Fleet Vehicle Licensing and Registration What a fleet Manager should know

Transcription

1 Fleet Vehicle Licensing and Registration What a fleet Manager should know May

2 Vehicle Registration What a Fleet Manager Should Know Motor vehicle registrations are required under the Motor Vehicle Act. Vehicle registration and issuing of license plates are handled by the local jurisdictional 1 ministries in Canada. All jurisdictions have legislations requiring the registration of vehicles. Vehicles must be registered, licensed and insured prior to being driven on public 2 roads. Vehicles that are transferred from one jurisdiction to another may have up to 30 days to be registered in the new jurisdiction. Registration serves as the official record of the vehicle and ownership and provides a unique identifier for the vehicle. Maintaining registration requirements and renewal dates can become cumbersome and time consuming especially when dealing with large or complex fleets. Many fleet managers use the services of a third party company to manage the administrative tasks associated with the registration of their fleet vehicles and equipment. Types of vehicle registrations There are six main types of registration transactions that affect fleets. These are: 1. Initial or new vehicle registration 2. Plate renewals 3. Plate replacements 4. Plate cancellations 5. International Registration Plan (IRP) 6. International Fuel Tax Agreement (IFTA) Initial or new vehicle registration Typically, new vehicles are registered by the dealers before the vehicle is delivered to the fleet. This usually works well with little room for errors. Occasionally, there may be issues with dealers not registering the vehicle correctly (i.e. government plate, continuous plate, passenger/commercial plate type, specific expiry date). Additionally, a small percentage of fleet managers opt to not have initial vehicle registration completed by the dealer. Examples as to why they may elect to do so are: 1 Provincial or territorial 2 Vehicles operating on exclusively on private roads only, such as on mines and industrial plants do not have to be registered 2

3 The vehicle is purchased in a jurisdiction different from where it will be registered The dealer does not have the capability to register Licensing offices are independently owned and the private license office may not allow third party registrations The unit is pro-rated under the IRP International Registration Plan Plate renewals The bulk of the administrative and coordinative effort occurs in the plate renewal process. This task continues until the vehicle is put out of service or sold. The administrative process requires that different elements be coordinated and monitored: renewal notices, violations, provincial inspections (e.g. drive clean/air care testing) and additional mandates. The larger the fleet the greater the administrative effort required. Motor vehicle legislation varies greatly by jurisdiction. Knowledge of the nuances for each area is important, especially for fleets with a presence in multiple jurisdictions. Maintaining these details (such as knowing when online renewal is not possible, the number of plates per renewal notice, tracking odometer readings) can be a heavy administrative burden. Each registration should be documented and catalogued accurately in a database and, where possible, be made available to drivers, administrators and managers of the organization. Plate replacement A replacement plate is required when the plates have been damaged, lost or stolen. Damaged license plates must be returned to a licensing office. In some jurisdictions, lost plates must be reported to the police prior to having a replacement plates issued. Best practice stipulates that a vehicle should not be driven with a damaged plate and must be grounded until the new plate arrives. Other situations where plates are replaced include when: a vehicle is moved from one jurisdiction to another transferring ownership of vehicles converting from one type of plate to another 3

4 Plate cancellations When a vehicle is taken out of service permanently, or transferred and re-plated in another jurisdiction, it is necessary to cancel the plate. In such cases the plates must be returned to the ministry along with a copy of the vehicle registration. Plate cancellations are also carried out in cases where the plates are being replaced. In such cases, the old plate must be cancelled before the new replacement plate is issued. International Registration Plan The International Registration Plan, also referred to as pro-rate, is a registration reciprocity agreement that allows for the distribution of registration fees for commercial motor vehicles travelling inter-jurisdictionally through member states and provinces. This applies to all jurisdictions in Canada and the US, except for the Yukon, Northwest Territories, Nunavut and Alaska. IRP is usually applicable to vehicles having more than two axles or a gross weight over 11,793 kg. The IRP provides blanket registration for trucks and buses as an alternative to individual reciprocity agreements. It distributes truck and bus registration fees among member jurisdictions based on the number of kilometres IRP registered vehicles travel in other jurisdictions. Vehicles will have one licence plate and registration document which allows travel in all jurisdictions. Applications are made to the local pro-rate offices in the base plated jurisdiction. Fees are determined by the previous year s travel, based on where the travel occurred and the frequency. In order to satisfy the IRP legislation, initial registration and renewal requests to the pro-rate offices require more supporting documentation than regular vehicle registration. Also, additional paperwork needs to be submitted in order to cancel the pro-rated plate. International Fuel Tax Agreement IFTA is an agreement between the 10 provinces in Canada and 48 states in the United States of America to distribute fuel taxes based on mileage and areas travelled. Vehicles over 11,793 kilograms or over two axles that are operated in multiple jurisdictional areas are qualified to register under this program. IFTA makes it easier for inter jurisdictional carriers to register, license vehicles, report and pay taxes for motor fuels (such as diesel and gasoline). Under IFTA, the carrier files one consolidated fuel tax report with their base jurisdiction and is issued credentials which are honored in all member jurisdictions. Once registered, a license and decals are issued to the fleet. A copy of the registration must be kept in the vehicle. The license is renewable annually. Quarterly tax returns are submitted to the local IFTA offices. Fuel tax reporting is mandatory. IFTA membership is voluntary. Qualified vehicles not registered under IFTA must file separate tax returns for each jurisdiction travelled. 4

5 What is required to register a vehicle? What is involved in the registration of a vehicle may vary by jurisdiction. A basic set of requirements must be presented; some jurisdictions may have additional requirements or nuances that are important to keep in mind. Basic requirements: Insurance company name, policy number and expiry date NVIS new vehicle information state Initial Registration Plate Renewals Plate Replacement Jurisdiction registration # RIN/PIC/MVID/Fleet IN Paid up fees, fines or tolls Correct address Bill of sale Client power of attorney Renewal notice Plate and serial numbers Additional requirements: In addition to the basic requirement detailed above, renewals and replacements transactions may include one or more of the following requirements depending on jurisdiction or age of the vehicle. Renewal notices are required in Newfoundland Current odometer reading is required in Ontario Inspections - Drive clean for renewals and transfers in Ontario; Air care for renewals in British Columbia Manual registration only where online registration is not available Plate cancellation requirements: Copy of registration Reason for cancellation 5

6 IRP registration requirements: New IRP Setup Copy of registration or NVIS card Lease agreement/ownership Proof of insurance Provincial registration number RIN IRP Renewal Copy of registration or NVIS card Copy of Cab Card Insurance information company name and expiry date Business number Proof of residency Mileage per jurisdiction Commercial vehicle operator s registration (CVOR)/NIR Number of axles Weight IFTA registration requirements: New IFTA Registration Jurisdictions for travel Proof of residency IFTA Renewal Copy of IFTA certificate for each applicable province Up-to-date reported mileage National Safety Code (NSC) The NSC is a set of standards adopted by all jurisdictions in Canada to ensure safety and consistency in the trucking and motor carrier industry. Vehicles covered in this program generally include: Commercial vehicles licensed with a gross vehicle weight of more than 3 4,500 kg (depending on jurisdiction) Vehicles operating under the Passenger Transport Act Commercial vehicles that have a seating capacity of 10 or more passengers plus the driver 3 In some provinces, e.g. Alberta, the minimum weight is 5,000 kg 6

7 NSC requirements include (related to licensing): Safety fitness certificate Periodic inspections (annual or semi-annual) Common pitfalls to avoid Errors in managing registrations are commonly the result of a lack of knowledge in the following areas: Vehicle registration legislations vary across Canada. Fleets which operate in multiple jurisdictions must be aware of all the rules for those areas Municipal rules on which documents must be in the vehicle vary by jurisdiction. Noncompliance may result in fines Outstanding fleet violations - Unpaid violations, tolls, or fines for one plate may result in plate denial or freezing of registration for the entire fleet Completing registrations transactions on a timely basis The importance of building relationships with licensing offices across Canada Legal requirements for fleets that operate in both the US and Canada. Legal services are needed to set up the company at a corporate level before a provincial registration can be set up for the fleet Staggered dates for plate renewals may not be available in all jurisdictions. Where staggered renewal dates are not applicable this can be administratively burdensome to get all renewals at once Bulk registrations, and how they can reduce administrative costs Periodic compulsory inspections for the vehicle Fleets may be over insured - Often, fleets have blanket policies and can apply minimum insurance coverage in areas with provincial managed insurance programs, while letting the blanket policy cover the additional requirements. This should be reviewed with a Risk Management group to ensure proper coverage for the fleet is in place Fleet managers may not be aware of all the discounts that are available and may not be using the full government discounts that are offered. For example, a fleet of over five vehicles may qualify for up to 73% discount on insurance in British Columbia 7

8 Third party licensing services Third party licensing services are available to assist fleet managers. These providers specialize in the administration associated with managing the various requirements of fleet vehicle registrations and licensing. Such vendors have established relationships with key players in the process, and have the infrastructure and databases necessary to report on compliance. Generally a power of attorney is required by the third party licensing services in order to act on the fleet manager s behalf when accessing certain licensing services in some jurisdictions. Key areas with which third party licensing services can assist include: Initial registration - By auditing purchase or lease documentation, accurate registration can be ensured Initial plating for vehicles being acquired in one jurisdiction, and plated in another Renewals and transfers - Through collecting renewal notices, administering payment of fines and tolls, managing renewal dates and address changes, compliance will be maintained Providing assistance with the set up of provincial registration numbers in all applicable jurisdictions. In the case of mergers, this would be followed by facilitating the proper transfer of vehicles to the new company Completing name and address changes on registrations Replacing lost, stolen plates or registrations IFTA/IRP registrations Access to licensing professionals/experts with current expertise and information on each jurisdiction s requirements for licensing your vehicle (regardless of vehicle class) One centralized source to coordinate and administer the required paperwork, tasks and associated payment required for all licensing transactions with all jurisdictions for your fleet operations 8

9 Sources s=96_220_1014_576&f=00&tt=14&bt=1&bts=1&zu=http%3a// reg.asp %20WEBSITE.pdf 9