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Federal and state governments have a responsibility to ensure the smooth and efficient transportation of persons and property in U.S. commerce and to provide a level of public protection from damage that may result from this transportation.
Operating authority is a form of “business license” for for-hire motor carriers, and is required in addition to vehicle licensing (International Registration Plan (IRP)), fuel tax (International Fuel Tax Agreement (IFTA)), and Department of Transportation (DOT) safety requirements.
For-hire is considered to be one authority, including both common and contract carriers (there is no longer a distinction between the two).
The Federal Motor Carrier Safety Administration (FMCSA) administers the interstate for-hire carrier authority requirements found in 49 CFR 365. Previously, the Interstate Commerce Commission (ICC) was responsible for granting operating authority. Congress closed the ICC on December 31, 1995; the authority registration oversight was transferred, first to the Federal Highway Administration (FHWA), and then finally to the FMCSA within the DOT.
Which government operating authority regulations apply to a carrier depends upon several factors:
Federal operating authority requires no renewal; it remains valid as long as the carrier maintains proper insurance and conducts business in compliance with Federal and State requirements.
UCR registration. The Unified Carrier Registration (UCR) Agreement was implemented on September 10, 2007.
Interstate and intrastate carriers. Interstate carriers also engaged in intrastate motor carriage must comply with any state requirements for initial application for intrastate authority and submit any necessary fees. Such carriers will not be subject to annual renewal of the intrastate authority as long as they are legally registered with the UCR.
Intrastate carriers. Solely intrastate carriers (never crossing state lines, never engaging in interstate commerce) are not subject to the UCRA. These carriers are subject to the authority registration and renewal requirements in the state of operation.
Additional information about the UCRA: Unified Carrier Registration Agreement