DISPATCH June 2014

Hours of Service Restart Ruling On June 5, 2014, American Trucking Associations leaders applauded the Senate Appropriations Committee for adopting a common sense solution proposed by Sen. Susan Collins (R-Maine) to address the unjustified changes to the restart provisions of the hours-of- Inside service restart rules. Truck Driving “Since these rules were proposed in 2010, ATA has maintained they were unsupported by Championships Results science. Since they were implemented in 2013, the industry and economy have experienced substantial negative effects as a result,” said Bill Graves, ATA President and CEO. “Thanks to Senator Collins’ leadership, we are a step closer to reversing these damaging, unjustified WHG PRO Truck Golf regulations.” Classic Results The Collins Amendment would suspend, for a year, the new restart rules that push more trucks onto the road during daytime hours, a consequence the Federal Motor Carrier Safety Highlights from ATA Administration failed to fully analyze from a safety standpoint. Leadership Conference “America expects its freight to be moved, and these new rules prevent some drivers from taking a restart over the weekend,” said Phil Byrd, ATA Chairman and president of Bulldog Hiway Express, Charleston, S.C. “As a result, they need to take their restart midweek leading to shipping delays and costs. If you’re fortunate enough to be able to take your restart over a weekend, it exacerbates congestion because this regulation dumps concentrated amounts of trucks on the highway system at 5:01 a.m. Monday morning when America is heading off to work and school,” Byrd said.

“This is not the end of this debate,” said Dave Osiecki, ATA executive vice president and head of national advocacy, “Thanks to the hard work of ATA’s members, the professional staff, ATA’s federation partners and the courage and leadership of Sen. Collins and others on Capitol Hill, we are one step closer to reversing these damaging regulations.”

All KMCA forms are UPDATE JUNE 19, 2014: The T-HUD/Ag/CJS Appropriations bill failed to advance due to available on our website: a disagreement between the Senate majority and minority leaders over the vote threshold www.kmca.org on amendments. Majority Leader Reid requested a 60 vote threshold while Minority Leader McConnell requested 50, among other things. Either way, Senator Booker’s amendment was not expected to gain more than 47 votes at best. It’s disappointing that we couldn’t vote to further confirm that count and put this issue to bed. As for now, the underlying three-bill minibus has been pulled from the floor and placed back on the Legislative Calendar. Until there is an agreement on debate and amendments, we should not expect it back on the 77 Senate floor. The good news is the Collins’ Hours of Service Restart Study language is already in the T-HUD bill, where it will remain for now. If there ends up being no agreement on amendments 2900 SW Topeka Blvd. and no further debate on T-HUD and related spending bills, we could end up with another Topeka, KS 66611 Continuing Resolution to fund the government possibly followed by a very large omnibus 785-267-1641 spending package after the November election. If that happens, the Collins’ Hours of Service [email protected] Restart Study language stands a very good chance of being part of the large spending On Facebook: Kansas Motor package – a 21-9 vote in committee, outstanding bipartisan leadership and supporting Carriers Association comments made on the Senate floor, and Senator Collins being part of the managers team On Twitter: KSMotorCarriers that would craft an omnibus spending package helps ensure that. DISPATCH 2014 Kansas Truck Driving Championships KMCA’s Safety Management Council and KMCA hosted the annual Professional Truck Driving Championships on June 20 and 21, 2014. This year 67 drivers, 15 of those rookies, participated in a written test, vehicle inspection and a six problem course. Over 200 family members and company personnel enjoyed the hot weekend and competition. Coverage is located through out this issue.

Jeff Thompson, FedEx Freight, was Josh Barnes, Girton Propane, was Stepvan Class: Third Place: Maurice Jackson, named the 2014 Grand Champion. He named the 2014 Rookie of the Year. He FedEx Ground. Second Place: Daniel Stapleton, has been driving for 36 years with 4.6 has been driving for 14 years. FedEx Ground. First Place: Dean Harris, FedEx million safe miles. Freight

Straight Truck Class: Third Place: Bryan Studley, 5-Axle Class: Third Place: Melissa Guthery, FedEx Wal-Mart Transportation LLC. Second Place: Harry Freight. Second Place: John Heavener, FedEx Freight. Cormeny, Old Dominion Freight Lines. First Place: First Place: Patrick Hull, Wal-Mart Transportation LLC. Doug Pohl, YRC Freight.

FedEx Freight took home the 2014 Team Trophy Award. Nine companies were in contention for the award including: Con-way Freight, FedEx Freight, UPS Freight, Wal-Mart Transportation, Old Dominion Freight Lines, Holland Inc., Girton Propane, YRC Freight and Great Plains Trucking.

Page 2 June 2014 DISPATCH

2014 Kansas Truck Driving Championships

5-Axle Flatbed Class: Third Place: Michael Appelman, YRC Twin Trailers Class: Third Place: John Bouddhara, FedEx Freight. Second Place: Howard Asbury, UPS Freight. First Freight. Second Place: David Harris, UPS Freight. First Place: Jeff Thompson, FedEx Freight. Place: Don Logan, FedEx Freight.

Page 3 June 2014 DISPATCH Truck Driving Championships Results

3-Axle Van Class: Third Place: Jerry Joyner, Wal-Mart 4-Axle Van Class: Third Place: Brian Baldwin, Old Transportation LLC. Second Place: Jimmie Wisley, YRC Dominion Freight Lines. Second Place: Joe Trifiletti, Freight. First Place: Jay Miller, FedEx Freight. Con-way Freight. First Place: Sammy Pelton, FedEx Freight.

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Page 4 June 2014 DISPATCH Truck Driving Championships Results

5-Axle Sleeper Berth Class: Third Place: Dennis Schave, 5-Axle Tank Class: Third Place: Kent Durant, YRC Freight. Wal-Mart Transportation LLC. Second Place: Chad Second Place: Josh Barnes, Girton Propane. First Place: Gamino, Wal-Mart Transportation LLC. First Place: Don Troy Lape, FedEx Freight. Kendall, Wal-Mart Transportation LLC.

Page 5 June 2014 DISPATCH Highlights from ATA Leadership Conference by Mike Miller, ATA State Vice President Resolution of the Board of Directors specifically solicited feedback on one element of the NPRM: The Board voted to support the removing of the 97,000 pounds FMCSA’s proposal that motor carriers should have to conduct language from Map-21. The vote was 1/3 to keep and 2/3 to annual inquiries of the clearinghouse on current employee remove. drivers. The committee ultimately directed staff to advocate for an alternative. Instead, the database administrator should Executive Committee Highway Funding Task Force proactively notify employers upon receipt of a violation record Pat Thomas with UPS, Vice Chairman of the Executive relating to one of their drivers Committee’s Highway Funding Task Force, described the task force’s recommendation. Following discussion, the committee Hours of Service (HOS) Subcommittee voted to recommend that the Board adopt the proposals, which Dave Osiecki, staff liaison to the HOS subcommittee reaffirmed are summarized as follows: ATA continues work on legislative strategy and activities to The committee supports indexing the federal fuel tax to one of vacate the recently imposed restrictions on use of the restart 3 indexes or a combination of 2 or more of these indexes: provision, ATRI’s recent HOS-related research, FMCSA’s • Price of fuel, which is effectively a sales tax on fuel planned pilot project on providing additional sleeper berth • The Consumer Price Index flexibility, a summary of the recent SNPRM on Electronic Logging • The impact of CAFÉ standards on passenger vehicle fuel Devices (ELDs), ATRI’s “daily driver” survey and analysis; and a savings estimated by EPA. conceptual program to recognize and reward carriers meeting a Because it will take a few years for indexing to increase the tax certain “gold standard” for safety. rate enough to generate sufficient revenue, up-front money will be necessary to ensure that enough money is available to the Since the new HOS rules were implemented, a number of Highway Trust Fund in the first few years. The committee carriers have now quantified the actual impact to their operations recommends the following: and the findings are consistent with the pre-July 1 estimates. • Repatriation of foreign assets, as proposal by Budget reported decreased productivity of 2 to Committee Chairman Paul Ryan 3 percent company-wide and 6 percent among team drivers. • Issuance of Treasury Bonds subsidized by the revenue has realized a 3.1 percent decrease in generated by indexing. This is a proposal that came from productivity on single-driver shipments and a 4.3 percent decline Congressman Peter DeFazio. on team shipments. The National Transportation Institute’s (NTI) • As an option of last resort, General Fund subsidies. survey of 412 carriers found that driver wages have decreased The committee also recommended several additional options by 3.2 to 5.6 percent. can provide long-term funding for the Highway Trust Fund. They are: For its analysis of industry impacts post-rules implementation, • A new Highway Access Fee on all vehicles. This is an the ATRI Research Team conducted two surveys; a driver survey annual registration fee collected by the States and which yielded 2,370 responses and a motor carrier survey which deposited in the Highway Trust Fund yielded 446 responses. Additionally, ATRI conducted an analysis • Royalties from new oil and gas leases of logbook data representing more than 40,000 drivers. • A new tax on imported petroleum and domestic crude oil, otherwise known as a barrel tax. Results from the driver survey indicated 12.4 percent of drivers with prior experience using the restart had discontinued use Safety Policy Committee once the new rules went into effect. Respondents indicated the Electronic Logging Devices (ELD) benefits of the restart, particularly those related to productivity, ATA Technology and Maintenance Council’s ELD Task Force have diminished. The majority of respondents indicated the provided an overview of FMCSA’s recent SNPRM to mandate two new restart provisions have had a moderate or significant ELDs. He also solicited feedback on two issues in the proposal negative impact on their operations. The survey also found to provide ATA staff with direction on crafting the organization’s many drivers are adjusting to the new restart rules by changing response. The committee subsequently directed staff to call schedules, incorporating a rolling schedule into their operations, for a longer grandfather period for devices currently in use by changing start/end times and turning down loads. early adopters and tighter limits on the number of supporting documents that motor carriers should have to maintain (e.g., only A majority of the drivers (67.7%) have experienced a moderate those nearest the beginning and end of each 14 hour driving or significant negative impact from the rest break requirement. window). They are adjusting through planning, schedule changes and making use of the rest break time to accomplish other tasks. Drug and Alcohol Clearinghouse ATA Safety Management Council’s Regulations Committee The drivers were evenly split in opinions on the enforceability of provided an overview of FMCSA’s recent NPRM to create a the new HOS requirements, with many indicating the rules are clearinghouse of drug and alcohol violation records. He also Story Continues on Page 8. Page 6 June 2014 DISPATCH Livestock Haulers Granted a One-Year Exemption from the Welcome to our 30-Minute Break New Members! Immediate Medical Care - Wichita, KS The Federal Motor Carrier Safety Administration Tallgrass Occupational Health (FMCSA) announced drivers of vehicles hauling livestock will be granted a one-year exemption - Topeka, KS from the 30-minute break requirement during the first eight hours of a shift. This requirement is part of the current Hours-of-Service (HoS) rules for truck drivers to prevent fatigued-related KMCA Calendar of Events crashes, although drivers transporting agricultural commodities, including livestock, within a 150-air July 8, 2014 - Safety Management Council - mile radius of the source of those commodities are Topeka already exempt from the HoS rules and are not affected by this action. Sept. 6, 2014 - PRO Truck PAC - Motorcycle Fun Run In 2013, FMCSA granted livestock haulers a 90- day waiver during the hot summer months with no Sept. 24-26, 2014 - KMCA Annual Convention - adverse effects to safety. The exemption is effective Hilton Garden Inn - Manhattan today, June 11, 2014. If you have any questions, please call KMCA at 785-267-1641.

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8907_KS_Dispatch_HDT_Ad_7_5x4_875-May.indd 1 5/8/14 2:20 PM Page 7 June 2014 DISPATCH Highlights from ATA Leadership Conference | Continued from Page 6 difficult to enforce without more widespread use of electronic security threat assessments as already compliant. Information logs. Most drivers, 82.5 percent, indicated that the new HOS was provided regarding the latest efforts on the TWIC and HME rules have had a somewhat negative or very negative impact programs, including enrollment issues and improvements to on their quality of life. More than half have spent more time enrollment facilities. The status of the TWIC readers proposed in congestion as a result of the changes and 66.3 percent rule was discussed and the challenge of implementing the perceived an increase in their own level of fatigue. Additionally, readers this year, which is further draining support for the more than 66 percent have experienced a decrease in weekly program in Congress. miles and weekly pay. Finally, nearly 20 percent of drivers reported an increase in on-duty hours, which may indicate Minimum Insurance Level more time spent on non-revenue generating activities such as The Committee heard an update from ATA staff on FMCSA’s searching for available truck . issuance of its report on the appropriateness of the current minimum financial responsibility levels. The FMCSA report relied Among responses to the motor carrier survey, 11.7 percent heavily on a report it commissioned from the Volpe Center, indicated their company has discontinued use of the restart due and FMCSA concluded that the current limits are inadequate. to the July 1 HOS change. Among those carriers with a history FMCSA intends to address the issue through a high priority of restart use, there is evidence that the utility of the restart has rulemaking. The Committee considered the data from the DOT diminished. The majority of motor carrier survey respondents Volpe report, as well as ATA data the Committee had previously indicate a moderate or significant negative impact to operations been presented by the Committee’s Insurance Study Group. has resulted from the restart changes and the rest break After weighing a number of policy considerations, the Committee requirement. voted to recommend keeping the current minimum financial responsibility regulations in place without change. More drivers are now required to move the same amount of freight to comply with the HOS rules carriers have shifted driver DOT’s Reauthorization Proposal on Driver Pay schedules. Many of these new schedules have resulted in a The Committee heard a presentation from ATA staff on decrease in the number of weekly miles a driver can log. Due a provision in the Obama administration’s draft highway to the decrease in miles, carriers have a choice of turning down reauthorization bill to track time and compensate employees not freight or making up the miles by incorporating additional drivers otherwise paid on an hourly basis for on-duty, not driving periods and/or equipment into their operations. These options are less at a rate no less than federal minimum wage. The administration efficient than operations prior to the new HOS rules, and are a believes that the failure to compensate drivers for on-duty, not central component of the productivity loss. driving time pressures drivers into not complying with HOS and other safety regulations. The Committee voted to recommend Hazardous Materials Safety Permit opposing delegation of authority to regulate compensation Dan Furth of the National Tank Truck Carriers and Charles matters to FMCSA. “Shorty” Whittington of Grammer Industries led a discussion about FMCSA’s Hazmat Safety Permit. In March 2014, FMCSA New Business proposed changing its process for issuing permits, monitoring The Committee discussed the Obama administration’s proposal carriers holding permits and approving permit renewal as part of its draft highway reauthorization bill to eliminate the requirements. At the end of the discussion, the committee ability of motor carriers to qualify as self-insured for federal instructed staff to advocate for retaining high standards to financial responsibility purposes. Upon a motion duly made and acquire a Hazmat Safety Permit and to support FMCSA’s seconded, the Committee voted to oppose repeal of authority for monitoring the ongoing performance of carriers that hold Hazmat motor carriers to self-insure. Safety Permits.

Homeland Security It was announced that ATA Chairman Byrd will testify at a Port Security hearing in the Senate on June 4. ATA testimony will continue to focus on the need for harmonization of the programs. Because of the recent situation in Norfolk, Va. involving a TWIC 3rd Quarter holder, the senate has expressed further concerns with TWIC. Discussion ensued about the benefits and challenges related to the TWIC program. IRP is due

Legislation is being proposed to formalize Chemical Facility Anti- Terrorism Standards (CFATS), including the Personnel Surety July 1. Program and the need for recognizing TWIC, HME and other

Page 8 June 2014 DISPATCH Thank you to all of our Truck Driving Championships Sponsors! Diamond Sponsors Equipment Contributors Kansas Corporation Commission - Topeka, KS MHC of Salina Mitten Trucking Inc. - Oakley, KS Old Dominion PrePass - Phoenix, AZ FedEx Freight Truck Center Companies - Salina, KS Con-way Freight Wal-Mart Transportation - Ottawa, KS Frito-Lay Transportation YRC Freight - Overland Park, KS YRC United Petroleum Transports Platinum Sponsors Wal-Mart Stores Inc. Convoy Systems LLC - Kansas City, KS Great Plains Trucking Golden Plains Trucking Inc. - Hays, KS Girton Propane Great West Casualty Company - S. Sioux City, NE J & H Trucking Inc. Kansas Soybean Commission - Topeka, KS TrueNorth Companies - Overland Park, KS Other Contributors Visit Topeka - Topeka, KS Grand Prize - Wal Mart Transportation LLC - Ottawa Trophies - Kansas Turnpike Authority - Wichita Gold Sponsors Friday Box Lunches - Frito Lay Transpotation- Topeka Bergkamp Insurance Center - S. Hutchinson, KS Friday Night Judges Meal - PrePass - Phoenix, AZ Cline Wood Agency - Leawood, KS Family Activity - Golden Plains Trucking Inc. - Hays FedEx Freight Tents - YRC Freight - Overland Park Great Plains Trucking - Salina, KS Holding Pen - Frito Lay Transportation - Topeka Keller Tank Service Inc. - Zurich, KS Scoring Trailer - Greg & Ann Hladky - Topeka Luetters Enterprise LLC - Garden City, KS Written Exam Trophies & Field Test Trophy - Bel Mont Tarbet Construction Co. Inc. - Ulysses, KS Farms - Wathena Truck Insurance Mart Inc. - Galva, KS Participant Shirts - Great West Casualty Company - S. Sioux City, NE Silver Sponsors $250 Vehicle Inspection Winner - Kansas State Hammes Trucking - Seneca, KS Trooper Association Martin Trucking - Hugoton, KS Service Truck for Vehicle Inspection - UPT Mies & Sons Trucking - Colwich, KS Generator - Kansas Ohlde Trucking Inc. - Linn, KS Electronic Scoring System - TrueNorth Companies - Rutter Cline Associates KFSA LLC - Hutchinson, KS Overland Park Short & Son Inc. - Goodland, KS Commemorative Coins - Kansas Corporation Southwest Express Inc. - Hugoton, KS Commission Walker Cattle LLC - Hope, KS Golf Cart - Brown’s Super Service - Topeka Grill - Propane Marketers of Kansas Concession Sponsors Wal-Mart Transportation - Hamburgers and Hot Dogs Frito-Lay Transportation - Friday Lunch, Chips and Snacks Summit Truck Group - Water PrePass - Friday Night Judges Meals

Page 9 June 2014 DISPATCH

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KS_FP_CR_2012.indd 1 7/18/2012 11:09:08 AM Page 10 June 2014 DISPATCH William H. Graves PRO TRUCK Golf Classic Results The 2014 William H Graves PRO Truck PAC Golf Classic was held on June 5, 2014 at the Sand Creek Station golf course in Newton, Kan. The event raised money to help fund KMCA’s participation in legislative and statewide officer’s election campaigns. The event was highlighted with the generous sponsorship of Summit Truck Group. Summit Truck Group sponsored the $1,000 hole-in-one prize, beverage cart and lunch. The company brought in trucks for display. Governor Bill Graves, ATA President and CEO, participated in the tournament and also made a generous contribution. Team Results Sponsors First Place (Tie): Lee Spence, Underground Vaults & A big thank you to our generous sponsors! Without them, this Storage, David Channel, Foley Utility Equipment, Tony event would not be possible. Ternes, Summit Truck Group, and Tim Lindsey, Summit Truck Group Title Sponsor: Summit Truck Group - Kansas City, Topeka, Salina & Wichita First Place (Tie): Tom Whitaker, KMCA, Rob Bergquist, Platinum Sponsor: Bill Graves, American Trucking Capitol Plaza Hotel, Greg Harrison, Touch of Class, and Associations Darrell Schmitz. Capital Plaza Hotel & Convention Center - Topeka Frito Lay Service & Distribution - Topeka First Flight: Calvin Koehn, Circle K Transport, Ron Kansas Soybean Association - Topeka Trehorn, United Communications, Bill Jobe, ADM Grain, Heathwood Oil - Wichita & Kansas City - Goodie Bag Items and Gene Hollaway, Dodge City International. Midlands Carrier Traniscold - Gift Cards

Hole Sponsors Central Power - Kansas City, Joplin, Wichita, Golf Tournament Hole Prizes Garden City & Colby Longest Drive on Pin #14: Josh Urban DeClue Transport - Dodge City Closest to the Pin #13: Brad Bengtson Farmer’s Oil Co. Inc. - Anthony Longest Putt on Pin #16: Travis Peters, Midlands Golden Plains Trucking Inc. - Hays Carrier Transicold Bill Graves, American Trucking Association - Alexandria, VA Longest Putt on Pin #2: Tim Doerflinger, Heathwood Oil Great Plains Trucking - Salina Closest to the Pin #3: Andrew Whelan, Truck Center Groendyke Transport Inc. - Hutchinson Companies Heathwood Oil Co. Inc. - Kansas City & Wichita Longest Putt on Pin #15: Brian Boyd, Tyson Meats Kansas Van & Storage Criqui Corp. - Topeka Closest to the Pin #17: Kevin Hanschu, J & H Trucking MHC Kenworth - Salina, Topeka, Olathe & Kansas City Inc. Midlands Carrier Traniscold - Wichita Straightest Drive on Pin #8: Josh Urban Miller Trucking LTD - LaCrosse Jim Mitten Trucking Inc. - Oakley S & G Associates Inc. - Wichita Summit Truck Group - Kansas City, Topeka, Salina & Wichita Tow Service Inc. - Wichita Larry Tredway - Trucking Insurance Mart Inc. - Galva

Summit Truck Group brought in trucks to display at the Governor Bill Graves, ATA President and CEO, enjoyed a game of tournament. golf with KMCA members. Page 11 June 2014 Kansas Motor Carriers Association PRSRT STD P.O. Box 1673 U.S. Postage Topeka, KS 66601-1673 PAID TOPEKA, KS Permit No. 526 ADDRESS SERVICE REQUESTED

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