January 27, 2012

 

Measure to Move Ports of Entry to CSP Advances

HB 1019 which would transfer the Colorado Ports of Entry from the Colorado Department of Revenue to the Colorado Department of Public Safety and Colorado State Patrol passed on a unanimous vote Wednesday by the House Transportation and Energy Committee. Several CMCA members, including CMCA’s Chairman, Victor Domenico, spoke in support of the measure.  CMCA members noted that both the state and industry would be better served by consolidating motor carrier safety and compliance activities in one agency.  They noted this would provide for greater consistency in interpretation and application of motor carrier regulations and laws. The combining of these operations also would eliminate confusion as to who is responsible for certain issues or who is the appropriate contact.  Finally, with the State still facing a major funding shortfall, another important reason to consolidate these operations is the cost savings and efficiencies that would result.  A study conducted by the state over the last few years indicated that the state could realize a savings of $3.1 million by bringing the Ports into the State Patrol. 

HB 1019 represents a follow-on to a measure that was passed in 2010 that brought together commercial vehicle safety activities under the State Patrol.  That move has worked extremely well resulting in greater uniformity and consistency in truck safety inspections. The Governor has already indicated his support for the measure and there does not appear to be any opposition at this time.  If the measure passes, the transfer would occur on July 1, 2012.

 

CMCA Western Slope Chapter To Meet February 23 in Grand Junction

HB 1019, "Transferrng the Ports of Entry" will be the keynote topic at the upcoing meeting of the CMCA Western Slope Chapter.  Roxy Huber and Major Mark Savage will be the main speakers.  Also on the agenda is a discussion of Hours of Service by Harry Thomas, Colorado Investigator for the Federal Motor Carrier Safety Administration (FMCSA).  The session will be held at Wagner Equipment, 2322 I-70 Frontage Road in Grand Junction, CO.   The breakfast meeting gets underway at 7:00 am.   Please RSVP by February 17.

Commerce City Sales Tax Update

Greg Fulton with CMCA provided comments at the Commerce City Council meeting this week relating to the actions by their auditors to assess sales tax on settlements paid to owner-operators. The remarks were provided prior to an Executive Session held later in the evening between staff and the Council to discuss this matter.  Greg provided a letter to the Council from the American Trucking Associations indicating they were unaware of any community or state in the country that applied sales tax to these payments.  Greg noted that applying this tax on these settlements would be onerous and would put trucking companies in Commerce City at a major disadvantage to competitors outside of that jurisdiction. Rather than bear these costs, he stated that many companies who use these owner-operators would relocate.  This would result in a loss in businesses and jobs and would also lead to certain suppliers and vendors leaving.

The Council responded well to Mr. Fulton’s comments and expressed their appreciation of the industry and the need to resolve this issue as soon as possible. Our latest word from the city staff is that they are developing a proposal to be presented to the Council and our members for consideration. 

 

Unemployment Taxes Going Up

We’ve noted before that quirks in the funding of the nation’s unemployment compensation (UC) system act a drag on increased employment.  It happens like this:  In good times, the states, which run the basic system, don’t need to raise UC tax rates to fund current needs, and are reluctant to raise those rates to create a reserve for bad times.  Instead, during a recession, states are apt to rely on loans from the federal government to tide them over until unemployment once again slackens and new UC tax revenues from increased employment again fill the pot. 

This time, however, the much longer spell of high unemployment has changed the dynamics.  First, states have had to pay more UC benefits and for a longer time than usual.  Some forty states were obliged to borrow from the feds to keep their UC funds solvent.  But then most of those states weren’t able to pay off those loans on time.  As of last September, the federal government started to charge interest – about $1 billion of it for 2012 – on outstanding loan amounts.  Now more than half the states have to raise UC taxes – or figure out something else to do to both raise the money to cover the interest payments and continuing UC benefits.  In addition, the federal UC tax goes up for employers located in states that haven’t repaid the federal loans. 

The effects of all this can be startling.  In 2009, Florida employers paid $8.40 in UC tax per employee.  As of two weeks ago, they began to pay at the rate of $172 per employee.  In other states, where the UC benefits are higher, the rates also are higher.  In Rhode Island, for instance, although the average employer will see an increase per employee of only $23 this year, that addition will make the per-employee amount $753.  Some states are trying to find ways around further burdening their employers, but there seems no easy way out. Courtesy of ATA State Laws Newsletter.

 

Are You Wasting Money?

CMCA has more to offer than just training, technical assistance and legislative expertise.  We offer a number of discounts on programs for our members.  If you are not using them today, you may be wasting money.

Check out our attachment on “It Pays to Belong” to see our discount programs.  Call Tracy at 303-433-3375, ext. 103 if you are interested in learning more.

 

New Partnership with the CMCA and Freight Capital

The CMCA and Freight Capital, the leading invoice financing company in the trucking industry, have teamed up to get you paid in 24 hours for your unpaid freight bills.   Freight Capital will purchase your unpaid invoices and collect from your customers without you waiting for 30-60 days to get paid. Plus, they are offering freebies, discounts and more. New and established brokers and shippers can now accept the highest-paying loads from customers who take longer to pay, and get paid the next day.

Freight Capital goes beyond just getting you paid in 24 hours. With over 20 year’s industry experience, we are committed to delivering cash flow solutions, customized to your trucking business.  With additional services like the FLASH Fuel Savings Card, you’ll get fleet discounts of up to 50¢ per gallon when you use the card, saving you precious time and money. Plus, CMCA members are instantly approved to receive the exclusive FLASH Fuel Savings Card for FREE.

In support of this great partnership, Freight Capital is sponsoring a training event for CMCA members on January 24th, 2012 from 8:00 am-12:00 pm.  Please come and join us for a FREE breakfast!  Topics of the seminar include Accounts Receivable Financing, FLASH Fuel Discount Cards, and Goal Setting Strategies for 2012.  Each company represented at the meeting will be awarded a FREE 2-hour coaching session with Action Coach, Steve Waymel.  Steve has served the trucking industry in a multitude of capacities over the last 30 years and is excited about the opportunity to meet with each of you.  Details of the seminar are on the CMCA website.

For information on how Freight Capital’s services benefit your trucking company and learn more about the freebies, discounts and more that are available to CMCA Members, visit the affiliates page of our website or  www.Cash4Fleets.com  or, contact our local Colorado Representative, Melissa Forman at 888.561.7463.

 

Coming Events

Date	Event
February 2	Safety Council "Bosses Day" Luncheon
February 10	Legislative & Govt. Affairs Committee Meeting
February 14	Maintenance Council Meeting
February 15	Executive Board & General Board Meeting
February 23	West Slope Chapter Meeting, Grand Jct, CO
February 24	Legislative & Govt. Affairs Committee Meeting
March 1	Safety Council Meeting
March 9	Legislative & Govt. Affairs Committee Meeting
March 13	Maintenance Council Meeting
March 21	Executive Board and & General Board Meeting

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