Section 1010.710 Vehicle Proration

Section 1010

Section 1010.710  Vehicle

Proration

a)         How Proration Works

1)         Proration is a method of licensing truck and bus fleets

proportionately among several states.  The proration fee is determined with

reference to the portion of the carrier's mileage generated in each of the

individual states.

2)         The Illinois proration percentage is first obtained by

dividing the carrier's mileage in Illinois by the carrier's total mileage.  The

Carrier then determines what it would cost if the carrier's entire fleet was

licensed in Illinois.  The Illinois proration fee is then obtained by

multiplying this total fleet registration cost by the proration percentage.

3)         The carrier is entitled to as many Illinois license plates as

may be purchased for this total Illinois prorate fee.  Prorate decals and

identification cards are issued for the balance of the carrier's vehicles.

4)         The vehicles for which Illinois license plates are issued are

entitled to full operating privileges in Illinois, both interstate and

intrastate. The vehicles for which prorate decals are issued are limited to

interstate operating privileges in Illinois, with the exception of an

incidental intrastate operation.  Incidental shall be defined as 40% or less of

the payload. If "For-Hire", the carrier must have intrastate

authority.

b)         Filing Date

1)         Renewal applications for Vehicle Proration will be available

for filing after October 1 of the current year, and must be on file in this

office prior to December 1 of that year.

2)         If the fees or taxes due are filed after the date specified by

the Secretary of State, the Secretary will prescribe the payment of interest at

the rate of

1

/

2

of 1% per month, or a fraction thereof,

after the date January 15 of the registration year.

c)         Rules and Regulations

Pursuant to the provisions of the Illinois Vehicle Code

(IVC), the following rules and regulations have been adopted regarding vehicle

proration

after the date specified by

the Secretary of State, the Secretary will prescribe the payment of interest at

the rate of

1

/

2

of 1% per month, or a fraction thereof,

after the date January 15 of the registration year.

c)         Rules and Regulations

Pursuant to the provisions of the Illinois Vehicle Code

(IVC), the following rules and regulations have been adopted regarding vehicle

proration.

1)         Proration is available only for commercial vehicles having a

combined gross weight in excess of 12,000 pounds, including the weight of the

vehicle and the maximum load, which are operated interstate.  A prorate-plated

unit which fails to operate interstate in the calendar year for which the

license has been issued is subject to full Illinois fee with credit for the

amount previously paid.

2)         If the applicant operates divisions of separate fleets, the

applicant must combine all of the units operated by the various divisions in

one application.

3)         Applications will not be accepted unless executed and

submitted by the "owner", as defined in Section 3-400 of the Illinois

Vehicle Code. A long-term lessee is an owner.

4)         Every unit in excess of 12,000 pounds operated in the State of

Illinois in interstate operations must be included on the schedule for

proration.

5)         Computing the mileage and factor

A)        In computing the mileage, both interstate and intrastate

mileage of interstate operations must be listed on the schedule.

B)        In computing the prorate factor, however, only vehicles which

generated Illinois miles while in the service of the applicant during the

reporting period may be used.

6)         Calendar Year Applications must be used for units which are to

be licensed in Illinois, and these applications must be submitted with the

Application for Vehicle Proration and Schedule for Proration.  Proof of

ownership must be submitted for all units applying for Illinois Prorate base

plates

inois miles while in the service of the applicant during the

reporting period may be used.

6)         Calendar Year Applications must be used for units which are to

be licensed in Illinois, and these applications must be submitted with the

Application for Vehicle Proration and Schedule for Proration.  Proof of

ownership must be submitted for all units applying for Illinois Prorate base

plates.  Credit will not be given for Illinois licensed vehicles unless the

applications for Illinois license accompany the prorate application.  An

applicant may purchase as many Illinois license plates as may be purchased at

standard Illinois fees for all or part of the prorate fee to be due at the time

of payment.  Prepare a separate application form (calendar year application)

for each vehicle to be licensed in Illinois as indicated along with the

application.  Unused prorate fees cannot be used to purchase Illinois plates or

decals subsequent to filing of the original or any supplemental application.

7)         A carrier who purchased Illinois license plates in excess of

the amount of prorate fees cannot use the excess as a credit to obtain

additional prorate decals applied for in subsequent supplementary applications.

8)         Intrastate commerce, as defined herein, will be permitted only

for those units which are licensed in the State of Illinois and display

Illinois license plates, with the exception of an incidental intrastate

operation on a prorate decal.

9)         Applications for Illinois license plates on leased vehicles

must be submitted in the name of the lessee-applicant and a lease agreement

must be attached.  In the event that the lease is terminated, the license

plates can be transferred to the owner-lessor upon receipt of a transfer

application, the statutory fee, and a notarized release of interest from the

lessee

a prorate decal.

9)         Applications for Illinois license plates on leased vehicles

must be submitted in the name of the lessee-applicant and a lease agreement

must be attached.  In the event that the lease is terminated, the license

plates can be transferred to the owner-lessor upon receipt of a transfer

application, the statutory fee, and a notarized release of interest from the

lessee.

10)        Transfers of prorate decals are permitted for the statutory

fee, provided the transfer is to a unit of the same weight classification as

the unit which was deleted.

11)        Every applicant is required to maintain an individual vehicle

mileage record.

d)         Definitions

The following definitions govern some of the terms used in

the Application for Vehicle Proration.  Please review these definitions to be

sure of accurate completion of the application.

"Combined Gross Weight":  Combined gross weight

shall mean the weight of the bus, truck or truck-tractor and semitrailer unit

and the maximum load.

"Commercial Vehicle":  Commercial vehicle shall

mean a bus, truck or truck-tractor and semitrailer combination having a

combined gross weight in excess of 12,000 pounds which is used or maintained

for transportation of persons or property for-hire, compensation, profit, or in

furtherance of a commercial enterprise.

"Interstate Commerce":  Interstate commerce shall

mean transportation between two or more states or transportation originating in

one state and passing into or through other states for delivery in another

state, and which is not intrastate

pounds which is used or maintained

for transportation of persons or property for-hire, compensation, profit, or in

furtherance of a commercial enterprise.

"Interstate Commerce":  Interstate commerce shall

mean transportation between two or more states or transportation originating in

one state and passing into or through other states for delivery in another

state, and which is not intrastate.

"Intrastate Commerce":  Intrastate commerce shall

mean transportation originating at any point within this state and destined to

any other point or place within this state, irrespective of the route, highway

or highways traversed, including transportation which passes into or through

another state before delivery is made within this state, and including any act

of transportation which includes or completes a pickup within Illinois for

delivery within Illinois.

"IVMR":  IVMR shall mean Individual Vehicle Mileage

Records required of all prorate carriers.

"Long-Term Lease":  Long-term lease shall mean a

lease of a vehicle to a lessee for a period of 30 days or more.

"Principal Place of Business":  Principal place of

business shall mean the place where any person transacts his principal

business, or where he makes up and approves his payroll, maintains a central

file of records, and maintains his principal executive offices.  In the event

that not all of these functions are performed in one place, then that place

where a majority of such functions are performed or the place where such person

does, in fact, principally transact and control his business.

"Reporting Period":  The period of twelve

consecutive months immediately prior to July 1 of the year immediately

preceding the commencement of the registration or license year for which

proportional registration is sought.

"Short-Term Lease":  Short-term lease shall mean a

lease of a vehicle to a lessee for a period of 29 days or less, but for more

than one trip

sact and control his business.

"Reporting Period":  The period of twelve

consecutive months immediately prior to July 1 of the year immediately

preceding the commencement of the registration or license year for which

proportional registration is sought.

"Short-Term Lease":  Short-term lease shall mean a

lease of a vehicle to a lessee for a period of 29 days or less, but for more

than one trip.

"Trip Lease":  Trip lease shall mean a lease of a

vehicle to a lessee for a one-trip operation only.

e)         Temporary Prorate Authorization Permit

1)         Once an original application is on file, fees have been paid

and the immediate operation of a vehicle is necessary prior to receiving

prorate credentials from the State of Illinois, the carrier may operate the

vehicle by use of the Illinois Temporary Authorization Permit.  This permit may

be obtained by writing the Commercial & Farm Truck Division in the

Secretary of State's Office.

2)         The permit must be completed in full and be typed.  One copy

of the permit is to be carried in the vehicle, one copy is to be retained by

the company for audit purposes, and one copy is to be forwarded to the

Secretary of State's Office along with the accompanying supplemental

application plus the appropriate fees within five (5) working days after the

permit has been issued.

3)         The permits will be issued upon written request at the

statutory fee and in numerical order.  Temporary permits are valid for 45 days

from the date of issuance by the company. These permits are not to be used for

the renewal of any registration.

4)         All unused permits issued for that calendar year must be

returned to the Commercial & Farm Truck Division, Office of the Secretary

of State, by January 15 of the next year.  For the number of expired unused

permits that are returned, the office will issue that same amount of next

year's permits free of charge, limited, however, to the renewal by a carrier of

the same account

ation.

4)         All unused permits issued for that calendar year must be

returned to the Commercial & Farm Truck Division, Office of the Secretary

of State, by January 15 of the next year.  For the number of expired unused

permits that are returned, the office will issue that same amount of next

year's permits free of charge, limited, however, to the renewal by a carrier of

the same account.  Any permits received after January 15 will be accepted for

accountability and audit purposes only.

5)         No more than one permit may be issued per vehicle.  If a

permit is typed out incorrectly and needs to be voided, all three (3) copies

are to be returned to our office with a letter of explanation.

6)         If all of the permits issued to a company are not accounted

for, the company will be assessed full year Illinois fees in the highest weight

or fee category for power units that the company has a power unit registered in

during the registration year in question and the company will lose its

privilege of obtaining temporary authorization permits.

f)         Additional Information

1)         Uniform Proration Compact

In requesting the issuance of Illinois license plates and

prorate backing plates, carriers who are prorating under the Uniform Proration

Compact should be aware of the following requirements relating to the issuance

of license plates and backing plates:

A)        The carrier may designate for issuance by Illinois at least

that number of license plates for which payment could be made in full from the

amount of money paid by the carrier in prorate fees to the State of Illinois.

B)        Illinois will not issue more license plates than may be

designated pursuant to subsection (1) hereof unless the applicant pays the standard

Illinois fee for the additional vehicles to be licensed in the State of

Illinois.

2)         Leased Vehicles

All license plates and prorate identification issued pursuant

to this application will be issued in the name of the applicant-carrier

is.

B)        Illinois will not issue more license plates than may be

designated pursuant to subsection (1) hereof unless the applicant pays the standard

Illinois fee for the additional vehicles to be licensed in the State of

Illinois.

2)         Leased Vehicles

All license plates and prorate identification issued pursuant

to this application will be issued in the name of the applicant-carrier.  This

will apply even in the case of vehicles which are leased to the

applicant-carrier by the lessor.  In such case, application for Illinois

registration should be made in the name of the long-term lessee with the

lessee's address. The name of the lessor may also be shown.

A)        Trip Lease

i)          A carrier whose fleet has been prorated with the State of

Illinois may trip lease a prorated vehicle to another carrier whose fleet has

also been prorated with the State of Illinois, provided a copy of the lease is

in the cab of the unit being operated by the lessee.

ii)         The lessor, however, must maintain, for the purpose of

individual vehicle mileage records, the mileage operated under the trip lease,

and the lessor must, in filing a prorate application for the succeeding year,

record the miles operated by that truck under the trip lease.  In the event

that a reciprocity carrier trip leases to a prorate carrier (lessee), the

prorate carrier must purchase an Illinois 72-hour trip permit.

B)        Short-Term Lease (Less than 30 days, but for more than one

trip):  The lessor must maintain, for the purpose of individual vehicle mileage

records, the mileage operated under a short-term lease and the lessor-carrier

must, in filing a prorate application for the succeeding year, report the miles

operated by any unit under a short-term lease.

C)        Long-Term Lease:  The registration identification card for base

plates from all jurisdictions must indicate the name of the lessee, or the

names of the lessor and lessee, if the lease is for 30 days or longer

ed under a short-term lease and the lessor-carrier

must, in filing a prorate application for the succeeding year, report the miles

operated by any unit under a short-term lease.

C)        Long-Term Lease:  The registration identification card for base

plates from all jurisdictions must indicate the name of the lessee, or the

names of the lessor and lessee, if the lease is for 30 days or longer.

i)          30 days or more/prorated units – the lessee must maintain,

for the purpose of individual vehicle mileage records, the mileage operated

under a long-term lease, and the carrier must, in filing a prorate application

for the succeeding year, report the miles operated by any unit under a

long-term lease.

ii)         30 days or more/fiscal-plated units – the vehicle shall be

registered jointly in the names of the lessor and the lessee, and if said unit

has been issued an Illinois fiscal plate, then mileage generated by that unit

shall be reported on the prorate application if the unit operates interstate while

in the service of the applicant.

g)         Mileage Record Keeping Requirements

1)         Individual Vehicle Mileage Records

A)        As a condition precedent to the filing of a prorate

application, every applicant is required to maintain individual vehicle mileage

records, hereinafter referred to as IVMR, in the form and manner prescribed in

these instructions.

B)        Any registrant whose application for prorate registration has

been accepted shall preserve the records on which it is based for a period of

four years.  Such records shall be made available to the Secretary of State's

Office for audit as to accuracy of computation, payments, and assessments for

deficiencies or allowances for credits, during the normal business hours of the

day.

C)        The IVMR is a summary of the driver's daily logs or other

source documents that when completed will show a pattern of continuous movement

of the individual vehicle.  Trips must be listed in chronological order

y of State's

Office for audit as to accuracy of computation, payments, and assessments for

deficiencies or allowances for credits, during the normal business hours of the

day.

C)        The IVMR is a summary of the driver's daily logs or other

source documents that when completed will show a pattern of continuous movement

of the individual vehicle.  Trips must be listed in chronological order.  The

applicant will be required to explain time lapses and unaccounted for movements

in sufficient detail to permit the auditor to satisfy himself that all mileage

is properly recorded.

D)        The IVMR is not to be submitted to this office.  It is to be

maintained by the carrier as a mileage record from which the carrier may

complete the schedule and be available for audit.

E)        An IVMR must be maintained by the applicant for each vehicle

that is a part of the fleet. IVMR's must be prepared on a monthly basis. At the

end of the mileage period, all mileage records must be made available at one

location for audit purposes.

F)         The source documents comprising the IVMR's must contain the

following information:

i)          Date

ii)         Trip Origin & Destination

iii)        Driver's Name

iv)        Total Trip Miles

v)         Mileage by States

vi)        Vehicle Serial Number

vii)       Vehicle Fleet Number

viii)      Decal Number

ix)        Plate Number

x)         Routes Traveled

G)        The IVMR must include any and all movements of the prorated

vehicle, whether loaded or empty.

H)        All applicants are required to maintain IVMR's for the purpose

of accumulating the required mileage statistics. The Secretary of State will

permit the use of alternate systems when permission has been granted by the

Reciprocity-Prorate Audit Division of the Secretary of State's Office

The IVMR must include any and all movements of the prorated

vehicle, whether loaded or empty.

H)        All applicants are required to maintain IVMR's for the purpose

of accumulating the required mileage statistics. The Secretary of State will

permit the use of alternate systems when permission has been granted by the

Reciprocity-Prorate Audit Division of the Secretary of State's Office.  To

obtain this permission, the following conditions must be met:

i)          The applicant must submit in writing to the Office of the

Secretary of State, a request for permission to use a substitute mileage

accounting system, setting forth the reason(s) why a substitute system is

necessary.

ii)         As part of the request, include samples of the form which is

proposed to be used.

iii)        A detailed step-by-step procedure for the use of this system

must also be submitted.

iv)        If such permission is granted, the applicant will not be

required to maintain the IVMR.

v)         An applicant may continue the use of an approved alternate

system, provided the applicant does not change the system, until notification

by the Secretary of State to the contrary. The Secretary of State, through the

Reciprocity-Prorate Audit Division, will approve an alternate system if all of

the information required to be maintained above in the IVMR's is maintained,

although not in the IVMR format.

2)         Monthly summaries of IVMR's must then be compiled for the

fleet.

3)         Annual summaries of the fleet must be prepared from the

monthly summaries.

4)         When a leasing company or any trucking service company

prepares the prorate application for any carrier, the carrier must retain

copies of the mileage information furnished as well as all supporting

documents.