Iowa Motor Truck Association

Hiring Fraud Perpetuated on Drivers and CDL Training Schools

The Federal Motor Carrier Safety Administration would like to make you aware of attempts to defraud CDL drivers seeking employment and CDL training schools that are attempting to help students find jobs. The fraudster promises employment in return for monetary payments to fraudulent “recruiters.” Please read below for more details about this “scam.”
 
The way it works is a caller represents himself or herself as being a recruiter for a known and legitimate motor carrier to a representative of a truck driving school or driver. The caller has an air of urgency and “must hire” several CDL holders immediately or as soon as a student graduates from Driver Training and receives his or her CDL. The fraudster is also known to solicit truck driving school instructors to provide his or her call back number to trainees or recent graduates from truck driving schools.
 
When a driver seeking employment calls the “recruiter” he or she is offered an immediate position with higher than industry norms pay and benefits for a new driver and is often told there will be a “waiver” for previous criminal or DUI convictions older than three to five years.
 
The caller then tells the driver candidate he or she must prove financial solvency to the carrier by sending a wire transfer of $350 or more to the “recruiter.” Recently the “wire transfer” instructions were to procure a Walmart money transfer purchased at the closest Walmart store and sent to the “recruiter” for pick-up at another Walmart store, usually in another state. Past fraudulent “recruiters” have directed money transfers through other common money transfer services such as Western Union.
 
Victims are directed to travel to a location, often in another state than his or her residence, to be picked up by a company trainer and the pick-up does not occur.
 
Risk Mitigation for Driver/Driver Training Schools: Telephone the PUBLICLY LISTED telephone number of the motor carrier offering employment and verify the recruiter is a duly authorized representative of the Carrier.
 
Source: Federal Motor Carrier Safety Administration

FMCSA Close to Sleep Apnea Guidance

House Reviews Size, Weight and Hours of Service

United States legislators homed in on top trucking issues such as truck sizes and weights, electronic logs and driver hours of service at a House hearing on March 14.

The Subcommittee on Highways and Transit met to review the Department of Transportation’s implementation of last year’s highway law, one provision of which calls for a study of the size and weight issue.

Rep. Michael Michaud (D-Maine) complained to Federal Highway Administration chief Victor Mendez that the agency expanded the scope of the study, which will consequently delay its completion. Michaud said the study is due in August 2014. Mendez said it will be done November 2014.

The study will look at the safety and economic implications of alternative configurations, including the 6-axle, 97,000-pound vehicle, according to a recent FHWA presentation.

Electronic Logs

Federal Motor Carrier Safety Administration Chief Anne Ferro said the agency is on track to produce its supplemental proposed rule on electronic on board recorders by September of this year.

Ferro reported that a number of trucking companies have successfully made the transition from paper to electronic logs. The agency has listened to industry concerns and is incorporating comments into the rule, particularly with respect to equipment standards and prevention of singling out drivers and carriers.

Hours of Service

Rep. Markwayne Mullin asked Ferro to reconsider the agency’s recent rejection of an industry and enforcement community request to push back the July 1 start date of the new hours-of-service rule.

American Trucking Associations and the Commercial Vehicle Safety Alliance had asked the agency for a three-month extension to manage any changes that might emerge from the ongoing suit against the rule, and to complete personnel training.

The agency denied the request, saying it will not sacrifice what several months of public safety benefits from the rule.

ATA and CVSA are challenging the rule in the U.S. Court of Appeals for the District of Columbia Circuit. Oral arguments were scheduled for March 15, although it may take several weeks for the court to make a ruling.

Source: Heavy Duty Trucking Magazine

ATA Says No Delay of HOS Rule Will Cost Trucking Industry $320 Million 

American Trucking Associations said Thursday the Federal Motor Carrier Safety Administration’s decision not to delay implementation of FMCSA’s hours-of-service rule will cost the trucking industry about $320 million between now and July 1.

The group released a letter it wrote to FMCSA in which it criticizes the agency’s recent rejection of ATA’s request to delay implementation of hours-of-service regulations scheduled to take effect July 1. ATA wrote that the rule’s implementation — in the face of legal uncertainty because of ATA’s pending suit against FMCSA over several of the rule’s provisions — would lead to costs that “will have been irrevocably squandered” should the court agree with ATA, either in whole or in part.
 
“At a time of rising diesel prices, increased equipment and labor costs, the decision by the head of FMCSA to reject a reasonable request for a brief delay in enforcing this rule is unbelievable,” ATA President Bill Graves said in a statement.
 
In its letter, written by ATA General Counsel Prasad Sharma to FMCSA Chief Counsel Scott Darling, the group said that “FMCSA contrived an analysis under an inapplicable test to critique the sufficiency of ATA’s request. “Despite a record of adverse decisions based on past HOS litigation, FMCSA is willing to risk wasting significant training resources — some of it taxpayer money used to train both agency staff and the state enforcement community,” the letter stated.
 
In a lawsuit filed in February 2012, ATA asked the Court of Appeals for the District of Columbia Circuit to overturn the changes, saying the agency overstated the role fatigue plays in truck crashes and that the new rule is too restrictive.
 
Oral arguments before the appeals court are scheduled for March 15.
 
Source: Transport Topics

Wyoming Passes Gas Tax Increase

A 10 cent increase in the state fuel tax cleared its final vote in the Wyoming Senate on Thursday and now heads to Governor Matt Mead for signing.

Mead has said he favors a tax hike as a means to create a steady revenue stream for highway and road repairs and construction. The state tax on gasoline and diesel would jump from 14 to 24 cents on July 1.

The Senate approved House Bill 69 on an 18-12 roll-call vote after a lively third debate. The legislation previously passed the House.

The increase is estimated to raise about $71 million for the 2014 fiscal year. Approximately $47 million would go toward state highways, $16 million for county roads, $6.7 million for city and town roads, and $1.2 million for state parks, including such things as road, boat ramp, off-road and snowmobile trail maintenance.

Wyoming families can expect to pay an additional $114 per year for fuel on average, according to state estimates.

Workers Comp Bill Drafted…

We reported last week legislation is being considered that would create major reforms in Iowa’s workers’ comp laws. This week the bill has been circulated for comments, but still has not been introduced for public review. As you can see below, the list of issues included in the bill is very extensive and it will be very difficult to pass legislation that includes all these reforms. That is why IMTA has submitted the draft legislation to our Workers’ Comp committee and have asked them to prioritize the importance of the provisions contained in the bill.

Following is a summary of the draft legislation:

1. Preserving Iowa’s offering of light duty work.
2. Precluding the unilateral commutation of future weekly benefits into a lump sum payment to the injured worker and the attorney.
3. Placing the burden on the employee who tests positive for drugs or alcohol at work to prove the intoxication was not the cause of the injury.
4. Preservation of the 90 day notice and statute of limitations defense.
5. Preserve a losing party’s right to appeal a district court’s judgment on award of benefits.
6. Restricting an injured worker from collecting multiple times for the same injury by claiming the injury caused successive disabilities.
7. Establishing a fair and equitable measure of industrial disability for specific “body part” injuries and the factor of the injured worker’s age.
8. Current statute does not prohibit an award of permanent and total disability to someone still working; contrary to the notion of “totally disabled.” The proposed change would remove total disability when the injured worker has been afforded suitable work.
9. Establish a reasonable causation standard because the state has created an ambiguous standard for determining causation. Nothing appears in current statute regarding the standard for causation between a work activity or accident and the right to benefits. The proposal would require that a majority (51% or more) of the causes for a medical condition is from a work related cause.
10. Allow the employee to recover when an overpayment has been made to an injured worker.
11. Preserve the employer’s ability to use surveillance and to use that surveillance evidence at trial without providing the surveillance evidence to the claimant before the trial.
12. Reduce the current code requirement that employers must pay 10% interest on benefits while the case is being tried. The proposal would require for some reasonable interest.

IMTA’s Workers Comp task force is reviewing the proposed legislation and assisting IMTA with its review. The committee will also be involved in developing IMTA’s legislative strategy once the proposed legislation is finalized.

One obstacle that is being factored in as we move forward is the tension between the Governor’s office and a workers comp commissioner Godfrey. Governor Branstad has a lawsuit filed against him and his staff by the Iowa Workers Compensation Commissioner Chris Godfrey. When Governor Branstad was elected two years ago he asked for the resignation of all - or nearly all - the department heads. Many of who were subsequently re-named to the same position. This is common practice when a new Governor is elected. Godrey refused to submit a resignation. The Governor cannot fire Godfrey, but he did cut his salary by $37,000. Godfrey has now counter sued alleging defamation, extortion, harassment and sexual discrimination. The Iowa Supreme Court has agreed to hear at least part of the suit.

None of Godfrey’s complaint has anything to do with workers’ comp reform bill described above. However, the tension between the department, the Governor and Godfrey supporters in the legislature will make it even more difficult to have a debate on the merits of this legislation.

IMTA and the Gas Tax

The proposal to increase the tax on fuels in Iowa is in the very formative stages. A “shell bill” is being put together in the House, but so far most of the key components are still vague. We do know the bill will call for a phase-in of whatever increase is proposed. However, at this time no one is proposing a specific amount. We also know there is talk about having a differential increase on biodiesel in order to provide an incentive to use the fuel. There is concern as to how that may impact revenues should that fuel ever become widely used.

It appears the support is not there to expand the sales tax on new cars. Under current law local option sales taxes do not apply to new vehicle purchases. There had been some talk about removing that exemption, but it does not appear that will be part of the bill. There are numerous other collateral issues being discussed, but no decisions have been reached on such items as; suspending the underground tank fee (which amounts to a penny per gallon) when the program sunsets in a few years, different tax treatment of ethanol, tax levels on alternative fuels, and registration fees on electric vehicles.

Although bill drafting is being discussed, there is little doubt this issue will be months in the making since the Governor and numerous legislators have tied the fuel tax issue to comprehensive commercial property tax reform.

IMTA is supportive of a gas tax and the association’s current policy on a gas tax is:

The Iowa Motor Truck Association opposes any diesel fuel tax increases that are not part of a comprehensive highway construction and maintenance plan based upon the following:

IMTA supports increasing Iowa’s road use tax revenues by implementing a phased-in increase of a gas tax contingent upon the following provisions:

• The plan must promote the efficient movement of freight and automobile traffic by concentrating spending on the distribution formula passed in TIME 21 in the 2008 session
• The plan recognizes the government mandated loss of diesel engine efficiency and the change in the relationship between the price of gasoline and the price of diesel fuel through the equalization of motor fuel tax rates and a phase in of any new diesel taxes not to begin until July 2009
• No tolling
• No bonding for highway construction

Once a bill is drafted, IMTA’s executive committee and an IMTA task force appointed specifically to oversee the gas tax debate will review the legislation and then determine their position on the bill that is drafted.

IMTA will also once again provide talking points and other material when it comes to the point that a grassroots effort needs to be implemented. The Governor continues to emphasize he will not veto gas tax legislation if it gets to his desk but his ultimate desire is to offer this as part of a comprehensive package that also offers some tax reductions and reforms in addition to implementing a “user fee” to repair and maintain Iowa’s roads and bridges.

Iowa Motor Carriers Foundation Scholarship Applications Now Available

Scholarship applications for the Iowa Motor Carriers Foundation are available and being accepted through March 15.

There are 11 scholarships available for the 2013-14 academic year, all of which are awarded based on the applicant’s academic record and outside activities as they pertain to school and community citizenship.

Scholarships awarded by the IMCF are available to students majoring in any field of study. To be eligible to receive an IMCF scholarship, a student must be a permanent resident of the state of Iowa. The student also must currently be attending or planning to attend any of the following types of educational institutions:

• A community college located in Iowa
• A public or private trade school located in Iowa
• A private college or university located in Iowa
• A public college or university located in Iowa

For more information regarding the scholarship opportunities available through the Iowa Motor Carriers Foundation — or to obtain a scholarship application — please visit www.iowamotortruck.com.

“Cliff” Compromise Allows 50% Write-off of New Equipment

Lost amid the hoopla surrounding Congress’ last-minute agreement on avoiding the economic “fiscal cliff” as the new year dawned was a provision in the deal that could help the trucking industry as it moves to replace aging equipment during 2013.

Under the legislation, which President Barack Obama has signed, fleets will be able to continue to write off half of the cost of equipment purchases on their 2013 tax bills.

Relieved truck dealers said renewal of the tax write-offs — known as bonus depreciation — could help boost lagging truck sales.

The old bonus depreciation program had expired December 31, 2012, the same day the Senate passed the new bill. The House approved it New Year’s Day.

President Obama signed the new tax measure January 3, which was the same day the 113th Congress was sworn in, officially making Rep. Bill Shuster (R-Pa.) the new chairman of the House Transportation and Infrastructure Committee for the session that will end in January 2015.

The legislation, called the American Taxpayer Relief Act of 2012, raises taxes on the wealthiest Americans while keeping tax cuts for most households. It also renewed the $1-a-gallon tax credit for biodiesel producers.

Source: Transport Topics

ATA Truck Tonnage Index Rebounds

The American Trucking Associations’ advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index jumped 3.7 percent in November, erasing October’s 3.7 percent drop (the 3.7 percent decrease in October was revised from a 3.8 percent contraction ATA reported November 20).

November’s gain was the first since July of this year. As a result, the SA index equaled 118.0 (2000=100) in November versus 113.8 in October. Compared with November 2011, the SA index was up one percent after contracting 2.1 percent on a year-over-year basis in October.

Year-to-date, compared with the same period last year, tonnage was up 2.8 percent.

The not seasonally adjusted index, which represents the change in tonnage actually hauled by the fleets before any seasonal adjustment, equaled 115.7 in November, which was 6.5 percent below the previous month.

“Sandy impacted both October’s and November’s tonnage readings,” said ATA Chief Economist Bob Costello. “But it was still good to see tonnage snap back in November.”

Costello said he expects a boost to flatbed tonnage from the rebuilding in the areas impacted by Sandy, but most of that won’t happen until the spring when the money starts flowing and the weather is conducive to building.

Source: American Trucking Associations