20 minute read
Trucking News Roundup
T TRUCKING RUCKING I INDUSTRY NDUSTRYR ROUNDUP OUNDUP 2021 Legislative Session ends with priorities met for Alabama Trucking
By Ford Boswell
The 2021 Alabama Legislature Regular Legislative Session ended earlier last month with several big wins and interesting developments that will impact Alabama truckers for years to come.
The Alabama Trucking Association’s top priorities for the session included renewing economic development incentives, passing COVID-19 liability protection, and expanding CARES Act tax relief for businesses struggling due to the pandemic. We are pleased to report that each of these measures was enacted thanks to the guidance and support of Gov. Kay Ivey and the legislature.
Our leadership team also assisted and supported the Alabama Law Enforcement Agency’s (ALEA) effort to get a federally required update to Alabama law related to Entry-Level Driver Training (ELDT). In short, the Federal Motor Carrier Safety Administration is requiring additional requirements for ELDT under Section 380 and ALEA is responsible for enforcing these requirements beginning February 7, 2022.
Working closely with Sen. Kirk Hatcher (D-Montgomery) and Rep. Connie Rowe (R-Jasper), we helped pass SB 322 to conform Alabama law to align with the federal standards that will enhance safety and training at CDL programs.
Of other interest to truckers, Gov. Ivey signed a corresponding $7.67 billion Education Trust Fund budget. The budgets will boost the state’s investment in electric vehicles in two ways: a $2 million grant program for electric vehicle infrastructure and planning housed at the Alabama Dept. of Economic and Community Affairs, as well as $1 million for an electric vehicle technology education program.
Meanwhile, on the highway safety front, the definition of construction zone violations would be expanded and a $250 minimum fine set under SB 4 by Sen. Gerald Allen (R-Tuscaloosa). After both chambers agreed to an executive amendment, the bill is once more pending with the governor.
The biggest news outside of the industry came on the final day of the session when Gov. Kay Ivey announced that she had signed medical marijuana legislation into law.
After thorough and extended consideration in the legislature, SB 46 by Sen. Tim Melson (R-Florence) had been pending with the governor since May 6. In the ensuing days, speculation had focused on the possibility that she would allow it to become law without her signature. Running to more than a hundred pages, Act 2021-450 is extremely comprehensive, specifically addressing everything from recommendation limits (conditions, dosage, delivery method), production and dispensary rules, to establishing a governing commission and detailed employer protections.
Among protections for employers, key provisions include: l Employees and/or their dependents are ineligible for workers’ compensation benefits if the injury or death resulted from the employees’ impairment by medical cannabis. l Health insurance plans are not obligated to cover medical cannabis treatment. l Employers are not required to allow employees to use medical cannabis and are allowed to consider medical cannabis use in hiring/firing/disciplinary decisions. l Employers are not prohibited from establishing or enforcing a drug testing policy. l The new state law does not supersede federal restrictions on employment and does not create a cause of action against employers due to an employee’s use of medical cannabis. l The drug-free workplace discount on workers’ compensation premiums is preserved. l Employers retain the right to deny payment of workers’ compensation benefits due to a positive drug test.
In economic development news, the House started Monday by concurring with Senate changes to the proposed Alabama Rural, Agribusiness and Opportunity Zone Jobs Act. HB 473 by Rep. Danny Garrett (R-Trussville) is now pending with the governor.
The bill would establish a $50 million pool of capital that must be invested in small businesses in rural and economically impoverished (opportunity zones and low-income census tracts) communities. It would also set targets for investing in minority-owned businesses.
Federal SSBCI grants from the American Rescue Plan would be used to match private sector investments on a 1:1 ratio to raise capital for the fund, which would, in turn, be invested by fund managers into small businesses with growth potential. Access to capital is one of the primary barriers faced by entrepreneurs in rural and impoverished areas and for minority businesses.
Source: Fine Geddie & Associates. Visit them at finegeddie.com
ATA hires J.J. McGrady to lead special projects
Alabama Trucking Association President and CEO Mark Colson recently an nounc ed that J.J. Mc Grady has joined the ATA team as Manager of Special Projects.
“J.J. brings a solid work ethic and collection of skills and ex perience gained from a variety of internships at political, nonprofit and public relations organizations. We are proud to add J.J. to our team and are excited about the spark he will add to our organization,” said Colson. “He’s a trucker now, and he’s ready to roll to help make Alabama Trucking even better.”
Originally from Prattville, Ala., McGrady is a recent graduate from the University of Alabama, where he earned a Bachelor of Arts in Communication and Information Sciences, double majoring in Public Relations and Political Science and was also active in SGA as a Senator, was a leader in Beta Upsilon Chi and the college ministry The Well Tuscaloosa.
He recently completed internships with Alabama Senate President Pro Tem Greg Reed as well as the Business Council of Alabama. He also has past experience with the West Alabama Chamber of Commerce and WVUA 23 Tuscaloosa. In his free time, he also worked as a Shipt shopper.
“I’ve even got trucking roots,” McGrady said. “My grandparents met and fell in love while working in different states for the old Floyd and Beasley Transfer, and I have family still working in trucking. I’m proud to be a trucker and ready to get to work.”
Colson said that McGrady will be working closely with the entire ATA staff to help en sure that the strategic priorities of the organi zation are accomplished. “His training in public relations and political science will serve our members’ needs well,” Colson added.
For fun, McGrady enjoys movies, music, reading, listening to podcasts, audiobooks, watching TV and short films. He is also a huge sports fan, especially for his Alma mater Crimson Tide.
Alabama and Georgia adopt elective Pass-Through Entity Tax
The 2017 Federal Tax Reform Law in cluded a provision that limits the state and local tax (SALT) itemized deduction for in dividuals to $10,000 a year. Since then, state legislators and tax experts have been explor ing ways to circumvent this limitation.
There have been many attempts to enact legislation (referred to as a SALT work around) and the most successful strategy is for states to enact legislation to allow passthrough entities to pay tax at the entity level, shifting the tax on the pass-through income from the owner to the pass-through entity. This methodology requires that state income tax is paid by the pass-through entity directly, which is not limited in the amount of state taxes that it can deduct for federal purposes. Therefore, the tax is deductible without limita tion via the net taxable operating in come passed through to the owner. The IRS has stated its approval.
Source: Warren Averett. Visit them at warrenaverett.com
ATA applauds Gov. Ivey’s decision to end pandemic employment benefits
The Alabama Trucking Association applauds Governor Kay Ivey’s decision to drive Alabama’s economic recovery by dis continuing federal pandemic unem ployment benefits.
Employers will tell you there are plenty of good-paying jobs available, but they are unable to fill them under the current system. And the trucking industry is no different.
“The trucking industry did not stop throughout the pandemic,” said ATA President and CEO Mark Colson. “Millions of truck drivers, fleet managers, service technicians, dispatchers, and other industry workers were essential in keeping the nation’s economy rolling during an unprecedented time. But now we need even more Americans to step up and get the economy rolling again. For thousands of trucking businesses, a shortage of professional drivers is having a ripple effect throughout the economy.”
Unemployment benefits were a lifeline to millions of displaced workers who were negatively impacted by government shut downs and a struggling economy caused by the pandemic, but now it’s time to get to work.
“As the economy starts to rev up, Alabama truckers have and will continue to drive the recovery,” Colson added.
We’re so thankful to provide an opportunity for our members to voice their concerns with U.S. Sen, Tommy Tuberville on May 25 during the Alabama Trucking Town Hall virtual meeting. Extremely productive discussions on tolling, infrastructure and workforce development yielded great feedback and exchanges between ATA members and Sen. Tuber ville. Thanks to the team at the American Trucking Associations for setting up the meeting, and thanks to Sen. Tuberville and his staff for taking the time to learn more about the issues that matter most to Alabama truckers. We’ll do it again soon! Our next Town Hall will feature Congressman Jerry Carl (Alabama District 1). Details on that event are forthcoming. Please visit alabamatrucking.org for current updates and registration information.
Alabama Trucking Association Board Mem ber and former ATA Chairman (FY 2013-14) Kevin Savoy has been appointed to the Ala bama Conservation Advisory Board by Gov. Kay Ivey. Savoy replaces Patrick Cagle of Mont gomery, whose six-year term expired.
A native of Mobile, Savoy is a 1991 grad uate of Auburn University. He currently serves as Vice President of Great Southern Wood Preserving, Inc. and Greenbush Logistics, Inc.
Savoy’s involvement in state, community, and professional organizations is extensive. In addition to his work with ATA, he serves on the Dothan Area Chamber of Commerce Board of Directors, the Alabama Wildlife Federation Board of Directors Executive Com mittee, the Leadership Alabama Wire grass Area Board of Directors, is a member of the HNB First Bank Advisory Board, and is the current chairman of the Houston Aca demy Board of Trustees.
“This appointment is truly an honor,” Savoy said. “As an Alabamian and an avid outdoorsman, I know that we are fortunate to have a vast treasure of natural resources in every corner of our state. I appreciate the opportunity to join with the other Conserva tion Advisory Board members to strengthen our conservation efforts on behalf of all Ala bamians.”
Gov. Ivey also reappointed four current
Savoy
board members to new terms: Joseph Dobbs, Jr., of Birmingham; Brock Jones of Tusca loosa; Gary Wolfe of Fairhope; and Grady Hartzog of Eufaula.
“I am very pleased with the addition of Mr. Savoy to the Conservation Advisory Board and I am thankful for the reappoint ments of four of the current members,” said Chris Blankenship, Commissioner of the Ala bama Department of Conservation and Natural Resources (ADCNR). “We have an outstanding Board that brings a wealth of knowledge and outdoor recreation experience to their work. I look forward to working with the Board to continue our progressive management of Alabama’s abundant natural resources.”
The Conservation Advisory Board is com posed of 10 members appointed by the Gov ernor for alternating terms of six years and three ex-officio members: the Governor, the Commissioner of Agriculture and Industries, and the Director of the Alabama Cooperative Extension System. ADCNR’s Commissioner serves as the ex-officio secretary of the board.
The board assists in formulating policies for ADCNR and examines all rules and regulations. By a two-thirds vote of the members present and with the Governor’s approval, the board can amend, change or repeal current rules and regulations or create and promulgate additional rules and regula tions. The board also assists in publicizing the department’s programs and activities.
The Alabama Department of Conserva tion and Natural Resources promotes wise stewardship, management and enjoyment of Alabama’s natural resources through four divisions: Marine Resources, State Parks, State Lands, and Wildlife and Freshwater Fisheries. To learn more about ADCNR visit outdooralabama.com.
New ATRI research documents effects of national VMT tax
The American Transportation Research Institute recently released a report detailing the costs of deploying and operating a national vehicle miles traveled (VMT) tax. This study was identified as a top research priority by ATRI’s Research Advisory Committee in 2020.
With a goal of understanding the opportunities and challenges of a federal system, the research first explored the technical and administrative requirements of charging every U.S. driver for miles driven. Next, the costs of operating a VMT tax program were calculated, including those associated with technology, data com munications and account management.
It was found that replacing the federal fuel tax with a VMT tax that is assessed on 272 million private vehicles could result in collection costs of more than $20 billion annually – or 300 times higher than the federal fuel tax. The central reason for this large increase in costs is the shift in collection points – from a couple of hundred fuel terminal operators to every registered motor vehicle in the U.S.
“It’s clear that a VMT tax is a far more complicated and costly replacement for the fuel tax than many had anticipated,” said James Burg Trucking Co. President and CEO Jim Burg. “If a system like this is going to work for everyone, many years of thoughtful planning and federal leadership are needed.”
Additionally, the report found that hardware costs alone would have an initial price tag of $13.6 billion and require ongoing replacement, telecommunications costs would be approximately $13 billion annually, and account administration would be an additional $4.3 billion each year. On top of these costs, credit card transactions for electronic payment and even the shipping costs for the hardware could each cost more than $1 billion.
“With policymakers preparing to lay out a
Continued on page 28
R ROUNDUP OUNDUP T TRUCKING RUCKING I INDUSTRY NDUSTRY
vision for the future of America’s infra struc ture, ATRI’s analysis could not come at a more critical time,” said ATA President and CEO Chris Spear. “Most experts agree that some sort of VMT system is a part of that future, and ATRI’s report makes clear that implementing it will take thoughtful leader ship, cooperation from stakeholders and a strong plan to transition away from current funding streams.”
For access to the full report please visit ATRI’s website at TruckingResearch.org.
Truckworx promotes Matt Dobbins to Southern Region VP, bolsters management team
Truckworx, a Kenworth Truck dealer for Alabama and Mississippi, has named Matt Dobbins its new vice president for the southern region. In this newly created role, Dobbins will oversee all aspects of business for the company’s four southern most dealerships located in Mobile, Thomasville, Dothan and Montgomery.
Dobbins has worked at Truckworx for seven years, first as Truckworx-Mobile’s service manager and then as the dealership’s branch manager. Since taking over that position in 2015, TruckworxMobile’s overall yearly revenue has increased by 98 percent and the company has added 10 employees.
Mike Levering, Vice President of Operations says, “Over the last seven years, Matt has consistently demonstrated his pas sion for making this company better in so many ways; from making the company more efficient to improve the overall experience of customers and employees. Matt leads with great passion and a genuine love for his team, and I expect great things to come from his increased focus.”
Dobbins says, “I am looking forward to providing leadership and guidance to the Mobile, Thomasville, Montgomery and Dothan teams to help empower our em ployees to be the best they can be so that we can continue to build depth in our business.”
With Dobbins’ increased area of focus and the company’s growth, other changes to Truck worx-Mobile’s management team have also taken place. Replacing Dobbins as Truck worx-Mobile’s branch manager is a 15-year Truckworx employee, Nathan Shirah, who worked most recently as the company’s service manager.
According to Shirah, his new role will involve working with corporate and local management teams to develop strategies to continuously improve dealership efficiency and service levels. He says, “I look forward to growing as a leader in this new role. I truly care about the team and our customers and I hope to bring a positive influence and add value to everyone around me.”
Meanwhile, Ben Wolfe, who has worked in the company’s service department since 2015 has accepted the service manager position. Shirah says, “Ben has been a huge asset to our service department. His ability to learn and excel at each position he has work ed in made him an easy choice as a service manager. He is excellent with customers even in difficult situations and is great at connecting with people around him.”
In addition to filling the existing man agement roles, two new management posi tions have been created at Truckworx-
Dobbins
Mobile to accommodate the growing business. Kandice Morgan, a previous service advisor, stepped into a newly created assistant service manager role.
Shirah says she will be responsible for man aging overall productivity and mini mizing customer downtime by focusing on the pro ductivity of technicians and im prov ing custo mer communications. The com pany also add ed an office manager posi tion, pro moting Ethel Casher-Moore into the new role. Cash er-Moore has worked as the dealer ship’s office administrator since starting with the company in 2018 and will oversee all account ing functions for the dealership going forward.
Dobbins says, “Each member of the new Truckworx-Mobile management team has a unique skill set and they all compliment each other well. We look to this team for the future of this branch.”
Truckworx is the premier heavy and medium-duty truck and school bus dealer featuring nationally acclaimed parts and service teams and award-winning product lines in Alabama, Mississippi, and the Florida Panhandle.
In addition to Kenworth trucks, Truck worx also represents PacLease commercial truck leasing and rental, Hino (made by Toy ota) and Isuzu commercial trucks, Blue Bird Bus, as well as six heavy-duty trailer manu facturers. Truckworx is also an au thor ized dealer of Yeti products, M.B. Ranch King deer blinds, Pure HardSurface Disin fectant, and Pitmaker Grills & Smokers. For more information on Truckworx or for cur rent career opportunities, visit truckworx.com.
Palomar’s Toni Jones receives CRM designation
Palomar Corp. Vice President of Transportation Insurance Toni Jones has earned Certified Risk Manager (CRM) designation, following her successful completion of a rigorous risk management education program sponsored by the Society of Certified Risk Managers.
This accomplishment was affirmed by the President of the Society of CRM Dr. William Hold, who also serves as President and CEO of the National Alliance for Insurance Education & Research.
The Society of CRM is a key member of
The National Alliance for Insurance Educa tion & Research, the nation’s preeminent provider of insurance and risk management education. The National Alliance conducts more than 2,500 programs annually through out all 50 states and around the world. The program is designed to serve a variety of individuals practicing risk management so that they may better serve their clients’ insur ance and risk management requirements. Jones has demonstrated her professional competence through the successful com pletion of the five CRM courses and the corresponding comprehensive examinations that focus on all major fields of risk— principles of risk management, analysis of risk, control of risk, financing of risk, and practice of risk management. “Palomar Insurance is pleased to an nounce the designation of CRM completed by Toni Jones, an invaluable member of our marketing team,” says Lane Milam, Execu Jones tive Vice President of Sales & Marketing. “Her in-depth knowledge of the industry, trucking insurance, along with her new designation as CRM will help our transpor tation clients understand their company’s risks and help shape our insurance products to meet their needs.” Headquartered in Montgomery, Ala. with
Continued on page 30
R ROUNDUP OUNDUP T TRUCKING RUCKING I INDUSTRY NDUSTRY
offices in Georgia and Tennessee, Palomar Insurance delivers tailored insurance pro grams to national and international companies.
Four Star Freightliner awards annual Zach Sizemore Scholarships
In an effort to continue the legacy of Four Star Freightliner employee Zachary Sizemore, the company has awarded four additional scholarships to high school seniors.
Four Star awarded the first Zachary Sizemore Memorial Scholarship in 2017, one year after Sizemore passed away from cancer. He worked in the accounting department at the Dothan, Ala. location.
When choosing recipients, Four Star Freightliner dealer principal Jerry Kocan said he looks for candidates who appear to not only have a dream but a plan. He said he knows Zach would be proud of how he is being remembered.
“Knowing Zach, I think he would appreciate our efforts because he was very passionate about Four Star and loved his job and the people he worked with, said Kocan. “He lives because his memory is helping others to live their dreams. He is still having an impact all these years later.” The 2021 recipients include Marcus Fields of Greenville, Ala., Greenville High School; Zach Cosby, Mont gomery, Ala., Loveless Academic Magnet Program High School; Amber Hammon, Gordon, Ala., Cottonwood High School; Alana Wallace, Hoover, Ala., Hoover High School. Students receive a one-time $1,000 award to use towards expenses at the college of their choice. Four Star Freightliner has awarded a total of $18,000 to students in honor of Sizemore.
Marcus Fields
Amber Hammon Zach Cosby
Alana Wallace
PO Box 242337 • Montgomery, AL 36124 • Phone: (334) 834-3983 • Fax: (334) 262-6504
Application For Membership
Motor Carrier: ___ Private: ___ Household Goods: ___ Allied Industry: ___
Your Dues Amount: $ __________________ (please fill in by using dues chart)
DOT Number: ______________________________________ Number of Trucks: __________________ __________
CONTRIBUTIONS OR GIFTS TO THE ALABAMA TRUCKING ASSOCIATION, INC., ARE NOT DEDUCTIBLE AS CHARITABLE CONTRIBUTIONS. HOWEVER, A PORTION OF YOUR DUES ARE TAX DEDUCTIBLE AS ORDINARY AND NECESSARY BUSINESS EXPENSES.
CODE # _________________
FOR OFFICIAL USE ONLY
Date _________________________ Check # ______________________ Dues Amt ____________________ Mbr Class ____________________ Mbr Type ____________________ Dues Cat _____________________
Freq _________________________ Exp Date _____________________ Nxt Bill Date __________________ AL Sen ______________________ AL Hse ______________________ CG Dist ______________________
MAG ______ MC ______ GC ______ YR ______ LTR/PLQ ______ RSL ______ BC ______
Schedule of Membership Dues
(Effective July 1, 2017)
A. For-Hire Motor Carriers (Membership dues are based on truck count; maximum of $4,000)
$500 plus $20 per truck
B. Private Carriers (Schedule based on miles traveled in Alabama)
$300 ..............................for up to 1 million miles $600 ..............................for 1,000,000 up to 4 million miles $900 ..............................for 4,000,001 up to 7 million miles $1,200 ...........................for 7,000,001 up to 10 million miles $1,500 ...........................for 10,000,001 up to 13 million miles $1,800 ...........................for 13,000,001 miles up to 16 million miles $2,100 ...........................for 16,000,001 up to 19 million miles $2,400 ...........................for 19,000,000 up to 21 million miles $2,800 ...........................for 21,000,000 up to 24 million miles $3,100 ...........................for over 24 million miles
C. Household Goods Carriers
(Schedule based on intrastate revenue only)
$420 ..............................for under $100,000 $480 ..............................for $100,001 up to $150,000 $540 ..............................for $150,000 up to $200,000 $660 ..............................for $201,001 up to $250,000 $780 ..............................for $250,001 up to $300,000 $900 ..............................for $300,001 up to $400,000 $1,200 ...........................for $400,001 and over
D. Allied Industry (Those who service and equip the trucking industry)
$600 annually
CONFIDENTIALITY STATEMENT – The amount of dues paid by individual members of the Alabama Trucking Association is confidential information and is not subject to publication. Dues information can only be released by ATA to the principal representative of the member in question, and requests by other persons or parties will not be honored. Members are strongly urged to honor this privacy statement and to not share their confidential dues information with other ATA members or the general public.
