Motorcoach operating authority

Scope

Before beginning operations, a new carrier must submit a registration application using online-only form MCSA-1 to the Federal Motor Carrier Safety Administration, file proof of required insurance, file a list of legal process agents, and submit a filing fee of $300. When approved, an authority to operate is granted.

Interstate carriers are subject to registration with the UCR.

If also operating intrastate, the state of operation may require intrastate operating authority.

Regulatory citations

• 49 CFR 365 — Rules governing applications for operating authority
• 49 CFR 366 — Designation of process agent
• 49 CFR 367 — Standards for registration with states
• 49 CFR 387, Subpart B — Minimum levels of financial responsibility for motor carriers (motor carriers of passengers)

Key definitions

• For-hire motor carrier: A person providing motor vehicle transportation of property or passengers for compensation.
• Interstate carrier: A person providing motor vehicle transportation that either crosses state lines or furthers interstate commerce within a state when a commodity originated in another state.
• Intrastate carrier: A person providing motor vehicle transportation exclusively within one state.
• MC (motor carrier) number: Number issued with interstate operating authority necessary before conducting interstate for-hire motor carriage.
• Process agent: A representative of an entity upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder.

Summary of requirements

Unified Carrier Registration (UCR). For-hire carriers of passengers, private and for-hire carriers of property (including those operating as “exempt” carriers), freight forwarders, leasing companies and brokers are all subject to UCRA registration annually.

Carriers who are based in non-participating states, or who operate wholly in non-participating states are subject to UCRA registration. Canada and Mexico domiciled carriers operating in the United States are also subject to UCR.

The UCRA does not issue a paper credential to be carried in the vehicle. Proof of registration under the UCRA is available to roadside enforcement via FMCSA electronic information systems by accessing the carrier US DOT number.

UCRA registration does not replace or change the requirements for registration of vehicles under the International Registration Plan (IRP) or fuel use tax reporting under the International Fuel Tax Agreement (IFTA).

Electronic registration and information is available on the UCR website.

For-hire authority (MC number). Any time a passenger carrier receives compensation for transporting passengers, it is considered for-hire – no matter how small or light the vehicles used. Unless subject to an exemption, all for-hire passenger carriers in interstate commerce must:

• Obtain FMCSA operating authority registration
• Obtain and file minimum levels of financial responsibility (insurance):
  • $1.5 million for operating vehicles of 15 or fewer passengers including the driver
  • $5 million for operating vehicles of 16 or more passengers including the driver; and
• Designate a process agent, a representative that can be served with court papers in any legal proceeding brought against a motor carrier.