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Knowledge check: For-hire authority: Answers

Answer: No. As tempting as the offer is, Marco needs to pass.

The movement across state lines fits the definition of interstate commerce in 49 CFR 390.5: “Trade, traffic, or transportation in the United States -

  1. Between a place in a State and a place outside of such State (including a place outside of the United States);
  2. Between two places in a State through another State or a place outside of the United States; or
  3. Between two places in a State as part of trade, traffic, or transportation originating or terminating outside the State or the United States.”

Marco’s straight truck fits the definition of a commercial motor vehicle found in the same Section which includes:

“Any self-propelled or towed motor vehicle used on a highway in interstate commerce to transport passengers or property when the vehicle has a gross vehicle weight rating or gross combination weight rating, or gross vehicle weight or gross combination weight, of 10,001 pounds or more, whichever is greater.”

In order to accept the movement, Marco’s company, vehicle, and Marco himself would need to be following all the federal motor carrier safety regulations, including having a USDOT number, a complete driver qualification file, compliance with the hours-of-service limits, vehicle inspections, etc. There’s little hope Marco could be compliant in all these areas before he would need to pick up the pallets.

More problematic, Marco’s company would also need to have interstate property for-hire operating authority. Under the best circumstances, the process to obtain authority takes weeks. In addition to applying for the authority on an OP-1 form, Marco’s insurance company would need to issue an endorsement of coverage on an MCS-90 and submit to the FMCSA a BMC-91 indicating the proper levels of liability coverage, and Marco would need to designate process agents in both his home state and the delivery state on a BOC-3.