Waynes World - October 2007

UNIFIED CARRIER REGISTRATION FEES
PUBLISHED, HEALTH CARE ISSUES, AND...

OUT-OF-SERVICE & HOS
REGULATION UPDATES
By Wayne Schooling

OUT-OF-SERVICE FEES INCREASE
A final rule just published in the Federal Register includes provisions to up the fees and penalties for those drivers and employers who violate out-of service orders. The final rule amends certain provisions of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (known as SAFETEA-LU) and took effect September 4, 2007. The original SAFETEA-LU was signed into law back in August of 2005. According to the final rule, “it is necessary to make conforming changes in the regulations administered by the Federal Motor Carrier Safety Administration to ensure these rules are consistent with the applicable statutes and can be applied and enforced.”

Under these new rules, there will be an increase in the minimum Commercial Driver’s License disqualification period and civil penalty amounts for drivers convicted of violating a driver or vehicle out-of-service (OOS) order. It also increases the maximum civil penalty assessment for employers who violate OOS orders. The rule increases the minimum CDL disqualification periods for drivers convicted of violating a driver or vehicle OOS order while transporting non-hazardous materials. These penalties increased from disqualifying a driver from operating a hazmat carrying vehicle from 90 days minimum to 180 days minimum for the first conviction, and from one year to two years for a second conviction.

The final rule also increases both the minimum and maximum civil penalties for drivers (and companies) convicted of an OOS violation. Previous violations carried a minimum civil penalty of $1,000 for both a first and second conviction. The penalties are now increased to a minimum amount of $2,500 and $5,000 for the first and second convictions, respectively. The maximum civil penalty for employers who have knowingly allowed or required an employee to operate a CMV in violation of an OOS order increased to $25,000 (the previous maximum for a civil penalty was $10,000). For those caught hauling hazmat while OOS, the maximum penalty was increased to $100,000 per offense in cases where a violation results in death, serious illness, severe injury to any person, or substantial property damage.

FINAL RULE ON UCR FEES PUBLISHED
The Unified Carrier Registration (UCR) system replaced Single State Registration as of January 1, 2007. A final rule containing the fee structure for this system was published in late August and effective immediately. The new fees give smaller carriers a break but really go after the big boys. The fees start out for carriers with 0-2 vehicles at only $39 per company, while companies with over 1,000 vehicles will now have to pay $37,500!

HOURS-OF-SERVICE: A CONTINUING SAGA
The worst part of the never-ending saga of the attempt to bring the antiquated hours-of-service rules somewhere close to the realities of 21st century trucking is the uncertainty brought on by the current game of legislative and judicial ping-pong being played. On July 24, 2007 a federal appeals court vacated portions of the Transportation Department’s 2005 Hours of Service rule, saying the agency failed to provide adequate explanations for extending driving time to 11 hours and allowing drivers to reset their weekly maximum after a 34-hour restart period. We have not yet heard what the government intends to do in response to this, but I hope that the FMCSA can explain, to the court’s satisfaction, the addition of an 11th hour of driving and the 34-hour reset, thus avoiding a wholesale rewrite of the rules.

Unfortunately, FMCSA’s silence on its course of action has raised the anxiety level in much of the industry. The American Trucking Association said it would seek a stay of an appeals court ruling overturning portions of federal driver hours-of-service rules if the government doesn’t take action itself before the ruling takes effect on September 13. But since this column has to be written well in advance of that date, you’ll have to read next month’s article to see how this all turns out.

HEALTH CARE UPDATE IN THREE STATES
Way back in 1978, Congress provided that Americans could have “Cafeteria Plans” under IRS Code Section 125. These 125 Plans are employer sponsored employee benefits plans that allow employees to elect benefits on a pre-tax basis, thereby ensuring that employees and employers save taxes. Following Massachusetts lead in regards to making health care more affordable, Rhode Island, Connecticut and Missouri recently enacted new Cafeteria Plan mandates.

Rhode Island now requires employers who have an average employment of more than 25 employees for six consecutive months to adopt a Section 125 Cafeteria Plan. The plan must permit all employees and/or their dependents to purchase and pay for health insurance either through the employer or individually, effective July 1, 2009. The state of Connecticut now requires all employers who provide health insurance coverage to give their employees the opportunity to pay their portion of the premium before they are taxed through a Cafeteria Plan. Missouri now requires all employers who provide health insurance and who contribute to a portion of the premium to give their employees the opportunity to pay their portion of the premium pre-tax through a Cafeteria Plan. This plan is mandatory for all employers who provide and/or pay for health insurance regardless of the number of employees. The effective date is January 1, 2008.

~ NTA remains a name you can trust. Our website is your official U.S. DOT Internet Training Site and we are administrators of a Nationally Accredited Drug and Alcohol Program. If you have any questions, visit www.ntassoc.com or call me at (562) 279-0557 or send me an e-mail to wayne@ntassoc.com. Until next month, “Drive Safe – Drive Smart!”