This study analyzes the costs and benefits of the Kentucky For-Hire operating authority, which is issued to all carriers who pick up and drop off freight in Kentucky on a for-hire basis. It reviews current statutory and regulatory requirements, calculates the costs and benefits of administering Kentucky For-Hire, reviews the legal history of trucking regulation and deregulation, reports on a survey of other states about their practices with intrastate operating authority, and proposes three alternatives to current policies. The primary benefit of Kentucky For-Hire is that it enables the Kentucky Transportation Cabinet to verify carriers have commercial liability insurance. Several major challenges confront Kentucky For-Hire — the costs of administering the program exceed the revenue it generates, the requirement is loosely enforced, and violations potentially punish the commercial vehicle operator instead of the motor carrier owner or management. Each solution attempts to address one or more of these challenges. The study analyzes the benefits and challenges of the proposed policy alternatives. The report concludes with a supplementary chapter pertaining to the regulation of transportation network companies and parcel delivery service subcontractors.

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© 2018 University of Kentucky, Kentucky Transportation Center

Information may not be used, reproduced, or republished without KTC’s written consent.

The contents of this report reflect the views of the authors, who are responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the University of Kentucky, the Kentucky Transportation Center, the Kentucky Transportation Cabinet, the United States Department of Transportation, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. The inclusion of manufacturer names or trade names is for identification purposes and should not be considered an endorsement.