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To ensure compliance with highway safety regulations, motor carriers operating commercial motor vehicles need to understand the difference between the federal (interstate) rules and state-specific (intrastate) rules.
Carriers with vehicles that cross state lines or that transport cargo or passengers that have crossed or will cross state lines are subject to DOT safety regulations, even if they qualify as intrastate for other purposes, such as vehicle licensing/IRP and fuel tax reporting/IFTA
Interstate operations are automatically subject to the Federal Motor Carrier Safety Regulations (FMCSRs), without exceptions, regardless of the state in which the vehicle is traveling. Any evaluation of interstate or intrastate begins with the definition above.
The first two parts of this definition are pretty clear — a vehicle crossing a border means interstate commerce.
It is the third part of the definition that complicates things — interstate commerce is trade, traffic, or transportation involving the crossing of a state boundary. When either the vehicle, its passengers, or cargo cross a state boundary, or there is intent to cross a state boundary, the carrier is considered an interstate carrier.
The FMCSA does offer some clarification with this guidance in 49 CFR 390.3T General Applicability:
The bottom line is this: If your vehicles cross state lines, or if your vehicles transport cargo or passengers that have or will cross state lines, you are an interstate carrier, subject to compliance with the Federal Motor Carrier Safety Regulations. The Unified Carrier Registration Agreement (UCR) uses the same definition — if the vehicle, freight, or passengers cross states lines, it is an interstate vehicle subject to annual UCR registration.
However, when it comes to state taxation matters, such as vehicle licensing/IRP and fuel tax reporting/IFTA, the only consideration is where the vehicle itself travels.
Intrastate operations involving vehicles that meet the definition of “commercial motor vehicle” found in 383.5 are automatically subject to Part 382 (alcohol and drug regulations) and Part 383 (CDL regulations). Many states adopt and enforce a majority of the FMCSRs for intrastate operations but may make exceptions or revisions for a particular size of vehicle or type of operation. A few states’ regulations have little direct correlation to the FMCSRs. Certain intrastate operations are also subject to the insurance requirements in Part 387 (when transporting specific hazardous materials outlined in 387.9) and whatever other regulations, FMCSRs or otherwise, the state has established.
In addition to how the FMCSRs apply to intrastate operations in each state, states usually have other requirements. These requirements may include accident reporting procedures, vehicle size and weight limitations, operating authority/insurance, vehicle licensing, and fuel tax reporting.
You may be operating vehicles that are intrastate as far as IRP and IFTA are concerned, but interstate for DOT safety and UCR compliance. Correctly classifying your operation will keep you in compliance.