Interstate vs Intrastate Authority — What Do You Need?

Interstate (federal) vs intrastate (state-only) authority is a fundamental distinction. Wrong choice = unauthorized operation + penalties.

What's interstate

Any operation that:

• Crosses a state line, OR
• Originates AND terminates in different states, OR
• Crosses an international border (US-Mexico, US-Canada)

What's intrastate

Operation that:

• Originates AND terminates in the same state
• Doesn't cross state lines
• Doesn't cross international borders

Special cases

• Some intrastate operations may be subject to federal jurisdiction (interstate commerce regardless of state lines)
• "For hire" vs "private" — different requirements
• Hazmat operations — federal jurisdiction regardless of state

What you need for interstate

• USDOT number
• MC number (if for-hire transportation)
• BMC-91 (insurance proof)
• BOC-3 (process agents in each state)
• IFTA + IRP if applicable

What you need for intrastate

• State motor carrier registration
• State insurance proof (varies)
• State-issued license plate
• USDOT number (only if vehicle weight/use exceeds federal threshold)

State motor carrier registration

• Each state has its own registration process
• Some states use IRP (apportioned plates)
• Some states have separate intrastate registration
• Insurance requirements vary state to state

How to determine

1. List your operating routes
2. Identify which cross state lines
3. If ANY interstate operation → need federal authority
4. If ALL operations intrastate → state authority only

Common confusion

• "I deliver only in [state]" — but if you pick up loads from interstate carrier, you may be operating in interstate commerce
• "I deliver locally" — but if you cross a state line (even briefly), interstate authority required

Penalties for wrong authority

• Federal: $10,000+ per violation
• State: varies, but typically $500-$5,000

Compass authority module

• Tracks current authority level (federal or state)
• Alerts if interstate operation occurs without federal authority
• Manages USDOT/MC/IFTA/IRP renewal cycle

CFR citations

• 49 CFR Part 365
• State Motor Carrier Laws

How Compass surfaces this

Searchable in Compass Ask. Runs against carrier fleet data when invoked from the relevant tracker. Read-only; no actions without explicit user approval.

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This skill is published under the X3 Compass open skills initiative. Contributions welcome at https://github.com/x3fleetsafety/skills