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FMCSA Finalizes Long-Awaited Unified Registration System for Motor Carriers, Forwarders

After spending nearly two decades in the pipeline, the Federal Motor Carrier Safety Administration issued its regulation establishing the Unified Registration System (URS). The final rule, which is set for publication in the Aug. 23 Federal Register, fulfills the government’s long-held goal of combining several existing information systems into a single system, FMCSA said. Once it comes into effect in October 2015, the URS “will streamline the registration process and serve as a clearinghouse and depository of information, and identification of, motor carriers, freight forwarders, [intermodal equipment providers], [hazardous materials safety permit] applicants, and cargo tank facilities required to register with FMCSA,” the agency said.

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FMCSA posted a FAQ on the URS along with its final rule (here).

Law Authorizing URS Passed in 1995; First Proposed Rule in 2005

Congress first mandated a single registration system in the 1995 ICC Termination Act. But FMCSA didn’t propose its URS regulations until 2005. In 2011, FMCSA proposed to modify its 2005 proposal in response to another law on carrier registration (see 11103119). The 2012 Moving Ahead for Progress in the 21st Century Act (MAP-21) added further new requirements for carrier registration, but FMCSA said it will address those in a later rulemaking.

The URS final rule consolidates four registration and information systems that were previously separate: the U.S. Department of Transportation (USDOT) identification number system; the 49 USC chapter 139 commercial registration system; the 49 USC 13906 financial responsibility information system; and the service of process designation system.

All FMCSA-Regulated Entities Required to Register, Update Every 2 Years

All entities under FMCSA’s commercial or safety jurisdiction must register for the URS. That includes motor carriers, freight forwarders, brokers, intermodal equipment providers, hazardous materials safety permit applicants, and cargo tank facilities. Mexico-domiciled long-haul carriers are exempt from the rule, because the U.S.-Mexico border is closed to such carriers unless they participate in the cross-border long-haul trucking pilot program.

Electronic registration. Under the URS, registration will be entirely electronic using a web-based, online version of new Form MCSA-1.

Biennial updates. Covered entities would have to update their registration information every 24 months. If an entity changes its legal name, form of business, or address, the registration must be updated sooner.

Identification by single number. Once registered, FMCSA will use the USDOT Number as the only unique identifier for motor carriers, brokers, and freight forwarders subject to its regulations. Registration numbers previously used by FMCSA, like the FF Number assigned to freight forwarders, will be discontinued.

Registration fee. Under FMCSA’s final rule, the agency will charge a $300 registration fee for all new applications. That expands fee coverage beyond the non-exempt for-hire motor carriers, property brokers, and freight forwarders that are currently required to pay. FMCSA said it is declining to raise the fee, even though the Moving Ahead for Progress in the 21st Century (MAP-21) Act gave it that authority.

Expansion of other requirements. The URS final rule expands requirements previously applicable only to certain entities. More FMCSA-regulated companies will have to prove financial responsibility before getting a USDOT number, and all for-hire and private motor carriers, brokers, and freight forwarders will have to designate agents for service of process.

Carriers can register in States. FMCSA says motor carriers that register their vehicles in States that participate in the Performance and Registration Information System Management (PRISM) Program can file required FMCSA registrations and biennial updates electronically with the State. If State procedures don’t allow a motor carrier to file its Form MCSA-1 or submit updates, the motor carrier will have to file directly with FMCSA, the agency said.

Compliance Required by 2015, With Exceptions

The URS final rule is Oct. 23, 2015, and companies must comply by that date, with certain exceptions. Provisions for civil penalties for failure to comply with biennial registration update requirements will come into effect Nov. 1, 2013. Certain provisions related to designation of agents for service of process won’t come into effect until April 25, 2016.