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October 13, 1999 12:15 PM, EDT

In what some observers are calling the most sigant development in federal trucking oversight since the industry was deregulated nearly 20 years ago, Congress is poised this week to move ahead on establishing a separate motor carrier safety agency within the Department of Transportation.

But as the process moves along, with the House of Representatives expected to vote on the initiative this week, lawmakers scurried Tuesday to fix a major glitch in the transportation funding bill, which makes it impossible now for federal authorities to fine trucking companies that violate safety regulations.

The $50 billion transportation spending bill, which President Clinton signed Saturday, bars funding for the Office of Motor Carrier and Highway Safety so long as the agency stays within the Federal Highway Administration – the result of a rider attached by Rep. Frank Wolf (R-Va.).

The House voted Tuesday to give the Slater authority to impose civil penalties. The Senate now takes up the measure.

For the full story, see the Oct. 18 print edition of Transport Topics. .