Operating Across State Lines (Interstate Transportation)

Transporting passengers from one state to another requires an operating license issued by the Federal Highway Administration (formerly the Interstate Commerce Commission). The FHWA is a federal agency that overseas surface carriers operating between two or more states. The primary function of the FHWA is to regulate services provided by carriers operating in interstate commerce. Since the early 1980’s the transportation industry has been de-regulated to allow easier access for new carriers, and to allow existing carriers the ability to provide additional or expanded services. Operating authority is issued on a permanent basis only, and remains valid until cancelled by you. The FHWA can revoke the authority to operate between States for lack of insurance or for safety reasons.

Authority is granted by the FHWA on a nationwide basis only. Authority is required for all passenger and property carriers that operate in two or more states. In addition to federal authority you may also be required to obtain authority in your base state. Most states regulate intrastate commerce.

Operating In A Single State (Intrastate Transportation)

If you plan to provide transportation services solely within one state make sure you contact that states Public Utilities or Public Service Commission to file for the proper state operating authority for the state you plan on operating in.

You must obtain state authority even if you have FHWA Authority if any services that you provide will not leave the state of origin during the course of the service.