In a Final Rule that went into effect September 27, 2006, the Federal Motor Carrier Safety Administration (FMCSA) has increased the penalty for carriers who operate without proper authority or operate beyond the scope of their authority. Instead of a citation, the carrier can be shut down.
Matt Wrobel, senior manager of Foley Services Inc. points out the FMCSA was very clear on the meaning of operating authority. Operating authority means that the information provided on the most current MCS-150 form filed by the motor carrier must match the type of business actually operated. Not only will the type of carriage and geographic operating authority be considered, but also proper level of insurance for the type of business will be part of the consideration of whether a carrier is operating within its authority.
Wrobel continues, explaining that the carrier will be placed out of service until everything is corrected and the official information is updated.