Interagency Agreements (25)

Description:

To enable any cross-border enforcement of RUC, a memorandum of understanding (MOU) or other interagency agreement would be required. Such an agreement is highly desirable between two neighboring states with RUC programs, but it may be desirable between any states where significant travel will occur to enable out-of-state enforcement. Such MOUs may be bilateral or multilateral.

Details:

To create the agreement, follow standard interstate agreement procedures. Following these procedures can be a time-consuming process, so allow for time accordingly. Interstate MOUs may require approval from both legislatures, which may take a long time to obtain, unless the provision is included in the RUC law. The main topics of such MOUs will be the exchange of collected funds, refund of fuel taxes from all participating states, validation procedures used by all parties, and enforcement of penalties against vehicles that violate another state’s RUC program.

Primary Uses:

Support cooperation concerning RUC and provide means for administration across state borders.

Best Practices/Lessons Learned:

  • Be prepared to enact the system without an MOU because obtaining one can be a time-consuming process, even if both states are motivated to participate.
  • Political changes can impede the progress of obtaining MOU approval.
  • In the long term, multilateral solutions are best, but these solutions can be time-consuming to establish. For examples, see the International Fuel Tax Agreement and the International Registration Plan for heavy-duty vehicle payments.
  • Bilateral solutions may be sufficient in cases in which there is a significant amount of interstate traffic.
  • Characteristics of the RUC programs (e.g., optional versus mandatory, size of vehicle pool, mileage reporting methods, and other technology considerations) should be incorporated into the decision to move forward with an MOU and during development of interagency agreements.

State Government Context and Assumptions:

The lead RUC agency, likely with legislative assistance and in coordination with other state signatories to the MOU completes this task.