Rancho Mesa's Alyssa Burley and Account Executive Jeremy Hoolihan talk about motor carrier permits and when they are required.

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Director/Producer/Host: Alyssa Burley

Guest: Jeremy Hoolihan

Editor: Lauren Stumpf

Music: "Home" by JHS Pedals, “News Room News” by Spence

transcript

[Introduction Music]

Alyssa Burley: Hi! This is Alyssa Burley with Rancho Mesa’s Media Communications and Client Services Department. Thank you for listening to today’s top Rancho Mesa news brought to you by our safety and risk management network, StudioOne™. Welcome back, everyone. My guest is Jeremy Hoolihan, Account Executive with Rancho Mesa. He specializes in the janitorial and maintenance industry. Today, we're going to talk about motor carrier permits and when they are required. Jeremy, welcome to the show.

Jeremy Hoolihan: Hi, Alyssa. It's great to be back to StudioOne™.

AB: When a company has vehicles on the road, like many of our clients, it's important that they understand all the commercial vehicle requirements in order to stay in compliance, whether it's insurance coverage or anything that's required by the DMV or the CHP. So for our listeners who aren't familiar with the motor carrier permits, well, you give us an overview of what they are.

JH: Well, first, let me give you an example of a situation that could occur. We recently had a client purchase a new, medium sized truck from a commercial dealership. A few weeks later, an employee driving that new vehicle was pulled over by the California Highway Patrol and fined for not carrying a motor carrier permit, otherwise known as an MCP. Our client immediately contacted Rancho Mesa, confused by the citation. They have other similar trucks that have been on the road for many years and never received a citation like this. To avoid a similar situation, it's essential to understand the MCP and the types of drivers and vehicles that are required to carry one.

AB: So Jeremy, what is the MCP?

JH: The MCP provides proof that the motor carrier is legally operating on California highways. In order to get an MCP, the Department of Motor Vehicles verifies that the motor carrier has complied with all the requirements for both registration and insurance. It includes specific information about their motor carrier. For example, name, mailing address, US dot number, California carrier, ID number, and effective and expiration dates of the permit. And it's good to know that MCP terms only last 12 months, so make sure not to miss the deadline.

AB: Okay, so the MCP just confirms that the driver or vehicle is legal. They've got insurance, they're registered and whatever else is required. So if there was a catastrophic accident on the road, there is coverage. So who is required to carry an MCP?

JH: Alyssa, there are many drivers and companies that are required to have MCPs. If your driver falls under any of these scenarios, they must have an MCP. So any person, business or entity who is paid to transport property to their motor vehicle regardless of the vehicle size type or weight this applies to for hire carriers, any person business or entity operating a motor vehicle with gross vehicle weight ratings of 10,001 pounds or more. And this applies to businesses transporting their own property. For example, a private carrier. Next is operators of any vehicle or a combination of vehicles transporting hazardous materials. Next is operators of a combination or a motor truck and trailer semi-trailer. Polar pipe dollies, auxiliary dollies and logging dollies that exceed 40 feet in length. When coupled together for purposes of an MCP, a trailer excludes camp trailers, utility trailers and trailer coaches.

AB: Is there an easy way to determine if you don't need an MCP?

JH: Alyssa, easy is kind of a relative term. While there are many scenarios where an MCP is required, there are still some instances where the MCP is not. An MCP is not needed for vehicles operated by household goods and or passenger carriers. Vehicles operated by household good carriers to transport used office, store, and institutional furniture and fixtures when operated under a household goods carrier permit. Another example would be pickup trucks with gross vehicle weight ratings of fewer than 11,500 pounds and unloaded weight of fewer than 8,001 pounds and equipment with a box type bed not going over nine feet in length when operated in noncommercial circumstances. Another example is utility trailers, camp trailers or trailer coaches. Vehicles providing transportation of passengers only, a passenger stage corporation transporting baggage and express upon a passenger vehicle incidental to the transportation of passengers. Vehicles used only for personal use and are 10,000 pound (gross vehicle weight rating or less), two axle daily rental trucks with a gross vehicle weight rating of less than 26,001 pounds (when operated in a noncommercial use). Vehicles that are exempt from vehicle registration fees- these include all publicly owned vehicles, special construction equipment, special mobile equipment and any other vehicle used primarily off the highway and not required to be registered. Motor trucks or two axle truck tractors with a gross vehicle weight of less than 26,001 pounds when operated singly or when used to tow a camp or utility trailer, a trailer coach, a fifth wheel trailer or a trailer designed to transport a watercraft and has never operated commercially.

AB: Okay, if an MCP is required, are there any penalties if you don't have one?

JH: Yes. There are potential fines for not carrying an MCP when it's required. If a motor carrier caught operating with a suspended MCP, they could be fined up to $2,500, charged with a misdemeanor and/or receive up to three months in jail. The CHP may also find it necessary to impound the vehicle.

AB: So we want to avoid fines and possible jail time so everyone should get the MCP if it's required. I know when clients purchase vehicles, they're usually pretty quick to let our staff know to ensure that they're included on the vehicle schedule. Does this size or weight matter when they're considering a purchase of this type of commercial vehicle?

JH: It is important to know the classification of your vehicle prior to purchase in order to determine whether an MCP filing is required. Manufacturers classify their trucks based on the gross vehicle weight rating government guidelines, otherwise known as GVWR, and that indicates the maximum truck weight plus what is able to carry fully loaded. That includes the truck's own weight plus the fuel, cargo, passengers and even the trailer tongue. Typically a three quarter and one ton truck are referred to as heavy duty, though they are technically classified as light duty vehicles. MCPs are typically required when your vehicle falls into the medium classification, which is typically defined as gross vehicle weight rating of 10,001 to 26,000 pounds. Do your due diligence ahead of purchasing the vehicle in order to know the specific licensing and permitting requirements. Also, consider working closely with an insurance broker that can assist you with the required insurance coverages and documents needed during the application process.

AB: Jeremy, if listeners have questions about their vehicles or commercial auto insurance, what's the best way to get in touch with you?

JH: I can be reached at 619-937-0174 or at the letter jhoolihan@ranchomesa.com.

[Outro Music]

AB: Jeremy, thank you for joining me in StudioOne™.

JH: It's been a pleasure. Alyssa, thanks for having me.

AB: This is Alyssa Burley with Rancho Mesa. Thanks for tuning in to our latest episode produced by StudioOne™. For more information, visit us at ranchomesa.com and subscribe to our weekly newsletter.