1 Unified Carrier Registration Training Guide

2 Disclaimer: The information provided here is based on the informal interpretation of the Unified Carrier Registration Act of 2005 (“UCR Act”) and is subject to further interpretation by the UCR Board.

3 Who is subject to UCRA? Any motor carrier that operates in interstate or international commerce is subject to the UCRA fees. This includes: –Motor Carriers –Motor Private Carriers –Leasing Companies –Brokers –Freight Forwarders

4 Industry Perspective

5 Definition of motor carrier under federal law Motor carrier.-The term “motor carrier” means a person providing commercial motor vehicle (as defined in section 31132) transportation for compensation Motor carrier.-The term “motor carrier” means a person providing commercial motor vehicle (as defined in section 31132) transportation for compensation Note: This definition was changed by SAFETEA-LU.

6 Definition of commercial motor vehicle under section “Self-propelled or towed vehicle used on the highways in interstate commerce to transport passengers or property, if the vehicle— (A) has a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds, whichever is greater; (B) is designed or used to transport more than 8 passengers (including the driver) for compensation; (C) is designed or used to transport more than 15 passengers, including the driver, and is not used to transport passengers for compensation; or (D) is used in transporting material found by the Secretary of Transportation to be hazardous under section 5103 of this title and transported in a quantity requiring placarding under regulations prescribed by the Secretary under section “Self-propelled or towed vehicle used on the highways in interstate commerce to transport passengers or property, if the vehicle— (A) has a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds, whichever is greater; (B) is designed or used to transport more than 8 passengers (including the driver) for compensation; (C) is designed or used to transport more than 15 passengers, including the driver, and is not used to transport passengers for compensation; or (D) is used in transporting material found by the Secretary of Transportation to be hazardous under section 5103 of this title and transported in a quantity requiring placarding under regulations prescribed by the Secretary under section

7 Definition of motor private carrier under federal law Motor private carrier.— The term “motor private carrier” means a person, other than a motor carrier, transporting property by motor vehicle when— (A) the transportation is as provided in section of this title; (B) the person is the owner, lessee, or bailee of the property being transported; and (C) the property is being transported for sale, lease, rent, or bailment or to further a commercial enterprise. Motor private carrier.— The term “motor private carrier” means a person, other than a motor carrier, transporting property by motor vehicle when— (A) the transportation is as provided in section of this title; (B) the person is the owner, lessee, or bailee of the property being transported; and (C) the property is being transported for sale, lease, rent, or bailment or to further a commercial enterprise.13501

8 Definition of a leasing company The term leasing company was defined under the UCR Act to mean – A lessor that is engaged in the business of leasing or renting for compensation motor vehicles without drivers to a motor carrier, motor private carrier, or freight forwarder.

9 Definition of a broker The term broker means – A person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by motor carrier for compensation.

10 Definition of a freight forwarder The term freight forwarder means – an individual or company (other than as a pipeline, rail, motor, or water carrier) that receives shipments and combines them for transportation by a pipeline, rail, motor, or water carrier.

11 Combination Operations Brokers, freight forwarders and leasing companies (not a motor carrier combination) file and pay the lowest tier fee. When these type of operations include motor carrier operations, the company files as a motor carrier or motor private carrier.

12 What is required for registrants under UCR? Annual submission of information; and Annual submission of information; and Payment of fees to the base state Payment of fees to the base state

13 How is the base state determined? 1. Does the registrant have its principal place of business located in a participating state? –AL, AR, CO, CT, GA, IA, ID, IL, IN, KS, KY, LA, MA, ME, MI, MS, MT, ND, NE, NH, NM, NY, OH, OK, RI, SC, SD, TN, TX, UT, VA, WA, WI or WV If answer is yes, this is the registrant’s base state. If the answer is no, go to the next question. Example – Missouri carrier. The answer is no. Note: California will participate in 2008

14 How is the base state determined? (continued) 2. Does the registrant have an office or operating facility located in a participating state? –AL, AR, CO, CT, GA, IA, ID, IL, IN, KS, KY, LA, MA, ME, MI, MS, MT, ND, NE, NH, NM, NY, OH, OK, RI, SC, SD, TN, TX, UT, VA, WA, WI or WV If answer is yes, this is the registrant’s base state. If the answer is no, go to the next question. Example – Missouri carrier. The answer is no.

15 3. A. If a participating state is geographically close to the carrier’s principal place of business; OR How is the base state determined? (continued)  Example: Missouri is a Non- participating State surrounded by participating states. Kansas is the Base State

16 3.B.Select a participating state within the carrier’s FMCSA region. How is the base state determined? (continued)

17 Example: The Missouri carrier can select as their base state: 3A – KS or 3B – IA,IL,IN,KS,MI,NE,OH,WI How is the base state determined? (continued)

18 Why is it important to determine the carrier’s proper base state? The fees go to that state to fulfill its revenue entitlement. The fees go to that state to fulfill its revenue entitlement.

19 How can you change your base state? You may/shall change your base state if: –You change your principal place of business; –The state in which the principal place of business is located becomes a participating state; or –You establish a new office or operating facility in a participating state.

20 What is required annually? File an UCR Application File an UCR Application Payment of UCR Fees Payment of UCR Fees

21 Parts of the application form Identify the registrant- Section 1 Identify the registrant- Section 1 Identify type of registrant – Section 2 Identify type of registrant – Section 2 Fees due from Brokers, Freight Forwarders and Leasing Companies – Section 3 Fees due from Brokers, Freight Forwarders and Leasing Companies – Section 3 Determine the number of vehicles for Motor Carriers and Motor Private Carriers– Section 4 Determine the number of vehicles for Motor Carriers and Motor Private Carriers– Section 4 Determine the fee amount – Section 5 & 6 Determine the fee amount – Section 5 & 6 Certification – Section 7 Certification – Section 7

22 Section 1. Fill in the general information on the registrant. Section 1. Fill in the general information on the registrant. Section 2. Classification – Check all that apply. Section 2. Classification – Check all that apply. Section 3. If classification in Section 2 indicates only a broker, freight forwarder or leasing company, pay $39 and go to Section 7, sign application and done. Section 3. If classification in Section 2 indicates only a broker, freight forwarder or leasing company, pay $39 and go to Section 7, sign application and done. How to complete the application

23 How to complete the application (continued) Section 4. Only two ways to determine the number of motor vehicles. Section 4. Only two ways to determine the number of motor vehicles. –Number reported on the last MCS-150; or –Total number owned or operated for the 12-month period ending June 30 of the year immediately prior to registration. Example: Registration year 2007, looking at 12 month period ending June 30, 2006.

24 How to complete the application (continued) Definition of commercial motor vehicle (49 UCS Section 31101) Self-propelled or towed vehicle used on the highways in commerce principally to transport passengers or cargo, if the vehicle: Self-propelled or towed vehicle used on the highways in commerce principally to transport passengers or cargo, if the vehicle: (1) Has a gross vehicle weight rating or gross vehicle weight of at least 10,001 pounds, whichever is greater; weight of at least 10,001 pounds, whichever is greater; (2)Is designed to transport more than 10 passengers including the driver; or including the driver; or (3) Is used in transporting material found by the Secretary of Transportation to be hazardous under 49 U.S.C. Section 5103 and transported in a quantity requiring placarding under regulations prescribed by the Secretary.

25 How to complete the application (continued) Section 4 - Only two options to change or adjust the vehicle count. Section 4 - Only two options to change or adjust the vehicle count. –Option 1 – Deleting Vehicles »May delete only trucks or trailers used only in intrastate commerce. –Option 2 – Adding Vehicles »Add vehicles not shown on the MCS 150 that are commercial motor vehicles and used only in intrastate commerce and/or other self-propelled motor vehicles.

26 How to complete the application (continued) Section 4 – Please Note Section 4 – Please Note –If vehicles have been wrecked and no longer in the fleet or vehicles have been added to the fleet since the last MCS 150 has been filed or since the 12 month ending June 30, these changes are not considered in the vehicle count. –If a large change has occurred, the registrant may want to file a new MCS 150 with the updated vehicle counts.

27 How to complete the application (continued) Example: The last filed MCS-150 form had a total of 81 trucks and trailers. 2 trucks and three trailers on the MCS 150 were intrastate only and the company wants to delete these. 8 vehicles not included on the MCS 150 because they are not commercial motor vehicles (less than 10,000 lbs GVW) are wanted to be added to the count by the company.

28 How to complete the application (continued) Section 4 - Example Section 4 - Example Number of commercial motor vehicles reported on the MCS Option: 1.Deletion of motor vehicles Add commercial motor vehicles used solely in intrastate commerce Add other non-commercial motor vehicles Total Number Total Number

29 How to complete the application (continued) Section 5 – Fee Table (Year 2007) Section 5 – Fee Table (Year 2007)

30 How to complete the application (continued) Section 6 – Fees Due Section 6 – Fees Due –Use the total number of vehicle count as computed in Section 4. –Locate the fee amount for the vehicle count in Section 5. Section 7 – Certification Section 7 – Certification –Signature that the information reported is correct.

31 Where are the fees and information filed? Filed with the registrant’s base state using the listing of participating states and type of payment acceptable to that state; or Filed with the registrant’s base state using the listing of participating states and type of payment acceptable to that state; or Use the national web based system, checking the registrant’s base state and payment by electronic check or credit card. Use the national web based system, checking the registrant’s base state and payment by electronic check or credit card.

32 Are there any additional fee charges? If the national web based system hosted by the state of Indiana is used, there will be added the following fees: If the national web based system hosted by the state of Indiana is used, there will be added the following fees: –$3.00 transaction fee –$1.00 electronic check payment fee if used –A credit card percentage charge dependent on the dollar amount if a credit card is used Note: UCR Web Site: hosted by the State of Indiana.

33 Is the UCR registrant required to carry a credential on the vehicle? No. The registrants may carry the copy of the payment receipt in the vehicle if desired. No. The registrants may carry the copy of the payment receipt in the vehicle if desired.

34 State Perspective

35 What must a participating state do under UCR Act? Submit a State Plan to participate Submit a State Plan to participate Process Forms from base state registrants Process Forms from base state registrants Collection of fees Collection of fees Transmit data and fees Transmit data and fees Recordkeeping Recordkeeping Enforce requirements Enforce requirements

36 What must a participating state do under UCR Act? Submission of a State Plan Submission of a State Plan –Submit plan to the Secretary of the USDOT bu August 10, –State may withdraw from the program »Once a state has withdrawn, it may not thereafter participate in the UCR agreement.

37 What must a participating state do under UCR Act? Process Forms Process Forms –Verify information submitted by paper, state or national systems with federal data and sent to the correct base state. –Verify that proper fees are being submitted. –Issue a receipt for payment of fees.

38 What must a participating state do under UCR Act? Collection of Fees Collection of Fees –Base state collects fees from its registrants –The base state will retain all of the fees collected until the state receives all of its entitlement –Fees receive over amount entitled will be transmitted to the depository

39 What must a participating state do under UCR Act? Transmission of Data and Fees Transmission of Data and Fees –Transmit monthly to the board information concerning fees collected –Transmit monthly to the board fees collected over its certified entitilement –Transmit compliance data to FMCSA

40 What must a participating state do under UCR Act? Recordkeeping Recordkeeping –The Base State shall maintain copies of the UCR forms, correspondence and payments. –The required records shall be maintained by the Base State on paper, microfilm, microfiche or any other computerized or condensed record storage system, which meets the legal requirements of the Base State. –Required records shall be maintained for a minimum of three years.

41 How does UCR affect intrastate regulation? The UCR Act does not affect a State’s regulation of intrastate only carriers that do not handle interstate freight or provide interstate transportation. The UCR Act does not affect a State’s regulation of intrastate only carriers that do not handle interstate freight or provide interstate transportation. A State may still require an interstate carrier initially applying for intrastate authority to prove it has insurance coverage and charge it an initial application fee. A State may still require an interstate carrier initially applying for intrastate authority to prove it has insurance coverage and charge it an initial application fee.

42 How does UCR affect intrastate regulation? For the renewal of an intrastate operating authority, a State may not continue to impose on an interstate motor carrier the application requirements, but may recoup under the UCR Agreement the revenues it loses from the discontinuance of renewal program. For the renewal of an intrastate operating authority, a State may not continue to impose on an interstate motor carrier the application requirements, but may recoup under the UCR Agreement the revenues it loses from the discontinuance of renewal program. Exception: Motor carriers transporting non charter passenger service, waste or recyclable materials or household goods.

43 State Enforcement Perspective

44 How will state and the public know the registrant is compliant? SAFER System at SAFER System at –Compliance data is being placed at that site starting and can be publicly accessed; Inspection Selection System (ISS); Inspection Selection System (ISS); State CVIEW; or State CVIEW; or Check with base state. Check with base state.

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49 How will enforcement know the proper UCR fee was paid? They may not have information available to do so. They may not have information available to do so. If information is available, they will need to know how fees are calculated. If information is available, they will need to know how fees are calculated.

50 What does the carrier do when vehicles are added to the fleet? Nothing. The next renewal will reflect those additions or when the MCS-150 is updated. Nothing. The next renewal will reflect those additions or when the MCS-150 is updated.

51 Lease Operations Who reports leased vehicles? Who reports leased vehicles? –The lessee or motor carrier includes these vehicles where the duration of the lease if over 30 days in length.

52 How often is the data in the systems updated? State and national systems will be sending each night information to FMCSA. State and national systems will be sending each night information to FMCSA. FMCSA will then perform an update to their system. FMCSA will then perform an update to their system.

53 How does UCR affect companies with interstate and intrastate operations? Carrier (whether motor carrier or motor private carrier) with combination operations must comply with the UCR requirements. Carrier (whether motor carrier or motor private carrier) with combination operations must comply with the UCR requirements. Combination operations where company drops interstate operations may be required to renew intrastate operations in that state(s). Combination operations where company drops interstate operations may be required to renew intrastate operations in that state(s). Exceptions to the intrastate renewal pre-emption Exceptions to the intrastate renewal pre-emption –Transportation of Household Goods; –Non charter passenger service; or –Transportation of waste or recyclable materials.

54 Examples of roadside enforcement Example 1. Carrier: Total Trucks = UCR registered trucks 10 exclusively intrastate not UCR registered Description of truck stopped for inspection: Apportioned plate over 26,000 lbs No IFTA Bill of lading showing interstate move Private carriage No federal authority No intrastate authority Possible enforcement action: No UCR registration

55 Examples of roadside enforcement Example 2. Carrier: Total Trucks = 110 Carrier: Total Trucks = trucks not UCR registered 10 exclusively intrastate not UCR registered Description of truck stopped for inspection: Apportioned plate over 26,000 lbs IFTA Bill of lading showing interstate & intrastate moves Private carriage No federal authority No intrastate authority Possible enforcement action: No UCR registration

56 Examples of roadside enforcement Example 3. Carrier: Total Trucks = 10 Carrier: Total Trucks = 10 No UCR registered trucks 10 exclusively intrastate not UCR registered Description of truck stopped for inspection: Straight tag No IFTA Bill of lading showing air freight move For-hire carriage No federal authority No intrastate authority Possible enforcement action: No UCR registration

57 Examples of roadside enforcement Example 4. Carrier: Total Trucks = 1 No UCR registered trucks 1 exclusively intrastate not UCR registered Description of truck stopped for inspection: Farm tag No IFTA Farmer moving his grain to local barge terminal where the movement is known to be interstate Private carriage No federal authority No intrastate authority Possible enforcement action: No UCR registration

58 Examples of roadside enforcement Example 5. Carrier: Total Trucks = 110 No UCR registered trucks 10 exclusively intrastate not UCR registered Description of truck stopped for inspection: Apportioned plate over 26,000 lbs No IFTA Bill of lading showing interstate move Private carriage No federal authority No intrastate authority Possible enforcement action: No IFTA, No UCR registration

59 Examples of roadside enforcement Example 6. Carrier: Total Trucks = 110 No UCR registered trucks 10 exclusively intrastate not UCR registered Description of truck stopped for inspection: Apportioned plate over 26,000 lbs IFTA Bill of lading showing interstate & intrastate moves For-hire carriage No federal authority No intrastate authority Possible enforcement action: No federal authority, No for-hire intrastate authority, No UCR registration

60 Examples of roadside enforcement Example 7. Carrier: Total Trucks = UCR registered trucks 10 exclusively intrastate Description of truck stopped for inspection: Apportioned plate over 26,000 lbs IFTA Bill of lading shows intrastate move For-hire carriage No federal authority Has intrastate authority Possible enforcement action: None

61 Examples of roadside enforcement Example 8. Carrier: Total Trucks = UCR registered trucks 10 exclusively intrastate Description of truck stopped for inspection: Out-of-state farm plate IFTA Interstate move Farmer moving for-hire No federal authority No intrastate authority Possible enforcement action: No UCR registration, No federal authority

62 Where are we in relationship to 2008 registrations? The board has submitted the fee structure to FMCSA. It will again be published for notice and comment. The board has submitted the fee structure to FMCSA. It will again be published for notice and comment. There will be a gap between 2007 and 2008 renewal process. There will be a gap between 2007 and 2008 renewal process.

63 Additional information about the UCR program can be found at