
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 49USC31138]

 
                        TITLE 49--TRANSPORTATION
 
             SUBTITLE VI--MOTOR VEHICLE AND DRIVER PROGRAMS
 
                           PART B--COMMERCIAL
 
              CHAPTER 311--COMMERCIAL MOTOR VEHICLE SAFETY
 
                    SUBCHAPTER III--SAFETY REGULATION
 
Sec. 31138. Minimum financial responsibility for transporting 
        passengers
        
    (a) General Requirement.--The Secretary of Transportation shall 
prescribe regulations to require minimum levels of financial 
responsibility sufficient to satisfy liability amounts established by 
the Secretary covering public liability and property damage for the 
transportation of passengers for compensation by motor vehicle in the 
United States between a place in a State and--
        (1) a place in another State;
        (2) another place in the same State through a place outside of 
    that State; or
        (3) a place outside the United States.

    (b) Minimum Amounts.--The level of financial responsibility 
established under subsection (a) of this section for a motor vehicle 
with a seating capacity of--
        (1) at least 16 passengers shall be at least $5,000,000; and
        (2) not more than 15 passengers shall be at least $1,500,000.

    (c) Evidence of Financial Responsibility.--(1) Subject to paragraph 
(2) of this subsection, financial responsibility may be established by 
evidence of one or a combination of the following if acceptable to the 
Secretary of Transportation:
        (A) insurance, including high self-retention.
        (B) a guarantee.
        (C) a surety bond issued by a bonding company authorized to do 
    business in the United States.

    (2) A person domiciled in a country contiguous to the United States 
and providing transportation to which a minimum level of financial 
responsibility under this section applies shall have evidence of 
financial responsibility in the motor vehicle when the person is 
providing the transportation. If evidence of financial responsibility is 
not in the vehicle, the Secretary of Transportation and the Secretary of 
the Treasury shall deny entry of the vehicle into the United States.
    (3) A motor carrier may obtain the required amount of financial 
responsibility from more than one source provided the cumulative amount 
is equal to the minimum requirements of this section.
    (d) Civil Penalty.--(1) If, after notice and an opportunity for a 
hearing, the Secretary of Transportation finds that a person (except an 
employee acting without knowledge) has knowingly violated this section 
or a regulation prescribed under this section, the person is liable to 
the United States Government for a civil penalty of not more than 
$10,000 for each violation. A separate violation occurs for each day the 
violation continues.
    (2) The Secretary of Transportation shall impose the penalty by 
written notice. In determining the amount of the penalty, the Secretary 
shall consider--
        (A) the nature, circumstances, extent, and gravity of the 
    violation;
        (B) with respect to the violator, the degree of culpability, any 
    history of prior violations, the ability to pay, and any effect on 
    the ability to continue doing business; and
        (C) other matters that justice requires.

    (3) The Secretary of Transportation may compromise the penalty 
before referring the matter to the Attorney General for collection.
    (4) The Attorney General shall bring a civil action in an 
appropriate district court of the United States to collect a penalty 
referred to the Attorney General for collection under this subsection.
    (5) The amount of the penalty may be deducted from amounts the 
Government owes the person. An amount collected under this section shall 
be deposited in the Treasury as miscellaneous receipts.
    (e) Nonapplication.--This section does not apply to a motor 
vehicle--
        (1) transporting only school children and teachers to or from 
    school;
        (2) providing taxicab service, having a seating capacity of not 
    more than 6 passengers, and not being operated on a regular route or 
    between specified places;
        (3) carrying not more than 15 individuals in a single, daily 
    round trip to and from work; or
        (4) providing transportation service within a transit service 
    area under an agreement with a Federal, State, or local government 
    funded, in whole or in part, with a grant under section 5307, 5310, 
    or 5311, including transportation designed and carried out to meet 
    the special needs of elderly individuals and individuals with 
    disabilities; except that, in any case in which the transit service 
    area is located in more than 1 State, the minimum level of financial 
    responsibility for such motor vehicle will be at least the highest 
    level required for any of such States.

(Pub. L. 103-272, Sec. 1(e), July 5, 1994, 108 Stat. 1005; Pub. L. 104-
88, title I, Sec. 104(c), (d), Dec. 29, 1995, 109 Stat. 919.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised  Section                    Source (U.S. Code)              
 Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
31138(a)..............................  49:10927 (note).                 Sept. 
20, 1982, Pub. L. 97-261, Sec.
                                                                          18(a)
, 96 Stat. 1121.
31138(b)..............................  49:10927 (note).                 Sept. 
20, 1982, Pub. L. 97-261, Sec.
                                                                          18(b)
, (c), 96 Stat. 1121.
31138(c)..............................  49:10927 (note).                 Sept. 
20, 1982, Pub. L. 97-261, Sec.
                                                                          18(d)
, 96 Stat. 1121; Oct. 30, 1984,
                                                                          Pub. 
L. 98-554, Sec.  224, 98 Stat.
                                                                          2847.
31138(d)..............................  49:10927 (note).                 Sept. 
20, 1982, Pub. L. 97-261, Sec.
                                                                          18(e)
, 96 Stat. 1122.
31138(e)..............................  49:10927 (note).                 Sept. 
20, 1982, Pub. L. 97-261, Sec.
                                                                          18(f)
, (g), 96 Stat. 1122.
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---------------------------------

    In subsection (b), before clause (1), the text of section 18(b)(1) 
(words beginning with ``except'') and (2) (words beginning with 
``except'') and (c) of the Bus Regulatory Reform Act of 1982 (Public Law 
97-261, 96 Stat. 1121) is omitted as expired. The word ``minimal'' is 
omitted as surplus.
    In subsection (c)(1), the words ``The Secretary shall establish, by 
regulation, methods and procedures to assure compliance with this 
section'' are omitted as surplus.
    In subsection (d)(4), the words ``The Attorney General shall bring a 
civil action . . . to collect a penalty referred to the Attorney General 
for collection under this subsection'' are substituted for ``Such civil 
penalty may be recovered in an action brought by the Attorney General on 
behalf of the United States'' for consistency in the revised title.
    In subsection (d)(5), the words ``when finally determined (or agreed 
upon in compromise)'' are omitted as surplus.
    In subsection (e), before clause (1), the text of section 18(g) of 
the Bus Regulatory Reform Act of 1982 (Public Law 97-261, 96 Stat. 1122) 
is omitted as unnecessary because of the restatement.


                               Amendments

    1995--Subsec. (c)(3). Pub. L. 104-88, Sec. 104(c), added par. (3).
    Subsec. (e)(4). Pub. L. 104-88, Sec. 104(d), added par. (4).


                    Effective Date of 1995 Amendment

    Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2 of 
Pub. L. 104-88, set out as an Effective Date note under section 701 of 
this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 507, 521, 526, 10927, 13101, 
13902, 13906, 31102 of this title.
