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Owner-operators and company drivers often hear other truckers talk about getting their "MC Number", "ICC Number", "ICC Rights", "ICC Authority", “DOT Authority” or "Interstate Authority". These are all just different ways of talking about the same thing: federal operating authority.
“Operating Authority” is the term used by regulatory agencies to describe a grant of legal permission by a government agency to engage in for-hire INTERstate (state-to-state) or INTRAstate (within a state) transportation by motor vehicle. Essentially, it’s a business license. Much like a plumber needs to be licensed and insured, so, too, does an independent trucker (also called a motor carrier). Operate without authority when you are required to have it and you might be placed out-of-service by law enforcement and fined.
When applying for authority, first set up your legal business entity. While you can be a sole proprietor, many truckers choose to incorporate to protect their personal assets. You get an online quote on forming your corporation at www.corpauthority.com.
Next, determine which type of license to apply for and whether to classify yourself as a “common” or “contract” carrier. There is not much difference due to the Interstate Commerce Commission Termination Act of 1995, but truckers open to the public usually secure “common carrier of property authority” by obtaining the $750,000 truck liability insurance (non-hazmat) and $10,000 cargo insurance. Truckers operating only under contract with a shipper can get “contract carrier of property authority” by filing only truck liability insurance.
There’s also freight forwarder authority (i.e. travel agent for freight) and freight broker authority (you arrange for transportation but don’t actually take possession). For more information and inexpensive freight broker training visit www.brokerauthority.com.
When you apply for authority, you will need to file an OP 1, MCS 150 & 150A, BOC 3 and BMC 90/91/34 or a BMC 84/85. Once you receive your certificate of motor carrier authority, you need to register with the Single State Registration System (SSRS). You will receive a receipt, which acknowledges the annual fees paid to the states you will pass through and identifies you as a regulated carrier. You will also need to comply with IFTA (fuel tax), mileage tax, and IRP.
Applying for your own authority is like doing your taxes. You can do it yourself… or seek out professional assistance. But much like there are 2 levels of professional assistance when it comes to preparing tax returns—“tax preparers” (i.e. H&R Block) and “certified public accountants” (CPAs), so, too, are there 2 levels of expertise when it comes to hiring a representative to handle your authority: “Permit Consultants” and “Transportation Practitioners”. Practitioners are professionals certified by the USDOT as "experts" in transportation regulatory matters.
This article was contributed by James Lamb, USDOT Practitioner, DOTAuthority.com
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