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UCR Board Mtg June 08

Below are the notes of the UCR Secretary Terry Willert as jury duty prevented me from attending or calling into the Louisville meeting. ********** David Hugel provided the report of the Federal Motor Carrier Safety Administration (FMCSA). Reappointed to the Board were Sandy Bowling, Buddy Covert, Frank LaQua, and Angel Oliver. The White House has advised that only in extraordinary circumstances will new rulemaking be scheduled after June 1, 2008. This makes it unlikely that a new UCR fee for 2009 can be published to be effective in January 2009. Avelino Gutierrez gave an update on SAFETEA-LU corrections bill. President Bush has signed the SAFETEA-LU technical corrections bill. The insurance component for motor private carriers is no longer included in SAFETEA-LU. Sandy Bowling provided the report from the Indiana Department of Revenue (INDOR). A CD containing the UCR receipts for 2007 and through May of 2008 was presented to the UCR participating states. Bill Leonard provided the report of the Revenue and Fees Subcommittee. In light of the news from David Hugel regarding the fact that no further rulemakings will be allowed for 2008, no new 2009 fee will be recommended. Regardless, no new recommendation was to be given at this meeting because there has not yet been any national enforcement. The committee will continue to monitor enforcement efforts and compliance to calculate 2010 fees. About $57 million has been collected for 2008 with about 190,000 carriers registered. FMCSA needs official notification from the Board recommending 2009 fees remain the same as current fees. Avelino Gutierrez instructed the Revenue and Fees Subcommittee to come up with a time table for making the recommendation to FMCSA of the UCR fees for 2010. Sandy Bowling advised that because of a data problem with the MCMIS data which must be cleaned up before the carrier can register, she requested the Board provide the carrier with a letter. Sandy, Bill Leonard, Bob Pitcher, and Avelino Gutierrez will work on the letter. Buddy Covert provided the report of the Audit Subcommittee. Work to date has been on the carrier side to develop an audit program. Goal 1 is to develop procedures to have a consistent registration program. Goal 2 is a peer review by the end of 2009. Bob Pitcher provided the report of the Industry Advisory Subcommittee. Industry attendance is down due to economic conditions. Barbara Hague provided the report of the Procedures Subcommittee. She introduced the UCR trifold bulletin which was accepted with minor corrections. The question was asked whether CDL driver schools are required to register under UCR? It was determined that although they are driving commercial motor vehicles they are not hauling property and are therefore not subject to the UCR. Avelino Gutierrez made a motion that the Board direct the chairman and vice-chairman to send a letter under their signature to the USDOT Secretary recommending the identical fee structure for 2009 as was previously recommended by the Board and approved by the USDOT Secretary for 2008. The motion passed by a vote of Yes-12, No-1, and Abstain-1. Scott Morris provided a report from the task force he chaired to answer three questions. 1. Distinction between interstate and intrastate commerce. If a carrier states on its MCS150 that it is an interstate carrier, then it is subject to UCR. Bob Pitcher will write a guidance on the prior case law involved. 2. Preemption under subparagraph 14504a(c). Referring to Bob Pitcher’s earlier analysis, the law is geared to the carrier, not its vehicles. If carrier pulls its intrastate vehicles from its count for UCR, the State cannot apply intrastate fees on those vehicles. However, if a carrier has a pattern of violations, it may loose that exemption. 3. Increase entitlement based on lost intrastate revenues. If a State proves it has lost intrastate revenues under the UCR, then it can increase its entitlement upon approval by the Board. Frank LaQua provided report of the Depository Subcommittee. Discussed possible factor to include a state’s enforcement activity into the determination of moneys it gets from the UCR depository. Avelino Gutierrez advised that on Friday, June 6, 2008, he received an email from Jill Boudreaux, Undersecretary of the Louisiana Department of Public Safety (LADPS), that LADPS is not entitled to any 2007 UCR fees. Avelino responded asking for clarification whether that would include 2007 fees collected in 2008. Avelino Gutierrez made a motion that the Board direct the Depository Subcommittee to send all of Louisiana’s 2007 fees received through December 31, 2007, to the Louisiana Public Service Commission; and that the LAPSC and DPS clarify which agency is entitled to fees received in 2008 for 2007 and, as long as both agencies are in agreement, directing the chair and vice-chair to send a letter to the Depository Subcommittee and the State of Indiana to release such money to the appropriate agency. The motion passed unanimously. Sandy Bowling advised that INDOR had already forwarded January and February collections of 2007 fees to the LAPSC. Avelino Gutierrez advised that INDOR should hold further 2007 fee payments until it is clear which agency is to receive the 2007 payments. Avelino Gutierrez made a motion to make a one time exception allowing the UCR depository to make a one time payment of 2007 money from the depository for January through April 2008. Motion carried unanimously. An amendment to the UCR Procedures Manual may be needed to reflect the depository’s problem with getting states to pay what is owed to the depository. At the next Board meeting, the Procedures Subcommittee will recommend an amendment to the UCR Procedures Manual regarding depository payments on other than a monthly basis. Barb Hague asked for clarification regarding revenues that Missouri will be entitled to for 2008 UCR fees. Missouri will review what can be done and come to the Board with a recommendation. The Revenue and Fees Subcommittee will research and make a recommendation to the Board as to what Missouri’s 2008 entitlement should be. Lynne Jones asked for discussion on how to handle a State’s shortfall. There is nothing in writing from FMCSA on this. Avelino Gutierrez will draft a letter (Terry Willert will send it to the UCR email list) asking FMCSA for clarification on the issue. The letter will include information already provided to the Board. Bob Voltmann asked whether the Board will begin getting information on how States are doing in getting carriers registered. Dave Lazarides advised that the Board can be provided with a report on registration by State on a regular basis. Dave Lazarides asked that the Board provide a definition of what is the universe of carriers subject to UCR. The UCR Systems Subcommittee will provide the report monthly to the Board and it will include both 2007 and 2008. The Board, by consensus, recommended that NCSTS decide on the registration period for 2009 and then make a recommendation to the Board. Scott Morris, Tom Klingman and Buddy Covert will research and bring back a recommendation to the Board as to how far back UCR enforcement should go. Future Board Meetings are scheduled for: July 10, 2008, at 12:00 noon to 3:00 p.m. EDT August 7, 2008, 12:00 noon to 3:00 p.m. EDT September 4, 2008, 12:00 noon to 3:00 p.m. EDT

*** Questions about this info? Contact Linda Norman at 703-821-0000 or linda@donnormanassociates.com ***