Overdrive

March 2016

Overdrive Magazine | Trucking Business News & Owner Operator Info

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Logbook 16 | Overdrive | March 2016 The 2016 fiscal year appropriations bill passed by Congress and signed into law by President Obama in De- cember may have included a major unintentional consequence: Remov- ing the 34-hour restart regulations from the federal code entirely, rather than simply suspending enforcement of certain 34-hour restart provisions. An internal memo circulated last month by the Truckload Carriers Association offered an explanation of the bill's strict interpretation and ad- vised its carrier members and drivers at large to continue to operate under the presumption that the 34-hour restart exists. The memo says it and other trucking trade groups, such as the American Trucking Associations, are urging Congress to act quickly to fix the issue. At press time, no one in Congress had announced any plan to clarify the issue. The restart-specific language in the 2016 appropriations act was intended only to continue the stay of enforce- ment on two provisions pertaining to the 34-hour restart: the requirement that it include two 1-5 a.m. periods and that its use be limited to once per week. Neither provision has been enforced since December 2014. Law- makers meant only to preserve the suspension of the provisions pending the results of a major U.S. Depart- ment of Transportation study. Instead, however, the bill says no funds shall be used to "implement, administer, or enforce sections 395.3(c) and 395.3(d) of title 49, Code of Federal Regulations, and such section shall have no force or effect on submission of the final report issued by the Secretary." That effectively removes the restart provision from the books, says TCA's memo. – Overdrive Staff Bill confuses status of 34-hour restart The Owner-Operator Independent Drivers As- sociation last month won a class-action lawsuit against the state of New York over its tax and decal fee, mean- ing the fee no longer will be enforced. The association chal- lenged the taxes as uncon- stitutional and discrimi- natory against out-of-state truckers who have paid the taxes in order to do business or travel in New York. The state's Supreme Court agreed and declared the fees invalid and unen- forceable. The next step is to sub- mit a memorandum to the court regarding damages, class administration of refunds and attorney's fees within 60 days. Jim John- ston, OOIDA president and chief executive officer, said the award could be "up to $20 million or so." "The court's ruling vindicates the constitu- tional rights of thousands of truck owner-operators who should be reimbursed by the State of New York for all registration taxes they have been required to pay in violation of the Constitution," said Daniel Cohen, lead counsel for the class. OOIDA's legal action represented a class of all in- terstate motor carriers that reside and operate trucking equipment primarily outside of New York and have paid or was set to pay the taxes. New York charged a $15 registration for each vehicle subject to Highway Use Taxes unless operating on the tolled portions of the New York Thruway. In 2013, it began requiring an accompanying decal for an additional $4, and failure to display it became classified as a traffic infraction. OOIDA had argued that the fees constituted an undue burden on interstate commerce in violation of the Commerce Clause of the U.S. Constitution. The taxes were imposed not only on New York-based trucks, which are driven proportionately higher miles in the state, but also on trucks based outside of New York, which are driv- en mostly in states other than New York. – Jill Dunn New York charged a $15 registration for each vehicle and also required an accompanying decal for an additional $4. OOIDA victory in N.Y. could reap millions of dollars

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