could                    verified by the State 1 SDLA. If the                  results to the applicant’s State of
                                           work is presented below, but other                      driver passes the skills test, the result is          domicile. Paragraph (b)(3), State of
                                           alternatives may also work. FMCSA                       transmitted to State 2 electronically.                domicile, along with its two
                                           encourages the States to find the most                     Step Eight: Either                                 subparagraphs, explains that the State of
                                           efficient process that minimizes                           a. State 2 SDLA sends a CDL to State               domicile may (but is not required to)
                                           variations in their individual licensing                1’s SDLA. or                                          accept such forms and test results; if it


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                                                            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations                                              70643

                                           does so, it will issue the appropriate                  will be beneficial to both service                    $50 per driver, and conservatively
                                           CLP or CDL.                                             members and prospective employers by                  estimates a fee of $50 for the purposes
                                             Section 384.301 is amended by                         creating more employment                              of this analysis. Both States utilizing the
                                           adding new paragraph (j) to require                     opportunities.                                        alternative licensing procedures allowed
                                           substantial compliance by States three                                                                        by this rule might charge fees, but some
                                                                                                   Section 383.79(b)
                                           years from the effective date of the final                                                                    currently waive their normal fees for
                                           rule.                                                      This rule will allow States to accept              veterans or active-duty military
                                                                                                   CLP and CDL applications from certain                 personnel and may continue to do so.
                                           XI. Regulatory Analyses                                 military drivers stationed in that State;             Because FMCSA cannot predict the
                                           A. Executive Order (E.O.) 12866                         to test their knowledge and skills; and               number of military drivers who would
                                           (Regulatory Planning and Review), E.O.                  to submit the results of both tests to the            have their additional processing fee
                                           13563 (Improving Regulation and                         drivers’ State of domicile for issuance of            waived by the State of Station, we have
                                           Regulatory Review), and DOT                             the CLP and CDL. This information can                 based our calculations on each military
                                           Regulatory Policies and Procedures                      be transmitted using the same electronic              driver paying an extra fee.
                                                                                                   system that was previously established                   To estimate how many drivers might
                                              FMCSA determined that this final                     for the skills test. The rule will not
                                           rule is not a significant regulatory action                                                                   take advantage of this provision,
                                                                                                   require States to use either the CSTIMS               FMCSA started with the number of
                                           under section 3(f) of E.O. 12866 or                     or ROOSTR. Both of these systems are
                                           significant within the meaning of                                                                             drivers who have used the military
                                                                                                   currently managed by AAMVA, and                       skills test waiver. Between May 2011
                                           Department of Transportation regulatory                 States that are already using them
                                           policies and procedures (DOT Order                                                                            and February 2015, more than 10,100
                                                                                                   would incur minimal costs to use them                 skills test waivers were granted for
                                           2100.5 dated May 22, 1980; 44 FR                        to transmit CLP/CDL test results. While
                                           11034, February 26, 1979) and does not                                                                        military drivers, or an average of
                                                                                                   some software modifications and                       approximately 2,460 per year.3 For
                                           require an assessment of potential costs                updates may be required to allow
                                           and benefits under section 6(a)(3) of that                                                                    purposes of this analysis, FMCSA
                                                                                                   transmission of the knowledge test                    assumed that number would remain
                                           Order. However, FMCSA did evaluate                      results (as only skills test results are
                                           the costs and benefits of this                                                                                constant in future years. To estimate the
                                                                                                   presently transmitted via these systems),             number of drivers who may be stationed
                                           rulemaking. This rulemaking will not                    FMCSA anticipates that AAMVA will
                                           result in an annual effect on the                                                                             in a State other than their State of
                                                                                                   update CSTIMS and ROOSTR to allow
                                           economy of $100 million or more, lead                                                                         domicile and who, thus, could
                                                                                                   for transmission of knowledge test
                                           to a major increase in costs or prices, or                                                                    potentially take advantage of this
                                                                                                   results during a routine IT upgrade
                                           have significant adverse effects on the                                                                       provision, FMCSA used an estimate of
                                                                                                   cycle, with minimal additional cost.
                                           United States economy. This rule                                                                              the number of drivers who attend
                                                                                                   However, the final rule does not require
                                           amends existing procedures and                                                                                training outside their State of domicile
                                                                                                   use of either of these systems. States
                                           practices governing administrative                                                                            from the Regulatory Evaluation
                                                                                                   may incur costs for working out the
                                           licensing actions.                                                                                            conducted for the 2011 ‘‘Commercial
                                                                                                   details of application transmission
                                                                                                                                                         Driver’s License Testing and
                                           Costs and Benefits                                      between States. FMCSA expects that
                                                                                                                                                         Commercial Learner’s Permit
                                                                                                   States will take advantage of the
                                             FMCSA evaluated potential costs and                   flexibilities allowed in the final rule,              Standards’’ final rule.4 According to this
                                           benefits associated with this rulemaking                and participate when it is cost effective             evaluation, approximately 25 percent of
                                           and estimates that these changes could                  to do so. Additionally, the State of                  drivers obtained training outside their
                                           result in net benefits between $3.2                     station can charge a processing fee to                State of domicile. It is likely that more
                                           million and $7.7 million over 10 years,                 recoup the cost of providing this                     than 25 percent of military personnel
                                           discounted at 7%. The following                         service.                                              are stationed outside their State of
                                           sections provide an overview of this                       FMCSA expects that this rule will                  domicile. However, for purposes of this
                                           analysis.                                               ultimately result in a cost savings for               analysis FMCSA used the 25 percent
                                                                                                   drivers, but some of the cost savings                 estimate to calculate the population of
                                           Section 383.77                                                                                                drivers who may apply for a CLP/CDL
                                                                                                   will be offset by the additional
                                             The final rule will extend the time                   processing fee. Based on comments                     outside their State of domicile. Based on
                                           States are allowed to accept applications               received on the NPRM, FMCSA                           these assumptions, this provision affects
                                           for a skills test waiver from certain                   anticipates that drivers will continue to             approximately 660 drivers each year.
                                           former service members from 90 days to                  pay the CDL licensing and application                    FMCSA estimated the processing fee
                                           1 year. This action codifies an existing                fee to their State of domicile, and will              by multiplying the 660 drivers by the
                                           exemption published on July 8, 2014 (79                 pay an additional processing fee to the               per-driver processing fee of $50. The 10-
                                           FR 38645). That notice granted                          State of station. FMCSA estimates that                year costs for the additional processing
                                           immediate relief from 49 CFR                            the processing fee will be similar to the             fee total $330,000 undiscounted,
                                           383.77(b)(1) to certain military service                State CDL application fee. Many States                $290,000 discounted at 3%, and
                                           members separating from active duty.                    do not publish their application fee                  $248,000 discounted at 7%.
                                           The exemption did not change the CFR                    separately, but bundle it with the                       This rule will also result in cost
                                           language and is effective for only 2                    license fees. The average CDL                         savings, or benefits, for drivers in the
                                           years, although it could be extended.                   application and license fee for all 50
                                                                                                                                                           3 Estimated based on information from an
                                             As the final rule will codify an                      States and the District of Columbia is
                                                                                                                                                         assessment of SDLAs, conducted by FMCSA in
                                           existing practice, FMCSA does not                       $50. However, the CDL term for States                 February 2015.
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                                           expect this revision to have any                        ranges from 4 to 8 years. On an annual                  4 Final Rule Regulatory Evaluation. Commercial

                                           significant economic impact. However,                   basis, the cost of the average CDL                    Driver’s License Testing and Commercial Learner’s
                                           the Agency believes that permanently                    application for all 50 States and the                 Permit Standards. 76 FR 26853. May 9, 2011.
                                                                                                                                                         Docket No. FMCSA–2007–27659. https://
                                           granting military personnel with CMV                    District of Columbia is $10. Therefore,               www.federalregister.gov/articles/2011/05/09/2011-
                                           driving experience more time to apply                   FMCSA estimates that the one-time                     10510/commercial-drivers-license-testing-and-
                                           for a CDL after separation from service                 processing fee will range from $10 to                 commercial-learners-permit-standards.



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                                           70644                Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                           form of reduced travel costs. The rule                              domiciled or stationed. To estimate the                 price by the annual affected driver
                                           will allow States where active-duty                                 potential costs savings, FMCSA used the                 population to calculate the lower-bound
                                           military personnel are stationed to                                 scenario of a driver who is stationed in                estimate, and multiplied the mileage
                                           accept CLP or CDL applications and                                  Virginia but domiciled in Texas. To                     cost by the annual affected driver
                                           administer knowledge and skills tests                               present an upper and lower bound                        population to calculate the upper-bound
                                           for those personnel. The rule will allow                            estimate of the potential cost savings,                 estimate. Based on the estimated
                                           any such State to transmit copies of the                            FMCSA evaluated two scenarios in                        participation rates, the total savings
                                           application and test results for military                           which the driver travels between                        would be between $4.6 million and
                                           personnel to the driver’s State of                                  Norfolk, Virginia, and Houston, Texas.                  $10.6 million undiscounted, $4.1
                                           domicile, which in turn may—but is not                              In the first scenario, the driver takes a
                                                                                                                                                                       million and $9.3 million discounted at
                                           required to—issue a CLP or CDL on the                               commercial flight. FMCSA estimates
                                                                                                                                                                       3%, $3.5 million and $8.0 million
                                           basis of that information. Absent this                              that a typical roundtrip flight between
                                           rule, drivers would be required to travel                           Norfolk and Houston costs                               discounted at 7%. In addition, the
                                           to the State of domicile in order to apply                          approximately $700.5 In the second                      driver might incur lodging costs and
                                           for a CLP or CDL. For example, if the                               scenario, the driver drives a private                   other expenses depending on the
                                           driver is stationed in Virginia but his/                            vehicle between these locations. The                    location of the testing; however, these
                                           her State of domicile is Texas (and both                            current private vehicle mileage rate                    potential cost savings were not included
                                           States use the licensing alternative                                from the General Services                               in this analysis.
                                           allowed by this rule), Texas will be able                           Administration (GSA) is $0.575 per                        FMCSA calculated the net benefits of
                                           to issue the driver a CLP and CDL based                             mile 6 and the distance between Norfolk                 this rule by subtracting the processing
                                           on an application and successful testing                            and Houston is approximately 2,800                      fee cost from the travel cost savings. As
                                           conducted in Virginia. The driver would                             miles, roundtrip. FMCSA estimates that                  shown in Table 1, the per driver benefits
                                           be spared the travel costs of returning to                          it would cost the driver approximately                  range from $650 to $1,560. The total 10-
                                           Texas in order to file an application for                           $1,610 to drive between Virginia and                    year net benefits range from $3.2 million
                                           a CLP or CDL.                                                       Texas for CDL testing.                                  to $7.7 million, discounted at 7%.
                                              FMCSA does not have information on                                  To estimate the potential cost savings,
                                           the States where these drivers are                                  FMCSA multiplied the round trip flight

                                                                     TABLE 1—ESTIMATED ANNUAL AND 10-YEAR NET BENEFITS FOR OUT OF STATE DRIVERS
                                                                                                                                                                                           10-year        10-year
                                                                                                                                                                        Total net
                                                                                                                                 Drivers per        Net benefits                             total          total
                                                                             Scenario                                                                                   benefits
                                                                                                                                    year             per driver                          (3% discount   (7% discount
                                                                                                                                                                        per year            rate)          rate)

                                           Lower-Bound (flight) .............................................................                660             $650         $429,000         $3,769,241     $3,224,035
                                           Upper-Bound (car travel) .....................................................                    660             1,560        1,029,600         9,046,178      7,737,683



                                              In addition to the cost savings                                  ‘‘small entities’’ comprises small                      certify that this action will not have a
                                           described above, there may be other                                 businesses and not-for-profit                           significant economic impact on a
                                           non-quantified benefits associated with                             organizations that are independently                    substantial number of small entities.
                                           these provisions. For example, this                                 owned and operated and are not
                                                                                                                                                                       C. Assistance for Small Entities
                                           proposal also allows military personnel                             dominant in their fields, and
                                           to enter the job market more quickly                                governmental jurisdictions with                            In accordance with section 213(a) of
                                           after separation from service. This                                 populations of less than 50,000.                        the Small Business Regulatory
                                           rulemaking may also increase the                                    Accordingly, DOT policy requires an                     Enforcement Fairness Act of 1996,
                                           availability of drivers qualified to work                           analysis of the impact of all regulations               FMCSA wants to assist small entities in
                                           for motor carriers, since military                                  on small entities, and mandates that                    understanding this final rule so that
                                           personnel would be able to complete                                 agencies strive to lessen any adverse                   they can better evaluate its effects on
                                           their testing and licensing during their                            effects on these businesses.                            themselves and participate in the
                                           separation process. Finally, reducing                                  Under the standards of the RFA, as                   rulemaking initiative. If the final rule
                                           unemployment for former military                                    amended by the Small Business                           will affect your small business,
                                           personnel may also reduce the amount                                Regulatory Enforcement Fairness Act of                  organization, or governmental
                                           of unemployment compensation paid by                                1996 (Pub. L. 104–121, 110 Stat. 857)                   jurisdiction and you have questions
                                           the Department of Defense to former                                 (SBREFA), this rule will not impose a                   concerning its provisions or options for
                                           service members.                                                    significant economic impact on a                        compliance; please consult the FMCSA
                                                                                                               substantial number of small entities                    point of contact, Selden Fritschner,
                                           B. Regulatory Flexibility Act
                                                                                                               because the revisions would either                      listed in the FOR FURTHER INFORMATION
                                             The Regulatory Flexibility Act of 1980                            codify an existing practice or allow                    CONTACT section of this final rule.
                                           (5 U.S.C. 601–612) requires Federal                                 States to provide more flexibility for                     Small businesses may send comments
                                           agencies to consider the effects of the                             military personnel seeking to obtain a                  on the actions of Federal employees
                                           regulatory action on small business and                             CDL. FMCSA does not expect the                          who enforce or otherwise determine
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                                           other small entities and to minimize any                            changes to impose any new or increased                  compliance with Federal regulations to
                                           significant economic impact. The term                               costs on small entities. Consequently, I                the Small Business Administration’s
                                             5 The flight price $700 was estimated using the                     6 U.S. General Services Administration. Privately

                                           General Service Administration Airline City Pairs                   Owned Vehicle (POV) Mileage Reimbursement
                                           Search Tool for flights between Norfolk, Virginia                   Rates, as of January 1, 2015. http://www.gsa.gov/
                                           and Houston, Texas. http://cpsearch.fas.gsa.gov/.                   portal/content/100715.



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                                                            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations                                         70645

                                           Small Business and Agriculture                          1997), requires agencies issuing                      L. E.O. 13211 (Energy Supply,
                                           Regulatory Enforcement Ombudsman                        ‘‘economically significant’’ rules, if the            Distribution, or Use)
                                           and the Regional Small Business                         regulation also concerns an                              FMCSA has analyzed this final rule
                                           Regulatory Fairness Boards. The                         environmental health or safety risk that              under E.O. 13211, Actions Concerning
                                           Ombudsman evaluates these actions                       an agency has reason to believe may                   Regulations That Significantly Affect
                                           annually and rates each agency’s                        disproportionately affect children, to                Energy Supply, Distribution, or Use.
                                           responsiveness to small business. If you                include an evaluation of the regulation’s             The Agency has determined that it is
                                           wish to comment on actions by                           environmental health and safety effects               not a ‘‘significant energy action’’ under
                                           employees of FMCSA, call 1–888–REG–                     on children. The Agency determined                    that order because it is not a ‘‘significant
                                           FAIR (1–888–734–3247). DOT has a                        this final rule is not economically                   regulatory action’’ likely to have a
                                           policy regarding the rights of small                    significant. Therefore, no analysis of the            significant adverse effect on the supply,
                                           entities to regulatory enforcement                      impacts on children is required. In any               distribution, or use of energy. The
                                           fairness and an explicit policy against                 event, the Agency does not anticipate                 Administrator of the Office of
                                           retaliation for exercising these rights.                                                                      Information and Regulatory Affairs has
                                                                                                   that this regulatory action could present
                                           D. Unfunded Mandates Reform Act of                      an environmental or safety risk that                  not designated it a significant energy
                                           1995                                                    could disproportionately affect children.             action. Therefore, it does not require a
                                                                                                                                                         Statement of Energy Effects under
                                             The Unfunded Mandates Reform Act                      I. E.O. 12630 (Taking of Private                      Executive Order 13211.
                                           of 1995 (2 U.S.C. 1531–1538) requires                   Property)
                                           Federal agencies to assess the effects of                                                                     M. E.O. 13175 (Indian Tribal
                                           their discretionary regulatory actions. In                 FMCSA reviewed this final rule in                  Governments)
                                           particular, the Act addresses actions                   accordance with E.O. 12630,                             This rule does not have tribal
                                           that may result in the expenditure by a                 Governmental Actions and Interference                 implications under E.O. 13175,
                                           State, local, or tribal government, taken               with Constitutionally Protected Property              Consultation and Coordination with
                                           together, or by the private sector of $155              Rights, and has determined it will not                Indian Tribal Governments, because it
                                           million (which is the value of $100                     effect a taking of private property or                does not have a substantial direct effect
                                           million in 1995 after adjusting for                     otherwise have taking implications.                   on one or more Indian tribes, on the
                                           inflation to 2014 levels) or more in any                                                                      relationship between the Federal
                                           1 year. Though this final rule will not                 J. Privacy                                            Government and Indian tribes, or on the
                                           result in such an expenditure, the                                                                            distribution of power and
                                                                                                      Section 522 of title I of division H of
                                           Agency does discuss the effects of this                                                                       responsibilities between the Federal
                                                                                                   the Consolidated Appropriations Act,
                                           rule elsewhere in this preamble.                                                                              Government and Indian tribes.
                                                                                                   2005, enacted December 8, 2004 (Pub. L.
                                           E. Paperwork Reduction Act                              108–447, 118 Stat. 2809, 3268, 5 U.S.C.               N. National Technology Transfer and
                                             This final rule calls for no new                      552a note), requires the Agency to                    Advancement Act (Technical
                                           collection of information under the                     conduct a privacy impact assessment                   Standards)
                                           Paperwork Reduction Act of 1995 (44                     (PIA) of a regulation that will affect the              The National Technology Transfer
                                           U.S.C. 3501–3520).                                      privacy of individuals. This rule does                and Advancement Act (NTTAA) (15
                                                                                                   not require the collection of PII.                    U.S.C. 272 note) directs agencies to use
                                           F. E.O. 13132 (Federalism)                                                                                    voluntary consensus standards in their
                                                                                                      The Privacy Act (5 U.S.C. 552a)
                                             A rule has implications for                           applies only to Federal agencies and any              regulatory activities unless the agency
                                           Federalism under Section 1(a) of E.O.                   non-Federal agency which receives                     provides Congress, through OMB, with
                                           13132 if it has ‘‘substantial direct effects                                                                  an explanation of why using these
                                                                                                   records contained in a system of records
                                           on the States, on the relationship                                                                            standards would be inconsistent with
                                                                                                   from a Federal agency for use in a
                                           between the national government and                                                                           applicable law or otherwise impractical.
                                                                                                   matching program. All records
                                           the States, or on the distribution of                                                                         Voluntary consensus standards (e.g.,
                                                                                                   associated with this rulemaking are
                                           power and responsibilities among the                                                                          specifications of materials, performance,
                                           various levels of government.’’ FMCSA                   State, not Federal, records.                          design, or operation; test methods;
                                           has determined that this rule will not                     The E-Government Act of 2002,                      sampling procedures; and related
                                           have substantial direct costs on or for                 Public Law 107–347, 208, 116 Stat.                    management systems practices) are
                                           States, nor will it limit the policymaking              2899, 2921 (Dec. 17, 2002), requires                  standards that are developed or adopted
                                           discretion of States. Nothing in this                   Federal agencies to conduct a PIA for                 by voluntary consensus standards
                                           document preempts any State law or                      new or substantially changed                          bodies. This rule does not use technical
                                           regulation. Therefore, this rule does not               technology that collects, maintains, or               standards. Therefore, FMCSA did not
                                           have sufficient federalism implications                 disseminates information in an                        consider the use of voluntary consensus
                                           to warrant the preparation of a                         identifiable form. No new or                          standards.
                                           Federalism Impact Statement.                            substantially changed technology would                O. Environment (NEPA, CAA, E.O.
                                           G. E.O. 12988 (Civil Justice Reform)                    collect, maintain, or disseminate                     12898 Environmental Justice)
                                                                                                   information as a result of this rule. As
                                             This final rule meets applicable                                                                              FMCSA analyzed this rule for the
                                                                                                   a result, FMCSA has not conducted a
                                           standards in sections 3(a) and 3(b)(2) of                                                                     purpose of the National Environmental
                                                                                                   privacy impact assessment.                            Policy Act of 1969 (42 U.S.C. 4321 et
                                           E.O. 12988, Civil Justice Reform, to
                                           minimize litigation, eliminate                          K. E.O. 12372 (Intergovernmental                      seq.) and determined this action is
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                                           ambiguity, and reduce burden.                           Review)                                               categorically excluded from further
                                                                                                                                                         analysis and documentation in an
                                           H. E.O. 13045 (Protection of Children)                    The regulations implementing E.O.                   environmental assessment or
                                              E.O. 13045, Protection of Children                   12372 regarding intergovernmental                     environmental impact statement under
                                           from Environmental Health Risks and                     consultation on Federal programs and                  FMCSA Order 5610.1 (69 FR 9680,
                                           Safety Risks (62 FR 19885, April 23,                    activities do not apply to this rule.                 March 1, 2004), Appendix 2, paragraph


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                                           70646            Federal Register / Vol. 81, No. 198 / Thursday, October 13, 2016 / Rules and Regulations

                                           6.s.(6). The Categorical Exclusion (CE)                 L. 114–94, 129 Stat. 1312, 1593; and 49 CFR             (B) A valid active duty military
                                           in paragraph 6.s.(6) covers a                           1.87.                                                 identification card, and
                                           requirement for States to give                          ■ 2. Amend § 383.5 by adding                            (C) A current copy of either the
                                           knowledge and skills tests to all                       definitions of ‘‘military service                     service member’s military leave and
                                           qualified applicants for commercial                     member’’ and ‘‘military services’’ in                 earnings statement or his or her orders;
                                           drivers’ licenses which meet the Federal                alphabetical order to read as follows:                  (ii) Administer the knowledge and
                                           standard. The content in this rule is                                                                         skills tests to the military service
                                                                                                   § 383.5    Definitions.                               member, as appropriate, in accordance
                                           covered by this CE and the final action
                                           does not have any effect on the quality                 *     *    *     *     *                              with subparts F, G, and H of this part,
                                           of the environment. The CE                                Military service member means a                     or waive the skills test in accordance
                                           determination is available for inspection               member of the United States Army,                     with § 383.77; and
                                           or copying in the Regulations.gov Web                   Navy, Marine Corps, Air Force, and                      (iii) Destroy a driver’s license on
                                           site listed under I. Rulemaking                         Coast Guard, and their associated                     behalf of the State of domicile, unless
                                           Documents.                                              reserve, and National Guard units.                    the latter requires the license to be
                                                                                                     Military services means the United                  surrendered to its own driver licensing
                                              FMCSA also analyzed this rule under
                                                                                                   States Army, Navy, Marine Corps, Air                  agency.
                                           the Clean Air Act, as amended (CAA),
                                                                                                   Force, and Coast Guard, and their                       (2) Electronic transmission of the
                                           section 176(c) (42 U.S.C. 7401 et seq.),
                                                                                                   associated reserve and National Guard                 application and test results. The State of
                                           and implementing regulations
                                                                                                   units.                                                duty station must transmit the
                                           promulgated by the Environmental
                                                                                                   *     *    *     *     *                              completed application, the results of
                                           Protection Agency. Approval of this                                                                           knowledge and skills tests, and any
                                           action is exempt from the CAA’s general                 ■ 3. Amend § 383.77 by revising
                                                                                                                                                         supporting documents, by a direct,
                                           conformity requirement since it does                    paragraph (b)(1) to read as follows:
                                                                                                                                                         secure, and efficient electronic system.
                                           not affect direct or indirect emissions of                                                                      (3) State of domicile. Upon
                                                                                                   § 383.77 Substitute for driving skills tests
                                           criteria pollutants.                                    for drivers with military CMV experience.             completion of the applicant’s
                                              Under E.O. 12898, each Federal                                                                             application and testing requirements
                                                                                                   *     *     *     *    *
                                           agency must identify and address, as                                                                          under § 383.71, and the State’s test
                                                                                                     (b) * * *
                                           appropriate, ‘‘disproportionately high                    (1) Is regularly employed or was                    administration requirements under
                                           and adverse human health or                             regularly employed within the last year               § 383.73, the State of domicile of the
                                           environmental effects of its programs,                  in a military position requiring                      military service member applying for a
                                           policies, and activities on minority                    operation of a CMV;                                   CLP or CDL may
                                           populations and low-income                                                                                      (i) Accept the completed application;
                                           populations’’ in the United States, its                 *     *     *     *    *
                                                                                                                                                         the results of knowledge and skills tests
                                           possessions, and territories. FMCSA                     ■ 4. Revise § 383.79 to read as follows:
                                                                                                                                                         administered to the applicant by the
                                           evaluated the environmental justice                     § 383.79 Skills testing of out-of-State               State where he or she is currently
                                           effects of this final rule in accordance                students; Knowledge and skills testing of             stationed, or the notice of the waiver of
                                           with the E.O., and has determined that                  military personnel.                                   the skills test, as authorized by
                                           it has no environmental justice                            (a) CDL applicants trained out-of-                 paragraph (b)(1)(ii) of this section; and
                                           implications, nor is there any collective               State—(1) State that administers the                  any supporting documents; and
                                           environmental impact that will result                   skills test. A State may administer its                 (ii) Issue the applicant a CLP or CDL.
                                           from its promulgation.                                  skills test, in accordance with subparts
                                                                                                                                                         PART 384—STATE COMPLIANCE
                                           List of Subjects                                        F, G, and H of this part, to a person who
                                                                                                                                                         WITH COMMERCIAL DRIVER’S
                                                                                                   has taken training in that State and is to
                                           49 CFR Part 383                                                                                               LICENSE PROGRAM
                                                                                                   be licensed in another United States
                                             Administrative practice and                           jurisdiction (i.e., his or her State of               ■ 5. The authority citation for part 384
                                           procedure, Alcohol abuse, Drug abuse,                   domicile). Such test results must be                  continues to read as follows:
                                           Highway safety, Motor carriers.                         transmitted electronically directly from
                                                                                                                                                           Authority: 49 U.S.C. 31136, 31301 et seq.,
                                                                                                   the testing State to the licensing State in           and 31502; secs. 103 and 215 of Pub. L. 106–
                                           49 CFR Part 384                                         an efficient and secure manner.                       59, 113 Stat. 1753, 1767; and 49 CFR 1.87.
                                             Administrative practice and                              (2) The State of domicile. The State of
                                           procedure, Alcohol abuse, Drug abuse,                   domicile of a CDL applicant must accept               ■ 6. Add paragraph (j) to § 384.301 to
                                           Highway safety, Motor carriers.                         the results of a skills test administered             read as follows:
                                                                                                   to the applicant by any other State, in               § 384.301 Substantial compliance general
                                             In consideration of the foregoing,
                                                                                                   accordance with subparts F, G, and H of               requirements.
                                           FMCSA amends 49 CFR chapter III,
                                                                                                   this part, in fulfillment of the                      *     *     *     *     *
                                           parts 383 and 384 to read as follows:
                                                                                                   applicant’s testing requirements under                  (j) A State must come into substantial
                                           PART 383—COMMERCIAL DRIVER’S                            § 383.71, and the State’s test                        compliance with the requirements of
                                           LICENSE STANDARDS;                                      administration requirements under                     subpart B of this part and part 383 of
                                           REQUIREMENTS AND PENALTIES                              § 383.73.                                             this chapter in effect as of December 12,
                                                                                                      (b) Military service member                        2016 as soon as practicable, but, unless
                                           ■ 1. The authority citation for part 383                applicants for a CLP or CDL—(1) State                 otherwise specifically provided in this
                                           continues to read as follows:                           of duty station. A State where active                 part, not later than December 12, 2019.
                                                                                                   duty military service members are
Lhorne on DSK30JT082PROD with RULES




                                             Authority: Authority: 49 U.S.C. 521, 31136,                                                                   Issued under authority delegated in 49 CFR
                                           31301 et seq., and 31502; secs. 214 and 215
                                                                                                   stationed, but not domiciled, may:
                                                                                                      (i) Accept an application for a CLP or             1.87 on: October 4, 2016.
                                           of Pub. L. 106–159, 113 Stat. 1748, 1766,                                                                     T.F. Scott Darling, III,
                                           1767; sec. 1012(b) of Pub. L. 107–56, 115               CDL from such a military service
                                           Stat. 272, 297, sec. 4140 of Pub. L. 109–59,            member who has                                        Administrator.
                                           119 Stat. 1144, 1746; sec. 32934 of Pub. L.                (A) A valid driver’s license from his              [FR Doc. 2016–24749 Filed 10–12–16; 8:45 am]
                                           112–141, 126 Stat. 405, 830; sec. 7208 of Pub.          or her State of domicile,                             BILLING CODE 4910–EX–P




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Document Created: 2016-10-13 00:53:16
Document Modified: 2016-10-13 00:53:16
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective December 12, 2016.
ContactMr. Selden Fritschner, CDL Division, Federal Motor Carrier Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 20590-0001, by email at [email protected], or by telephone at 202-366-0677. If you have questions on viewing or submitting material to the docket, contact Docket Services, telephone (202) 366-9826.
FR Citation81 FR 70634 
RIN Number2126-AB68
CFR Citation49 CFR 383
49 CFR 384
CFR AssociatedAdministrative Practice and Procedure; Alcohol Abuse; Drug Abuse; Highway Safety and Motor Carriers

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