QuestionI drive for a vehicle moving company. We do move a few units requiring a CDL. Some of these units do not have any operating rights and are owned by new truck dealerships. We transfer these units from one state to another and within a state for pay. I got pulled off at a scale in Florida and my boss had to pay a $500.00 dollar fine for not having an ICCMC permit. Are we required to have a permit for these vehicles not owned by our company? Thanks in advance for your answer.
AnswerPhillip...
If I'm interpreting your question correctly, you are transporting other people's or company's vehicles across state lines for compensation. My comments are based on the assumption that the trucks & trailers used have either an individual or combined GVWR of 10,001 lbs. or greater.
No, you can not just get "permits" for those you're hauling for hire. Regardless of whether a CDL is required or not for the truck (or combination truck & trailer), when you transport for hire interstate, you're required to be registered with FMCSA as a "for hire" motor carrier.
A few quick comments that may help for clarification.......
Whether a CDL is required or not is dependent on the GVWR and/or CGVWR of the truck & trailer combination you're operating. It has nothing to do with the load you're hauling. Very fundamentally, if the combined GVWR of your truck & trailer is 26,001 lbs or more, the driver would need a CDL. There are some other factors that might be involved in specific states, since some states require a CDL if the towed unit is 10,000 lbs GVWR or more. The CGVWR can be determined by adding the GVWR of the truck (found on the door jamb decal) and the GVWR of the trailer (usually found on or near the vin decal).
You can haul your own vehicles interstate in furtherance of your own business (if it is not a transportation business) without interstate motor carrier authority, but you would still be required to register with the US DOT's FMCSA for a US DOT number. That would not constitute authority to haul for hire.
Interstate motor carrier authority is essentially your federal license to haul across state lines for hire. That authority is granted by assignment of a motor carrier number (MC#), formerly an ICC number. Without an active MC# assignment, you can not legally haul other people's motor vehicles across state lines for compensation of any kind.
You can obtain a US DOT & MC# assignment on line at http://www.fmcsa.dot.gov/registration-licensing/online-registration/onlineregdes... There is no charge for the US DOT# and the MC# is $300.
However, prior to your authority being activated, you must meet several other requirements. You'll be required to have current insurance and your insurance company must file the appropriate forms verifying your insurance coverage meets the minimum amounts for the cargo you transport. The two types of insurance required are Bodily Injury & Property Damage (BIPD) and cargo insurance. The minimum amount of BIPD to haul gasoline or diesel powered motor vehicles is $1,000,000.00. Cargo minimum is $5,000.00 but should be sufficient to cover the value of any cargo you may expect to transport. You'll need a process server company to file a BOC-3 form with FMCSA. A process server is an authorized individual where official documents can be served in each state where you operate.
A few other related requirements are.... each truck and trailer must have a current annual DOT inspection. Each driver must have a current US DOT certified physical exam and carry the documentation while on operating the vehicle. There are specific motor carrier company records that must be maintained. The company records are subject to audit at any time. Each driver must possess the appropriate state issued drivers license for the class of vehicle operated. If the company operates vehicles that require a CDL, the drug test/screening requirements become effective. The driver is subject to the Hours of Service (HOS) regulations and must maintain a driver's logbook.
This is not intended to be all inclusive of the requirements that must be satisfied to haul motor vehicles for hire, but just some of the basic requirements.
Transporting without having the appropriate credentials including active interstate authority is viewed as substantial hazard to the public highways. Over recents months, several states have stepped up the emphasis on enforcing the statutory requirements, especially on the smaller trucks in the 1 to 2 ton range towing car hauling trailers and so called "hot shot" freight haulers operating similar small trucks and other types of trailers. From most indications, the public can expect even more stringent enforcement in the future. The fines and other punishment can be quite significant, even for the first offense. Subsequent offenses will be even more costly.
This probably isn't what you would have preferred to hear, but hopefully it will help you understand some of the requirements you must meet to legally transport motor vehicles across state lines for hire. Thank you for the question and please feel free to ask any other questions that you may have.
...Don
