FLEET LEGALIZATION

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Fleet legalization is more complicated than most carriers think. But if you understand and follow the
requirements, you’ll avoid fines and violations that could stall your operation.

Fleet Legalization involves:

• Getting your operation registered
with FMCSA,
• Getting your operation registered
with the state if applicable,
• Obtaining for-hire authority if applicable,
• Securing proof of insurance, and
• Paying the necessary taxes and fees.

But before you can carry out these fundamental actions and functions, you must first respond to three important questions:

• Do you operate in interstate or intrastate commerce?
• Are you for hire or private?
• Are your vehicles considered commercial motor vehicles (CMVs)?

You can find out what laws you need to follow by asking yourself these questions. For definitions and recommendations, see addendum 1 /scroll down/. Once you’ve decided what kind of carrier you are, you may start registering with federal and state agencies.

DOT NUMBER, AUTHORITY, INSURANCE,
& REGISTRATION

If you run CMVs in interstate commerce, you must fill out the MCSA-1 form on the Unified Registration System website in order to get a USDOT number. Your DOT number is used by the FMCSA and several states to monitor your safety record.

Once you have your DOT number, you must:

• Maintain proof of public liability and property damage insurance levels (§387.9).
• Obtain authority and an MC number via the MCSA-1 if you’re a for-hire motor carrier.
• Mark your vehicles with the DOT number and carrier name (§390.21), if applicable.

• Designate a BOC-3 agent to receive legal documents in each state where you
operate as a for-hire carrier (§366).
• Register in the Unified Carrier Registration (UCR) program. The annual fees depend
on the number of vehicles operated in interstate commerce on your MCS-150.
• Update your Motor Carrier Identification Report (MCS-150) once every two years,
but more often if details in your operation change.

NOTE: Strictly intrastate carriers are exempt from participation, and interstate carriers can deduct
from their CMV vehicle counts units that are never engaged in interstate transportation.

FUEL TAXES AND REGISTRATION FEES

The International Fuel Tax Agreement (IFTA) is a pact among member nations that govern the collection and distribution of fuel tax revenues by base states. You can use one license to travel in all legal jurisdictions. You can manually fill out trip mileage reports that measure miles traveled within states, or you can acquire that information through a vehicle tracker or an ELD’s GPS (GPS). Additionally, fuel sales and receipts must be kept track of.

IFTA and the International Registration Plan (IRP) apply to vehicles transporting
persons or property in interstate commerce and have:
• Two axles and a GVW or registered GVW exceeding 26,000 pounds; or
• Three or more axles regardless of weight; or
• Operate in combination and exceed 26,000 pounds GVW.
IFTA requires motor carriers to:
• Obtain one license from the base state,
• File one quarterly tax return and pay taxes to your base state,
• Track the total gallons of fuel burned in each state, and
• Maintain fuel-purchase records to take credit for taxes already paid.
An IRP-apportioned plate, like IFTA, is intended for interstate vehicles and allows
travel in all jurisdictions with one valid plate and cab card.

All CMVs must be legally registered and have one of the following plates affixed
to the vehicle:
• State base plate,
• Restricted plate (dealer plate, manufacturer plate, farm plate, etc.), or
• IRP-apportioned plate valid in multiple states.

NOTE: State and restricted plates are only valid in the state of issuance. If you want to cross state
lines, you need an apportioned plate

3. Are my vehicles considered commercial motor vehicles (CMVs)?
   There are two different definitions of CMVs in the FMCSA safety regulations. The definition
   in §390.5 is the most widely used:
   A vehicle is a CMV if it operates on a highway (any area open to public travel) in interstate
   commerce with:
   • A weight or rating of 10,001 pounds or more (rated or actual and alone or in
   combination with a trailer);
   • A manufacturer’s rating of or is used to haul more than eight passengers for
   compensation; or more than 15 passengers whether compensated or not, or
   • Any size vehicle carrying placardable hazardous materials.

Briefly said, if you’re running at least one CMV, you must abide by the regulations on driver qualification, hours of service, vehicle inspection and maintenance, equipment specifications, vehicle marking, insurance, and cargo securement, unless you’re exempt from those requirements in another way.

The second definition of a CMV is in §383.5, and these vehicles require a commercial driver’s
license (CDL) to operate and trigger compliance with DOT testing and driver training. This definition applies to any kind of commerce, interstate or intrastate. A vehicle requires a CDL to operate when:
• In combination, the gross combined weight rating (GCWR) is ≥26,001 pounds, and the trailer(s) has a gross vehicle weight rating (GVWR) or gross vehicle weight (GVW) >10,000 pounds,
• A vehicle with a GVWR/GVW ≥26,001 pounds,
• 16 or more passengers regardless of compensation, or
• Placarded for hazardous materials.

Automating IFTA and IRP reporting with distance records from a vehicle-tracking system, including an ELD, can significantly reduce the errors committed and labor costs. Automating reporting also eliminates the need for Individual Vehicle Mileage Reports (IVMRs) or driver-prepared trip reports. However, the tracking equipment must meet the specifications in the IFTA Procedures Manual.
Easy Compliance Solutions can help you with all of the above. Check out our services and Book your FREE CONSULTATION with us.