To operate as a for-hire motor carrier inside Alabama, you need Alabama APSC motor carrier authority, issued by the Alabama Public Service Commission under the Alabama Motor Carrier Act (Title 37, Chapter 3 of the Alabama Code). That authority takes one of two forms: a certificate of public convenience and necessity for common carriers, or a permit for contract carriers. Getting it requires an application, a $100 filing fee, insurance filed directly by your insurer, vehicle markings, and, for some carrier types, an approved tariff on file before you turn a wheel.
Who Needs Authority from the APSC
Any person or company that hauls property, household goods, or passengers for pay between points inside Alabama needs authority from the APSC. That covers both common carriers, which serve the general public, and contract carriers, which work under individual agreements with specific shippers or customers. If you arrange intrastate transportation of property for compensation but don’t haul it yourself, you need a separate broker’s license from the APSC.1Alabama Public Service Commission. Motor Carrier Services Section
APSC authority is intrastate authority. Crossing a state line puts you in interstate commerce and under federal jurisdiction instead, though interstate carriers still have Alabama obligations like Unified Carrier Registration when they operate here.
Operations That Are Exempt
The Motor Carrier Act exempts a long list of operations, and applying for authority you don’t need is a common waste of time. The exemptions that come up most often:
- Motor vehicles controlled and operated by a farmer to transport agricultural products or supplies to and from the farm.
- Vehicles hauling milk, livestock, coal, logs, lumber, poles, pulpwood, cotton bales, cottonseed, fertilizer, peanuts, potatoes, or any other agricultural commodity, provided the cargo is not a manufactured product made from those commodities.
- For-hire vehicles operating entirely within one city or town (including its police jurisdiction), or between cities whose limits or police jurisdictions adjoin.
- Vehicles owned and operated by the federal government, the State of Alabama, or any county or municipality.
- Buses owned by or under contract with county boards of education, so long as they don’t pick up paying passengers on a certificated route.
- Vehicles owned or operated by hotels and used only to transport hotel guests.
- Vehicles hauling property when the vehicle owner is regularly in the business of selling that property and holds legal title to the vehicle.
- Vehicles used exclusively to haul newspapers, magazines, and U.S. mail.
These exemptions apply only to the APSC authority requirement.2Alabama Legislature. Alabama Code Title 37-3-4 – Exemptions Safety, weight, and insurance obligations enforced by other agencies still apply. A farmer hauling soybeans is exempt from needing a certificate but not from vehicle safety rules.
Certificate or Permit: Which One You Need
The APSC issues two kinds of authority, and choosing the right one comes down to who your customers are.
Common carriers, meaning carriers that hold themselves out to serve the general public, need a certificate of public convenience and necessity. You have to show the APSC that you are fit, willing, and able to perform the service, and that the public needs it or will need it.3Alabama Legislature. Alabama Code Title 37-3-10 – Certificate of Public Convenience and Necessity Existing carriers can protest your application if they think the market is already served, and the APSC holds a hearing to resolve the question. That is where common carrier applications sometimes fail.
Contract carriers, which serve specific customers under individual agreements, need a permit instead. There is no public necessity test, so the process is generally lighter. A single carrier cannot hold both a common carrier certificate and a contract carrier permit at the same time.
How to Apply
File the appropriate application form with the APSC. Property carriers and passenger carriers use different forms. The application needs your business’s legal structure, the identity of the owners or officers, the principal business address, and information about your fleet, including vehicle types and the number of units you plan to operate.
A $100 filing fee goes with the application, and the APSC accepts only a cashier’s check or money order. Cash, personal checks, and company checks are not accepted.4Alabama Public Service Commission. Intrastate Registration Include a motor vehicle list, a financial statement, and a description of your safety program. Broker license applicants pay the same $100 and also need articles filed with the Alabama Secretary of State (for corporations and LLCs) plus a surety bond.
The APSC will not grant authority until your insurance is also on file. Common carrier applicants should also plan for a hearing.
Insurance Filings and Minimum Limits
Your insurance company files the proof of coverage directly with the APSC. Liability coverage is filed on Form E. Property carriers, including household goods movers, also need Form H filed to show cargo coverage.
Minimum liability limits for property carriers are $350,000 combined single limit, or split coverage of $100,000 per person for bodily injury, $300,000 per accident, and $50,000 for property damage. Property and household goods carriers also need at least $5,000 in cargo insurance.
Passenger carrier minimums scale with seating capacity:
- Up to 5 passengers: $60,000 combined single limit.
- 6 to 20 passengers: $230,000 combined single limit.
- 21 or more passengers: $550,000 combined single limit.
Continuous coverage is a condition of holding authority. Your insurer files renewal proof directly with the Commission when your policy renews, and a lapse is one of the fastest ways to lose your authority.
Tariff Filings
Common carriers must file tariffs with the APSC showing their rates, fares, and charges for intrastate service. Those schedules stay open for public inspection, and you cannot legally transport passengers or property until your rates are filed and published.5Alabama Legislature. Alabama Code Title 37-3-20 – Tariffs of Common Carriers
Household goods carriers and non-charter passenger carriers face the strictest tariff rules. They must have an approved tariff on file with the Commission before beginning operations, and the tariff must set out the rates, fares, charges, rules, and regulations governing the service.1Alabama Public Service Commission. Motor Carrier Services Section Rate changes require at least 30 days’ notice filed with the APSC, though the Commission can shorten that period for good cause.5Alabama Legislature. Alabama Code Title 37-3-20 – Tariffs of Common Carriers
Vehicle Marking
Every power unit operated under APSC authority has to display specific identification on each side. The markings include the business name your certificate or permit was issued under, the city of your principal Alabama place of business, “APSC Cert.” with your certificate number (common carriers) or “APSC Permit” with your permit number (contract carriers), and “APSC Reg. No.” with the registration number the Commission assigned to that unit.
Letters must be at least two inches tall, painted directly on the vehicle in a contrasting color, and legible.6Alabama Administrative Code. Alabama Administrative Code Rule 770-X-10-.03-2-.04 – External Identification Common carriers of passengers in vehicles seating five or fewer have extra marking requirements, including a posted schedule of fares, though the minimum letter size drops to one and a half inches. No trade name or fictitious name may be displayed more prominently than the business name on the certificate.
Federal Registrations You Still Need
Alabama requires intrastate commercial motor carriers to obtain a USDOT number even if they never leave the state.7Federal Motor Carrier Safety Administration. Do I Need a USDOT Number? Federally, a USDOT number is required for any vehicle with a gross vehicle weight rating of 10,001 pounds or more, any vehicle designed to carry more than 8 passengers for compensation, or any vehicle transporting placarded hazardous materials. New carriers enter the FMCSA’s New Entrant Safety Assurance Program and should expect a safety audit within 12 months.8Federal Motor Carrier Safety Administration. New Entrant Safety Assurance Program
If you operate in interstate commerce, you also need annual Unified Carrier Registration. With Alabama as your base state, file by November 30 of the year before the registration year (or within 60 days after the U.S. Department of Transportation sets the annual UCR fees, whichever is later). Fees are paid by money order or cashier’s check and cannot be prorated.9Alabama Administrative Code. Alabama Administrative Code Rule 770-X-10-.03-2-.03 – Unified Carrier Registration Carriers who primarily run intrastate still need UCR if they occasionally participate in interstate commerce.10Unified Carrier Registration Plan. Unified Carrier Registration Plan – Do I Need to Register
Interstate operators of qualified motor vehicles must also register for the International Fuel Tax Agreement through the Alabama Department of Revenue, filing Form MV:IFTA-1 and paying $17 per set of decals.11Alabama Department of Revenue. International Fuel Tax Agreement (IFTA) A qualified motor vehicle has two axles and a gross vehicle weight over 26,000 pounds, three or more axles regardless of weight, or is used in a combination exceeding 26,000 pounds.
Annual Vehicle Inspections
Every commercial motor vehicle needs a safety inspection at least once every 12 months, and proof of inspection must be on the vehicle at all times.12Federal Motor Carrier Safety Administration. Vehicle Inspection The inspector must be qualified through training or certification. For combination vehicles, each component (tractor, semitrailer, full trailer, converter dolly) counts as its own vehicle and needs its own inspection. Alabama may add state requirements on top of the federal baseline, so check with the APSC or the Alabama Law Enforcement Agency.
Keeping Your Authority Active
The paperwork doesn’t stop at approval. Insurance has to stay continuous, with your insurer filing renewals directly. Household goods carriers and non-charter passenger carriers must file an annual report with the APSC by April 30 each year, including a financial statement showing continued financial fitness. All carriers should notify the Commission promptly when the principal place of business, fleet size, or ownership changes. UCR registrants keep their records at least three years from the due date or filing date, whichever is later.9Alabama Administrative Code. Alabama Administrative Code Rule 770-X-10-.03-2-.03 – Unified Carrier Registration
The APSC can suspend, change, or revoke your certificate, permit, or license for willful failure to comply with the Motor Carrier Act, any Commission rule, or any condition of your authority. Before revocation, the Commission must give you at least 30 days to fix the problem.13Justia Law. Alabama Code Title 37-3-16 – Effective Date of Certificates, Permits or Licenses
Penalties for Violations
General violations of the Motor Carrier Act or any APSC rule, order, or license condition draw fines of up to $100 for a first offense and up to $500 for each later offense. Each day the violation continues is a separate offense, so exposure adds up fast.14Alabama Legislature. Alabama Code Title 37-3-25 – Penalties for Violations
Rebating, false billing, or helping someone get transportation below the published tariff rate is a misdemeanor, with fines of up to $100 for a first offense and up to $1,000 for subsequent offenses. Willfully filing false reports, destroying records, or failing to keep required accounts can bring fines of up to $5,000 per offense.14Alabama Legislature. Alabama Code Title 37-3-25 – Penalties for Violations Operating without authority, or outside its conditions, also puts the authority itself at risk of revocation.