Non-Domiciled CDL: New House Bill Calls for More Audits

New Bill Would Expand Non-Domiciled CDL Audits Nationwide

A new bill introduced in Congress would require federal audits of non-domiciled CDL issuance procedures in every state.

Rep. Harriet Hageman of Wyoming introduced H.R. 10123 on Aug. 20. The bill is called the Strengthening Transportation Oversight and Preventing Improper Licensing Act, or the STOP Improper Licensing Act.

The proposal would direct the FMCSA to examine how states issue non-domiciled commercial driver’s licenses. It would also establish follow-up audits and possible funding consequences for states found out of compliance.

The legislation has been referred to the House Committee on Transportation and Infrastructure. It remains a proposal and has not become law.

Bill Would Require Non-Domiciled CDL Audits in Every State

Under H.R. 10123, FMCSA would be required to audit the non-domiciled CDL issuance procedures of every state.

The agency would have up to three years after the legislation becomes law to complete the audits.

FMCSA would use a randomly selected sample of non-domiciled CDLs issued by each state. The goal would be to determine whether states followed federal laws and regulations when issuing those licenses.

The bill specifically directs FMCSA to focus on licenses that may have been improperly issued in two situations.

The first involves individuals who retained an active CDL after their lawful presence in the United States expired.

The second involves licenses issued without first verifying the individual’s lawful presence in the country.

These requirements would put state licensing procedures under nationwide federal review rather than limiting the audits to individual states selected by FMCSA.

FMCSA Would Publish Audit Findings

The proposal also establishes a process for releasing the results.

Within 30 days after completing all required audits, FMCSA would send its findings and conclusions to each state.

States would then receive 30 days to comment on those findings.

Within 90 days after all required audits are completed, FMCSA would have to publish the findings and conclusions on its website. The agency would also submit a report to Congress.

The process would provide a national look at how states are handling non-domiciled commercial driver’s licenses and whether federal requirements are being followed.

States Could Face Corrective Measures

Finding problems during an audit would trigger another part of the proposed process.

Within 30 days after publishing the audits, FMCSA would issue preliminary determinations for states it finds substantially out of compliance with relevant federal laws and regulations.

The agency would also provide those states with corrective measures.

A state would then have 60 days to respond. It could confirm that the required changes were implemented or submit a corrective action plan if additional time was needed.

The bill defines substantial noncompliance based on several factors. FMCSA would consider the number and type of requirements violated, whether violations were part of a larger pattern and whether a state attempted to correct known problems.

The agency would also consider whether a violation was knowing and willful.

Error Rates Would Determine Additional Audits

H.R. 10123 establishes specific thresholds for additional scrutiny.

If more than 10% but less than 25% of a state’s audited non-domiciled CDL sample contains issuance errors, FMCSA would be required to conduct another audit within two years.

States with an error rate above 25% would face more frequent oversight.

FMCSA would have to conduct annual follow-up audits of those states for three years.

The thresholds would be based on the randomly selected sample reviewed during the initial audit rather than every non-domiciled CDL issued by the state.

FMCSA Funding Could Be Withheld

One of the most significant parts of the bill involves federal funding.

If a state receives corrective measures but fails to respond within the required 60 days, FMCSA would notify the state that a final determination of substantial noncompliance would be issued within 10 days unless the state responds.

If there is still no response, FMCSA would formally issue that determination and provide instructions for returning to compliance.

At that point, the bill would require FMCSA to withhold all FMCSA funding from the state until it comes back into compliance.

FMCSA would also have to notify Congress when it makes a final determination of substantial noncompliance and when the affected state returns to compliance.

The legislation does not prevent FMCSA from conducting other audits outside those specifically required by the bill.

What the Proposal Could Mean for CDL Holders

For truck drivers, H.R. 10123 would primarily change federal oversight of the state agencies responsible for issuing non-domiciled CDLs.

The bill does not create a nationwide cancellation of existing non-domiciled CDLs. Instead, it would require FMCSA to examine state issuance procedures and identify licenses that may not comply with federal requirements.

The audits would specifically examine whether lawful presence was properly verified and whether licenses remained active after a driver’s lawful presence expired.

As a result, some existing CDL records could receive additional scrutiny if they are selected as part of an audit.

However, the bill is still at an early stage of the legislative process. Its requirements would only take effect if Congress passes the legislation and it is signed into law.

Non-Domiciled CDL Oversight Remains Under Scrutiny

The STOP Improper Licensing Act adds another proposal to the continuing federal debate over non-domiciled CDL issuance and state compliance with federal licensing requirements.

If enacted, H.R. 10123 would create a nationwide audit process with clear thresholds for follow-up reviews. It would also give states deadlines to address problems identified by FMCSA.

States with higher error rates could face years of additional audits, while states that fail to respond to corrective measures could ultimately lose FMCSA funding until they return to compliance.

For now, H.R. 10123 remains before the House Committee on Transportation and Infrastructure. No changes to CDL requirements take effect simply because the bill has been introduced.