P.B. Industries, Inc.

ILLINOIS COMMERCE COMMISSION

Illinois franchise fee waiver is over! Kaput. Intrastate franchise fees that have been waived for four years running return January 1, 2001. This Commission intends to reimpose the annual obligation on all intrastate carriers at a fee of $5.00 per vehicle.

There is no weight and size trigger in Illinois franchise fee regulation

That means the driver of every vehicle, operating for a carrier holding Illinois intrastate authority must be able to produce a franchise fee card reflecting specific vehicle information. Prior to January 1, 2001 cards issued no earlier than 1997 remains valid. At 12:01 AM. on January 1^st, all previously issued cards expire. Only a newly minted 2001 cards will be acceptable, and you can bet the Commission's uniformed enforcement will be watching.

Understanding the term "every vehicle" is important to our financial health. It includes motorcycles if they display identification issued to a for-hire carrier holding Illinois intrastate authority—even if they're not transporting freight "Every" also includes empty vehicles and vehicles used solely for interstate shipments, so long as they are operating for a carrier holding Illinois intrastate authority. Did we beat this horse sufficiently? "Every vehicle" really means each and every.

What will the Commission issue as result of our 2001 application? A new blue and white card identical to the one currently in each of our vehicles. Our obligation will be to enter specific vehicle information (year, make and VIN) and execute a signature line before placing an original card in each vehicle. Can I carry a photocopy of the card in the vehicle, and retain the original in the office for safekeeping? That's sufficient for a citation to which is attached a $75 administrative penalty!

What about interstate stamps? That fee waiver also ends January 1, 2001. These fees remain $7 per stamp, with an additional fee of $1.00 per D-1 cab card. The application you receive for intrastate cab cards allows you to purchase cab cards, stamps and D-1 bingo cards on which to display the stamps.

Since there is no grace period in this franchise fee statute, and the Commission is out of the habit of issuing, it might be wise to file as soon as your application appears. What would preclude the Commission's issuing new cards to me? Your Alliance is convinced proof of insurance will be the predominant stumbling block. Since proof of insurance is mandatory, it's not unreasonable to assume the Commission will verify that proof is on file in its office before issuing. If your insurance lapsed, causing the Commission to refuse to issue, how long will it take you to provide new proof? Can I check the status of my insurance filing now? Certainly. (217) 782-4702 is the insurance sections direct telephone number.

When is my 2001 franchise fee application likely to appear? No later than October 15^th. If that fails to occur, a telephone call to (217) 782-4654 should lead to a resolution.

On a related topic, a Single State Registration renewal application should already be in your mailbox If not, a telephone call to (217) 782-4654 will unearth the problem. The same display deadline applies to this set of regulations. Our year 2001 RS-3 must be in each vehicle transporting regulated interstate freight by 12:01 AM. on January 1^st . Failure here is far more critical than failure to be able to produce intrastate documents, since enforcement could occur outside of Illinois, and most enforcement officers impound the vehicle until proof (a current RS-3) appears Depending upon timing, that impoundment could last hours, causing considerable delay in your plans for the vehicle.

File Single State, intrastate cab card and exempt bingo stamp applications NOW to ensure compliance prior to January 1^st.

ILLINOIS SECRETARY OF STATE

Did you pay year 2001 IRP fees using a surety? If so, remaining fees are due October 1^st. If you fail to meet that deadline Illinois converts your surety to cash, leaving your bondsman to chase you for the $$$

New license plates for cars and B plated trucks will be available between mid-2001 and mid-2003. They will be issued with renewals beginning July, 2001. Your Alliance is being told Illinois will not assess a fee above the usurious but usual $78 renewal fee for the new plates. Is it true? STA remains far from convinced.

ILLINOIS DEPARTMENT OF REVENUE

October is a fuel tax filing month. Revenue expects to receive our 3^rd quarter, 2000 IFTA filing accompanied by full payment of taxes by the final day of October. Failure results in assessment of penalty and interest. Penalty is the greater of $50 or 10% of the tax. Interest is I % per month. Avoid paying even one cent more than is necessary by assuring a postmark no later than October 31^st.

ILLINOIS DEPARTMENT OF TRANSPORTATION

This month's contribution from IDOT discusses regulations and exemptions applicable to the transportation of farm commodities to market. If you have questions, please call IDOT at (217) 785-1181 Unfortunately this is one area where your Alliance will not have answers.

last month the NEWSLETTER claimed vehicles with a manufacturers gross vehicle weight rating (MGVWR) of 36,000 pounds or more are exempt. That is incorrect. 16,000 pounds is the trigger. Vehicles with a MGVWR in excess of 16,000 pounds must be tested if they are:

Registered in the affected areas
Two or more model years old
Operated solely intrastate.

Vehicles operating interstate—meaning regulated by USDOT and therefore mechanically inspected annually, or transporting exempt interstate freight—are exempt from Illinois emission testing requirements.

On this same subject, your Alliance has heard Illinois State Police may claim the right to emissions-test vehicles operating in the affected areas (NOT registered in the affected areas) 'for probable cause." That means vehicles operating in the affected area and releasing a visibly dirty exhaust stream are subject to testing. But, but what If these very same vehicles are exempted by statute? Unfortunately, that's exactly why attorneys exist. Look for this matter to land in the courts the instant an otherwise exempt vehicle is tested and found in violation.

FEDERAL DEPARTMENT OF TRANPORTATION

Hours of service is all anyone wants to discuss. The brouhaha has boiled to the top. Rodney Slater claims Federal Motor Carrier Safety Administration (FMCSA) is considering issuing a supplemental proposal that "could provide small concessions to trucking." Why is Slater (Secretary of Transportation) suddenly at the helm and backing down? Where is Clyde Hart, the recently installed deputy director of FMCSA? Where is Cirillo? The answer to all three questions is that the U.S. Senate attached a rider to FMCSA's budget bill for 2001 specifically prohibiting further funding for the proposed hours of service rulemaking, and Slater—as lame duck—is willing to take the heat While Slater is refusing to be more specific until his amended proposal is made public, he claims changes wilt be based on comments received during the recently concluded public forums. Say what? Why were these comments ignored in the initial proposal? Isn't that the very reason for the rulemaking process? Isn't that what these public forums were for? Aren't these public sessions the very reason Congress imposed rulemaking? The answer is a resounding, YES. Congress was tired of hearing from the courts and the public that federal agencies impose regulations in areas so unfamiliar to them that the result made little sense.

As an aside, Slater—the very same S later who vowed to have the hours of service proposal enacted before Clinton left office—is now claiming the final hours of service rule will not be enacted before Clinton's term ends, but he (Slater) is "proud of DOTs approach to hours of service." If this wasn't so important an issue, it would be laughable. Stay tuned. This is bound to be a fun ride.

FHWA sent what is claims is the result of a comprehensive truck weight and size study to Congress. The authors claim the study investigated the relationship between size, weight and productivity, and the impact those various options impose on highway safety. Oddly, the authors claim their tome makes no recommendations. These presumed experts merely examined options available, leaving the crucial issues and decisions to Congress. Remember that Congress is comprised of folks who are chauffeured to most destinations at our expense. Are we asking such folks—many of whom cannot even unlock car doors using a remote control—to make truck related decision? Looks like it.

In the same context, FHWA is trying to standardize how far external equipment should be allowed to protrude from a vehicle. FHWA has been accepting comments on this subject since 1989! They've been studying this issue for 10 years, and it's not a completed work yet? And we want a reasonable hours of service rule in two years?

Back on the subject of "parts-protrusion," FHWA is currently proposing a maximum protrusion of three inches on each side and six feet in length, front or rear. Is this group ready to formalize that proposal and send it to rulemaking? FHWA's Tom Klimek claims his group will "eventually finalize the process and present it to FHWA's policymakers." However, Klimek is unwilling to divulge when that might occur. Ten+ years on a single project and ifs destiny remains undecided? Your Alliance is betting the date this proposal is presented to policymakers and Kimeks retirement date are intimately related.

Claiming an immediate hazard to public safety, FHWA forced Russman Transportation of Jeffersonville, Indiana to close its doors at the end of August. The major allegation was "allowing drivers to falsify logbooks." In addition, company owner Nahum Matsa agreed to divest himself of all interest in, and avoid further contact with Russman. To ensure the closure order sticks, Indiana state police removed license plates from all of Russman's vehicles. FHWA claimed it would agree to lifting the closure if Russman—under different ownership—presents an acceptable safety action plan reflecting a reasonable process for compliance with federal regulations.

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

OSHA is saber rattling regarding forktruck training. What is being demanded of us?

Company based and defined training using qualified trainers, that illustrates proper use of seatbelts, and
Assurance that forktruck operators are being forced to comply with their training, including wearing of seatbelts where applicable.

That's it, but failure leads to a full safety audit with the possibility of serious penalties.

Proper training and remedial instruction as required, that is supported by a paper trail proving compliance does not sound difficult If that's true, why is OSHA able to point to overwhelming violations?

STATE OF CALIFORNIA

This state's spat with IRP, as well as much of our frustration with California's IRP fee structure seems ready for settlement. Legislation bringing California's statute into compliance with national IRP regulations is on the way to Governor Davis, who claims he's ready to sign it into law, What changes with the stoke of Davis' pen? Beginning January 1, 2001, for the 2002 registration year, trailers will no longer require annual IRP registration in California. That means a trailer plate valid in any state will be equally valid in California In addition, registration fees will be predicated on loaded weight, rather than the present empty tractor weight criterion. This means once the bill is enacted, adding California to an IRP file will be identical to adding any other state. Even the resulting fees are lower than expected. California's fee for an 80,000 pound vehicle will be $1700 plus a property tax supplement, a fee considerably less than Illinois $2,800!

Following enactment, California will offer five year fiscal trailer plates (for California-based vehicles) at $20 per plate. Renewal five year plates will cost $10.

STATE OF IDAHO

Remember all the angst attached to recent wildfire in the northwestern states? The problem caused several of those states to call for help from distant sources. One of the responders to the cries for help was the federal Bureau of Land Management (BLM). it agreed to supply several water tankers—straight truck bodies fitted with water tanks and spraying equipment. Two of BLM's vehicles were stopped at the Coeur d'Alene weight station because they were overweight. The weight of the water caused a 2000 pound overload on each rear axle. Did the idaho Weighmaster think "these are emergency vehicles headed to a fire and should therefore be allowed to pass? Phsssst. Re delayed them both an hour, issued each a citation for the overload, and made them off-load sufficient water to eliminate the violation. This was water in such short supply in the tire area that Officials asked BLM to ship the vehicles fully loaded. Can you imagine the ensuing meeting between Idaho's Governor, the Governor of the state to which the trucks were headed, and BLM? Odds are Mr. Weighmaster is working in such a remote part of Idaho he can't find his way home. Wait a minute. That's all of Idaho. Maybe they sent him to the Dakotas instead.

Our obligation for use Fee Tax ends October 1, 2000. However, Idaho claims we cannot stop filing until the 1RP renewal following October 1^st. That means most carriers will be forced to file 4^th quarter, 2000 and 1^st quarter, 2001 tax forms before canceling their use Fee accounts.

Use Fee remains a requirement for carriers operating over-dimensional vehicles. Such filing should reflect only those miles generated by the over-dimension vehicles.

STATE OF IOWA

Iowa's Supreme Court dealt a deathblow to misdemeanor enforcement, claiming nearly 100,000 misdemeanor citations issued over the last five years are unconstitutional. Say what? Do I skate on an Iowa citation for speeding or failing to obey a stop sign? Depends upon how quickly you get to court.

The constitutional issue is one of format. Iowa law requires the issuing officer to sign each citation under oath, and have his signature notarized. None of these 100,000 citations comply. Well, why doesn't the court simply toss all 100,000 citations? Money and politics. The state doesn't want to Jose the $$$, and politicians don't want to face the voters' heat for the error. How will it be fixed? The various prosecutors are scurrying madly in an attempt to have officers belatedly sign amended complaints and run them all past a notary. Thus, whether you skate depends upon the order in which this process plays out. If you beat the prosecutor, meaning your citation remains unsigned and unnotarized on the date you appear in court, you skate. if the prosecutor beats you, the citation stands on its merits.

Get to court as quickly as possible, but without speeding. If you're caught speeding now, you can bet your citation will bear a signature and notarization.

STATE OF NEW JERSEY

Electronic payment of tolls becomes reality October 1st. E-Z Pass, which is compatible with toll collection in Delaware, Maryland, Massachusetts, New York and West Virginia, will deduct $18.20 from your account for using the entire 120 miles of this state's tollway.

That $18.20 fee is up 8% from the current fee. What? Electronic collection that decreases New Jersey's costs results in a toll increase? You got it, but those paying tolls with cash face a 13% increase, 5% more than E~Z Pass users. Unfortunately, both E-Z Pass and cash payers face another 8% increase scheduled for October 1, 2003. How does that answer help? Why are we paying an increase for helping New Jersey to reduce costs? The Turnpike Authority claims its maintenance budget reflects $1 billion hole.

On an allied note, New Jersey's highway regulations prohibit use of local roads by vehicles simply passing through the State. To use local roads, vehicles must be able to prove legitimate freight-related stops in New Jersey. A recent fatal accident caused the Legislature to consider legislation further limiting local road use, by designating each leg of a trip independently. If enacted that proposal forces trucks back off local roads sooner. While the entire statute is in the courts on constitutional grounds, look for this more restrictive proposal to reach the Governor's desk, and more zealous enforcement immediately. Asking your drivers to remain on Interstate and primary New Jersey routes as long as possible, thereby limiting use of local roads, may save both time and money.

STATE OF NEW YORK

We're back to transforming truckers into New York State Revenue Collection Enforcers. Newly enacted legislation requires truckers to verify consignees of cigarette shipments are properly licensed by New York Department of Revenue.

The law prohibits truckers from delivering more than 800 cigarettes to unlicensed parties. Violation results in a year in the pokey for the first violation. Subsequent violations are defined as felonies, carrying a four year stay as a guest of the state, and a $5,000 penalty, per violation.

Needless to say, the matter is headed for the courts. This is another story where you'll have to stay tuned until the courts decide to tell New York it should hire professional enforcement to meet its needs. In the interim, refuse to transport cigarettes to a New York address.

STATE OF OREGON

Effective September 1 g, positive substance abuse test results became part of the Commercial Drivers database. As result, positive tests are being entered into Oregon's database, and appear on each Motor Vehicle Record. The database will be available on-line beginning December 1^st. Further, as part of each IRP renewal, carriers will be required to certify they and their drivers participate in a substance abuse testing program that complies with federal requirements. The penalty for failing to participate is a flat $1,000.

The sentimental folks at Oregon Safety and Health claim to be concerned about truck drivers falling while attempting to tarp flatbed loads. (Good thing they don't understand open-top trailers.) David Sparks, Deputy Director, claims he's called for a meeting of shippers and carriers to determine the feasibility and cost effectiveness of mandating "fall protection" for such chores. Among his questions are:

Who would pay for the protection, regardless of what his agency requires?
Who's responsible if fall-protection Tails?
Who's responsible if the driver fails to use the equipment, and is injured?

One never knows what one can find to question when one has too little to occupy one's time.

This state's weight-distance tax rates decrease 12.3% September is'. That means multiple rates on your 3^rd quarter filing. Each vehicle that operates in July or August and September requires two separate lines on the weight-distance filing to accommodate the different tax rates.

On a related topic, weight-distance plates expire December 31^st. Oregon claims renewal packages have been mailed to all 15,000 companies (250,000 vehicles) currently displaying these plates, and expects to receive the completed renewal application no later than October 31^st. Failure to display the new plate and registration on January 1^st results in a citation to which Oregon attaches a $295 penalty. Questions? Oregon's telephone number is (503) 378-6699. Your Alliance has renewal blanks.

Citations for failure to be able to produce weight-distance registration have sky-rocketed since port of entry hours were reduced last spring (from 100 to 600 citations per month, at $295 per citation). Oregon wants us to know it feels our resulting pain. Effective immediately we get a second chance to comply. If caught without proof of weight-distance, a driver is allowed to proceed to the next available location selling trip permits. If a resulting permit is FAXed to the police making the arrest, both case and penalty are dropped. This is one time "relief? Get caught a second time, and the sole choice is to pay the $295 penalty.

Finally, Oregon claims it receives reports of 156 truck related crashes per month. Of that total, 94 (60%) are caused by the truck driver! As result, Oregon inspects close to 4,000 trucks per month, and places 1,000 (25%) out of service.

ONTARIO, CANADA

This Province enters IRP effective April 1, 2001, the effective date of Illinois 2002 IRP registration cards. If you intend to travel in Ontario after April 1^st , be sure to include miles on your IRP Schedule B.

Of the outstanding Provinces, Alberta, British Columbia and Saskatchewan are already IRP participants. All remaining Provinces, Manitoba, New Brunswick, Newfoundland, Northwest Territories, Nova Scotia, Prince Edward Island, Quebec and Yukon Territories, plan to implement IRP April 1^st That leaves Mexico as the sole North American country outside IRP membership.

STATE OF PENNSYLVANIA

This state is reeling under waste being trucked in from New York and other surrounding states. As result, Governor Ridge had legislation submitted in both houses of his legislature requiring permits to transport garbage at permit fees between $1,500 and $5,000 per year. The legislation also freezes on new landfill permits. While Ridge claims his permit fees will be earmarked for inspecting garbage trucks, the truth is nobody wants New York's garbage.

Monroe County (in Eastern PA, South West of Wilkes-Barre) hired Rick Keiper as its first Roadway Sanitation Technician. He was chosen from a pool of 60 applicants for the chore that was advertised for an annual salary of $18,000 to $25,000. What does Rick do as RST? He removes roadkill. In his first two weeks he claims to have removed the carcasses of over 100 deer, and at least 50 other carcasses, including those of cats, dogs, skunks and possum Rick reports he's enjoying all parts of his job, except for one-~-a television interview his employer forced on him.

ODD BITS OF MINITUAE

300,000 trucks and busses manufactured with antilock brake electronic control units (ECU) supplied by Bendix Commercial/Honeywell International are being recalled. Trucks at issue were manufactured by International, Ford, General Motors, Freightilner, Sterling, Volvo, and Mack.

These ECUs are failing, causing brake failure. Unfortunately, Bendix claims the supply of "approved ECUs is currently insufficient, and it will not be able to correct the supply situation until mid-October. In the interim it's asking us to pump our brakes lightly, but regularly. (Only kidding.)

Continuing on the subject of brakes, Commercial Vehicle Safety Alliance chose September 6^th as its second International Brake Day this year. For most of that day CVSA inspectors across the U.S. and Canada inspected truck brakes at roadside inspections. The most recent check on May 3^rd resulted in a 20% out of service ratio for brake defects!

With winters approach, your Alliance thought it prudent to offer the following two web sites that forecast weather across North America. They can mean the difference between driving unaware into a blinding snowstorm, or driving a few miles out of the way on dry pavement. The first site is maintained by the National Weather Service, while the second is a private site maintained by Earth Watch.

www.srh.noaa.gov/tlh

www.earthwatch.com

On an unrelated topic, trucks across America consume 30 billion gallons of diesel fuel and 15 billion gallons of gasoline annually. With an increase of 40cc per gallon in the price of diesel over the last 12 months, we will be forced to spend an additional $19 BILLION for fuel this year!

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