MISSOURIMemoA Powerful Voice • Member Driven • Best In Class

MISSOURI TRUCKING ASSOCIATION October 2015 • NO. 11

New Members

JAY Trucking LLC17893 Karen LaneNeosho, MO 64850Josie Yost(417) 455-1835

K P A1380 Forest Park Circle, Ste 140Lafayette, CO 80026Craig Downey(832) 515-3407

OneBeacon44 Whippany RoadMorristown, NJ 07960Tina Angelone(609) 613-0010

Sapp Bros Travel Centers824 West Maple AveIndependence, MO 64050James Miller(402) 679-8517

Welcome New Members!

In This Issue

3 Governmental & Regulatory News4 News from the Industry5 News from States & Provinces

Attachment: MoTA Annual Convention Wrap-up

HELP, Inc / PrePassThe Larson Group

American Trailer & StorageBancorpSouth Equipment Finance

BKD, LLPBridgestone Commercial Solutions

Cline Wood Agency, Marsh & McLennan Agency LLCCummins Central Power

Fontaine Fifth WheelImpact Training Solutions

J J Keller & AssociatesKPA

LinkeDrive

Lockton Companies, LLCLytx, Inc.

Midwest Bank CentrePeopleNet

Roberts Perryman PCRubinBrown, LLP

SmartDrive SystemsTAB Bank

Thermo King of SpringfieldThree Points Insurance Group, LLC

TMS Audio Productions, Inc.Volvo Trucks North America

Bendix CVS, LLCCertified Express, Inc.

Gully Transportation, Inc.Kallmeyer Bros Enterprises, Inc.

Transland, Inc.Transport Distribution Company

Walmart TransportationWitte Brothers Exchange, Inc.

Allied Oil & Tire CompanyBendix CVS, LLC

Craftsmen Trailer, LLCGateway Truck & Refrigeration

Bronze Sponsors

Carrier Sponsors

GE Capital, Transportation FinanceHireRight / DAC Trucking

Summit Truck GroupWells Fargo Equipment Finance

Silver Sponsors

Golf Tournament Jack Cooper Transport Co, Inc.

Thursday BreakfastGreat West Casualty Co & Affiliated Agencies

Thursday Luncheon SpeakerCentral Power Systems & Services

Friday Breakfast SpeakerCentral Power Systems & Services

WiFi SponsorBendix CVS, LLC

Lanyards & BadgesClarke Power Services

Friday Breakfast Co-SponsorOzark Utility

Friday Breakfast Co-SponsorMeritor, Inc.

Coffee BreakAAA Trailer Services, Inc.

Coffee BreakPilot Flying J

Events & Functions Sponsors

MHC KenworthTruck Centers, Inc.

Gold Sponsor

Westfall O’Dell Truck Sales

Platinum Sponsors

We would like to thank all the sponsors who contributed to the MoTA Annual 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.

motrucking.org2

MISSOURIMemoThe newsletter for the Missouri Trucking Association is published monthly. All rights reserved. Reproduction in any manner, without the Missouri Trucking Associationpermission, is prohibited.

Tom Crawford, President and CEOPO Box 1247102 E High StreetJefferson City, MO 65102573-634-3388mota@motrucking.org

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Member Cancellations October 2015Name of Company Class Dues

Corporate Safety Compliance, Inc. Allied $ 350

OrTran For Hire $2,700

2015 MoTADrivers of the Month

January ......................................................... Don Thieret Buchheit Trucking Service Scott City, MO

February .................................................... Nathan Riney Buchheit Trucking Service Scott City, MO

March .......................................................... Howard Hall Buchheit Trucking Service Scott City, MO

April ............................................................ Bill McKinley Buchheit Trucking Service Scott City, MO

May ............................................................. Glen Horack Prime, Inc. Springfield, MO

June .......................................................... Darin Haggett Buchheit Trucking Service Scott City, MOJuly ......................................................... Wes Wilkerson Buchheit Trucking Service Scott City, MOAugust ........................................................ Jerry Phenix Group One, Inc. N Kansas City, MOSeptember .................................................. Randy Davis Con-way Freight St. Louis, MO

Congratulations, Drivers!

To nominate your driver(s), go to http://www.motrucking.org/councils/council-of-safety-

supervisors/safety-contests/ fill out the nomination form and send it to the MoTA office.

Missouri Trucking AssociationP.O. Box 1247

Jefferson City, MO 65102fax: 573-634-3388

motrucking.org October 2015 • Missouri Memo 3

House Committee Passes Surface Transportation Reauthorization Bill

On Thursday, October 22, 2015, the House Transportation & Infrastructure Committee “marked up” and passed its Surface Transportation Reauthorization and Reform Act (i.e., the STRR Act). During the markup, the Committee either addressed or considered more than 150 filed amendments. Next step in the process is for the full House of Representatives to consider the bill on the House floor. No date has been set for full House consideration, but floor time may be scheduled in early November. Note: The House leadership election could delay full House consideration of this bill.

FMCSA Proposes Changes to Truck Inspection Rules

On October 7, FMCSA issued a proposed rule covering five issues, one of which is based on a petition from ATA to revise the rear license plate lamp requirement and allow an exception for truck tractors registered in states that do not require tractors to have a rear license plate. FMCSA agrees with the ATA petition and is proposing a change that would eliminate the need for the rear license plate lamp on tractors registered in those states. The other issues included in FMCSA’s proposed rule are: adding a definition of “major tread groove”; adding specific requirements when violation or defects noted on a roadside inspection report need to be corrected; amending Appendix G of the FMCSRs to include provisions for the inspection of antilock braking systems, automatic brake adjusters, brake adjustment indicators, and speed-restricted tires; and amending the periodic inspection rules (Part 396) to eliminate the option for motor carriers to use a violation-free roadside inspection report in lieu of a periodic or annual safety inspection. Comments are due December 7, 2015. For more information please contact Ted Scott at tscott@trucking.org.

APHIS to Issue Final Agricultural Fee Rule

The Agricultural and Plant Health Inspection Service has announced its intent to issue a final rule in the October 29, 2015 Federal Register, increasing fees for agricultural inspection services. Effective December 28, 2015, APHIS is raising the per-crossing fee from $5.25 to $7.55. APHIS will also raise the annual transponder fee from $105 to $301.67. APHIS will also begin charging for treatment of shipments found to contain pests or forbidden plants. The fees will be phased in over five years, beginning at $47 per treatment on December 28, 2015 and eventually rising to $237 per treatment on December 28, 2019. Because any carrier might be carrying prohibited plants or pests, all carriers are subject to APHIS fees when crossing the border. APHIS fees are assessed by U.S. Customs officers. ATA staff continues to analyze the rule and a summary will be available for members later this week.

URS Postponed; URS Isn’t UCR!

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 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 for registering the authority of regulated motor carriers, the issuance of DOT numbers, and the filing of entities’ insurance coverage and agents for service of process. The recent notice says that most of the URS rule won’t be effective until September 30 or December 31 next year. However, new applicants for motor carrier authority or DOT numbers are to begin using the URS’s new on-line Form 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 ~

IRS Reports Business e-filing Up

The federal Internal Revenue Service says that the total number of corporate and partnership tax returns filed electronically in 2015 exceeds the number so filed during the same period last year by some 9 percent. Altogether, nearly 8 million returns, amounting to well over three-quarters of all such returns, have been filed electronically, according to IRS. There were increases in all categories, but partnership and large corporate returns showed the greatest proportionate increases.

~ State Laws Newsletter ~

Upcoming Events:

NATMI Class ~

• November 16 - 20 ~ Fleet Safety Certification Course

Council of Safety Supervisors Meeting ~

• November 19 ~ Revel (2nd floor of MoTA office)

motrucking.org4

ATA Urges Manufacturers to Make Automatic Emergency Braking Standard

The ATA Board of Directors approved new policy calling for the manufacturers of cars and trucks to make automatic emergency braking systems standard equipment on all new vehicles. In addition, ATA said it would support possible future rules from the National Highway Traffic Safety Administration on the brake technology. “In our role as a safety leader, we believe ATA needs to be at the forefront of advocating for proven safety technologies,” said ATA President and CEO Bill Graves. “The experience of our member fleets tells us that automatic emergency braking systems hold tremendous promise and as such, we believe manufacturers should make this equipment standard and the federal government should seriously look at issuing regulatory standards.”

Polling Data Supports Highway Infrastructure Spending, Shows Trucking’s Positive Image

At the recent ATA Board of Directors meeting, Public Opinion Strategies’ Neil Newhouse told trucking leaders that based on new polling, trucking’s image remains positive among the public and that public supports investment in roads and bridges. Among the poll’s findings on trucking’s image:• Sixty percent of respondents said they have a favorable view of

the trucking industry, the highest among transportation modes.• The majority of Americans, 57%, said trucking’s safety record

was excellent or good. • Ninety-one percent of Americans believe car drivers are more

likely to engage in risky behavior on the highways than truck drivers and 70% believe they are more likely to be at fault when a car and truck collide.

And Newhouse’s poll also found that:• The number of people who believe more needs to be spent on

infrastructure has risen 12 points – from 48% in 2014 to 60% this year.

• Forty percent of the public thinks infrastructure should be a top priority for federal spending.

• Sixty-three percent of Americans believe our roads and bridges are not being properly maintained.

Derek Leathers Appointed To ATRI Board of Directors

Werner Enterprises President and Chief Operating Officer Derek J. Leathers has been appointed to the Board of Directors of the American Transportation Research Institute. Leathers has worked in the transportation and logistics industry for more than 20 years. “We are very pleased to have Derek join the ATRI Board,” said McReynolds. “His vast industry experience and expertise will be of great value to our Board as we lead the Institute’s work to advance the trucking industry’s safety and productivity.”

ATA Submits Comments on EPA/NHTSA Proposed Phase 2 Truck Fuel Efficiency Standards

ATA filed comments on the joint EPA/NHTSA Proposed Phase 2 Rule which will establish additional greenhouse gas and fuel efficiency standards for new model year 2017 trailers and new trailers, tractors and engines in model years 2021, 2024 and 2027. In its comments, ATA questioned the agencies’ future adoption rates and cost estimates for several key technologies; stressed the need to consider maintenance and downtime in all cost estimates; cautioned against the lowering of current NOx emission engine standards during the rule implementation period; requested any federal standards be harmonized with those of California 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 if specific criteria warrant a revisiting of the rule. While the cost of a new Class 8 sleeper tractor and engine are projected to increase by $14,500 in 2027, the agencies say such cost increases will be recouped within 24 months based upon fuel efficiency improvements of around 24%. A typical box trailer in 2027 is expected to increase by an additional $1,400 and achieve fuel efficiency improvements of 8%. The Phase 2 Rule, which will involve the longest implementation period of any regulation in the history of trucking, will likely be finalized in mid-2016.

ATA and Other Trades Push Back EPA/NHTSA on Pursuing More Stringent Truck Fuel Efficiency Standards under Phase 2

With ever-increasing pressure from environmental interest groups, ATA and 15 other trucking-related trade associations formally requested EPA and NHTSA to reject “Alternative 4” in the Greenhouse Gas Emissions and Fuel Efficiency Standards for Medium- and Heavy-Duty Engines and Vehicles - Phase 2 Proposed Rule. Alternative 4 seeks to “pull-ahead” the 2027 greenhouse gas/fuel efficiency target dates for engines, vehicles, and trailers by three years to accomplish all such milestones no later than 2024. In the joint letter representing nearly 250,000 combined members, the groups urged that the agencies proceed cautiously so as to not disrupt the economic viability of fleets, manufacturers, suppliers, dealers, and the nation’s economy. The letter was entered into the formal EPA and NHTSA dockets on October 1.

HOS Tops ATRI Survey of Industry Concerns Again

For the third straight year, hours-of-service was the number one concern of the trucking industry according to the annual survey conducted by the American Transportation Research Institute. The survey’s results, which also included CSA, the driver shortage and driver retention, were made public during the annual ATA Management Conference and Exhibition in Philadelphia.

motrucking.org October 2015 • Missouri Memo 5

New Jersey Enacts Motor Carrier Anti-Indemnification

On October 1, Governor Christie of New Jersey signed into law S. 1380, which makes provisions in contracts for motor carrier transportation that require the carrier to assume liability for the shipper’s negligence void and unenforceable in New Jersey. The state becomes the forty-third to enact such legislation, which has spread very quickly. Arkansas passed an anti-indemnification law earlier this year. The enactment of such measures is a focus area for the ATA Insurance Task Force, which has funded a number of state trucking association efforts to obtain anti-indemnification laws in their states. Our congratulations to the New Jersey Motor Truck Association and to its executive director, Gail Toth! The votes in both houses of the New Jersey legislature were unanimously in support of the bill.

Carriers Should Remain Vigilant About CARB Compliance

Motor carriers with trucks operating in California should remain vigilant about complying with the state’s air quality regulations. Last week, the U.S. EPA announced its first federal enforcement action against a non-California-based carrier for operating trucks without diesel particulate filters in the state. EPA is working with the California Air Resources Board to enforce the state’s Truck and Bus regulation which requires trucks to be equipped with DPFs and verification of compliance when contracting for transportation services. Carriers operating in California should ensure they meet the requirements of the regulation, perform due diligence when contracting for transportation services, and maintain compliance records in case of an audit.

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 ~

ATA Report Shows Growing Shortage of Qualified Truck Drivers

An analysis released by ATA shows that by the end of 2015, the driver shortage will reach nearly 48,000. If current trends hold, the shortage may balloon to almost 175,000 by 2024 due to industry growth and a retiring workforce. “Our work shows the great and growing need for drivers,” ATA Chief Economist Bob Costello said, “but we also highlight several solutions including increasing driver pay, getting drivers more time at home, as well as improving the image of the driver and their treatment by all companies in the supply chain. Make no mistake, 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.

Second Quarter Driver Turnover Rises at Large Truckload Carriers

Turnover at large truckload fleets rose three percentage points in the second quarter of the year to an annualized rate of 87%. Turnover at smaller truckload fleets, those with less than $30 million revenue fell seven points to 76%, its lowest mark since the third quarter of 2013. “While turnover is not at historic highs, it is still high enough to merit concern,” said ATA Chief Economist Bob Costello. “Fleets need to hire 89,000 a drivers a year to keep pace with retirements and projected growth, so ensuring an adequate pool of qualified drivers is critical.”