[Advertisement]

| Federal Statutes || Regulations || Federal MCSA | U.S. Dot Marking
|| Carriers, Frwdrs Must Register || Brokers Must Register || TEA-21 |

Federal Regulation,
Licensing at LAWDOG®

trandg1.gif (3437 bytes)

rtn3.gif (631 bytes)
The U.S. Congress passes statutes, which become the primary federal law for the United States as part of the United States Code. To illustrate a statute, portions of Title 49 of the United States Code, referred to as the Transportation Code, are linked below from Cornell Law School:
 Transportation Code,  Title 49 U.S.Code  
Federal statutes often authorize the responsible agencies to adopt regulations to implement the statutory requirements. These regulations are often more specific than the statutes, demonstrating how the statute applies to particular factual situations by interpretation, or supplying details not included in the statute. Before those regulations become effective, the regulations are formed through a rulemaking proceeding, which typically involves publication of a proposed rule in the Federal Register, a period of public comment on the proposed rule, consideration of comments received by the agency, and then publication of the final regulation in the Federal Register. When approved and adopted as a final regulation, the new regulation becomes part of the Code of Federal Regulations .
The Department of Transportation also issues orders controlling specific circumstances, or disputes. The orders become effective after the parties in the matter have the opportunity to make arguments on different sides of the issue. When the Departmental decisionmaker issues a final order in a case, it is binding on the parties. Examples of such orders can be found in the listing of aviation economic orders.

Such statutes, regulations, and orders constitute the federal laws involved in transportation. In some instances, parties may challenge statutes, regulations and other orders by seeking review by a federal court. If a court determines, for example, that Congress or the agency have exceeded their authority, or that application of the law violates a provision of the U.S. Constitution, then the final judgment of the court may also become another part of the federal law of transportation. For more information about the legislative process, see the excellent essay entitled HOW OUR LAWS ARE MADE, as revised by Charles W. Johnson,  Parliamentarian, United States House of Representatives. Also see Hill Basics: The Legislative Process from American Public Transit Association.
The Federal Register, published every Federal workday by the National Archives and Records Administration, includes Executive orders, and Federal agency regulations having general applicability and legal effect, proposed agency rules, and documents required by statute to be published.

The Motor Carrier Safety Improvement Act of 1999, Public Law 106-159 had purposes of establishing Federal Motor Carrier Safety Administration, and to reduce number and severity of crashes where large trucks are involved  by increasing commercial motor vehicle and driver inspections, and carrier compliance reviews, strengthening enforcement, expediting completion of rules, sound research, and effective commercial drivers' license testing, record keeping, and sanctions.

The rules, regulations, and requirements governing interstate surface transportation are now administered primarily by the Federal Motor Carrier Safety Administration, including the issuance, administration, and enforcement of the Federal Motor Carrier Safety Regulations (FMCSRs), 49 CFR Parts 325, 350, 382-399, the Hazardous Materials Regulations, 49 CFR Parts 100-180, and drug and alcohol testing requirements administration. Motor Carrier Safety Administration

U S DOT Number Marking
Carriers operating commercial motor vehicles in interstate commerce are required to display name and U.S. DOT number on both sides of power unit. New interstate carriers after July 3, 2000 required to submit a Form MCS-150  before beginning operations, mark power units of commercial vehicles before putting into service. Interstate Commerce Commission (ICC) numbers, may, if displayed as of July 3, 2000, be used by carrier until July 3, 2002. All new commercial motor vehicles added after July 3, 2000 must meet new marking requirements before being placed in service.

Commercial motor vehicles are to be marked with legal name or a single trade name of business that owns or controls the motor carrier operation, and the name must appear as indicated on Motor Carrier Identification Report (Form MCS-150) of motor carrier. Carriers have until July 5, 2005 to display legal name or single trade name on trucks and buses in their fleets.

Carriers, Forwarders Must Register

Top
Carriers Must Register
To operate as an interstate motor carrier, either as a private or as a for-hire carrier, a company must register by filing a Form MCS-150.  A private carrier provides truck transportation of its own cargo, while a for-hire is paid for transporting cargo which belongs to others. To operate as an interstate for-hire carrier, a company must also register by filing a Form OP-1. There are two types of for-hire carriers, common carriers and contract carriers. A for-hire carrier may be both a common and a contract carrier, but must file separate registrations to obtain both licenses.
 The historical difference between common or contract carriers ended with the ICC Termination Act of 1995, but the Act specifically authorizes continued registration of applicants as either common or contract carriers. The current principal distinction between the two types is that common carrier applicants must file proof of cargo insurance while contract carrier applicants not required to do so.
Freight Forwarders Must Register
Freight Forwarder is defined by Federal Motor Carrier Safety Administration as "company that arranges for the truck transportation of cargo belonging to others, utilizing for-hire carriers to provide the actual truck transportation". Forwarder assumes responsibility for cargo from origin to destination, may take possession of cargo at some point during transportation. Forwarders typically assemble and consolidate less than truckload (LTL) shipments into truckload shipments at origin, then deliver LTL shipments at destination. Forwarders must register with Federal Motor Carrier Safety Administration by filing a Form OP-1 (FF).
Brokers Must Register
The Broker is also a company that arranges for truck transport of cargo belonging to others, utilizing for-hire carriers to provide actual truck transportation. However, the Broker does not assume responsibility for cargo, normally does not take possession of cargo. Brokers must register with Federal Motor Carrier Safety Administration by filing Form OP-1.
Other Requirements
Applicants for motor carrier, forwarder, and broker authorities must have specific insurance and legal process agent documents on file before issuance of the actual authorities. A process agent is a representative upon whom court papers may be served in any proceeding brought against a motor carrier, broker, or freight forwarder. Every motor carrier, or forwarder registered with the Federal Motor Carrier Safety Administration must list name and address of an agent for each state. Brokers are required to list process agents in each state in which they have an office and in which they write contracts. Private commercial firms arrange process agents in any state for a fee. Title 49 U.S.Code Section 14708 requires applicants for authority to operate as motor carriers or freight forwarders of household goods to offer arbitration as a means of settling loss and damage disputes on collect on delivery shipments.
Do-It-Yourself On-Line Filing & Payments System Register Online at Federal Motor Carrier Safety Administration. Fees are $300.00 for Motor Property Carrier and Broker, Motor Passenger Carrier, or Freight Forwarder Authority.  Carriers information on file with Federal Motor Carrier Safety Administration is available online by USDOT number, MC number or name, here, or by calling 1-800-832-5660. The MCS-150 form also can be downloaded from the Internet here.
 

The Transportation Equity Act for the 21st Century

Transportation Equity Act for the 21st Century (1998), authorized highway, highway safety, transit and other surface transportation programs for following 6 years. The Act strengthened the authority of Secretary of Transportation to order unsafe motor carriers to cease operations, established $10,000 maximum penalty for non-recordkeeping violations of the safety regulations, changed definition of commercial motor vehicle to include actual gross vehicle weight in addition to gross vehicle weight rating. Motor Carrier Safety Assistance Program provides funds for state enforcement of commercial motor vehicle safety and hazardous materials regulations, including roadside safety inspections, traffic enforcement, compliance reviews, and other activities.

National Driver Register

National Driver Register is central file of information on individuals whose license to operate a motor vehicle has been denied, revoked, suspended or canceled, for cause, or who have been convicted of certain serious traffic violations like driving while impaired by alcohol or other drugs, speed contests. National Driver Register Act of 1982, beginning with 49 U.S.Code Section 30301, authorizes state chief driver licensing officials to request and receive information from the National Driver Register for driver licensing and improvement, and on behalf of other National Driver Register users for transportation safety purposes. A single national database is intended to enforce one commercial license per driver goal of system.

 

The Motor Carrier Exemption Under the Fair Labor Standards Act (FLSA)