CALIFORNIA TRUCKING ASSOCIATION

Transcription

1 CALIFORNIA TRUCKING ASSOCIATION 2018 LEGISLATIVE REPORT CTA LEGISLATIVE CONTACTS Matt Roman Director of Legislative Affairs (916) Eric Sauer Senior Vice President of Government Affairs (916) Chris Shimoda Vice President of Government Affairs (916) LEGISLATIVE YEAR IN BRIEF 2018 closed out one of the most active legislative sessions in recent memory. Over the last two years, Legislators have crafted new funding mechanisms for the state s infrastructure, created a funding plan for Cap and Trade, ended cash bail, passed wildfire and net neutrality legislation, passed a 100% renewable energy requirement, and much more. CTA and its members were able to work with Legislators and educate them on the importance of the industry even as Democrats hold a 2/3rds advantage in the Assembly and one shy in the Senate. Over the last two years the industry has seen numerous wins including: Inclusion of the Useful Life amendment and tying ARB compliance with the Truck and Bus Rule in the infrastructure package (SB 1) Increased funding for new truck incentives (Cap and Trade) Protecting companies who have spent money to comply with California s strict air standards from those who look to skirt the law. (AB 2564) Killing and amending legislation that looks to increase the regulatory burden already strangling California trucking (SB 210, SB 1402, & AB 327) Worked with business coalitions to kill all bills identified as Job- Killers by the California Chamber of Commerce in 2018 Without the help of our members, these wins would not have been possible. From building relationships with local legislators, to inviting legislators and their staff to tour their facilities, and taking the time to actively lobby for the industry in Sacramento, our members have built an effective advocacy arm to represent the industry. As we approach 2019 with a new administration and possibly tougher numbers in the Legislature, the involvement of CTA membership will become even more important. CTA LEGISLATIVE REPORT SYNOPSIS In a legislative year, the California Legislature will review thousands of bills. This report will provide a brief sample of the many bills that CTA staff tracked and in some cases actively lobbied on behalf of our membership in 2018.

2 BILLS SPONSORED BY CTA AB 2564 (Rodriguez) Civil Penalties: glider vehicles CTA Position: Sponsor Status: Signed and Chaptered In November of 2017, the Federal Environmental Protection Agency (EPA) announced that it was proposing to rollback restrictions on heavyduty glider vehicles. A glider vehicle ( glider ) is a truck that utilizes a previously owned powertrain (including engine) but which has new body parts. Governor Jerry Brown- Governor s Portrait California State Capitol CALIFORNIA LEGISLATIVE LEADERSHIP Governor Edmund G. Jerry Brown, Jr. (D) Lieutenant Governor Gavin Newsom (D) Speaker of the Assembly Anthony Rendon (D- 63 rd District) Assembly Republican Leader Brian Dahle (R-1st District) Senate President pro tempore Toni Atkins (D-39 th District) Senate Republican Leader Patricia C. Bates (R- 36 th District) Engines utilized in gliders typically lack modern emission controls, resulting in up to 450x the diesel particulate matter of a compliant engine. These gliders, already illegal in California as they do not meet California s strict in-use regulations, could have overburdened the State s enforcement staff. AB 2564 will provide a strong deterrent for companies looking to circumvent State regulations by increasing the penalty to operate a glider to $25,000 per violation. In recent years, CTA members have spent billions to upgrade equipment to comply with California s tough air quality regulations. The California Air Resources Board (CARB) estimates if only 7% of trucks operating in California are non-compliant gliders, it would eliminate any benefits of California s diesel regulation program. AB 2564 was signed into law by Governor Brown and received unanimous support throughout the legislative process. ISSUES UNRESOLVED Dynamex Most disappointingly, the Legislature refused to act on a California Chamber of Commerce led effort to pause the Dynamex decision that threatens to upend nearly a century of independent contractor law. Unfortunately, due to heavy labor opposition, Assembly and Senate leadership refused to take up the issue in the final month of the legislative session. On the other hand, the mobilization of a coalition of nearly 100 businesses and associations undoubtedly prevented labor from moving to codify the Dynamex decision in statute as they had intended to do this session. Actions by CTA to support this effort included: CTA financial support of the Chamber s public relations effort, the I m Independent coalition ( This effort will remain active during recess. CTA s own public relations contractor is also working on another round of owner-operator videos that we will post on our public facing PR site ( CTA s grassroots activities to push the Chamber s proposed pause of the Dynamex decision included 1,162 petition signatures, 159

3 s generated to legislators, and a legislative tour with Assemblymember Blanca Rubio at CTA Member KKW Trucking s terminal in Fontana. The business coalition will soon regroup to discuss strategies for the legislative recess leading into the start of the 2019 session in January. CTA will continue to pursue an aggressive legal strategy. BILLS SIGNED BY THE GOVERNOR Environmental Bills Rear of the California State Capitol: Pre-Remodeling DID YOU KNOW? There were 2,637 bills drafted in 2018, the second year of the Legislative Session The official motto of the Assembly is Legislatorum Est Justas Leges Condere which from Latin translates to It is the Duty of Legislators to Make Just Laws AB 2061 (Frazier) Near-zero-emission and zero-emission vehicles CTA Position at Introduction: Support Current CTA Position: Support AB 2061 will address the competitive disadvantage fleets operating advanced technology and alternative fueled trucks face due to reduced payload. Natural gas storage tanks, batteries and fuel cells all increase the weight of commercial trucks, which in turn decreases the weight allowed for cargo to stay under the maximum allowable vehicle weight of 80,000 lbs. In 2015, the Federal Highway Bill allowed for a 2,000 lb. weight exemption for natural gas commercial vehicles on the national highway network. It is our understanding that electric vehicle advocates intend to pursue similar federal provisions. For commercial vehicles in California to take advantage of the Federal provision, similar exemptions must be adopted for state and local routes. AB 2061 authorizes trucking companies in California to take advantage of the Federal weight exemption. The official motto of the Senate is Senatoris Est Civitatis Libertatem Tueri which from Latin translates to It is the Duty of the Senators to Protect the Liberty of the People.") Safety/Human Resource Bills: SB 1402 (Lara) Labor contracting: customer liability CTA Position at Introduction: Oppose unless amended Current CTA Position: Neutral SB 1402 initially began the year as a very broad attack on port drayage operators, creating joint liability for cargo owners who contracted with truckers who had adverse Berman Hearing decisions. Operators who lost at the Department of Labor Standards and Enforcement (DLSE) would be placed on a list of moor carriers who would be subject to joint liability. Accordingly, CTA took an oppose unless amended position and put together a coalition of over 30 associations and businesses to oppose the measure. CTA s Intermodal Conference approved amendments which created an extensive due process for accused motor carriers and a grace period

4 CALIFORNIA TRUCKING FACTS 8 out of 10 California communities are serviced exclusively by trucks. Trucks transport almost 90% of total manufactured tonnage in CA. As of 2017, there are 136,950 trucking companies located in CA, primarily small locally owned businesses. New technology diesel truck engines produce 99% fewer particulate matter (PM) and 97% fewer nitrogen oxides (NOx). Truckers spend $1 billion a year in the cleanest, more efficient equipment available. The trucking industry in CA paid approximately $3.2 billion in federal and state roadway taxes in for cargo owners to address contract issues tied to operators who would be placed on the list. The bill s author ultimately accepted all of CTA s amendments, resulting in CTA moving to a neutral position. SB 1402 will take effect in the beginning of AB 2511 (Chau) The Parents Accountability and Child Protection Act CTA Position at Introduction: Oppose unless amended Current CTA Position: Neutral AB 2511 initially set a new precedent by going against established Supreme Court Case law, requiring an ID to be presented for the delivery of anything prohibited for sale to a minor under 18. Under Rowe v. New Hampshire Motor Carrier Assoc. those registered as motor carriers cannot be subjected to enforcing policing powers. CTA worked with the author to ensure that the established practice was upheld and AB 2511 did not create new liabilities or enforcement duties for our members. AB 375 (Chau)/SB 1121 (Dodd) Privacy Bill Package Current CTA Position on Package: Oppose unless amended Current Position on SB 1121: Support In June, the Legislature quickly passed a landmark privacy bill in AB 375 (Chau) establishing the California Consumer Privacy Act (CCPA). Unfortunately, this legislation created several problematic issues for doing business in California, including a private right of action for data breaches and fines for each record lost. CTA worked with a coalition of businesses to ensure several of those concerns were addressed in SB 1121 (Dodd). While there is still work to be done to fix the CCPA, staff will continue to work on these issues with the coalition as we enter the new legislative cycle. SB 1236 (Monning) Commercial driver s license: education CTA Position at Introduction: Neutral Current CTA Position: Neutral SB 1236 continued with efforts from previous years to codify FMCSA s entry-level driver requirements, while also including a behind-the-wheel (BTW) training requirement of 15 hours for a Class A CDL. CTA worked with Sen. Monning last year on SB 158, when the BTW requirement was 30 hours, to ensure that Employer Testing Programs (ETP s) only had to comply with 15 hours of BTW, ensuring CTA remained neutral on the bill. When the contents of SB 158 were reintroduced this year as SB 1236, CTA remained neutral on the bill since the language CTA negotiated in the previous year was in the new bill. As negotiations

5 progressed throughout the year, the 15 hour requirement CTA originally negotiated for was broadened for use by all training programs for Class A CDL s. The Senator s interest in passing a BTW requirement stemmed from an accident in his district. A 25 year old Santa Cruz resident was killed and several other motorists were injured after a big rig truck driver lost control of their vehicle, the driver had only held a CDL for 3 months. BILLS THAT DIED: Rotunda of the California State Capitol CALIFORNIA LEGISLATIVE HISTORY The first legislative session met in San Jose in There were 16 Senators and 36 Assemblymembers. In 1856, the legislature paid architect M.F. Butler $1,500 for his design of the current Capitol in Sacramento. The first state road was authorized by the legislature in 1895 for the Lake Tahoe Wagon Road, now part of US 50. In 1897, the Bureau of Highways, the forerunner of Caltrans, was established. In 1962, Pat Brown defeated Richard Nixon for the Governorship of California, leading Nixon to quip to a perceived unfriendly media: You won t have Nixon to kick around anymore! AB 327 (Gipson) South Coast Air Quality Management District: fleets CTA Position: Neutral AB 327 (Gipson), which would have allowed South Coast AQMD to update their existing fleet rules to require the best available technology for public fleets, stalled in the Senate Transportation Committee. AB 327 was gutted and amended early in June based largely on Asm. Gipson s bill from 2017, AB 302. CTA had previously opposed AB 302 because it not only sought to apply its existing rules to public fleets, but also to commercial heavy duty fleets. CTA staff worked with Asm. Gipson and South Coast AQMD s staff to narrow the bill and ensure that it only applied to fleets currently regulated under South Coast AQMD s existing fleet rules. With that change, CTA became neural on AB 327. Public agencies and transit districts registered their opposition and worked heavily against the bill. Given the opposition, Senate Transportation Chair Sen. Jim Beall, urged the committee to not move the bill and urged the author to go through the full legislative process in the next year. AB 1745 (Ting) Vehicles: Clean Cars 2040 Act CTA Position: Neutral AB 1745 would have created a ban on internal combustion engines from being registered in California by Heavy duty commercial vehicles would be exempted from the bill, even with the exemption, CTA monitored the bill closely once it was introduced. AB 1745 was pulled from the Assembly Transportation Committee before it could be heard. AB 3080 (Gonzalez Fletcher) Employment discrimination: enforcement CTA Position: Oppose

6 AB 3080 would have banned the inclusion of arbitration agreements as part of a condition of employment, even though they have proven to provide a beneficial and cost effective forum to resolve disputes for both employees and employers. CTA opposed AB 3080 with a coalition of 48 other business groups from around California. California State Assembly Chambers TRUCKING FACTS Total trucking industry wages paid in 2016 exceed $36.8 billion, with an average industry salary of $52,329 Heavy and tractor-trailer truck drivers held 130, 640 jobs in California In 2016, California trucking industry paid $3 billion in federal and state roadway taxes The large truck fatal crash rate has dropped 71% between 1975 and 2015 Sulfur emissions from diesel engines have been reduced by 97% since 1999 In the Governor s veto message, he said, Since this bill plainly violates federal law, I cannot sign this measure. Governor Brown vetoed a similar bill in 2015, stating that he would like to have direction from the U.S. Supreme Court. In 2017, the Supreme Court heard Kindred Nursing Centers Ltd. Partnership v. Clark, and in a near unanimous decision rejected the assertion that the Federal Arbitration Act has no application to the formation of contracts, preempting AB SB 210 (Leyva) Heavy-Duty Vehicle Inspection and Maintenance Program CTA Position: Oppose The bill would have created a mandatory smog check program. CTA worked with the Assembly Transportation Committee on SB 210 (Leyva) to ensure the bill wouldn t move forward in its current form. The amendments in the bill would give ARB unlimited authority to impose fees while also including no sunset on PSIP. The author agreed to pull the bill after CTA expressed widespread concerns with the lack of detail provided by the author and ARB while drastically expanding ARB authority with no checks and balances built in for the Legislature. CTA anticipates a similar bill being introduced next year. The Coalition for Clean Air published an alert to their members about SB 210 and highlighted CTA as the powerful CTA, illustrating the positive reputation CTA has among the Legislature as the most reasonable people in the room. In 2016, 1 out of every 20 jobs in California were in the trucking industry