A Powerful Voice • Member Driven • Best In Class

MISSOURIMISSOURI TRUCKING ASSOCIATION M emo October 2015 • NO. 11

We would like to thank all the sponsors who contributed to the MoTA Annual New Members Convention. This event could not happen without the generous support of our members. When you see these companies, take time to thank them for everything they do for the Missouri Trucking Association and the trucking industry. JAY Trucking LLC 17893 Karen Lane Platinum Sponsors Neosho, MO 64850 Josie Yost HELP, Inc / PrePass MHC (417) 455-1835 The Larson Group Truck Centers, Inc.

K P A Gold Sponsor 1380 Forest Park Circle, Ste 140 Lafayette, CO 80026 Westfall O’Dell Truck Sales Craig Downey (832) 515-3407 Events & Functions Sponsors

OneBeacon Golf Tournament Lanyards & Badges 44 Whippany Road Jack Cooper Transport Co, Inc. Clarke Power Services Morristown, NJ 07960 Thursday Breakfast Friday Breakfast Co-Sponsor Tina Angelone Great West Casualty Co & Affiliated Agencies Ozark Utility (609) 613-0010 Thursday Luncheon Speaker Friday Breakfast Co-Sponsor Central Power Systems & Services Meritor, Inc. Sapp Bros Travel Centers 824 West Maple Ave Friday Breakfast Speaker Coffee Break Independence, MO 64050 Central Power Systems & Services AAA Trailer Services, Inc. James Miller WiFi Sponsor Coffee Break (402) 679-8517 Bendix CVS, LLC Pilot Flying J

Silver Sponsors Welcome Allied Oil & Tire Company GE Capital, Transportation Finance Bendix CVS, LLC HireRight / DAC Trucking New Members! Craftsmen Trailer, LLC Summit Truck Group Gateway Truck & Refrigeration Wells Fargo Equipment Finance

Bronze Sponsors American Trailer & Storage Lockton Companies, LLC BancorpSouth Equipment Finance Lytx, Inc. In This Issue BKD, LLP Midwest Bank Centre Bridgestone Commercial Solutions PeopleNet Cline Wood Agency, Marsh & Roberts Perryman PC 3 Governmental & McLennan Agency LLC RubinBrown, LLP SmartDrive Systems Regulatory News Central Power Fontaine Fifth Wheel TAB Bank 4 News from the Industry Impact Training Solutions Thermo King of Springfield 5 News from States & J J Keller & Associates Three Points Insurance Group, LLC Provinces KPA TMS Audio Productions, Inc. LinkeDrive North America Attachment: MoTA Annual Convention Carrier Sponsors Wrap-up Bendix CVS, LLC Transland, Inc. Certified Express, Inc. Transport Distribution Company Gully Transportation, Inc. Walmart Transportation Kallmeyer Bros Enterprises, Inc. Witte Brothers Exchange, Inc. 2015 MoTA SIMPLE Drivers of the Month

FLEXIBLE January ...... Don Thieret Buchheit Trucking Service AFFORDABLE-LOGS Scott City, MO The J. J. Keller® Encompass® E-Log February ...... Nathan Riney and fl eet management system will Buchheit Trucking Service make the transition to E-Logs easier on you, your drivers, and your budget. Scott City, MO • ELDs install in less than 10 minutes March ...... Howard Hall • Works with all vehicle classes (1-8) Buchheit Trucking Service • Options from E-Logs only to full performance management Scott City, MO • Fast ROI with improved compliance April ...... Bill McKinley and driver performance Buchheit Trucking Service • Minimal upfront cost and rates as low as pennies per day Scott City, MO

Interested? Call 855-693-5338. May ...... Glen Horack Prime, Inc. Stay Informed With Our E-Log Newsletter Springfield, MO Keep up to date on ELD mandate changes, FAQs, E-Log best practices June ...... Darin Haggett and more with the regulatory experts. Buchheit Trucking Service Sign up for FREE at JJKellerELogs.com/news Scott City, MO J. J. Keller and your State Trucking July ...... Wes Wilkerson PCPC 113016110530 Association are partners in compliance. Buchheit Trucking Service Scott City, MO August ...... Jerry Phenix Group One, Inc. N Kansas City, MO Member Cancellations October 2015 September ...... Randy Davis Name of Company Class Dues Con-way Freight Corporate Safety Compliance, Inc. Allied $ 350 St. Louis, MO OrTran For Hire $2,700

Congratulations, Drivers! To nominate your driver(s), go to MISSOURIMemo http://www.motrucking.org/councils/council-of-safety- supervisors/safety-contests/ The newsletter for the Missouri Trucking fill out the nomination form and send it to the MoTA office. Association is published monthly. All rights reserved. Reproduction in any manner, Missouri Trucking Association without the Missouri Trucking Association permission, is prohibited. P.O. Box 1247 Tom Crawford, President and CEO Jefferson City, MO 65102 PO Box 1247 102 E High Street fax: 573-634-3388 Jefferson City, MO 65102 573-634-3388 [email protected]

2 motrucking.org House Committee Passes Surface Transportation FMCSA Proposes Changes to Truck Inspection Reauthorization Bill Rules

On Thursday, October 22, 2015, the House Transportation & On October 7, FMCSA issued a proposed rule covering five Infrastructure Committee “marked up” and passed its Surface issues, one of which is based on a petition from ATA to revise Transportation Reauthorization and Reform Act (i.e., the STRR Act). the rear license plate lamp requirement and allow an exception During the markup, the Committee either addressed or considered for truck tractors registered in states that do not require tractors more than 150 filed amendments. Next step in the process is for to have a rear license plate. FMCSA agrees with the ATA petition the full House of Representatives to consider the bill on the House and is proposing a change that would eliminate the need for the floor. No date has been set for full House consideration, but floor rear license plate lamp on tractors registered in those states. The time may be scheduled in early November. other issues included in FMCSA’s proposed rule are: adding a Note: The House leadership election could delay full House definition of “major tread groove”; adding specific requirements consideration of this bill.  when violation or defects noted on a roadside inspection report need to be corrected; amending Appendix G of the FMCSRs to APHIS to Issue Final Agricultural Fee Rule include provisions for the inspection of antilock braking systems, automatic brake adjusters, brake adjustment indicators, and speed- The Agricultural and Plant Health Inspection Service has restricted tires; and amending the periodic inspection rules (Part announced its intent to issue a final rule in the October 29, 2015 396) to eliminate the option for motor carriers to use a violation- Federal Register, increasing fees for agricultural inspection services. free roadside inspection report in lieu of a periodic or annual safety Effective December 28, 2015, APHIS is raising the per-crossing fee inspection. Comments are due December 7, 2015. For more  from $5.25 to $7.55. APHIS will also raise the annual transponder information please contact Ted Scott at [email protected]. fee from $105 to $301.67. APHIS will also begin charging for treatment of shipments found to contain pests or forbidden plants. IRS Reports Business e-filing Up The fees will be phased in over five years, beginning at $47 per treatment on December 28, 2015 and eventually rising to $237 per The federal Internal Revenue Service says that the total number treatment on December 28, 2019. Because any carrier might be of corporate and partnership tax returns filed electronically in 2015 carrying prohibited plants or pests, all carriers are subject to APHIS exceeds the number so filed during the same period last year by fees when crossing the border. APHIS fees are assessed by U.S. some 9 percent. Altogether, nearly 8 million returns, amounting Customs officers. ATA staff continues to analyze the rule and a to well over three-quarters of all such returns, have been filed summary will be available for members later this week.  electronically, according to IRS. There were increases in all categories, but partnership and large corporate returns showed the URS Postponed; URS Isn’t UCR! greatest proportionate increases.  ~ State Laws Newsletter ~ On October 21, 2015, the Federal Motor Carrier Safety Administration announced in the Federal Register the postponement and phasing in of its Uniform Registration System. The agency had Upcoming Events: published the final URS rule in 2013, and the rule has been in the works, more or less, for nearly two decades. When finally in effect, URS will replace several existing FMCSA systems, including those NATMI Class ~ for registering the authority of regulated motor carriers, the issuance of DOT numbers, and the filing of entities’ insurance coverage and • November 16 - 20 ~ Fleet Safety Certification Course agents for service of process. The recent notice says that most of the URS rule won’t be effective until September 30 or December Council of Safety Supervisors Meeting ~ 31 next year. However, new applicants for motor carrier authority or DOT numbers are to begin using the URS’s new on-line Form • November 19 ~ Revel (2nd floor of MoTA office) MCSA-1 on December 12, 2015. Be aware that despite the similarity in names, the Uniform Registration System is not at all the same thing as the Uniform Carrier Registration Agreement, the UCRA or UCR, under which motor carriers and other entities pay annual fees to states. URS has nothing to do with UCR, and there is no postponement for the payment of the 2016 UCR fees! Those are due by December 31, 2015, and are payable now, most easily through the national UCR system maintained by the Indiana Department of Revenue at www. ucr.in.gov.  ~ State Laws Newsletter ~

motrucking.org October 2015 • Missouri Memo 3 ATA Urges Manufacturers to Make Automatic Polling Data Supports Highway Infrastructure Emergency Braking Standard Spending, Shows Trucking’s Positive Image

The ATA Board of Directors approved new policy calling for the At the recent ATA Board of Directors meeting, Public Opinion manufacturers of cars and trucks to make automatic emergency Strategies’ Neil Newhouse told trucking leaders that based on new braking systems standard equipment on all new vehicles. polling, trucking’s image remains positive among the public and In addition, ATA said it would support possible future rules from that public supports investment in roads and bridges. the National Highway Traffic Safety Administration on the brake Among the poll’s findings on trucking’s image: technology. • Sixty percent of respondents said they have a favorable view of “In our role as a safety leader, we believe ATA needs to be at the the trucking industry, the highest among transportation modes. forefront of advocating for proven safety technologies,” said ATA • The majority of Americans, 57%, said trucking’s safety record President and CEO Bill Graves. “The experience of our member was excellent or good. fleets tells us that automatic emergency braking systems hold • Ninety-one percent of Americans believe car drivers are more tremendous promise and as such, we believe manufacturers likely to engage in risky behavior on the highways than truck should make this equipment standard and the federal government drivers and 70% believe they are more likely to be at fault should seriously look at issuing regulatory standards.”  when a car and truck collide. And Newhouse’s poll also found that: Derek Leathers Appointed To ATRI Board of • The number of people who believe more needs to be spent on Directors infrastructure has risen 12 points – from 48% in 2014 to 60% this year. • President and Chief Operating Officer Derek Forty percent of the public thinks infrastructure should be a top J. Leathers has been appointed to the Board of Directors of the priority for federal spending. • American Transportation Research Institute. Leathers has worked Sixty-three percent of Americans believe our roads and bridges  in the transportation and logistics industry for more than 20 years. are not being properly maintained. “We are very pleased to have Derek join the ATRI Board,” said McReynolds. “His vast industry experience and expertise will be of ATA and Other Trades Push Back EPA/NHTSA on great value to our Board as we lead the Institute’s work to advance Pursuing More Stringent Truck Fuel Efficiency the trucking industry’s safety and productivity.”  Standards under Phase 2

ATA Submits Comments on EPA/NHTSA Proposed With ever-increasing pressure from environmental interest groups, ATA and 15 other trucking-related trade associations Phase 2 Truck Fuel Efficiency Standards formally requested EPA and NHTSA to reject “Alternative 4” in the Greenhouse Gas Emissions and Fuel Efficiency Standards ATA filed comments on the joint EPA/NHTSA Proposed Phase for Medium- and Heavy-Duty Engines and Vehicles - Phase 2 2 Rule which will establish additional greenhouse gas and fuel Proposed Rule. efficiency standards for new model year 2017 trailers and new Alternative 4 seeks to “pull-ahead” the 2027 greenhouse gas/ trailers, tractors and engines in model years 2021, 2024 and 2027. fuel efficiency target dates for engines, vehicles, and trailers by In its comments, ATA questioned the agencies’ future adoption three years to accomplish all such milestones no later than 2024. rates and cost estimates for several key technologies; stressed the In the joint letter representing nearly 250,000 combined members, need to consider maintenance and downtime in all cost estimates; the groups urged that the agencies proceed cautiously so as to not cautioned against the lowering of current NOx emission engine disrupt the economic viability of fleets, manufacturers, suppliers, standards during the rule implementation period; requested dealers, and the nation’s economy. The letter was entered into the any federal standards be harmonized with those of California formal EPA and NHTSA dockets on October 1.  and Canada; and demanded fleets be able to continue to order equipment best-suited to their specific operations. In addition, ATA called for a mid-course review of the standards HOS Tops ATRI Survey of Industry Concerns Again if specific criteria warrant a revisiting of the rule. While thecost of a new Class 8 sleeper tractor and engine are projected to For the third straight year, hours-of-service was the number one increase by $14,500 in 2027, the agencies say such cost increases concern of the trucking industry according to the annual survey will be recouped within 24 months based upon fuel efficiency conducted by the American Transportation Research Institute. improvements of around 24%. A typical box trailer in 2027 is The survey’s results, which also included CSA, the driver expected to increase by an additional $1,400 and achieve fuel shortage and driver retention, were made public during the annual efficiency improvements of 8%. The Phase 2 Rule, which will ATA Management Conference and Exhibition in Philadelphia.  involve the longest implementation period of any regulation in the history of trucking, will likely be finalized in mid-2016. 

4 motrucking.org ATA Report Shows Growing Second Quarter Driver Turnover Rises Shortage of Qualified Truck Drivers at Large Truckload Carriers

An analysis released by ATA shows that by the end of 2015, the Turnover at large truckload fleets rose three percentage points driver shortage will reach nearly 48,000. If current trends hold, the in the second quarter of the year to an annualized rate of 87%. shortage may balloon to almost 175,000 by 2024 due to industry Turnover at smaller truckload fleets, those with less than $30 million revenue fell seven points to 76%, its lowest mark since the growth and a retiring workforce. third quarter of 2013. “Our work shows the great and growing need for drivers,” ATA “While turnover is not at historic highs, it is still high enough Chief Economist Bob Costello said, “but we also highlight several to merit concern,” said ATA Chief Economist Bob Costello. “Fleets solutions including increasing driver pay, getting drivers more time need to hire 89,000 a drivers a year to keep pace with retirements at home, as well as improving the image of the driver and their and projected growth, so ensuring an adequate pool of qualified treatment by all companies in the supply chain. Make no mistake, drivers is critical.”  the driver shortage is a challenge, but it is not an insurmountable one.” For a copy of ATA’s Driver Shortage Analysis paper, go to: http:// www.trucking.org/article.aspx?uid=ad3cff3e-7c8b-400f-8c68- afbf3dde6898. 

Carriers Should Remain Vigilant About CARB New Jersey Enacts Motor Carrier Anti-Indemnification Compliance On October 1, Governor Christie of New Jersey signed into law Motor carriers with trucks operating in California should remain S. 1380, which makes provisions in contracts for motor carrier vigilant about complying with the state’s air quality regulations. transportation that require the carrier to assume liability for the Last week, the U.S. EPA announced its first federal enforcement shipper’s negligence void and unenforceable in New Jersey. The action against a non-California-based carrier for operating trucks state becomes the forty-third to enact such legislation, which has without diesel particulate filters in the state. EPA is working with spread very quickly. the California Air Resources Board to enforce the state’s Truck and Arkansas passed an anti-indemnification law earlier this year. Bus regulation which requires trucks to be equipped with DPFs The enactment of such measures is a focus area for the ATA and verification of compliance when contracting for transportation Insurance Task Force, which has funded a number of state trucking services. Carriers operating in California should ensure they meet association efforts to obtain anti-indemnification laws in their states. the requirements of the regulation, perform due diligence when Our congratulations to the New Jersey Motor Truck Association and contracting for transportation services, and maintain compliance to its executive director, Gail Toth! The votes in both houses of the records in case of an audit.  New Jersey legislature were unanimously in support of the bill. 

MS Court Rules on Taking of Property

The Mississippi Supreme Court has held that the state acted improperly in taking private property rights without compensation in connection with building a road. The road required the filling of wetlands, and this required a permit from the Army Corps of Engineers. To get such a permit, the state pledged a piece of private property by way of wetlands mitigation – and the Army issued the permit. These actions left the property in its owner’s hands, but effectively ended any prospects of developing the property commercially. The owner sued both the Army and the state for compensation for “taking” its property. A federal court had ruled against the Army and invalidated the permit the Corps had issued; the state was now arguing in state court that it had caused no damage to the property owner, and that there had been no compensable taking. The trial court found that since the permit was eventually invalidated, the owner had in fact suffered no damage, but the state supreme court found that as of the time the permit was issued, there had been no expectation of its eventual invalidation, and the owner had been deprived of a valuable right at that point and during the period the permit was in effect. There was evidence that the owner had been in negotiations with various parties over developing the property, and that these had ceased when the permit was issued. The court sent the case back down for a determination of the type of taking – categorical or regulatory (that is, in effect, complete or partial), and the value of the deprivation suffered by the owner. Ward Gulfport Properties, L.P., et al. v. Miss. State Hwy. Comm’n, docket no. 2014-CA-01001-SCT, decided October 22, 2015.  ~ State Laws Newsletter ~

motrucking.org October 2015 • Missouri Memo 5