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GAO-07-771R 1 (2007-05-25)

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       GOA

United States Government Accountability Office
Washington, DC 20548



May 25, 2007

The Honorable Patty Murray
Chairman
The Honorable Christopher S. Bond
Ranking Member
Subcommittee on Transportation, Housing,
  Urban Development, and Related Agencies
Committee on Appropriations
United States Senate

Subject: Unified Motor Carrier Fee System: Progress Made but Challenges to
Implementing New System Remain

The congressionally established unified carrier fee system was not implemented before its
predecessor, the Single State Registration System, expired thereby preventing states from
collecting fees from for-hire motor carriers and other related entities. The Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-
LU) mandated that a new unified carrier fee system replace the Single State Registration
System, which expired on January 1, 2007.' The Single State Registration System annually
provided 38 states with about $100 million in total fees collected from for-hire interstate
motor carriers. States used revenue collected from this system to supplement general funds
and conduct safety-related services. Unlike the Single State Registration System, the new
system broadened the base of those expected to pay fees to include exempt for-hire motor
carriers, private motor carriers, brokers, freight forwarders, and leasing companies.

To develop and administer this new fee system, Congress established a Board of Directors.
This board is also tasked with administering a federal-interstate Unified Carrier Registration
Agreement (UCRA), and issuing rules and regulations to govern this agreement. The
Secretary of Transportation appoints the board, which consists of the Deputy Administrator
of the Federal Motor Carrier Safety Administration (FMCSA) and representatives from
participating states and the motor carrier industry. The Secretary also ultimately sets the
fees and has delegated this responsibility to FMCSA.

You asked us to examine the progress that the board and the Department of Transportation
have made in implementing the unified carrier fee system and any implications resulting
from the status of its implementation. Specifically, we undertook this study to (1) describe
steps taken to implement the unified carrier fee system and the current status of

'Current legislative proposals exist to temporarily reinstate the Single State Registration System.


GAO-07-771R Unified Carrier Fee System

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