June 29, 2004

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Headline News


Professional Truck Driver Institute Announces 2004-2005 Board and Committee Members

Click here to read press release.

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Driving School Learns Hard Lesson On the Importance of Insurance

One truck driving school learned a hard lesson when the licenses on twelve tractor-trailers were removed after the owner of the school failed to pay his insurance premium. WSTM News reported that the owner of the Central Square Driving Academy (CSDA) in Central New York stopped paying his $55,000 insurance premium in February while he looked for a cheaper carrier. His fleet was taken off the road in May. As punishment, the DMV has ordered the CSDA fleet grounded until September 15th, meaning any truck drivers trying to get their CDL-A license will have to wait. Drivers were given the option of taking classes towards a CDL-B.

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TCA Sends Letter of Support for ATA petition on Cargo Securement Rules

In a June 18 letter sent to Federal Motor Carrier Safety Administration (FMCSA) Administrator Annette Sandberg, TCA expressed support for the American Trucking Associations (ATA) filed Petition For Reconsideration on the agency’s Cargo Securement Rule (Title 49 CFR §§393 Subpart I – Protection Against Shifting and Falling Cargo Rule). This rule was originally issued on September 27, 2002, and became effective January 1, 2004.

The ATA’s June 9 petition raised three issues relating to the FMCSA’s cargo securement rules as follows:

1) To clarify §393.102(a)(1) and (3). ATA feels that “for the sake of uniformity, the agency should clarify the current rules and revise them to reflect the forward and lateral acceleration requirements of 0.4g and 0.25g, respectively”, as described in it’s December 31, 2003 memo entitled “Cargo Securement Enforcement Policy.”

2) To remove §393.104(f)(4). ATA believes the following paragraph from this section of the regulations is ambiguous and should be removed: “All tiedowns and other components of a cargo securement system used to secure loads on a trailer equipped with rub rails, must be located inboard of the rub rails whenever practicable”; and

3) Clarify §393.118(d)(3)(iv)(B). To ensure the proper securement of the type of cargo detailed in the section, the ATA recommends simplifying the regulatory language to make it less confusing. They suggest, “more consistent compliance can be obtained by designating separate paragraphs for loads of three vertical tiers of bundles, and loads with four or more vertical tiers of bundles…In addition, the word ‘tier’ could be substituted by the word ‘stack’.”

TCA has reviewed the ATA petition in its entirety, and concurs with all of the recommendations on these issues.

We will keep you posted on further developments on this issue. To read TCA’s letter of support of ATA’s petition click here. If you wish to get a copy of the ATA petition or if you have any questions on this issue, please contact Rich Clemente at TCA (703) 838-8847 or email: rclemente@truckload.org.

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Ohio Trucking Association Wins Appeal, TCA Applauds the Unanimous Decision, Provided Financial Support to OTA

On June 23, the Ohio Supreme Court in a unanimous 7-0 decision reversed the Ohio Board of Tax Appeals decision to assess a personal property tax on the refrigeration units in refrigerated trailers. The Court’s decision states, “We find the decision of the Board of Tax Appeals to be unreasonable and unlawful, and hereby reverse it.”

On March 24 of last year, the Ohio Trucking Association (OTA) on behalf of their refrigerated unit motor carriers filed an appeal with the Ohio Supreme Court on the decision of the Ohio Board of Tax Appeals. The reason for the appeal was that, in late 2002 the Ohio Board of Tax Appeals upheld a 1999 decision to tax refrigeration equipment on a refrigerated trailer as personal property on the basis that the refrigerated equipment serves a purpose unrelated to the use of the motor vehicle. According to the OTA, based on that decision Ohio would have soon begun to assess refrigerated carriers in Ohio a personal property tax of $370 to $840 per year on each refrigerated trailer.

As a result of the potential bad precedent that decision could have sent in other states, TCA and several of its carrier members contributed financially to assist OTA in its appeal. We congratulate OTA on this victory. For additional details concerning this case, please contact Larry Davis, OTA’s President at (888) 382-1574.

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RSPA Grants Appeal on HM-215E, Generic Packaging Types To Be Included on Shipping Papers

The DOT’s Research and Special Programs Administration (RSPA) issued a final rule in the June 22, Federal Register, that responded to the industry’s request for the agency to reconsider their requirement to include number and types of packages on shipping papers. RSPA granted the ATA’s appeal of HM-215E, which amended aspects of the hazardous materials (HM) regulations to conform to international standards. TCA had also filed a letter of support to the docket after reviewing the ATA appeal. We concurred with their recommended solution and stated, …as “truckload carriers would find it impracticable to train their hazmat employees to recognize the scores of UN packing designations.”

The rule was originally published on July 31, 2003, (click here to see a summary [link to August 5, 2003 TCA Truckload Carrier Report]) requiring the HM shipping paper to include an indication of packaging type. While the industry supported the inclusion of the generic packaging type – for example, cylinder box or drum – the original final rule would have allowed the packaging type to be indicated by either the generic type or by the UN specification number (e.g., UN1A1). ATA and TCA appealed this aspect of the rule, arguing that it would be extremely difficult to train the drivers to recognize the myriad of UN specification packaging codes. As a result of this appeal, any of the following indications will now be acceptable: “6 drums” “6 1A1 drums” or “6 drums (UN 1A1).” The “delayed compliance effective date” for the HM-215E rule including these recent amendments is October 1, 2004. A copy of the June 22 Register rule can be found by clicking here for an HTML and here for a PDF .

In addition, on the same day in the Federal Register, RSPA issued a Notice of Proposed Rulemaking (NPRM) on Docket HM-215G, in which the agency is proposing to amend the HM regulations to maintain alignment with international standards by incorporating various amendments, including changes to proper shipping names, hazard classes, packing groups, special provisions, packaging authorizations, air transport quantity limitations and vessel stowage requirements. These proposed revisions are necessary in this NPRM to facilitate the transport of HM in international commerce due to recent changes to the International Maritime Dangerous Goods Code (IMDG Code), the International Civil Aviation Organization’s Technical Instructions for the Safe Transport of Dangerous Goods by Air (ICAO Technical Instructions), and the United Nations Recommendations on the Transport of Dangerous Goods (UN Recommendations). Industry comments on this NPRM must be filed by August 23, 2004, and a copy of the June 22 Register NPRM can be found by clicking here for an HTML and here for a PDF .

If you have any questions or comments contact Rich Clemente at TCA (703) 838-8847 or by email: rclemente@truckload.org

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Congress Extends Current Highway Bill Funding Through July

Late last week, Congress approved yet another extension of the current highway reauthorization program. Without this action, funding for the Department of Transportation and many other surface transportation programs would have been halted, as the current program was set to expire on June 30. This latest action by Congress marks the fourth time that the current highway program has been extended, from an original deadline of September 30, 2003, to this latest deadline of July 31, 2004. The Senate passed this extension by a voice vote, while the House voted unanimously (418-0).

As you have read in the past, and according to the latest news reports, President Bush has threatened to veto a bill higher than the $256 billion he was seeking, but Don Young (R-AK), the Chairman of the Transportation Committee; said he would remain firm on at least the $275 billion in talks with the Senate on a final bill. By way of reminder, the House approved a $283 billion bill on April 2 and the Senate passed a $318 billion bill on February 12.

Without any agreement on the overall spending number, the House and Senate will have difficulty settling on the formula that determines how federal funds are distributed among the states. The states are now guaranteed a return of 90.5 cents for every dollar they contribute to the highway trust fund, which holds the money accumulated from the 18.4 cents a gallon federal gas tax that pays for highway construction. The larger, more populated states that get back less than they pay into the fund are not happy with this and are demanding a return rate of at least 95%, which will be difficult to achieve unless the total spending package is closer to the Senate-approved level.

For a copy of the latest summary chart of the major provisions of the House and Senate versions of the bills click here. For further questions or information, please contact Rich Clemente at (703) 838-8847 or by email: rclemente@truckload.org.

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