So I have been an owner operator leased on driver for over a decade, and now with this dumb AB5 law coming into effect I need to get my own authority. I had a previous DOT and MC number from a short stint independent as a sole prop but now I am incorporated. My insurance lady recommended I keep my MC detached from my current new 2019 DOT number since I only run local and it is a lot cheaper on insurance from what she said. Problem is I am picking up a new Pete in a month and need to drive it back to Cali. Insurance agent said she can get me temp approval but what about not having an MC number attached to my DOT. This will be a one time gig coming back loaded on my car hauler, I plan to stay local after this as I like being home every night. I am also worried about losing my apportioned plate since I am being forced to lease off.
Thanks
O/O In Cali AB5 problem and a question about temp authority
Discussion in 'Ask An Owner Operator' started by Carhauler363, Jul 22, 2022.
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Another Canadian driver Thanks this.
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If I understand correctly you are currently leased onto a carrier and being forced to get your own authority to comply with AB5. You also have to go get your new truck soon and want to haul a revenue load back to California. Both simple enough.
What I don't understand is the recommendation from your insurance agent to keep your MC seperated from your DOT number? That isn't legally allowable. Sounds like they are trying to get around filing the MCS-90 and are selling you less insurance than legally required for having your own authority.
Now you say you only run local, ok and if so then you may not need a MC number if your work is truly intrastate. You may only need a CA number. If that is true then you will not be able to haul a load from out of state when you bring your truck back to California because there is no such thing as temporary interstate authority.
Where I am again confused is you are worried about losing your apportioned plates when you give up your lease and get your own authority. This will depend on who owns the plates, you or the carrier you are currently leased to. If you own the plates you will just need to update the motor carrier responsible for safety to show as your US DOT number.
Keep in mind though, without a MC number you won't need apportioned plates because you can't cross state lines without Federal authority (MC number). If your work requires you to cross state lines or haul freight that came from or is going out of state such as from/to a port or railhead then you need a MC number and a new insurance agent as they have no clue what you need to be legal!
You can go get your truck out of state without operating authority if you don't haul a load. You would just need IFTA and IRP (apportioned plates) or trip and fuel permits. You are a private carrier at that moment, all the rules apply (ELD, name/DOT number displayed, safety equipment, federal inspection, etc) just no authority (MC) required just a US DOT number.
Also keep in mind, if you are not properly registered (license plates truck and trailer) when you pick up your truck you can't haul a load even with operating authority because most temporary in-transit permits are for unladen vehicles only. If you plan to haul a load back from where you are picking up the truck make sure you have permits that allow a load or have your plates before you get the truck.Bean Jr., Jed2009, Another Canadian driver and 2 others Thank this. -
What a mess, and thanks again for your help.Bean Jr., Another Canadian driver and brian991219 Thank this. -
FYI, it will take about 25 days to fully process an application for interstate operating authority, there is a 21 day waiting period from time the application is submitted. Make sure your timeline accounts for that delay.
Best wishes for success. It sucks what California is doing to independents out there.Bean Jr., LoneRanger and Another Canadian driver Thank this. -
Perhaps you need advice from a professional insurance agent and a NEW insurance agent. Let me know if you do. My agent is the best in the industry.
Edit; she knows all about AB 5 and CommieforniaBean Jr., Oxbow, LoneRanger and 1 other person Thank this. -
Bean Jr. Thanks this.
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You don’t need an MC unless you are hauling someone else’s freight across state lines, and you can go across lines to pick up/repair a truck unladen without irp plates, deadhead the truck home and register it locally if that’s all you are doing
Bean Jr., LoneRanger and Concorde Thank this. -
Carhauler363, brian991219 and FiveRiversFreightlinesLLC Thank this.
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